Headache isn't it :)

YSRL

xylophone wrote: »

Is your wife employed? If so, is there no company pension to which she can contribute?

Currently yes, although she is due to finish early next year and yes she does have a pension from the education authority (Primary School Teacher).

darkidoe

Before you even look to investing, you should make sure your cash pile is working as hard as they can in High Interest paying accounts. Between you and your OH, you should be able save up to about £100,000 in accounts paying 3/4/5/6% interest. Also note the FSCS compensation scheme of £75,000 per financial institution which would make spreading out the cash in multiple institutions safer.

Start some reading into investing for retirement: http://monevator.com/how-to-retirement-plan/
Consider saving into pensions for Tax benefits: http://monevator.com/sipps-vs-isas-best-pension-vehicle/

atush

YSRL wrote: »

No, we don't and unfortunately I didn't (against the accountants advice)

Why on gods green earth would you pay for a professional and ignore their advice?

This was a VERY poor move on your part. As the contributions would have counted as a business expense so would have lowered your company tax? Which could have paid for them?

And with no pensions I agree with whoever above said your own property and 250K is not enough to retire.

You need to go out and get a job, even part time, and put 100% of your income into a pension. And pay NI.

How many years have you got? Your wife? If your wife employed? Does she have a pension?

atush

YSRL wrote: »

Currently yes, although she is due to finish early next year and yes she does have a pension from the education authority (Primary School Teacher).

Open a personal pension for her. And put in every penny of her income not taken up by this years allowance (she will have to ask the TPS how much has gone in this year from them).

And continue paying into this pension each year. EVen once she stops working (which I cant see her being able to do unless you get a new job).

Given her TPA wont come due to at least age 65, there is a long time to find income for?

YSRL

atush wrote: »

Why on gods green earth would you pay for a professional and ignore their advice?

This was a VERY poor move on your part. As the contributions would have counted as a business expense so would have lowered your company tax? Which could have paid for them?

And with no pensions I agree with whoever above said your own property and 250K is not enough to retire.

You need to go out and get a job, even part time, and put 100% of your income into a pension. And pay NI.

How many years have you got? Your wife? If your wife employed? Does she have a pension?

There are reasons why I chose not to follow the accountants advice - a period of illness made long term plans low on the priority list and to be honest played a major part in ending up where we are now. But, hopefully that's sorting itself out now.


I take your point about the OH pension and will pursue that.


I may go back to plan A, which is renovating a property every couple of years to add to the income pot, but will definitely look at spreading it around for the highest returns in the short term.


Thanks for your input.

atush

Did you sell yoru company this tax year? If so, you could still out this years oncome in a pension (but you c ant run it thru the company if it is fully wound up).

Just a shame you didnt come here until after you sold up?

YSRL

atush wrote: »

Did you sell yoru company this tax year? If so, you could still out this years oncome in a pension (but you c ant run it thru the company if it is fully wound up).

Just a shame you didnt come here until after you sold up?

Yes, it was closed in this tax year and I'm looking into that with the accountant.

Can I ask another question then

Let's say that I'm going to do some part time work in order to free up £100K, with a view to investing that for 20 years.

Would a product like the Vanguard Lifestyle 60 be a good move?

Linton

YSRL wrote: »

Yes, it was closed in this tax year and I'm looking into that with the accountant.

Can I ask another question then

Let's say that I'm going to do some part time work in order to free up £100K, with a view to investing that for 20 years.

Would a product like the Vanguard Lifestyle 60 be a good move?

Better than many other things:
- reasonably well diversified
- sensible regulated investment
- no effort
- compatible with a long term buy and hold strategy

not as good as it could be:
- 40% bonds seems high for a 20 year investment
- the equity side is almost entirely in large mature companies in USA/UK/Euro/Japan

YSRL

Thanks Linton

So given the 'no effort' is very appealing, is there anything else that you think would be worth a look?

I am considering an IFA, but just can't really see the big benefit, when there are off the shelf products like that.

Eco_Miser

Vanguard Lifestyle 80 and 100 have more equities and less bonds.
BlackRock Consensus and L&G Multi Index are similar funds from other providers.