Saving for retirement Page 3

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  • CosmicFuzz 9 Jan 2014 15:44:23 23,222 posts
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    I'm going to put all my money that I would have put into my pension into buying scratchcards and lottery tickets. All I need is one winning set of numbers and generations of my family will be secure.

    Looking for a new gaming podcast to listen to? LOOK NO FURTHER!

  • Deleted user 9 January 2014 15:48:57
    Alastair wrote:
    ISA for deffo as it's tax-free.
    And you can transfer it over into a new one each year.
    Read the ISA guide on MoneySaveingExpert.com
    Thanks, shall sit down one afternoon next week and have an extensive read through.
  • Nexus_6 9 Jan 2014 16:07:59 3,872 posts
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    Second the ISA front. Also, a long term bond, which you could buy with money saved from an ISA after 2 years or so (ie - put 500 quid in an ISA day 1, then 2 years use 850 to buy a 6/8/10 year bond that pays out 30%)

    Trick is to keep the investments rolling, every 2 years take out a new product so pay offs are staggered also IMO
  • Trowel 9 Jan 2014 19:04:33 17,439 posts
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    Nexus_6 wrote:
    Second the ISA front. Also, a long term bond, which you could buy with money saved from an ISA after 2 years or so (ie - put 500 quid in an ISA day 1, then 2 years use 850 to buy a 6/8/10 year bond that pays out 30%)

    Trick is to keep the investments rolling, every 2 years take out a new product so pay offs are staggered also IMO
    Wtf. Please don't do that. Not without taking advice. That's a very specialist product with many cons depending on your circumstances.

    Without suggesting this as advice for anyone, priority 1 before you do anything is usually to make sure you have rainy day funds. Then consider paying down debt, as depending on rates they may outstrip your investments - mortgage will be the main debt for most of course. If you want to then look at long term investments (10+ years) , a personal pension is generally being the most efficient wrapper due to the tax advantages enhancing your contributions, though of course that's because it's intended as a pot you can't withdraw until retirement. An ISA is next most tax efficient wrapper, as you aren't taxed on capital gains (but are taxed on equity dividends), but relative to a pension you do have more immediate access if needed (though that's what the rainy day funds are for remember...). Within either wrapper you have the choice of how to invest, from cash equivalents (low risk/return) to fixed interest to shares in tiny tech startups like 3D printing companies (high risk/return), or even 30% return bonds you read about on Eurogamer.

    The only advice I can give is to do some reading and research of you own. If it seems a little boring, think of it as something that will basically determine the quality of your and your family's life.
  • elstoof 9 Jan 2014 19:15:15 6,625 posts
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    My father in laws entire pension was lost, and he paid an absolute fortune into it. He died too early apparently, and they gave my wife's family nothing. This was in France though.
  • Shikasama 9 Jan 2014 19:18:27 6,608 posts
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    So earn money - save money isn't enough to not be destitute in old age.

    Yey.
  • Trowel 9 Jan 2014 19:39:14 17,439 posts
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    elstoof wrote:
    My father in laws entire pension was lost, and he paid an absolute fortune into it. He died too early apparently, and they gave my wife's family nothing. This was in France though.
    Sorry to hear that, though it shouldn't dissuade you from planning correctly. The problem with the way similar stories have been reported is the emphasis on the idea that it's the [u]pension[/u] that fails, when it's nothing more than a holding account for underlying investments which have failed. A pension itself should be the cornerstone of most people's long term financial planning due to the tax advantages, but it's vital that the investments held within are chosen correctly, with or without advice.
  • elstoof 9 Jan 2014 19:42:50 6,625 posts
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    Oh no, I wasn't trying to put anyone off - just the talk of pensions reminded me io that. Bit of a shitter though eh! The pension itself didn't fail, there was just a loophole that you needed to be a certain age to qualify for any pay out on death. He'd only just retired and died one month before his birthday - after that my mother in law would have been entitled to the vast sums he'd invested. He was a successful notary in Paris and did very well all told.

    I've already put all my financial mega plan into place so don't worry about me.

