Pensions

[Jwoodgardenmaintenance]

4 minutes ago, spudulike said:

Been modding equipment most of my life but chainsaws for around 7 years. Got in to this line by accident after a long time in manufacturing and then a stint in sales. I look at things and think...I wonder what would happen if.........just my way and enjoy what I do despite some of the challenging things that roll in the shop!

Is it only chainsaws you fix spud? 

[Commando]

I know it’s a subjective question but how much do you think you would need to live a comfortable (subjective again!) retirement if you were to retire today? Let’s say at 60yrs old and hopefully with no borrowings (mortgage etc).

[difflock]

Someone mentioned being mortgage free at retirement,

I have reason to imagine that is key to financial freedom, and retirement to whatever extent.

In part courtesy of the(then, before the property BOOM) relatively lower NI house prices, in part due to our relatively modest extra TA earnings(but at least the TA kept us from weekend consumer spending and left no time for other money-burning hobbies) we worked our way up the property ladder mortgage free, while driving a very ordinary car(singular, one car only, between 2 wage earners ).

Oddly we did not make money "flipping" or selling on properties,(and we only owned 2 before this final self-built home) beyond what would have accrued from investing the money with a Building Society. 

BUT

The key is to have a clearly defined goal to focus on and work towards.

And, where possible avoid subsidizing Bankers or Car dealers lifestyles, by avoiding finance on either of their products.

Cash(N.B. honestly earned and taxes paid) is King.

Marcus

 

Edited January 11, 2019 by difflock

[maybelateron]

11 minutes ago, difflock said:

Someone mentioned being mortgage free at retirement,

I have reason to imagine that is key to financial freedom, and retirement to whatever extent.

In part courtesy of the(then, before the property BOOM) relatively lower NI house prices, in part due to our relatively modest extra TA earnings(but at least the TA kept us from weekend consumer spending and left no time for other money-burning hobbies) we worked our way up the property ladder mortgage free, while driving a (singular, one car only, between 2 wage earners ) very ordinary car.

Oddly we did not make money "flipping" or selling on properties,(and we only owned 2 before this final self-built home) beyond what would have accrued from investing the money with a Building Society. 

BUT

The key is to have a clearly defined goal to focus on and work towards.

And, where possible avoid subsidizing Bankers or Car dealers lifestyles, by avoiding finance on either of their products.

Cash(N.B. honestly earned and taxes paid) is King.

Marcus

 

Agreed entirely re (honest) cash. The lad who works for me bought a sensible low mileage car about 3 years ago. Asking price from dealer was £10,400. By the time he has finished paying for it over 5 years it will have cost him £15,000.

 

When I started as a a tree surgeon in 2001 my first truck was a 1984 Renault Dodge 50 series bought for £400. I ran this for a bit then bought an LDV convoy brand new over 5 years. I ran this for 10 years and kept putting enough aside so that I had saved enough to buy my next truck (Iveco Daily) and have the body built a swell, without any finance costs.

 

If you can, the only finance to run is a mortgage.

 

I realise I am looking at it from the perspective of an individual, and a very small business. I guess it is a bit different for the big firms who lease their plant.

[Mesterh]

1 hour ago, maybelateron said:

Agreed entirely re (honest) cash. The lad who works for me bought a sensible low mileage car about 3 years ago. Asking price from dealer was £10,400. By the time he has finished paying for it over 5 years it will have cost him £15,000.

 

When I started as a a tree surgeon in 2001 my first truck was a 1984 Renault Dodge 50 series bought for £400. I ran this for a bit then bought an LDV convoy brand new over 5 years. I ran this for 10 years and kept putting enough aside so that I had saved enough to buy my next truck (Iveco Daily) and have the body built a swell, without any finance costs.

 

If you can, the only finance to run is a mortgage.

 

I realise I am looking at it from the perspective of an individual, and a very small business. I guess it is a bit different for the big firms who lease their plant.

I've never had finance on purchasing equipment but I'm fairly sure in some circumstances your better off than buying it outright.

 

[Stephen Blair]

On 09/01/2019 at 22:15, Stuart Picken said:

So, what have we decided folks? 

I'm a young guy, what should I be doing with my money? At the moment I'm mostly investing in power tools and a beer belly. 

I imagine the #1 thing to do would be buy somewhere, i.e. stop paying someone else's mortgage. 

