Starting a pension

[R tea]

House to Let Income @ 4% ............... ISA at 4% return 4%
Initial sum £20,000 £800 ..... . £20,000 £800
Year 1 £20,000 £800 ...... £20,800 £832
Year 2 £20,000 £800 ..... . £21,632 £865
Year 3 £20,000 £800 ....... £22,497 £900
Year 4 £20,000 £800 ....... £23,397 £936
Year 5 £20,000 £800 ....... £24,333 £973
Year 6 £20,000 £800 ........ £25,306 £1,012
Year 7 £20,000 £800 ......... £26,319 £1,053
Year 8 £20,000 £800 ........ £27,371 £1,095
Year 9 £20,000 £800 ........ £28,466 £1,139
Year 10 £20,000 £800 ........ £29,605 £1,184
Year 11 £20,000 £800 ........ £30,789 £1,232
Year 12 £20,000 £800 ........ £32,021 £1,281
Year 13 £20,000 £800 ........ £33,301 £1,332
Year 14 £20,000 £800 ........ £34,634 £1,385
Year 15 £20,000 £800 ........ £36,019 £1,441
Year 16 £20,000 £800 ........ £37,460 £1,498
Year 17 £20,000 £800 ........ £38,958 £1,558
Year 18 £20,000 £800 ....... £40,516 £1,621
Year 19 £20,000 £800 ....... £42,137 £1,685
Year 20 £20,000 £800 ....... £43,822 £1,753
Total return after 20 yrs £16,800 ........ £25,575

Your fairy Godmother has died leaving you £20k. You put it into property and at the end of 20 years that money has returned you £16,800. Your fairy Godmother also left your brother £20,000 and he put it into an ISA, now he's got £25,575!
Are you still sure you want to buy property?
It's probably worse than that because every year when the £800 rent came in you spent it in the pub.
Just say that you kept it going for 40 years (about a normal working life) then you will have gained £32,800 and your brother nearly £80,000.

Sorry, can't seem to make the columns stay aligned.

The £20,000 put down on the buy to let was surely only the deposit though. Price of property which was bought could of been £80,000 in which case with the rent income easily covering the mortgage and even with no property inflation in the next 20 years your left with something worth £80,000 looks pretty good compared to any pension pot.

 

[The Agrarian]

I started a SIPP 10 years ago and it’s the worst thing I have done, so say to save tax but the management cost have been huge. Not worth it IMO. Use your to cash buy land or borrow whilst it’s cheap

Who was it set up with?


What were the charges?


What was it invested in?


What has the overall return been?

 

[Still Farming]

Would have been good pension if all the wasted council tax money could have been used as they sure have'nt got good future for us ?

 

[SRRC]

The £20,000 put down on the buy to let was surely only the deposit though. Price of property which was bought could of been £80,000 in which case with the rent income easily covering the mortgage and even with no property inflation in the next 20 years your left with something worth £80,000 looks pretty good compared to any pension pot.

The point I keep trying to make is a broad one to try and get people to understand that compound interest is your friend. Whatever investments you make please do the sums properly.
I hear people say silly things about investments, some in posts above, that show they either don't understand or don't want to understand the vital statistics of money and savings. You must provide for your family and yourself to have comfort in old age, the state won't.

 

[Still Farming]

The point I keep trying to make is a broad one to try and get people to understand that compound interest is your friend. Whatever investments you make please do the sums properly.
I hear people say silly things about investments, some in posts above, that show they either don't understand or don't want to understand the vital statistics of money and savings. You must provide for your family and yourself to have comfort in old age, the state won't.

Tell all those doing well and getting extra credits and NEVER paid a penny in or on dole or something all their lives?
Also all the Foreign Guests here doing very well also ?

 

[capfits]

Pension great thing. Went up 20% last year kerching!.will not have to rely on the farm for an income when I elect to retire.
If I die early it goes to my estate no penury for my dependents.
The secret I think is to have a worthwhile pension is
1. timing to a degree. Start early and put in more when market is good value is depressions in stock markets, usually when we make more funnily enough.
2. Be realistic. Put a little in you will funnily enough get little out. Put say a set percent of your income in. Currently putting 14% of my income in.
3. Review it every year, just do not look at it review properly.
4. Check all the fees some managers entice with low rates intially and whack you when you change and move things. Others will charge more intially and have more reasonable rates when you change and move things.
5. Speak to your accountant before anyone else.

