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    • Pikeman1
    • By Pikeman1 16th Apr 19, 6:57 PM
    • 29Posts
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    Pikeman1
    Pension or isas.
    • #1
    • 16th Apr 19, 6:57 PM
    Pension or isas. 16th Apr 19 at 6:57 PM
    Hi just joined the forum wealth of information. I'm 62 no mortgage and a flat I rent out also mortgage free. Have stocks and shares isas with h l. Have a small private pension af around 20000 with Scottish widows stopped paying in years ago. Have a fair amount of cah in marcus waiting to be invested. Not sure wether to carry on investing in isas using my wife's allowance as well or may be transfer my pension into a sipp and pay into that. Any thoughts appreciated
Page 1
    • cloud_dog
    • By cloud_dog 16th Apr 19, 8:33 PM
    • 4,203 Posts
    • 2,572 Thanks
    cloud_dog
    • #2
    • 16th Apr 19, 8:33 PM
    • #2
    • 16th Apr 19, 8:33 PM
    Hi just joined the forum wealth of information. I'm 62 no mortgage and a flat I rent out also mortgage free. Have stocks and shares isas with h l. Have a small private pension af around 20000 with Scottish widows stopped paying in years ago. Have a fair amount of cah in marcus waiting to be invested. Not sure wether to carry on investing in isas using my wife's allowance as well or may be transfer my pension into a sipp and pay into that. Any thoughts appreciated
    Originally posted by Pikeman1
    What is your purpose, what are you trying to achieve?
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Pikeman1
    • By Pikeman1 16th Apr 19, 8:51 PM
    • 29 Posts
    • 3 Thanks
    Pikeman1
    • #3
    • 16th Apr 19, 8:51 PM
    • #3
    • 16th Apr 19, 8:51 PM
    Good question still working and don't mind as work for my self and if I want time off I can take it. The answer is mostly for my retirement I suppose although health permitting will carry on working. At 62 though can't go on forever lol. So really just to have a decent pot of funds. Even thought about buying a property to refurbish and flip. Not so keen on buy to let now with all the changes end of section 21 etc. As you can probably tell my thoughts are all over the place lol.
    • xylophone
    • By xylophone 17th Apr 19, 12:08 PM
    • 29,250 Posts
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    xylophone
    • #4
    • 17th Apr 19, 12:08 PM
    • #4
    • 17th Apr 19, 12:08 PM
    Have a small private pension af around 20000 with Scottish widows stopped paying in years ago
    Is this your only pension provision apart from State pension?

    Have you and your wife obtained state pension forecasts?

    https://www.gov.uk/check-state-pension

    Consider resuming pension contributions?
    • cloud_dog
    • By cloud_dog 17th Apr 19, 12:20 PM
    • 4,203 Posts
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    cloud_dog
    • #5
    • 17th Apr 19, 12:20 PM
    • #5
    • 17th Apr 19, 12:20 PM
    Good question still working and don't mind as work for my self and if I want time off I can take it.
    Originally posted by Pikeman1
    Director of your company or sole trader?
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Pikeman1
    • By Pikeman1 17th Apr 19, 12:40 PM
    • 29 Posts
    • 3 Thanks
    Pikeman1
    • #6
    • 17th Apr 19, 12:40 PM
    • #6
    • 17th Apr 19, 12:40 PM
    Hi yes my only pension. But I do have a flat I rent out. Also about 80000 pounds in stocks and shares. About 100000 pounds in low interest bank accounts. This is money I inherited a couple of years ago. Got my pension forecast which is due in 4 years should have the full state pension. My wife has hers a few years later. I'm a sole trader. May be transfer the private pension into a sipp with hargreaves lansdown and start putting into that. Thanks for the comments.
    • steampowered
    • By steampowered 17th Apr 19, 12:59 PM
    • 3,134 Posts
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    steampowered
    • #7
    • 17th Apr 19, 12:59 PM
    • #7
    • 17th Apr 19, 12:59 PM
    As you are so close to retirement, it is worth putting a big chunk of that into a pension, to get the tax relief and reduce your tax bill.

    Perhaps even 100% of what you are earning as a sole trader. You have more than enough cash savings to live off.

    You'll be able to get that money out again when you reach retirement anyway.