I started mine when I was 16, I was told my pot will be over £450k, 27 years later at £150 a month my pot might make £180k.  I put £1800 a year in and my annual payout will be £1500 a year in 2041! 

  The guy who sells your pension won’t be around and it’s mostly just salesman making money.

so at 55 I’m cashing it in, pay the tax and hopefully get a couple of deposits for my boys first properties if I’m lucky enough to still be here.

  Don’t put all your eggs in 1 basket, also don’t try planning everything to the letter, life has ways of interfering.

  You have to live just now, you are young, enjoy it.

  I always pensioned what I wouldn’t miss, and I’m a low risk investor so my return is low but steady ish.

  A £400 hedge cutter can make you a grand a week for 8 months of the year.  That’s a better investment imo.

  If you are a self employed, whatever you put in, the government will add 20%, then at the end they will tax you 25% for getting some of it back.  

  Things in life aren’t as simple as, renting good, renting bad!

  Difflocks post a few pages back is the best advice I’ve ever read on line.

  What kind of person are you?  Can you handle daily phone calls from a tennant moaning about a door nob?  Can you evict a family of 5 on Christmas eve for not paying their rent?

i let 3 properties for 8 years and it was a ball ache.  Unfortunately I had 2009 in the middle of all that so I never got bargains and when I sold I was happy to just get rid of the credit and stress.

  I had factors, lawyers, handymen, sparkies, plumbers all on speed dial.

i had 2 tenants intentionally damage the properties just to get a newer house by the time I found out, locks were smashed , belongings left and I couldn’t legally access them for 2 months.

  I did have some excellent tenants, but they also never paid their rent on Christmas Eve , by the time I found out in January when the banks went back to work, I was getting letters from mortgage companies.

  Did I do everything perfectly, certainly not!

  What I’d say is take advice on the internet with a pinch of salt, whatever you are going to do, study and learn, do a course on economics, marketing, joinery, plumbing.

  Bankers will take your deposit and throw you a Set of keys to houses and large machinery.  After that it’s up to you to work it out.

  Good luck!

[Squaredy]

2 hours ago, Stephen Blair said:

I started mine when I was 16, I was told my pot will be over £450k, 27 years later at £150 a month my pot might make £180k.  I put £1800 a year in and my annual payout will be £1500 a year in 2041! 

Your maths is a bit wrong somewhere.  Depending on what age you retire and what options you go for a pension pot of £180k will pay a yearly pension of around £5000 to £9000.  If you were to delay retirement you could get substantially more than this even.

 

Maybe you are looking at a projection that is based on the fund value now not when you retire?

[Stubby]

The finacial dudes do sometime talk in " telephone numbers " when they make those predictions , Thing is when you come to retire it will cost you £75 for a cheese roll .

[Jwoodgardenmaintenance]

12 hours ago, Commando said:

I know it’s a subjective question but how much do you think you would need to live a comfortable (subjective again!) retirement if you were to retire today? Let’s say at 60yrs old and hopefully with no borrowings (mortgage etc).

Me personally I can live off £100 a week once the rent has been paid ect I don't drink I smoke rollies so that costs me £12 a week and then my shopping only costs £35 a week then the rest is if I'm on my rounds and fancy a sarnie while on the road or a odd portion of chips now and then I really don't like spending money ? 

[Jwoodgardenmaintenance]

10 hours ago, maybelateron said:

Agreed entirely re (honest) cash. The lad who works for me bought a sensible low mileage car about 3 years ago. Asking price from dealer was £10,400. By the time he has finished paying for it over 5 years it will have cost him £15,000.

 

When I started as a a tree surgeon in 2001 my first truck was a 1984 Renault Dodge 50 series bought for £400. I ran this for a bit then bought an LDV convoy brand new over 5 years. I ran this for 10 years and kept putting enough aside so that I had saved enough to buy my next truck (Iveco Daily) and have the body built a swell, without any finance costs.

 

If you can, the only finance to run is a mortgage.

 

I realise I am looking at it from the perspective of an individual, and a very small business. I guess it is a bit different for the big firms who lease their plant.

I've always liked using cash rather than plastic money (cards) I dont have a credit card and my debt I've got which isn't much is all getting cleared off fairly sharpish and Ive considered finance for a new digger and 4x4 but I've talked myself out of it I can't bare the thought of it sitting in the drive with no work while I'm paying out for it isn't ideal plus I don't like giving someone 4-5k for lending me the money