Remember when you do retire and why should you die in yoke that BMW that you bought instead of something more modest and putting something aside will long be through the crusher.

 

[SRRC]

Tell all those doing well and getting extra credits and NEVER paid a penny in or on dole or something all their lives?
Also all the Foreign Guests here doing very well also ?

Not much point railing against others, that won't feed you when you are 95.

 

[Still Farming]

When we are in an old people's home shoved in the corner in a pool of pee, dribbling and eating cornbeef sandwich and cold tea and being charged £1000 a week for the privilege we will be thankful we bought one then .

 

[capfits]

When we are in an old people's home shoved in the corner in a pool of pee, dribbling and eating cornbeef sandwich and cold tea and being charged £1000 a week for the privilege we will be thankful we bought one then .

Ahm what has that got to do with a pension?

 

[Still Farming]

Ahm what has that got to do with a pension?

Pay for your old age maybe ???

 

[Thick Farmer]

Pay for your old age maybe ???

If you’re skint the state pays for you.

 

[Still Farming]

If you’re skint the state pays for you.

Your right .
The pay nothing lot get the same as the skrimp and save crowd ?

 

[Robw54]

Fair point, on fees,
But where would one start, with no idea of the money investment sector,
Advise of any form is going to cost you,
Now at 60, one new 5 yr investment using what was our mortgage money.
Existing Private pension. And Two Rental properties. Plus state pension should see me okay at 65yrs.

Bit of an eye opener this week on transaction costs behind some funds above the advertise OCF.

A potential mis selling scandal of epic proportions.

 

[Woolly]

According to this:
https://www.moneywise.co.uk/investi...de-to-the-best-investment-platforms-beginners.

HL looks expensive except for the smaller investor (say <£40k portfolio). AJ Bell may be a better all rounder? Anyone tried iWeb?

 

[texas pete]

According to this:
https://www.moneywise.co.uk/investi...de-to-the-best-investment-platforms-beginners.

HL looks expensive except for the smaller investor (say <£40k portfolio). AJ Bell may be a better all rounder? Anyone tried iWeb?

Interesting link that, thanks.

 

[capfits]

According to this:
https://www.moneywise.co.uk/investi...de-to-the-best-investment-platforms-beginners.

HL looks expensive except for the smaller investor (say <£40k portfolio). AJ Bell may be a better all rounder? Anyone tried iWeb?

I use iweb no problems cheap to deal pretty straightforward really.

 

[Pasty]

I wish I had kept my G wagon and the Quattro. I wish I have kept my 280Z. I've still got my Gibson guitars. I'm glad I never started a pension. My advice would be to buy cool stuff and bitcoin and if it all goes wrong, jump off Beachy Head. Plan?

 

[capfits]

I wish I had kept my G wagon and the Quattro. I wish I have kept my 280Z. I've still got my Gibson guitars. I'm glad I never started a pension. My advice would be to buy cool stuff and bitcoin and if it all goes wrong, jump off Beachy Head. Plan?

I wish I had kept my own hair colour and youthful physique but it has moved on.....
Least I have my own teeth

 

[The Agrarian]

I wish I had kept my G wagon and the Quattro. I wish I have kept my 280Z. I've still got my Gibson guitars. I'm glad I never started a pension. My advice would be to buy cool stuff and bitcoin and if it all goes wrong, jump off Beachy Head. Plan?

You don't like it because it's locked away - effectively dead money for most of your life?

 

[Robw54]

I wish I had kept my G wagon and the Quattro. I wish I have kept my 280Z. I've still got my Gibson guitars. I'm glad I never started a pension. My advice would be to buy cool stuff and bitcoin and if it all goes wrong, jump off Beachy Head. Plan?

Surely it has a small place? Enough for say an extra 10k a year to keep u fed and watered in old age?