Salary sacrifice scheme

jamesd

kingrulzuk wrote: »

I just earn just over 2k a month after tax. and i save 1.5k or more every month.
Im 31 now and when i was 18 my Target for 10 years was to save 100k
and i saved just under 300k. which i invested outside uk.

Congratulations! That is very impressive! I think that you do not need us to tell you how to invest.

atush

I thought half term was over

bowlhead99

kingrulzuk wrote: »

To be honest Sir for last so many years im getting good interest rates so i have been investing and saving.

People can make good money if they know what they are doing.

People can make more good money if they save on their national insurance bill and their income tax bill and get free money from their employer added to their pot of savings and investments.

"More good money" is better than "good money", right? You are throwing away cash.

The tax man must love you if you are choosing to take a higher headline salary so that you can give him more tax and NI instead of keeping the money from him inside a pension wrapper.

The rest of society will love you because they pay lower tax bills because HMRC is collecting more from you than it needs to from you, so can afford to tax everyone in the country a fractionally lower tax rate than it would have otherwise had to.

Your employer must love you if they are willing to write a cheque every month to buy you a pension investment when they do it for everyone else, but when they go down the list of names they can just not bother to pay yours.

Your co-workers must love you because the money your employer does not have to spend on buying you a pension that you reject means the employer has more money to go around to spend on pay rises for all of them and to give more of them jobs. So the money goes into their pockets and not yours.

Basically, by giving up all the free money you are keeping everyone else very happy indeed. So, a job well done. When you retire with £900k in the bank instead of £1,000k in the bank because of the extra taxes and NI you paid and the free money that you gave up to let your employer give it to everyone else, you can be happy that the £100k was well spent. We will all still be loving you for it. Effectively your success at your own personal investments is shared by all of us because you can afford to live without the free money or the tax savings, and give them to us instead.

I have no complaints with your approach.

kingrulzuk

atush wrote: »

To be honest sir, you are talking out of your behind.

Interest rates on cash have been abysmal

Im sorry sir but i think u should get out of ur nut shell and look at the outside world.

In last 10 years My FD has compounded interest from 9% to 14%. This would never happen if i was saving in UK.

atush

And my pensions and invesmtent trusts are up over 50%

kingrulzuk

atush wrote: »

And my pensions and invesmtent trusts are up over 50%

WoW welldone sir

kangoora

kingrulzuk wrote: »

Im sorry sir but i think u should get out of ur nut shell and look at the outside world.

In last 10 years My FD has compounded interest from 9% to 14%. This would never happen if i was saving in UK.

For the last year (only) I'm looking at 12.7% return currently.

Over 10 years it's been circa 50% and if I just looked at the last 5 years probably in excess of 80% (at least) since the last market drop (never really looked at 5 year performance).

In that period the government has kindly donated 42% of the capital invested, if I was a basic rate tax payer the government would have 'only' contributed 32% of my capital using salary sacrifice.

atush

I think there is no point Kangoora.

He has asked a question and is now roundly dismissing the answers. Like kicking a dead horse.