London Has Peaked

lisyloo

To which my obvious reply was 'If I die early, that is the tragedy, not that money was lost in a pension'!

If you have a defined contributions scheme rather than a defined benefits scheme i.e. a pot of money, then it isn't lost of death (except of course to the deceased). The money passes on to dependents/beneficiaries.

chucknorris

lisyloo wrote: »

If you have a defined contributions scheme rather than a defined benefits scheme i.e. a pot of money, then it isn't lost of death (except of course to the deceased). The money passes on to dependents/beneficiaries.

I know how DC pensions work (I also have a SIPP and an old DC pension fund), but the pension that my wife was referring to was/is additional pension purchase in the teachers' pension fund, and it does NOT pass on to anyone else. What my wife was referring to was a situation such as dying around 10 years after retiring (at state pension age).


EDIT: Fixed pension like I bought (similar to an annuity) from my point of view is a hedge against living longer than expected, it allows me to draw down more capital. If I did discover that I was going to die early, the pension loss will be the last thing on my mind.

MFW_ASAP

chucknorris wrote: »

That reminds me of one day when my wife said 'be careful of investing too much in your pension, in case you die early'. To which my obvious reply was 'If I die early, that is the tragedy, not that money was lost in a pension'!

It reminds me of a discussion I had with one of the bears on here where I said I had bought my dream house (in 2010) and was going to sell it around the time I retire in 22 years time and downsize to a cottage, using the equity from the dream house to buy the cottage outright and use the a tax free remainder to invest for retirement.

He came up with all sorts of scenarios where I could become unstuck and I unpicked each and every one of his arguments (with a combination of insurances, emergency savings, career planning, etc.). He got increasingly mad with each dismissal that the next scenario became more extreme than the last.

By the end of the discussion the earth was destroyed by an asteroid, which admittedly I didn't have financial planning in place to deal with, so he 'won' the discussion. LOL :rotfl:

chucknorris

MFW_ASAP wrote: »

It reminds me of a discussion I had with one of the bears on here where I said I had bought my dream house (in 2010) and was going to sell it around the time I retire in 22 years time and downsize to a cottage, using the equity from the dream house to buy the cottage outright and use the a tax free remainder to invest for retirement.

He came up with all sorts of scenarios where I could become unstuck and I unpicked each and every one of his arguments (with a combination of insurances, emergency savings, career planning, etc.). He got increasingly mad with each dismissal that the next scenario became more extreme than the last.

By the end of the discussion the earth was destroyed by an asteroid, which admittedly I didn't have financial planning in place to deal with, so he 'won' the discussion. LOL :rotfl:

You could have booked a provisional seat in geneer's tardius.


EDIT: Although I think you and I would probably be the least welcomed by him.

Bubble_and_Squeak

padington wrote: »

There is a pretty simple rule, buy within your means occording realistic appreciation of interest rates and other expenses. Usually this means have a room you can rent out in an emergency, so be prepared to have to sleep in the front room of a one bed flat if necessary.

Anyone that doesn't plan for a rainy day obviously could get wet but that's a given right ?

As long as you have a back up plan, you can ride the market out. From that point it's pretty simple, just don't sell at a loss.

as they say in edmonton street slang SKEEN!

Bubble_and_Squeak

Libber wrote: »

That's odd given that the BTL phenomenon didn't really pick up steam until the mid/late 90s when the renting laws got rewritten. Why was your aunt buying in at a time when the private rented sector in the UK was basically dead?

i guess so
greek cypriots have always been obsessed with property ownership

Bubble_and_Squeak

robmatic wrote: »

The important things to remember about this anecdote are:

a) it's probably not true
b) property prices have actually risen massively since the late 80s, so buying into that bubble would have been a reasonable decision

it is true
i think it was the hike in interest rates that killed her
history often repeats itself
QE2

Bubble_and_Squeak

lisyloo wrote: »

Long term maybe, but sometimes people - die, divorce, split up, get relocated, get made redundant and have to move for work etc. etc.

I think my perspective is different from some because I've had 2 colleagues die (mid 40's) and have also seen sickness and redundancy,
Sometimes it appears that young people think these things don't really happen and are just made up.

its off topic but may i just say cutting your intake of animal protein to virtually zero will do wonders for your health

Bubble_and_Squeak

padington wrote: »

Your aunty said your father should buy then you say your aunty bought ?

Hmmm ...

they both already owned
my parents bought in walthamstow in 1979 £25k
she in chingford
my aunt was advising my father to buy as an investment, like she was about to do

Jack_Johnson_the_acorn

Bubble_and_Squeak wrote: »

they both already owned
my parents bought in walthamstow in 1979 £25k
she in chingford
my aunt was advising my father to buy as an investment, like she was about to do

Are you still planning on buying a home this year?