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property, pension, isa

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Comments

  • LHW99
    LHW99 Posts: 5,897
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
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    If your salary is £30k? you can't put £40k into a pension in a single financial year

  • olb81
    olb81 Posts: 299
    100 Posts First Anniversary Name Dropper
    Forumite

    i thought you can put in up to 60k

    any way even at 30k its still a decent lump sum ?

    i can always wait to april and put some more?

    isnt it a good move long term

  • You can add up to £60,000 or 100% of your annual earnings (whichever is lower) to your pension each tax year and still get tax relief.

  • olb81
    olb81 Posts: 299
    100 Posts First Anniversary Name Dropper
    Forumite

    ok so its 30k then per year

    i would have to do this amount over 2 years

    gives me time to decide whether to put it all in property or some in pension and gain tax back

  • olb81
    olb81 Posts: 299
    100 Posts First Anniversary Name Dropper
    Forumite

    so looks like I have 3 options:

    1. Coast FIRE method, put my circa 200k into tax shelters and investments and leave it alone between now and age 57-67 when it (according to AI) should have grown big enough to be a source of income
    2. Keep this years ISA and open one next year making 40k in S+S ISAs plus 50k in my pension, Create a 20 emergency fund in an instant accoun, Buy a property for living in with a mortgage, a 100k deposit and 5k for fees
    3. Buy a flat outright for £150k , 5k fees, 10k emergency and live with minimal bills and pressure and also the ability to claim UC if I do end up out of work for any time
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