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Dad said the best pension was land
Yes but its foresight we need not hindsight ,what is the next County Tractor?Old County Tractors bought in 70's would have out performed most PPP policies I guess???
Also the other COMPULSORY pension plan we have -The National Insurance (NI).
So your 18000 invested over 30 years is now worth 35k, not a disaster, where I am pretty sure the rampant inflation required to get you to 250,000 would have ended in tears for many.I remember starting mine at 21, a con man came around with his book of predictions, invest just £50 month and your be getting anything from 250,000 lump sum when you retire, depending on inflation he said. Well i am now 50 and to date its value is around 35k. I decided to freeze mine and stopped paying into it, its still growing just slower than it was before, luckily i invested in property that will give me a decent return on investment in my retirement. Pensions should come with a gov health warning, be prepared to be disappointed and have a plan B.
No its not a disaster, but its not the golden nugget i was promised, what you need to remember you don,t get that as a lump sum when you retire either, its drip fed to you. All i,m saying is, it,s nice to be in control of your money and use it when you need it, a pension does,t let you do that.So your 18000 invested over 30 years is now worth 35k, not a disaster, where I am pretty sure the rampant inflation required to get you to 250,000 would have ended in tears for many.
I would think property as in buy to let houses would have provided a far better return over my lifetime both in rental income and appreciation in value.Dad said the best pension was land
If you needed to raise a substantial amount of money at anytime in your life, you just sell the house, job done, you can,t do that with a pension.I would think property as in buy to let houses would have provided a far better return over my lifetime both in rental income and appreciation in value.
Not that houses are without their hassles and need a bit spending on maintenance.
Land is simple and certainly hasn’t been a bad investment, the advantage for farmers being that they can utilise it themselves and has a great advantage to working farmers when it comes to passing it down a generation.
But if buying as a pure investment to rent out I’m sure houses offer a better return.
What’s your annual pension statement forecasting your pension pot will buy you as an annual pension? A small proportion of what you’d need to get by on for sure.No its not a disaster, but its not the golden nugget i was promised, what you need to remember you don,t get that as a lump sum when you retire either, its drip fed to you. All i,m saying is, it,s nice to be in control of your money and use it when you need it, a pension does,t let you do that.
its not that easy to "just sell the house" though!If you needed to raise a substantial amount of money at anytime in your life, you just sell the house, job done, you can,t do that with a pension.
I thought you could only draw 25% as a lump? maybe i,m wrong.its not that easy to "just sell the house" though!
I have both, i appreciate im fortunate.
However, i did generate a comparison between investing in a pension on a 4% return and buying a house with 7% return.
As a higher rate taxpayer (which makes a massive difference), over the years, the pension forecast was significantly better. this was a forecast though...
As it is my pension pot, i can do what i want with it - draw it all out in one go when im 55, give it to my children etc. It is mine, not the governments (as I understand it)
As above, there are many ways to plan for your future, please consider several options. There are no free dinners, and there are lots of bad choices. There are also many good choices.
I would agree with that, R Maxwell springs to mind.!!A lot of people think that pensions are a poor investment because theirs has performed inadequately.
The problem is not that it's a pension, but that the money within has been poorly managed.
I started paying into a private pension 30 yrs ago at 19 with £10 a month, I was always advised and still am that a regular monthly amount increased throughout ones working life will create a tidy pension pot at retirement
Think that was changed a couple of years or so ago.I thought you could only draw 25% as a lump? maybe i,m wrong.
i understand thats the tax free amount you can take. the rest is then taxed as income.I thought you could only draw 25% as a lump? maybe i,m wrong.