    Edited by elstoof at 19:45:48 09-01-2014
  • Nexus_6 9 Jan 2014 19:47:05 3,872 posts
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    Trowel wrote:
    Nexus_6 wrote:
    Second the ISA front. Also, a long term bond, which you could buy with money saved from an ISA after 2 years or so (ie - put 500 quid in an ISA day 1, then 2 years use 850 to buy a 6/8/10 year bond that pays out 30%)

    Trick is to keep the investments rolling, every 2 years take out a new product so pay offs are staggered also IMO
    Wtf. Please don't do that. Not without taking advice. That's a very specialist product with many cons depending on your circumstances.

    Without suggesting this as advice for anyone, priority 1 before you do anything is usually to make sure you have rainy day funds. Then consider paying down debt, as depending on rates they may outstrip your investments - mortgage will be the main debt for most of course. If you want to then look at long term investments (10+ years) , a personal pension is generally being the most efficient wrapper due to the tax advantages enhancing your contributions, though of course that's because it's intended as a pot you can't withdraw until retirement. An ISA is next most tax efficient wrapper, as you aren't taxed on capital gains (but are taxed on equity dividends), but relative to a pension you do have more immediate access if needed (though that's what the rainy day funds are for remember...). Within either wrapper you have the choice of how to invest, from cash equivalents (low risk/return) to fixed interest to shares in tiny tech startups like 3D printing companies (high risk/return), or even 30% return bonds you read about on Eurogamer.

    The only advice I can give is to do some reading and research of you own. If it seems a little boring, think of it as something that will basically determine the quality of your and your family's life.
    Which part are you talking about ? Fair enough stock ISA can lose money (as I said) but the bonds I was talking about are guaranteed to return a healthy amount in my case in 2017

    Of course clearing debts is important too in the first instance, but I like to spread investments and see this as another part of it
  • Trowel 9 Jan 2014 19:58:51 17,439 posts
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    It's best to say they aren't guaranteed to return 30%, they will almost certainly return 30% - there may be problems say in the unlikely event that the guarantor defaults. Even bank accounts and UK Gilts can't offer a guaranteed return, once you drill into the small print. Also it's important to emphasise that that sort of product isn't suitable for all, say someone who thinks there's a chance they might need to withdraw early.
  • Nitrous 9 Jan 2014 20:43:57 336 posts
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    I've been putting money away in ISA accounts for a good few years. Work are now with NEST for the pension pot. 7 odd a month is going in that from my wage but I'm not sure how much the company is putting in...
  • tonyferrino 9 Jan 2014 20:59:44 178 posts
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    I'm very lucky in that I pick up a military pension in 4 years (when I hit 40 and "retire") and it's index-linked later on as well. That, plus whatever pension/savings plan I decide on after that will hopefully keep me at least comfortable.
  • Nexus_6 9 Jan 2014 21:01:55 3,872 posts
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    @Trowel

    Fair points all.

    Product I was thinking on was a credit Suisse thing I have that returns guaranteed 21% and up to xx% dependant on the FTSE as you say though I am in a lucky position that I can defo leave it until it matures so not risking early exit fees
  • Trowel 9 Jan 2014 21:42:32 17,439 posts
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    Nexus_6 wrote:
    @Trowel

    Fair points all.

    Product I was thinking on was a credit Suisse thing I have that returns guaranteed 21% and up to xx% dependant on the FTSE as you say though I am in a lucky position that I can defo leave it until it matures so not risking early exit fees
    Absolutely. Great long term products in good times which fingers crossed we're slowly tipping toward. Hopefully you'll get that extra from a bump in FTSE levels, as it'd mean my portfolio gets some of that too :)
  • Trowel 9 Jan 2014 21:47:09 17,439 posts
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    Incidentally, if anyone wants to do some reading one of the best things is the syllabus for the CF qualifications which are the starters for many in the industry - get hold of the sections on investment and retirement planning. The knowledge is somewhere between A - level and 1st year degree.

    http://www.cii.co.uk/qualifications/certificate-in-financial-planning-qualification/

    Edited by Trowel at 21:47:44 09-01-2014
  • Sir_Walter_Rally 7 May 2014 16:23:42 770 posts
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    I am interested in putting money aside, don't have a pension, but it isn't for retirement.

    I noticed instead of spunking money, if I banked it, it would amount up pretty quickly - where as otherwise, it would have just been blew on fuck all basically. I just cleared some smash out of my cup holder in my motor - there was 55 there! So that got me thinking about this.

