Investment

[blup]

Put a few quid on tonight’s lotto

 

[Highway Man]

maximising your pension investment against your allowances (I assume you have a 60k cap) is a good strategy, particularly if your employer matches (or betters) your stake. Do you know if they do?

There may come a point where you want multiple sources of wealth to give you better tax management. Given Rachel has changed the rules for next tax year, if you can you may want to invest a lot this year.

Does my idea sound a feasible solution to my dilema to you ?

 

[Dereekoo]

I am going to ask what happens, at the moment they put into my pension more than what I do but unsure if they would match my additional amount. I will ask what happens when I put this extra amount in.

In my old company if an employee contributes the maximum matching baseline of 7.5% of their salary, Severn Trent Water puts in 15%. A bit different from my day where employees put in 6% and Severn Trent put whatever was required for the pension scheme to remain solvent and able pay out what was due at the time and in the future, a final salaries pension (defined benefit) scheme. Depending on the health of the pension fund at the time I believe this resulted in ST having to pay in between 15=30% of their employees total wage to safeguard the future liabilities of the pension fund'

 

[Highway Man]

Put a few quid on tonight’s lotto

I am the unluckiest person alive, I would definately lose

 

[motorbiking]

Does my idea sound a feasible solution to my dilema to you ?

Any unused matching is worth taking advantage of and generally spanking your pension in your early years is worth it. Once you start getting to a bigger pot or income over £260k then you will need to look at other options. Generally you want to draw down your private pensions as early as you can once you've taken your tax free allowance and then reinvest it tax free. It can feel tempting to leave it alone in later years so you have more to draw down, but that can trigger tax issues.

I am assuming you are some way off state pension age - 10?

 

[Highway Man]

Any unused matching is worth taking advantage of and generally spanking your pension in your early years is worth it. Once you start getting to a bigger pot or income over £260k then you will need to look at other options. Generally you want to draw down your private pensions as early as you can once you've taken your tax free allowance and then reinvest it tax free. It can feel tempting to leave it alone in later years so you have more to draw down, but that can trigger tax issues.

I am assuming you are some way off state pension age - 10?

I am thinking around 10 years working left in me. Less if I feel like it

 

[motorbiking]

But the actual question was if you are close to retirement age - 10. Because that is when you can start drawing down your private pension.

So for example a person in their early 40s has years left to build. 50s. Not so much.

 

[Dec27]

I am thinking around 10 years working left in me. Less if I feel like it

Just but a launderette mate, I’m after another already.

 

[Highway Man]

But the actual question was if you are close to retirement age - 10. Because that is when you can start drawing down your private pension.

So for example a person in their early 40s has years left to build. 50s. Not so much.

Is it wise to save £250 per week into my savings account instead? The reason I am thinking £250 is that I have around £500 spare surplus each week from my sideline business and it just sits in my current account.

 

[Justin Passing]

Low "risk" and "can’t lose" are how many people have lost fortunes. When the banks and investment companies start guaranteeing that I won’t lose my original stake money, let alone make a profit, I’ll put my money where it won’t be lost. Thankyouverymuch (TM).

If you can guarantee that investors will make a guaranteed profit without risking any of their money, you’re wasting you time spouting off on a plumbers forum - you should be running your own investment company, you’d make a fortune with a guarantee like that. Even those controlling billions of pounds with more knowledge than you are unable to guarantee that. Have you been in touch with them to share your wisdom?

If you had understood, you would realise that what I said is accurate, despite your prejudice! Evidently you didn't . I'm willing to go over it again , but do reread first. Trying to take the pi ss out of something you don't understand, won't help you!.
This is not a plumbers forum any more than it is an allotment growers forum or a breakfast photo forum.

 

[Justin Passing]

Depending on your age and whether you have played with any of the settings it will likely have a mix of equity and bonds.

Just this morning I was asking Claude if I should move more cash to equity due to the crazy amount of tax I will have to pay if I leave it in high interest savings accounts after Rachel Reaves 2% extra tax kicks in. It was asking me about my pension, since it already knows my GIA and ISA portfolio. turns out its quite a cautious spread.

you wont go too wrong asking it to explain your investment options and recommend some investments.

If you're paying a crazy amount of tax, then look (as said previously) at short duration treasury gilts. TN28 is the popular one at the moment. Over time you would start the next inevitable, in what gets called a "ladder".

Despite what Mottie might think, that is guaranteed, safer that bldg socs, doesn't have a limit to the security, and will return you net more than a BS . You don't even have to buy through a share dealing platform, though that's easiest.
You only pay tax on the Coupon part, which for TN28, that's 0.125%. The main gain is Capital, tax free.

 

[Justin Passing]

Low "risk" and "can’t lose" are how many people have lost fortunes. When the banks and investment companies start guaranteeing that I won’t lose my original stake money, let alone make a profit, I’ll put my money where it won’t be lost. Thankyouverymuch (TM).

If you can guarantee that investors will make a guaranteed profit without risking any of their money, you’re wasting you time spouting off on a plumbers forum - you should be running your own investment company, you’d make a fortune with a guarantee like that. Even those controlling billions of pounds with more knowledge than you are unable to guarantee that. Have you been in touch with them to share your wisdom?

I will add that you aren't reading what I wrote - it's you who is making up and spouting twaddle. Stop your lying. If you can't even read, put your money under the mattress!

 

[JohnD]

Is it wise to save £250 per week into my savings account instead? The reason I am thinking £250 is that I have around £500 spare surplus each week from my sideline business and it just sits in my current account.

If you like paying tax, fine.

Why would you choose not to put £250 into your pension, and have the good fairy magically turn it into £312.50 by rebating your income tax?

 

[Highway Man]

If you like paying tax, fine.

Why would you choose not to put £250 into your pension, and have the good fairy magically turn it into £312.50 by rebating your income tax?

well it sounds good but is that really the case?

 

[Ihavenojob]

Do you have a work place pension where they match what you put in? If so, why not invest the maximum they will match, then take a large (hopefully tax free) lump sum when you can? Free money