How to save for retirement?

[spudulike]

34 minutes ago, aspenarb said:

Long term property purchases are the way to go,I have not seen anything outperform property purchases over a 30 year period and the assets will always be tangible.

 

Bob

https://www.ft.com/content/3ddaff78-fb68-11e6-96f8-3700c5664d30

I find that people tend to fall in to Property, Equity or "going to spend it all" category's depending on what they have been involved in during their life!

[Chippy]

The 25% tax free withdrawal from a pension pot needs a bit of clarifying.

Lets say you have £100 k in your pot and take out 25% = £25 k. What would you do with this? open an ISA paying 1.5% at best, premium bonds ?

It's a bit complicated but what you do is to partition the remainder and your tax free lump sum in one pot which effectively leaves you with a pot of 100 k which is what you started with, this is still invested in whatever fund you originally had and still gains interest - or loss.

When you do get your state pension, lets say this is £8 k, you can then draw roughly £3.5 k to take you up to the limit before tax is paid, to increase  your pension you can then draw from your 25% whatever you want as this is tax free.

I should say that this only applies to income drawdown and not annuities.

 

[openspaceman]

18 hours ago, Chippy said:

The 25% tax free withdrawal from a pension pot needs a bit of clarifying.

Lets say you have £100 k in your pot and take out 25% = £25 k. What would you do with this? open an ISA paying 1.5% at best, premium bonds ?

It's a bit complicated but what you do is to partition the remainder and your tax free lump sum in one pot which effectively leaves you with a pot of 100 k which is what you started with, this is still invested in whatever fund you originally had and still gains interest - or loss.

When you do get your state pension, lets say this is £8 k, you can then draw roughly £3.5 k to take you up to the limit before tax is paid, to increase  your pension you can then draw from your 25% whatever you want as this is tax free.

I should say that this only applies to income drawdown and not annuities.

 

Yes but consider also you don't have to take the pension till 75 and if you nominate your kids to receive it should you die before then it does not form part of your estate for tax purposes, whereas if you make cash over  and die within 7 years it still attracts IHT. This assumes your estate is over the threshold for IHT and this varies with whether a dwelling is involved.

[spudulike]

Inheritance tax on cash gifts is tapered in so much as if you die a few days later, you get full tax but as time goes on toward seven years, the tax reduces to zero at seven years or more.

[openspaceman]

2 hours ago, spudulike said:

Inheritance tax on cash gifts is tapered in so much as if you die a few days later, you get full tax but as time goes on toward seven years, the tax reduces to zero at seven years or more.

It only cracks in after 3 years  but it's even more complicated than that and difficult to explain: Cash gifts are counted  first in the current £325k allowance but if there is a dwelling involved  the cash gift will be counted before the valuation of the dwelling, normally the dwelling would be free of tax up to £425k if passed on to children. As the IHT on gifts  is still £325k if the the gift plus the remaining estate exceed £325k the full IHT is payable on the gift with no taper relief if death occurs within 7 years.

 

As houses are so expensive here it doesn't pay me to have any large  cash reserves so crystallising my pension fund would introduce a IHT liability.

[spudulike]

I was just making a statement on the taxation on cash gifts and liability on taxation - one way or another tax and death are the two certainties in life!

[matelot]

On 14 December 2017 at 09:00, Vespasian said:

 

I've seen loads of vids of top pro's advising people to get into gold, and for the most part ain't wrong to advise it..  unlike stocks and shares, gold goes up in value during a recession. so you get something of a balance of risk with gold..

 

 

Then theres what the world looks like in fifty years, not that I expect to be around in fifty years mind.. though, it might just be possible ermm..  

 

anyways, long term. gold..  stocks and shares might be a thing now, how will they perform in future?.

 

 

Come on Vesp! Sort yourself out! I reckon solely investing in gold is bordering on mad!

 

I reckon anyone interested in investing should head over to the "Savings and Investment" board at MoneySavingExpert.

 

I personally invest in the stock market. I generally invest in FTSE100 companies through an ISA and my SIPP. There's a lot of companies that give out good dividends... I like SSE, BT and National Grid.

[daveindales]

I too have National Grid in an  Isa.  Taylor Wimpy has been good for me. Just sold them.  Bit more riskier, but I also have Sirius Minerals and Hurricane Energy. Got Lloyds in a SIPP.

 

Not all good though. Got one down 97% 

[Vespasian]

2 hours ago, matelot said:

Come on Vesp! Sort yourself out! I reckon solely investing in gold is bordering on mad!

 

I reckon anyone interested in investing should head over to the "Savings and Investment" board at MoneySavingExpert.

 

I personally invest in the stock market. I generally invest in FTSE100 companies through an ISA and my SIPP. There's a lot of companies that give out good dividends... I like SSE, BT and National Grid.

The point I was tryin to make is............if you have money to gamble on assets, money you can afford to throw away..  then get into gold, not because its price is stable, it isn't.. but because its value will rise in hard times....

 

Thats good for obvious reasons, and if you have money in other stocks that fall, it will balance out any loss. hopefully!!!!..

 

Not that I take my own advice, I never gamble, I can't stand doin the lottery as its gambling to me..

 

My philosophy is, if you want money then work for it, if you want more money then work harder..  if you're gonna gamble, gamble on your work ethic to see you through...   

 

who respects a lottery winner?..  who respects someone who started cleaning toilets and now owns his own company?.

 

 

My philosophy lesson for the day, invest in yourself... that'll be ten dollars Matelot... thanks

 

 

 

 

 

[Mortimer Firewood]

14 hours ago, Vespasian said:

The point I was tryin to make is............if you have money to gamble on assets, money you can afford to throw away..  then get into gold, not because its price is stable, it isn't.. but because its value will rise in hard times....

 

Thats good for obvious reasons, and if you have money in other stocks that fall, it will balance out any loss. hopefully!!!!..

 

Not that I take my own advice, I never gamble, I can't stand doin the lottery as its gambling to me..

 

My philosophy is, if you want money then work for it, if you want more money then work harder..  if you're gonna gamble, gamble on your work ethic to see you through...   

 

who respects a lottery winner?..  who respects someone who started cleaning toilets and now owns his own company?.

 

 

My philosophy lesson for the day, invest in yourself... that'll be ten dollars Matelot... thanks

 

 

 

 

 

Go to school go to college/uni then work till your old and grey. Sorry but I'd rather work and try and make a bit extra where I can.