    Can I easily (online) pay in funds from my normal bank account, into an ISA?

    How do you withdraw funds? Do you get a bank card?

    Entirely online seems dodgy, I'd probably forget the password.

    I was looking at the Halifix online ISA...
  • TheSaint 7 May 2014 16:27:05 14,201 posts
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    Halifax online banking is really easy. All you need to remember is your user name, password and a memorable word.

    You don't get a card for your ISA but you can easily transfer to and from your bank account within their site. Worth checking the T&Cs as withdrawals often incur interest penalties.
  • neilka 7 May 2014 16:29:07 15,661 posts
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    STICK IT IN THE FLASK ANFONY
  • Armoured_Bear 7 May 2014 16:48:57 10,278 posts
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    Sir_Walter_Rally wrote:
    I am interested in putting money aside, don't have a pension, but it isn't for retirement.

    I noticed instead of spunking money, if I banked it, it would amount up pretty quickly - where as otherwise, it would have just been blew on fuck all basically. I just cleared some smash out of my cup holder in my motor - there was 55 there! So that got me thinking about this.

    Can I easily (online) pay in funds from my normal bank account, into an ISA?

    How do you withdraw funds? Do you get a bank card?

    Entirely online seems dodgy, I'd probably forget the password.

    I was looking at the Halifix online ISA...

    XBL : ecosse011172
    PSN : ecosse_011172
    NNID : armoured_bear

  • Sir_Walter_Rally 7 May 2014 17:00:39 770 posts
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    My cupholder is bigger than that.

    Talking about significant savings.
  • Steve_Perry 7 May 2014 17:03:24 3,578 posts
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    Sir_Walter_Rally wrote:
    My cupholder is bigger than that.

    Talking about significant savings.
    You can get instant access ISA's which you can do online. The rates vary and you will be better off switching it every year to get the best interest rates.

    You can put money in from other accounts and take it out instantly.

    Pretty sure one minute of research on google would have shown you this.

    VIVA STEFANSEN

  • elstoof 7 May 2014 17:10:48 6,625 posts
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    Page 2, top post, link to aaaaaallllllll the information you could want, Anfony.
  • Vortex808 7 May 2014 19:53:55 6,963 posts
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    elstoof wrote:
    Anfony.
    Ah! That explains so much.
  • mrpon 7 May 2014 22:14:12 28,446 posts
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    I like how no-one bats an eyelid over the smash in a cup holder. Obviously we're talking instant potato smash as it's anfony.

    Give yourself 5 or gig, you're worth it.

  • PES_Fanboy 7 May 2014 22:30:56 13,543 posts
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    Why would you trust any finance cunts with your money?

    Spend it. It's your duty as Westerners. Let sixty year old you worry about later.
  • DiddlerDo 7 May 2014 22:43:16 1,186 posts
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    How does sixty year old you afford rent etc?
  • PES_Fanboy 7 May 2014 22:45:47 13,543 posts
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    DiddlerDo wrote:
    How does sixty year old you afford rent etc?
    Same as now. Odd jobs n blow jobs.

    If he even exists. Damn you, sixty year old me!
  • PES_Fanboy 7 May 2014 22:49:05 13,543 posts
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    But savings - specifically retirement savings - are a massive set of gambles.

    One: that you or a beneficiary/ies live to see a return
    Two: that no twunt fucks it up / steals it first
    Three: that the world isn't eaten by Unicron
    Four: that it outgrows inflation and investment charges sufficiently to provide any kind of living

    I'm only really half kidding about all this shit. Understand it's different for some people, but this sort of stuff is what keeps us from following dreams.

    Edited by PES_Fanboy at 22:51:20 07-05-2014
  • mrpon 7 May 2014 23:03:54 28,446 posts
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    DiddlerDo wrote:
    How does sixty year old you afford rent etc?
    You've paid for a house by then silly.

    Give yourself 5 or gig, you're worth it.

  • malloc 7 May 2014 23:15:02 2,299 posts
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    Kinda seems to make sense to pay off any debts, including mortgage as quick as you can as the interest you'll pay on it will far out weigh any saving interest you get. Putting something aside regularly also seems a rather clever idea.
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