Tractor or pension?
- Thread starter redsloe
- Start date
Buy a classic tractor, and achieve both.
Far too many unknowns to give any kind of considered reply......
Do you need a(nother) tractor?
How old are you?
How much is already in your pension 'pot'?
When are you considering retirement?
How much do you consider it necessary to be getting from your pension?
Thats a few questions just to start...
Do you need a(nother) tractor?
How old are you?
How much is already in your pension 'pot'?
When are you considering retirement?
How much do you consider it necessary to be getting from your pension?
Thats a few questions just to start...
OK.
Not necessarily. Current one is 6 years old
Early 50s
Just about 6 figures
Not for a while yet
Not much, I do have a number of BTLs
- Location
- Scottish Highlands
Pension, if you’re that close to an age when you can withdraw. You’re at the stage when you should be packing it in to your annual limit.
Try to work out how you will need to fork out when you part-ex this tractor in a few years time ???? At your age i'd say pension. If you have been paying into a plan, as a self-employed/ business person, you can delay taking out your pension until you are 75. So start paying into another pension,
and in 20-25 years you will have "another nice earner" streaming money into your bank account, when you will be in your mid-70's, and your days
of "having to work" will have long gone. Also - it will be a big help to pay, if your health suffers, for any extra help you might need. With the number
of people over 60 being greater than those under 40, and that stat widening in the next 10 years, having an off-farm income, which you do not have
to go off-farm for, will be a big help.
Exfarmer
Member
- Location
- Bury St Edmunds
Just make sure you buy the correct one! That will be the one the old boys wanted when you want to sell it.
40 years ago it was Steam engines and some made huge sums even at todays prices, but they have not put on a penny since.
30 years ago good Triple D’s were broken up to feed the Ford Major trade, how some must regret that move!
Triple D's seem to be going down in value now. Probably because they are an uncomfortable place to spend the day. As you say, you need to ride the wave, and buy what the next generation drove in their yoof. Probably the best option for the OP would be to buy a new tractor, and keep it for decades. Depreciation is only a problem for the first 30 years.
- Location
- Scottish Highlands
The OP is in early 50s. They won’t be selling an old tractor in a few decades - they’ll likely be buying one.
Exfarmer
Member
- Location
- Bury St Edmunds
Nearly off topic, but about 60 years ago my father was rung by a dealer asking him if he wanted to buy a new, old tractor. He had been contacted by an executor to help disperse a large quantity of tractors which had been found in a farm barn. They were apparently of all ages including some recent which the dealer thought my father might have been interested in. Apparently the ( I think it was a lady ) farmer who had bought a large number of new tractors over many years from quite early times and just put them in the barn. Nobody had a clue why, but most had obviously done no work at all.
Should have bought the lot, they would have been a good investment, I suspect many did end up in collections
- Location
- Wiltshire
I don’t think anyone has ever complained about having too much pension.
Having bought machines to put against tax my accountant always says don’t buy just for the tax advantage. Buy to improve the business.
Machines against tax really only moves the bill to the next year, If you make the same money the next year you are in the same position again and looking to buy another machine. Probably with more payments to make so cashflow is soon getting worse.
Bg
Having bought machines to put against tax my accountant always says don’t buy just for the tax advantage. Buy to improve the business.
Machines against tax really only moves the bill to the next year, If you make the same money the next year you are in the same position again and looking to buy another machine. Probably with more payments to make so cashflow is soon getting worse.
Bg
Good points, all that I understand.
Inflation makes all this more complicated imo.
My old tractor is worth more this year than it was in a similar quote last year and I've had another years work out of it. A new one is obviously more as well but the theory is when is the time exactly right to do a deal to get the best result? In 3 years time I will be less interested and it will cost more. Unknown subs on top and the 'need' will be less financially.
Can you not get pension relief after 55?
- Location
- Scottish Highlands
You can get a chunk of the money back at 55 - without having paid any tax.
Tarw Coch
Member
- Location
- Bottom of Wats Dyke
What’s your plans regarding inheritance? Do you have anyone you plan to leave some/the majority of your estate and possessions to? If not it sounds like you’ve got plenty to cover your later years so spend it on Something you enjoy, if that’s a new tractor it’s a tax efficient way of gaining pleasure
I drove a 7610, in my yoof. You’d need to pay me to get one now!
- Location
- South Wales UK
Who buys a tractor outright these days?
Finance tractor , fund pension possibly?
Any kids want to take on?
Let them finance it?
Finance tractor , fund pension possibly?
Any kids want to take on?
Let them finance it?
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