Omega Owners Forum

Please login or register.

Login with username, password and session length
Advanced search  

News:

Search the maintenance guides for answers to 99.999% of Omega questions

Pages: 1 2 3 [4] 5 6   Go Down

Author Topic: Investment question.  (Read 10387 times)

0 Members and 2 Guests are viewing this topic.

tigers_gonads

  • Omega Lord
  • *****
  • Offline Offline
  • Gender: Male
  • Kinston Upon Hull
  • Posts: 8592
  • Driving a Honda CR-V which doesn't smell of pee
    • Honda CR-V
    • View Profile
Re: Investment question.
« Reply #45 on: 24 September 2018, 21:45:56 »

Past 50 a couple of years ago  :(
Our lass has cracked 60  ;)

I did a quick 10 mins research on ISA's earlier.

We will look into high interest accounts and see how it goes  :y

Thanks lads  :)

Ok. Next plan then. Does your wife work? If not, (or even if she does but earns bu99er all), she can pay up to £2880 p/a into a private pension and the govt will gross it up by 25% to £3600. Since she is 60+ she can then "cash it all in" again and take the whole lot out tax free, assuming her income is less than £9900 this tax year.

You can do the same providing you are 55 or older, and you earn £9900 or less.

So that's potentially 25% 'interest' on £5760 with a cast iron Govt guarantee, and you won't get anywhere close to that anywhere else. Rinse and repeat next year and the year after and the taxpayer will have given you and the mrs £4320 "interest" :D




Bugger

The wife earns over 15 grand a year and i'm 52  :(

Appreciate the help though  :)
Logged

tigers_gonads

  • Omega Lord
  • *****
  • Offline Offline
  • Gender: Male
  • Kinston Upon Hull
  • Posts: 8592
  • Driving a Honda CR-V which doesn't smell of pee
    • Honda CR-V
    • View Profile
Re: Investment question.
« Reply #46 on: 24 September 2018, 21:47:00 »

Well decision made (by me) as normal  ::)

Stick it in some ISA's for a year or two and see what happened with the property prices / interest rates after Brexit.
If relatively stable, we will buy the place.
In the meantime, I need to hold this job down and get my feet firmly under the table so to speak.
Not stayed in one job (with the exception of been self employed) for more then 2 1/2 years since the 80's and at my age, gaining employment is a nightmare  :(

Without sounding too morbid / facts of life and all that ..............  once my parents croak it (they are both well into there 70's now), I should have enough to pay off this one and maybe take a trip to the auctions for a couple of more  :-\
every cloud / silver lining etc


True  :)
Logged

LC0112G

  • Omega Baron
  • *****
  • Offline Offline
  • 0
  • Posts: 2439
    • View Profile
Re: Investment question.
« Reply #47 on: 25 September 2018, 17:04:55 »

Something else - check yours and the MRS's NI contribution record. You can do it online.

To get a full state pension in retirement you need at least 35 years NI contributions. It's a bit more complicated if you've ever been 'opted out' into a private or occupational plan, so some people can need up to 43 full years. If it doesn't look like you're going to get to the new state pension limit (currently £164.35 per week) and if you've got any recent missing years, then it is very good value to buy some extra years. Each missing year typically costs £700-800, and gives you about £4.70 per week extra (about £244 per year) once you reach State Pension age.

Your SP age is 68, so 15 years away. The MRS's might be 66, 67, or 68 so only 6-8 years away.  I know that might seem like ages away, but the SP is incredibly good value for money and you should try to ensure you will qualify for the full (35 years NI) amount.
Logged

tigers_gonads

  • Omega Lord
  • *****
  • Offline Offline
  • Gender: Male
  • Kinston Upon Hull
  • Posts: 8592
  • Driving a Honda CR-V which doesn't smell of pee
    • Honda CR-V
    • View Profile
Re: Investment question.
« Reply #48 on: 26 September 2018, 11:09:46 »

Something else - check yours and the MRS's NI contribution record. You can do it online.

