Pension or property

Ffermer Bach

Member
Livestock Farmer
is the monthly sum into the stock market not better though a pension? Remember for every £1 you pay pension tax relief means the the government top it up by 20p Buy a £1000 of shares directly and you have £1000 in shares, buy them though a pension and your £1000 investment immediately increases to £1200
I think the important thing is to have a range of assets, pension, property, shares, deposit account. But the most important thing is to start early and I recon put 10% in every year, and the most important bill to pay each month is the savings bill. The important amount to live on should be in relatively safer investments, while the "cream" can be in higher risk (because if it goes pear shaped, you still have the safer bit) And the younger you are, the riskier the investments can be, and as we get older so they move into safer assets.
 

farmerm

Member
Location
Shropshire
I think the important thing is to have a range of assets, pension, property, shares, deposit account. But the most important thing is to start early and I recon put 10% in every year, and the most important bill to pay each month is the savings bill. The important amount to live on should be in relatively safer investments, while the "cream" can be in higher risk (because if it goes pear shaped, you still have the safer bit) And the younger you are, the riskier the investments can be, and as we get older so they move into safer assets.
its finding 10% spare after the taxman has taken his cut that is the challenge...
 

B R C

Member
Arable Farmer
Concentrating on passive income like industrial let’s etc, so spending quite a bit on infrastructure at the moment, even just farm sheds are good value I think and will probably provide a good return in the future. They are also very easy to get planning for at the moment. Have huge outgoings at the moment so when I get to 60 I shall be far better off than now....
 

hally

Member
Livestock Farmer
Location
cumbria
If you go down the pension route, you needed to have started in your early 20's unless you want to pay some big lumps in later which may not be good investing.
My Father started one for me and I have paid £1k a year in since for almost 45 years. It is now worth around £300k with a guaranteed annuity of 7%. Sadly these pensions are no longer available I believe.

If you are already getting close to retiring then probably it depends on how much income you want and do you want leave anything to wife/children?
Try and die in debt is always a good plan as no one will fight over what you leave!
Land lord at the local always said “ if I die with 50p in my pocket I have miscalculated “
 

hally

Member
Livestock Farmer
Location
cumbria
Really best to have a bit of everything, we have property rented out, a 6 figure pension fund and land to sell as it looks like the next generation not interested in farming. Property must surely take a hit at sometime the rate they are building around here and our tenant seems to have us on speed dial for dishwasher/fireplace/alarm etc, upland land as well may be worth bugger all if no subs are the future as what will a loss making block of land be worth and the pension annuities are crap so looks like I will be working for a few years yet.......for a good job. One of the best preparations for retirement I think is farm in the black so funds don’t end up in the banks/ leasing companies pockets.
 

ACEngineering

Member
Location
Oxon
Getting to the age where pension time is not too distant. Have many of you actually got one or like me always had "more important" things to spend money on?

Yes started pension yesterday with penfold. Piece of cake to set up on line imo! Low fees.
No idea if it'll do any good or not but even if it dont all be getting the gov top up on it at least.
 

Bloders

Member
Location
Ruabon
A pension is only tax deferred. Other than the lump sum you can take out, you're taxed on the income as you draw it down. At least you have a bigger sum to invest to start with as the taxman gives you some back to start with.
If your a tax payer, and even more so a high rate tax payer, then pension contributions reduce your tax liability. The pension doesnt have to grow so much to have a net benefit.
If you only have a modest standard of living, then when you retire you could be paying lower rate tax in retirement, as opposed to higher rate tax during work, and zero tax in retirement.
 

texelburger

Member
Mixed Farmer
Location
Herefordshire
Friend of mine started buying motorcycles at a youngish age. Not classics at the time. About 1 a year and some have now matured into classics which he intends cashing in as a top up to his pension
Someone i know has been buying classic cars and he stacks them up on purpose made racks in a shed.Bit of a gamble I would think.
 

SFI - What % were you taking out of production?

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Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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