Pension pot for £15k

jamesd

robatwork wrote: »

I wonder if any advisors would ever recommend spread betting?

I'd be surprised if they did for more than a tiny and usually zero portion of their customers, even though the purpose in this case is risk reduction. Spread betting is too high risk for most because of the leveraged loss potential, even though that particular risk doesn't exist for options contracts.

One problem with spread betting is that like day trading it can be addictive due to the emotional reactions. The potentially increased gains and losses of spread betting can make this even worse. In such cases, or even just with poorly considered risk management, it can be a very fast way to losing all available money.

robatwork

Pincher wrote: »

Very curious how you will put it to them.

It's tricky for teenagers now, as going to university will in most cases give them a huge debt, and won't guarantee they will be better off than if they left school at 18 and started work. 4 years head start up the management chain at a large company can be tempting even if they start lower than a graduate would.

I will be honest and explain if they are going to bother with Uni at all then make it a proper degree. I won't list all the topics for fear of offending anyone, but let's say science is in, and media studies ain't.

I started work at 22 with a multinational company and can't understand why the 22 year old me didn't join the final salary scheme until I was 28 - perhaps my daddy didn't give me good advice ...so I am trying to give them all the facts about money, and the biggest "fact" is that compounding doesn't half work well over 45 years when sensibly invested.

I also want to explain to them why a career that may have an outwardly lower salary expectation (teacher, civil service, nursing) can in fact be a very lucrative choice when you pop out the end of the mincing machine.

kidmugsy

robatwork wrote: »

I also want to explain to them why a career that may have an outwardly lower salary expectation (teacher, civil service, nursing) can in fact be a very lucrative choice when you pop out the end of the mincing machine.

True; as long as all that backpay gets handed over.

greenglide

as long as all that backpay gets handed over.

Some (but not all) of these groups get paid considerably better than they used to. The final salary pension schemes have made these doubly advantageous.

Not that I am jealous.

Pincher

robatwork wrote: »

I started work at 22 with a multinational company and can't understand why the 22 year old me didn't join the final salary scheme until I was 28.

My first proper job was £13k a year with the second largest main frame computer company next to IBM. It's nowhere now. I did join the Final Salary pension, which was promptly refunded after they made almost everybody redundant. 25 years later, the building is still empty, like there is a curse on the place.


The trivial amounts from the early days were far better used to socialise, pay rent etc. When my salary was £30k+, and the company puts in 9%, that's the time to really cram it in. I could spare the money then. Trying to save when I had £13k coming in was just masochism. No need for it.

Daniel54

robatwork wrote: »

It's tricky for teenagers now, as going to university will in most cases give them a huge debt, and won't guarantee they will be better off than if they left school at 18 and started work. 4 years head start up the management chain at a large company can be tempting even if they start lower than a graduate would.

I will be honest and explain if they are going to bother with Uni at all then make it a proper degree. I won't list all the topics for fear of offending anyone, but let's say science is in, and media studies ain't.

I started work at 22 with a multinational company and can't understand why the 22 year old me didn't join the final salary scheme until I was 28 - perhaps my daddy didn't give me good advice ...so I am trying to give them all the facts about money, and the biggest "fact" is that compounding doesn't half work well over 45 years when sensibly invested.

I also want to explain to them why a career that may have an outwardly lower salary expectation (teacher, civil service, nursing) can in fact be a very lucrative choice when you pop out the end of the mincing machine.

Good topic.

We have a specific recruitment scheme for bright 18 year olds who choose not to go to university,which is a legitimate choice.But minimum requirements are 3 A grades in academiic subjects ( Science/maths/languages)

Not sure they will be higher up the ladder when our graduate intake joins ( although they will know the business better).Realistic minimum for graduate entry is a 2.1 or better from a Russell Group university or Oxbridge.

Both of mine are in their 20's after degrees and post graduate occupational qualifications.Pension discussions were actually easy:

Son: I know money is tight but put in maximum to match employer's contribution,otherwise you are thowing away free money and the tax relief on what you put in .This was followed by a quick run through the benefits of compounding tax free return and pound/cost averaging over investment cycles

Daughter: I know a teacher's pay is nothing special ,but it is a flexible career and the pension scheme is an important part of your overall pay.Make sure you join it.

No discussion about what their financial position might be in 40 years time -the key point was to help them recognise the importance of investing as early as possible in their future.To be fair,they were both there anyway and just needed my endorsement.

Above all I hope to have taught them that although money is important,there are many working years ahead and to do something you enjoy and are good at is paramount.

Which brings us back to the point that a good education gives children choices which are not available to others,and that life can be difficult for those without qualifications or demonstrable abilities.

robatwork

Pincher wrote: »

My first proper job was £13k a year with the second largest main frame computer company next to IBM. It's nowhere now. I did join the Final Salary pension, which was promptly refunded after they made almost everybody redundant. 25 years later, the building is still empty, like there is a curse on the place.

OK a no-google challenge.

Unisys. Sperry. Digital. Burroughs.

As to the building ... is it the one in Harlesden?

kidmugsy

Daniel54 wrote: »

We have a specific recruitment scheme for bright 18 year olds who choose not to go to university,which is a legitimate choice.But minimum requirements are 3 A grades in academiic subjects ( Science/maths/languages)

Firms had that sort of thing when I was at school. I wrote to one and their advice was unambiguous.

You are just the sort of lad we'd like, but it'll be in your own interest to go to university.

Which, in those days, it almost certainly was.

gadgetmind

kidmugsy wrote: »

Which, in those days, it almost certainly was.

And still is as long as you avoid arm-wavey non subjects. Our starting salary for grads is now around £30k, with a fast-track for the first two years regards salary and opportunities.

Not too bad for engineering jobs in a fairly low cost northern city.

Pincher

robatwork wrote: »

OK a no-google challenge.

Unisys. Sperry. Digital. Burroughs.

As to the building ... is it the one in Harlesden?

It was:


1. IBM
2. Burroughs
3. Sperry


And then Burroughs merged with Sperry to form Unisys.
We had an internal competition to come up with a name for the new company. It was actually quite high profile for a while. The Unisys logo was on TV a lot giving racing stats and sports stats.


DEC Digital Equipment Corporation was in mini-computers (VAX), not main frame. Bought by Hewlett Packard, which in turn was bought by Compaq.


Yes, the building is now the Sunday Market, opposite Wembley Point, which is next to Stonebridge Park train station.


I thought I had done the right thing. Big American company, Final Salary scheme. After three years at the right grade, I would have got a Vauxhall Cavalier SRi. It only takes a mortgage and a wife to complete the banality.


The subsidised canteen on the third floor had a milk frothing machine to die for. Sigh.