To get a full state pension in retirement you need at least 35 years NI contributions. It's a bit more complicated if you've ever been 'opted out' into a private or occupational plan, so some people can need up to 43 full years. If it doesn't look like you're going to get to the new state pension limit (currently £164.35 per week) and if you've got any recent missing years, then it is very good value to buy some extra years. Each missing year typically costs £700-800, and gives you about £4.70 per week extra (about £244 per year) once you reach State Pension age.

Your SP age is 68, so 15 years away. The MRS's might be 66, 67, or 68 so only 6-8 years away.  I know that might seem like ages away, but the SP is incredibly good value for money and you should try to ensure you will qualify for the full (35 years NI) amount.




The missus retires at 66, i'm 67 if I make it  :-\

Our lass has been either in full employment or family benefit when with sprog so hers should be full.

Mine is well behind  :-X :-X :-X  and I have to work solid until 67 to get a full state pension.

Yes, i've got a online tax account and will look into that  :y

Cheers  ;)
Logged

LC0112G

  • Omega Baron
  • *****
  • Offline Offline
  • 0
  • Posts: 2439
    • View Profile
Re: Investment question.
« Reply #49 on: 26 September 2018, 22:11:04 »


Mine is well behind  :-X :-X :-X  and I have to work solid until 67 to get a full state pension.

Yes, i've got a online tax account and will look into that  :y

If you want/need to work till 67 then Ok. However, if you want (or more accurately, can afford) to retire earlier, then it's probably best to boost your current SP entitlement by buying some missing years from you history. You won't be able to reap the benefit till you reach 67, and if you do peg out before then you'll effectively lose the gamble/money. However current life expectancy for a 52 year old male in the UK is 81.35 years, so on average each year purchased will pay out an extra £244 for 14.35 years, or £3500.

I believe that you can currently buy missing years all the way back to 2005. Each year has a different cost so you'll need to work out which are the most cost effective for you. I think you have till 2020 to do so - after that you will be restricted to only the last 5 years of missing NI contribs. #

Also note that your retirement age isn't guaranteed to be 67 either. The govt have 'promised' that they will give at least 10 years notice to anyone affected by any future change. Therefore you aren't 'safe' at 67 until you reach age 57, so 5 more years. And that assumes that future govt's keep the 10 year promise. Your missus should be safe though since she is only 7 ish years away now.

Note I'm not saying this is the best use of your inheritance windfall - but it's at least worth considering.
« Last Edit: 26 September 2018, 22:22:53 by LC0112G »
Logged

New POD

  • Senior Member
  • ****
  • Offline Offline
  • Gender: Male
  • Miseryside
  • Posts: 735
    • NEED MV6
    • View Profile
Re: Investment question.
« Reply #50 on: 27 September 2018, 21:24:38 »

I have £50K to invest. We (I have to involve my wife in the decisions ) already have £50K invested in a BTL with a Mortgage for the rest. And I'd like to do it again.
She however, has made this really impossible.  The area she's prepared to look for a property doesn't contain the property she wants at a price that makes good investment sense. She will not consider less bedrooms, she will not consider a small compromise on area.  Last week we found a house that is 2 doors down from the one we have already, it's very nice but the garden is wide but short, so the illusion is that it's small.  We made an offer which is a touch low, and they rejected it. I pretty much know how much they would take, and at that price it would still give us the long term return I'm looking for. She refuses to increase the offer because the garden is too small.
Meanwhile my £50K isn't getting anything like the return it could. GRRRR
Logged

Sir Tigger KC

  • Get A Life!!
  • *****
  • Offline Offline
  • Gender: Male
  • West Dorset
  • Posts: 23418
    • 2 Fords
    • View Profile
Re: Investment question.
« Reply #51 on: 27 September 2018, 21:43:44 »

You shouldn't buy 2 rentals on the same street anyway.  ;)

Maybe you are doing renovations in one house and the tenants in the other start demanding the same.  Maybe when a house becomes empty you increase the rent to the market rate for the new tenants, but they might find out that they are paying more than your other tenants.  You go round to see one set of tenants, but get 'jumped' by the others....  ::)

Then there's your exit strategy.  Hopefully it would never happen, but what if you had to sell up in a hurry.  2 houses for sale on the same street at the same time?  Or what if you decided to sell one house, but then the tenants in the other get the jitters and move out fearing you will evict them when you have sold the first.  :(

In my opinion, when building a property portfolio, buy on different streets, even if you are presented with a great deal on the same street and only let tenants know what they need to know about you. ie they don't need to know where your other properties are.  ;)

Logged
RIP Paul 'Luvvie' Lovejoy

Politically homeless ......

