Apparently pensions aren't worth it?

fred246

The best thing you can do is to read a book on investing. That gives you the knowledge that you need to be able to sleep at night with so much invested AND it gives you the ability to avoid an IFA with all their silly costs. My only regret is that I read a book too late in life. I always think of BTL as a bit of an all eggs in one basket scenario unless you are lucky enough to own loads of properties.

Pennywise

seven-day-weekend wrote: »

There is always the Bank of Mattress....

Until it's value is obliterated by hyper inflation caused by Corbyn's crazy spending sprees and unlimited debt he'll run up.

kidmugsy

seven-day-weekend wrote: »

Yes, nice Mr Corbyn could well do that. But then again he could generate a swingeing tax on any other investments I may have as well.

He will probably aim at property because (i) you can't move that abroad, and (ii) he would hope thereby to sow up the votes of the people to whom he will have transferred your property rights i.e. tenants.

A tax on the dividends from shares could vanish in the blink of an eye: Lloyd George's confiscations lasted on until the 1980s. Some fragments linger still.

kidmugsy

Pennywise wrote: »

Until it's value is obliterated by hyper inflation caused by Corbyn's crazy spending sprees and unlimited debt he'll run up.

Gold sovs, and not a word to anyone.

Malthusian

Pennywise wrote: »

I also don't think clients want to pay me my hourly rate for telling them some generic pension advice when they could pay the same (or less) for a IFA to give them the proper advice they need.

An IFA won't provide advice on a contribution of £20,000. They will tell the OP they can't justify their minimum fee and direct them to robo-sales or another non-advised solution. Otherwise I'd've suggested seeing an IFA as well.

This is assuming the OP doesn't have other forgotten pension funds they haven't mentioned, but we only have what the OP has written to go on.

The OP should already be paying an accountant to discuss the most tax-efficient way to get money out of the company (salary, dividends, etc) and pension contributions are part of that conversation.

Unfortunately it is true that many accountants are years behind the times and are still telling company owners that "pensions ain't worth it", but the OP is shaking up his affairs and there is no reason he should stick with many accountants.

fifeken

dont_use_vistaprint wrote: »

I never bothered with a private pension until 2 years ago and I'm much older than you ! I was dead against locking money away and making it inaccessible until I'm old and its growth at the mercy of others performance. I used any money I made to travel, start businesses, buy properties and give my kids what they needed to get good careers , start businesses etc. I prefer to use money than hoard it away entrusted with dodgy boards/execs of large companies.

Everyone here will likely tell you that's wrong and get yourself a pension.

My take on it is with HR tax relief I think its maybe not a bad idea to have one, it reduces your tax bill and also you can access the money at 55 (i think?), so see it as a 18 year tax free investment rather than a pension! I'm just not convinced the ROI is anyway near as good as good property investments.

You're also the poster who mistakenly thinks you need Direct Debits to get interest on a TSB Classic Plus account and that they're "too much hassle".

https://forums.moneysavingexpert.com/showpost.php?p=75168256&postcount=16

Pennywise

Malthusian wrote: »

The OP should already be paying an accountant to discuss the most tax-efficient way to get money out of the company (salary, dividends, etc) and pension contributions are part of that conversation.

Which is what I said!

Malthusian wrote: »

Unfortunately it is true that many accountants are years behind the times and are still telling company owners that "pensions ain't worth it", but the OP is shaking up his affairs and there is no reason he should stick with many accountants.

It wasn't the OP's accountant who said pensions weren't worth it.

MEM62

kidmugsy wrote: »

How will you sell it when everyone else is trying to sell too?

A nice two bedroomed flat within striking distance of Heathrow is unlikely to be difficult to sell - particularly if it is priced right. As I purchased it in the 80's and the mortgage is long gone it's not as if I have to squeeze every penny from the sale.

kidmugsy

MEM62 wrote: »

A nice two bedroomed flat within striking distance of Heathrow is unlikely to be difficult to sell

In a crisis everything becomes illiquid.

Kit_Katt

A spread of pension ISA property etc in multiple buckets is a good thing.
I personally think the government will target hard the BTL market to free up more homes as stock on the open market .
I own BTL myself and the new tax regs dont make it so attractive these days if you have a BTL mortgage.