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Penny Outskirts

Joined: 18 Sep 2005
Posts: 23385
Location: Planet, not on the....

Posted: Mon May 22, 06 2:29 pm Post subject:
When the eldest finally gets round to getting a job, I shall try to persuade him to start a cash ISA, and possibly a small Stakeholder Pension too. If you haven't started a pension by about 25, it's a very long uphill struggle to fund it yourself! When I was in the industry, I always felt the most satisfaction from getting a 17 or 18 year old to start one.

Treacodactyl
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Mon May 22, 06 2:43 pm Post subject:
The governments latest tinkering, sorry I mean sweeping changes, are due out this week. There might be something in them aimed at people on lower wages and something that might force people to pay into pensions. For it to make much sense they must also scrap means testing though.

oddballdave

Joined: 08 Mar 2006
Posts: 259
Location: Telford, Shropshire

Posted: Mon May 22, 06 3:00 pm Post subject:

Treacodactyl wrote:

The governments latest tinkering, sorry I mean sweeping changes, are due out this week. There might be something in them aimed at people on lower wages and something that might force people to pay into pensions. For it to make much sense they must also scrap means testing though.

For it to make sense the government has to understand what a twenty pound note is.

Ask Mr Prescott - a bottle of Scotch which lasts a couple of days.
Mr Blair - A nice lunch
My MP - still not a lot.

Me - A weeks shopping for three.

If 100% of my gross wage is insufficient at best to provide me with minimum salary, then I will fight against any legislation which forces me to put any of my money where it will do me no good either now or in the future.

As I say, until the government learns that �20 is a residual income for a month and not an hourly rate. Then they are barking up the wrong tree.

Dave

mrutty

Joined: 28 Oct 2004
Posts: 1578

Posted: Sun Jun 11, 06 4:49 pm Post subject:

bernie wrote:

oddballdave wrote:

The maths just don't make sense to me.

An IFA did an assesment for White male aged 43 to retire at age 65 on benefit plus 50% (an assumed minmum income) This to pay out until aged 80.

He crunched some numbers and the amount I need to pay in each month is higher than my gross wage.

Average salary in this county is 50% higher than my actual salary.

So in simple terms I will never retire. So why bother with a pension?

I paided in since I was 17. The 43 year old example shows the joys of compound interest. Start as early as possible, also once you hit higher rate tax (if you're that lucky) chuck in as much as possible as you get 40p back for every 60p you put in.

I used to tell students that they should be paying in from the age of about 17 if they want a decent pension - they used to fall about laughing

By the way - whereabouts in Telford are you oddballdave - you can't be too far away from me

dpack

Joined: 02 Jul 2005
Posts: 46343
Location: yes

Posted: Sun Jun 11, 06 4:54 pm Post subject:
when im too old to continue the world will dispatch me ,or i will be shot by a jealous bridgroom retire ? do new things ? what?

mrutty

Joined: 28 Oct 2004
Posts: 1578

Posted: Sun Jun 11, 06 5:08 pm Post subject:
Honest I typed loads of stuff about compound interest and 40p back for 60p on higher rate. Jema's server eat my message

Treacodactyl
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Sun Jun 11, 06 5:27 pm Post subject:
What was the jist again?

dpack

Joined: 02 Jul 2005
Posts: 46343
Location: yes

Posted: Sun Jun 11, 06 6:02 pm Post subject:

retirement
i wont do it , my wants have changed , my abilities have changed ,life is life , however you eat and house yourself , how does not matter .
maybe i will get lucky and fall over mid shovelful

maybe i die alone (we all do unless there is a trauma going on )
i live for now which includes provision for later so as i dont worry but cash is not top of my list nor is a promise to pay later (as if

)
chuck me naked into most environments and i will thrive ,i am a human .that is my pension to my self .and my legacy .

oddballdave

Joined: 08 Mar 2006
Posts: 259
Location: Telford, Shropshire

Posted: Mon Jun 12, 06 5:09 pm Post subject:

mrutty wrote:

bernie wrote:

Start as early as possible, also once you hit higher rate tax (if you're that lucky) chuck in as much as possible as you get 40p back for every 60p you put in.

But the compound interest for cost of living has negated the pension I started fifteen years ago. Plus the stock market crash didn't help. The only people who are liking my pension are the financial advisors.

And as for higher rate of tax

Well the financial advisor may be there but the only time I was ever offered a job which MIGHT have hit that level after four years required that I work a ten hour in the office day for a minimum of six days per week.

Sorry but I am not that much of a team player.

My sons have been told to invest in 'professional certification' as a pension fund. We will always need electricians, plumbers and carpenters. Get in young enough and automatic promotions within the guild make you even more desirable, even if you haven't worked in the trade for ten years.

Treacodactyl
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Mon Jun 12, 06 7:26 pm Post subject:

oddballdave wrote:

My sons have been told to invest in 'professional certification' as a pension fund. We will always need electricians, plumbers and carpenters.

The pension is for when they stop working though. It's also worth pointing out again that with a personal pension you can choose where the money is invested, so you can invest in something like an interest bearing cash fund. The interest will grow tax free but when you draw the pension you'll probably pay some tax.

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