Doctor Gollum

  • Get A Life!!
  • *****
  • Offline Offline
  • Gender: Male
  • In a colds and darks puddleses
  • Posts: 28089
  • If you can't eat them, join them...
    • Feetses.
    • View Profile
Re: Investment question.
« Reply #52 on: 27 September 2018, 22:44:22 »

I have £50K to invest. We (I have to involve my wife in the decisions ) already have £50K invested in a BTL with a Mortgage for the rest. And I'd like to do it again.
She however, has made this really impossible.  The area she's prepared to look for a property doesn't contain the property she wants at a price that makes good investment sense. She will not consider less bedrooms, she will not consider a small compromise on area.  Last week we found a house that is 2 doors down from the one we have already, it's very nice but the garden is wide but short, so the illusion is that it's small.  We made an offer which is a touch low, and they rejected it. I pretty much know how much they would take, and at that price it would still give us the long term return I'm looking for. She refuses to increase the offer because the garden is too small.
Meanwhile my £50K isn't getting anything like the return it could. GRRRR
Whilst there is an 'I' in 'marriage', there is no 'U'
Logged
Onanists always think outside the box.

tunnie

  • Get A Life!!
  • *****
  • Offline Offline
  • Gender: Male
  • Surrey
  • Posts: 37511
    • Zafira Tourer & BMW 435i
    • View Profile
Re: Investment question.
« Reply #53 on: 23 October 2018, 11:35:07 »

Past 50 a couple of years ago  :(
Our lass has cracked 60  ;)

I did a quick 10 mins research on ISA's earlier.

We will look into high interest accounts and see how it goes  :y

Thanks lads  :)

Ok. Next plan then. Does your wife work? If not, (or even if she does but earns bu99er all), she can pay up to £2880 p/a into a private pension and the govt will gross it up by 25% to £3600. Since she is 60+ she can then "cash it all in" again and take the whole lot out tax free, assuming her income is less than £9900 this tax year.

You can do the same providing you are 55 or older, and you earn £9900 or less.

So that's potentially 25% 'interest' on £5760 with a cast iron Govt guarantee, and you won't get anywhere close to that anywhere else. Rinse and repeat next year and the year after and the taxpayer will have given you and the mrs £4320 "interest" :D

I'm now joining the few people here investing, as Sky sale has now fully completed for me.

This spiked my interest, my wife does not work I support her and our 2 children with my salary. I "pay" her a sum each month for day to day stuff she needs to buy for the family, is this classed as an income?

How do these private pensions work, do you just contact them directly? I would be concerned about them going bust over 50 year life time to ensure money is protected?

I've looked at ISA's and they pay sod all in interest, to the point of why bother setting one up with such tiny amounts on offer.

Mate of mine lives up Norf near Darlington, I could easily get a buy-to-let out there, that would give a much better return.  :-\
Logged

Doctor Gollum

  • Get A Life!!
  • *****
  • Offline Offline
  • Gender: Male
  • In a colds and darks puddleses
  • Posts: 28089
  • If you can't eat them, join them...
    • Feetses.
    • View Profile
Re: Investment question.
« Reply #54 on: 23 October 2018, 12:51:20 »

I can highly recommend a SIPP (Self Invested Pension Plan) from Fidelity. Have just transferred all my work pensions, 3 in total, along with two personal ones to them. Easy to do and you have full control over where and what your money is invested in. Any questions and they're a quick phonecall away... (Tonbridge).

One of my work pensions was already with them and seemed to be doing better that all the other schemes I had.

Re Mrs T, is she a fully fledged citizen with British passport and NI number?

