Investment strategy £320K

atush

cnu wrote: »

Firstly I'm excited to have found this forum and Greetings to all!

How about buying Gold for say 5 to 10K? May be extend this to other commodities "other precious metals" or daily consumables such as onions, wheat etc.,

Get excited to be elsewhere. This isn't a metal ramping forum/

atush

TheTracker wrote: »

I've seen that survey referenced several times. I don't hold great faith in a survey produced by an insurance company. The numbers don't hold up. Official figures show the median gross salary for a couple with two kids with both parents working (!) is 44k. Yet apparently it costs 440k to raise them.

to age 18, which means over 18 years. And doesnt' include receipt of CB for 18 yrs. So deduct that.

And yes, it is that expensive. and no, I dont work in an insurance company.

For a start I have had larger cars because of kids (and more cars- we needed 2) and larger houses, and holidays cost double or more, etc it goes on and on. I even had to move a few times becuase of having kids (and wouldn't have if not for).

colsten

TheTracker wrote: »

I've seen that survey referenced several times. I don't hold great faith in a survey produced by an insurance company. The numbers don't hold up. Official figures show the median gross salary for a couple with two kids with both parents working (!) is 44k. Yet apparently it costs 440k to raise them.

Presumably you aren't seriously comparing the gross salary for 1 year with the total cost of raising a child over 21 years.

I have no beef with the numbers in that article but if you think they are wrong, what are your alternative numbers, for a family living in London?

TheTracker

colsten wrote: »

Presumably you aren't seriously comparing the gross salary for 1 year with the total cost of raising a child over 21 years.

I have no beef with the numbers in that article but if you think they are wrong, what are your alternative numbers, for a family living in London?

No, I'm comparing the 21 years of salary with the cost of raising a child. The numbers in the article don't add up for me. It says 28% of a couple's income goes to raising a child.

227266 / 21 / .28 = £36,800pa after tax for a couple per child.

The study appears to be nationwide not London.

colsten

Your formula is very simplistic and also ignores that the 28% is an average. I agree the numbers are eye watering but based on my own experience I can't see much wrong with the individual line items.

The reason why I asked for your alternative numbers for a family living in London is that it is fair to assume from what the OP posted that his family will live in London. I note you still only criticise but do not offer alternative numbers, particularly for a family living in London.

atush

andrewm1981 wrote: »

I am tempted to invest a small amount in gold. But not onions. Or tulips.

I may be hugely mistaken, but am I correct in thinking that pension contributions reduce your taxable income? I.e if my pretax income is £45k, then I'll essentially pay 40% tax on all profits from buy-to-let. However if I contribute 25% of my salary into my workplace pension through AVCs, then my income essentially drops to around £34k, and so I would be taxed just 20% on my buy-to-let income up to £45k?

If I'm right (and haven't made this up) then this would seem to be a sensible option?

Ryan, thanks very much for the detail, I will investigate this much further :-)

Andrew

Yes, if you are a HRTaxpayer then yes, you'd pay 40% on your rentals. Once you have deducted costs. but dont forget all those costs as you might have very little income indeed?

And yes, if you were determined to go down the BTL route (and I still suggest you dont- at least now, and not in mitcham) then I would contribute enough to pensions to take you put of HRT enough so that any rental income is taxed at BR. But still dotn think it is the most sensible option.

why not consider buying a larger place and making a self contained unit in it? If you live in the property you will get CGT exemption which will help. And if it is a studio and you charges are under the rent a room scheme, you will not pay tax?