How to save for retirement?

[Alycidon]

My pension fund returned 9% on monies invested last year,  you do get good years and bad though, usually is 3% - 5%.

 

Suggest that you initially talk to your accountant,  he/she will probably be able to advise and steer you to an appropriate professional.

 

But you will only be able to draw 10% of the fund per year and this will be taxable,  dont forget that you do get tax relief when you put money in so you cant have it both ways.

 

A

[benedmonds]

2 hours ago, spudulike said:

....I could tell you about an acquaintance, his buy to let and a cannabis farm!!!!

 

That sounds like a potential pension plan... and if it all goes wrong you'll end up in sheltered accommodation with free clothes..... as long as you don't mind stripes..

Edited December 12, 2017 by benedmonds

[spudulike]

Wasn't quite like that, his tenant got busted and he was left with a wrecked property, more so due to the police and had to pay for all the repairs - sort of put me off buy to let as an investment!

[Woodworks]

Thanks all.

 

Lots to look over here and far more enlightening than my conversation with a financial advisor.

Edited December 12, 2017 by Woodworks

[daveatdave]

some good posts. as others have said cash Isa are a no go at the moment, if you go down the private pension root do not forget the account charges that are taken off your payments so reduce your investment (I had 2 and were not paying any interest)    I have ended up only getting £100 per month for 30 years investment after taking what I could tax free also pp pot most of it is tied up for life and you cannot get your hand on it

talk to another financial adviser as there is a lot of investment (lump sum or monthly) that is paying good returns and you can draw off it if you have to 

 

[kevinjohnsonmbe]

18 hours ago, Woodworks said:

I have no debts

What to do with your money.....

 

The common wisdom always seems to stay with "how do I make more for later" rather than "how do I seek to minimise my expenditure and maximise self sufficiency for later."  

 

You say no debts, does that include no mortgage Beau?  

 

If there is mortgage, best advice is to over-pay at every opportunity (if the scheme allows it.). The amount of money saved over the term is eye watering and it moves towards the mantra above of minimising expenditure later.

 

There is no golden bullet for saving for investment because some shiny ass takes a slice of your hard earned just for "managing" YOUR money!!  

 

Tax "efficiencies" are where it's at....  Stop (at least minimise) giving your money away!

 

 

[Paul in the woods]

There are charges for stocks and share ISAs as well which can be more than a pension. A stakeholder pension will have annual charges capped at 1.5% of the fund value, and providers will often offer lower fees of around 1%. A stocks and share ISA may have an initial fee, around 5%, and an annual fee of around 1.5%. If you carefully shop around there are platforms that will rebate the initial fee and some of the AMC.

 

Put simply the fees can be very similar between pensions and stocks and share ISAs.

[Woodworks]

No mortgage for the time being but we already live cheaply and are relatively self sufficient.

I dont earn much but spend even less.

[daveindales]

1 hour ago, Paul in the woods said:

There are charges for stocks and share ISAs as well which can be more than a pension. A stakeholder pension will have annual charges cappeId at 1.5% of the fund value, and providers will often offer lower fees of around 1%. A stocks and share ISA may have an initial fee, around 5%, and an annual fee of around 1.5%. If you carefully shop around there are platforms that will rebate the initial fee and some of the AMC.

 

Put simply the fees can be very similar between pensions and stocks and share ISAs.

I could be wrong, but I don't think I pay any charges, apart from a £5 dealing fee. With iweb.

[Paul in the woods]

33 minutes ago, daveindales said:

I could be wrong, but I don't think I pay any charges, apart from a £5 dealing fee. With iweb.

It depends on what you hold. A quick glance shows a £5 dealing fee from iWeb but if you buy a fund there may be an initial charge from the manager of that fund and an ongoing fund charge. Looking at a few funds they seem to be 0 initial charge but 0.5 - 1.0% AMC. See: http://www.iweb-sharedealing.co.uk/PDFs/CostsAndCharges.pdf