There's probably three ways you can deal with her... In no particular order.:

1. You pay her full NI to ensure she has full access to state benefits.

2. You combine all your finances into joint account(s), work to a household budget and each have individual term life insurance along with separate pension plans. If you can, file a tax return as a married couple filing jointly.

3. You pay her as an employee and her employer contributions (including work place pension and NI) and she pays income tax and NI as an employee from her wages.

1. Is very controlling. See 3.
2. As you're married, you are to all intents and purposes, one, so might as well act like it.
3. Makes the whole thing a very different relationship.

Obviously what ever you do should be discussed through a tax advisor, and obviously shortlist and choose carefully... You want someone who listens to what you want and leaves you understanding exactly what you are doing rather than feeling like you need a shower.

I can recommend an accountant for the tax side of things, https://www.england-clarke.co.uk/ and I would also recommend the following:

https://www.daveramsey.com

https://www.financialpeace.com

http://Https://www.rachelcruze.com

And these to read:

https://www.ebay.co.uk/itm/Dave-Ramsey-The-Total-Money-Makeover-Book-Hard-Back-Book-/173596683927

https://www.ebay.co.uk/itm/Retire-Inspired-by-Chris-Hogan-Book-The-Cheap-Fast-Free-Post-/302669079702

https://www.ebay.co.uk/itm/Love-Your-Life-Not-Theirs-7-Money-Habits-for-Living-the-Life-Y-9781937077976-/232646023999

If nowt else, the books are useful and easy reading whilst Dave Ramsey and Rachel Cruz (his daughter) both have podcasts for summat to listen to whilst commuting to give you an idea of what's what.  ;)
« Last Edit: 23 October 2018, 13:04:38 by Doctor Gollum »
Logged
Onanists always think outside the box.

LC0112G

  • Omega Baron
  • *****
  • Offline Offline
  • 0
  • Posts: 2439
    • View Profile
Re: Investment question.
« Reply #55 on: 23 October 2018, 13:23:39 »


Ok. Next plan then. Does your wife work? If not, (or even if she does but earns bu99er all), she can pay up to £2880 p/a into a private pension and the govt will gross it up by 25% to £3600. Since she is 60+ she can then "cash it all in" again and take the whole lot out tax free, assuming her income is less than £9900 this tax year.

You can do the same providing you are 55 or older, and you earn £9900 or less.

So that's potentially 25% 'interest' on £5760 with a cast iron Govt guarantee, and you won't get anywhere close to that anywhere else. Rinse and repeat next year and the year after and the taxpayer will have given you and the mrs £4320 "interest" :D

I'm now joining the few people here investing, as Sky sale has now fully completed for me.

This spiked my interest, my wife does not work I support her and our 2 children with my salary. I "pay" her a sum each month for day to day stuff she needs to buy for the family, is this classed as an income?

No. Income has a fairly narrow definition, and basically means money you receive from an employer that you pay tax and national insurance on. For instance, income from a BTL does not count, and nor does pension income.  If your wife has no relevant income, then she (you) can (should IMHO) pay in £2880 per year, and the govt will top this up to £3600.

How do these private pensions work, do you just contact them directly? I would be concerned about them going bust over 50 year life time to ensure money is protected?

You pick a pension/SIPP provider - HL, III, Fidelity etc. They provide the SIPP/Pension account, often called the "wrapper" or "pot". You then pay cash into the pot, and the pension provider reclaims the tax from HMRC for you. For every £80 you pay in they reclaim £20 from HMRC. So you end up with £100 cash in you're pot. You then choose what shares/funds/bonds you want to buy with that £100. If you want advice on what shares/bonds/funds to buy, then you either read up yourself, or pay someone (an Independent Financial Adviser IFA) to manage the account for you.

Once you've paid the money in, there is NO LEGAL WAY to withdraw it until you reach minimum retirement age - currently 55 but may rise to 57/58 in the near future. So don;'t put any money in that you may need before then. The money in the pension cannot be used as security for a loan, or a house deposit, or anything till you're 55.

If your pension/SIPP provider goes bust, then you still own the funds/shares/bonds that are in the 'wrapper'. It'll be a mess for a while whilst it's all sorted out, but your investments will be safe. They are held in trust for you - they aren't part of the assets of the pension/SIPP provider.