    Might be worth seeing a professional to get some proper tax advice ...
    • Pikeman1
    • By Pikeman1 17th Apr 19, 4:42 PM
    • 29 Posts
    • 3 Thanks
    Pikeman1
    • #8
    • 17th Apr 19, 4:42 PM
    • #8
    • 17th Apr 19, 4:42 PM
    Thanks for the replies. Still thinking about buying a property in need of renovation and adding value. Seems like another job in itself though. Think the easiest option would be to carry on doing the job I'm doing now and max out on isas a nd pension. I earn decent money so have a decent sum at the end of the week. Also have the rent off the flat to invest. Ten years younger would probally go for the property option.
    • Thrugelmir
    • By Thrugelmir 17th Apr 19, 6:42 PM
    • 62,877 Posts
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    Thrugelmir
    • #9
    • 17th Apr 19, 6:42 PM
    • #9
    • 17th Apr 19, 6:42 PM
    Said politely. At 62 you need to be picky what investments you choose whether it be via ISA or pension. Markets can turn volatile at any time. Far too easy to view them as a bank deposit account which they most certainly are not.
    "The most dangerous thing is to buy something at the peak of its popularity. At that point, all favourable facts and opinions are already factored into its price and no new buyers are left to emerge." - Howard Marks
    • Pikeman1
    • By Pikeman1 17th Apr 19, 7:03 PM
    • 29 Posts
    • 3 Thanks
    Pikeman1
    Yes that's a concern. At the moment got funds in foreign and colonial now bmo. Legal and general trackers. Artemis income and fundsmith. Happy to leave them as is. It's the funds in marcus getting 1.5 per cent I want to do something with. But if the markets crash I'll be happy with marcus lol.
    • Pikeman1
    • By Pikeman1 17th Apr 19, 7:06 PM
    • 29 Posts
    • 3 Thanks
    Pikeman1
    The money in marcus is in mine and the wife's name so using the 1000 pounds a year allowance so at least it's tax free
    • Pikeman1
    • By Pikeman1 17th Apr 19, 7:14 PM
    • 29 Posts
    • 3 Thanks
    Pikeman1
    Had a dabble in p2p got about 500 stuck in lendy. Couple thousand in money thing some of that non performing. Got a if sa with assetz capitol paying between 4.1 and 5.7 per cent. Actually would love to put all of this year's isa in assetz capitol be happy with around 5 per cent. But of course if there's a recession all could be lost
    • Thrugelmir
    • By Thrugelmir 17th Apr 19, 7:37 PM
    • 62,877 Posts
    • 55,845 Thanks
    Thrugelmir
    But if the markets crash I'll be happy with marcus lol.
    Originally posted by Pikeman1
    Markets don't necesarily crash. Simply underperform for an extended period. For markets to perform, companies need to deliver an increasing level of profits.
    "The most dangerous thing is to buy something at the peak of its popularity. At that point, all favourable facts and opinions are already factored into its price and no new buyers are left to emerge." - Howard Marks
    • Pikeman1
    • By Pikeman1 17th Apr 19, 8:23 PM
    • 29 Posts
    • 3 Thanks
    Pikeman1
    Hope they perform the next 4 years for my benefit I'll be 66 then. But to be honest if I'm ok health wise I'll most likely carry on working if just part time. I suppose with a bit more fore thought should be retired now.
    • Terron
    • By Terron 18th Apr 19, 3:39 PM
    • 411 Posts
    • 406 Thanks
    Terron
    Thanks for the replies. Still thinking about buying a property in need of renovation and adding value. Seems like another job in itself though.
    Originally posted by Pikeman1

    I did that when I was 54. Well 2 properties then let them both. I did this in an area I knew (where I grew up), where I had contacts,where an infrastructure improvement (tram line) was likely to increase demand/value. and where rental demand was high.


    My first property has done moderately well, my second very well (tenant moved in the day after the renovation was complete and is still there 5 years later, bought for 80k, refurb 8,5k, valued at 94k a year later), .


    It can work, but you need trusted advisors.
    • Pikeman1
    • By Pikeman1 18th Apr 19, 5:24 PM
    • 29 Posts
    • 3 Thanks
    Pikeman1
    The margins do seem tight to make a profit. Bought a flat in 2015 for 66000 pounds spent about 5000 on it. Put a new bathroom in last year. If I put it on the market now I'd ask 80000 pounds put might have to come down a bit for a quick sale. Had 4 different tenants in but that's the nature of flats. Would never buy another flat. Keep the rent in a separate account so I know how lm doing. At the moment there's just over 8000 pounds in that account but out of that is various charges service charge etc. Also the bathroom was paid for out the rent new fencing 400 pounds and new glazing units 700 pounds so the accumulated rent would of been a lot more. Had a bit of hassle with leaks etc. If I'd put that initial 71000 pounds into a pension or isas would I have been better off. That what I'm trying to work out now.
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