However, if you buy some shares in a dodgy company (Poly Peck, Carrillion, Northern Rock, Sky  ::) )  and that company goes bust, then you will loose your money. That's why it's important to invest across a wide range of companies in a wide range of industries around the world.

Mate of mine lives up Norf near Darlington, I could easily get a buy-to-let out there, that would give a much better return.  :-\

Unlikely.
Logged

Doctor Gollum

  • Get A Life!!
  • *****
  • Offline Offline
  • Gender: Male
  • In a colds and darks puddleses
  • Posts: 28089
  • If you can't eat them, join them...
    • Feetses.
    • View Profile
Re: Investment question.
« Reply #56 on: 23 October 2018, 13:29:23 »

Also with an investment property you will almost certainly pay Capital Gains tax on it when you sell, so not entirely tax free ;)

You can use investments for general saving purposes, ie outside of a pension, but needs to be for at least 5 years to minimize the risk of loss. Short term saving might as well be cash in a savings account at the moment  :-\
Logged
Onanists always think outside the box.

LC0112G

  • Omega Baron
  • *****
  • Offline Offline
  • 0
  • Posts: 2439
    • View Profile
Re: Investment question.
« Reply #57 on: 23 October 2018, 13:39:40 »

Re Mrs T, is she a fully fledged citizen with British passport and NI number?

My replies assume she's legally registered in the UK and has NI/Tax status.

There's probably three ways you can deal with her... In no particular order.:

1. You pay her full NI to ensure she has full access to state benefits.

Probably not necessary. If you're registered for child benefit then she will be credited with NI even if she's not paying any NI. Even if your earnings are above the child benefit cutoff (£50K-60K) you can still register for CB even if you don't actually claim it.

2. You combine all your finances into joint account(s), work to a household budget and each have individual term life insurance along with separate pension plans. If you can, file a tax return as a married couple filing jointly.

Tax is always personal. There is no option to do a joint tax return. The only thing you can do is transfer some of her unused personal allowance to you.
https://www.gov.uk/apply-marriage-allowance

3. You pay her as an employee and her employer contributions (including work place pension and NI) and she pays income tax and NI as an employee from her wages.
Possible, but very unlikely to actually save you money and involve a shed load more documentation/red tape.
Logged

Doctor Gollum

  • Get A Life!!
  • *****
  • Offline Offline
  • Gender: Male
  • In a colds and darks puddleses
  • Posts: 28089
  • If you can't eat them, join them...
    • Feetses.
    • View Profile
Re: Investment question.
« Reply #58 on: 23 October 2018, 13:59:24 »

Options 1 & 3 wouldn't be my first choices. Ever. 3 possibly if I had a permanent live in Nanny but not really appropriate for a wife.

Option two is the best way of dealing with money and marriage, as both people should always be on the same page as equals. Anything else creates/reinforces trust issues.

Shame about not being able to file a joint tax return, as that would simplify things...

I believe Mrs T hails from the green isle, but not sure which end, hence my mention of that ;)
« Last Edit: 23 October 2018, 14:01:18 by Doctor Gollum »
Logged
Onanists always think outside the box.

LC0112G

  • Omega Baron
  • *****
  • Offline Offline
  • 0
  • Posts: 2439
    • View Profile
Re: Investment question.
« Reply #59 on: 23 October 2018, 14:11:50 »

Options 1 & 3 wouldn't be my first choices. Ever.

1) would be first choice once the kids are old enough (youngest = 14) such that she doesn't qualify for NI credits by virtue of the CB registration.

3 possibly if I had a permanent live in Nanny but not really appropriate for a wife.

3) is obligatory if you employ a Nanny. As an employee you must enrol them in a pension scheme, and comply with all employment legislation.

I believe Mrs T hails from the green isle, but not sure which end, hence my mention of that ;)

Ahh, I see, One of the dangers of commenting on things without knowing all the facts.
« Last Edit: 23 October 2018, 14:14:30 by LC0112G »
Logged
Pages: 1 2 3 [4] 5 6   Go Up
 

Page created in 0.055 seconds with 22 queries.