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[Shackeng]

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 

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"

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. 

This is an interesting point. When I was in the BTL market some 25 years ago, I could buy two properties for the price of one if I bought in the local large town instead of the village, yet the rents were barely 20% less. However, the property prices locally have risen far more than the town. So while I can't now report on percentages etc., my view would be, in our area anyway, for income, buy cheap houses (I researched and bought repos from insurance co's, who were glad to get shut) in the local towns where prices are lower but employment high, but for long term, buy in better areas with better prospect of capital gains. In short, research, research, research.

[Doctor Gollum]

And having rental property any distance away means either travelling to/fro regularly or paying someone else to (not/mis) manage it for you... Either way it comes out of your rental income and therefore profit, as does any refurbishment costs.

[LC0112G]

Even 8% would see an income of £3800

You need to distinguish growth during the accumulation stage from growth during the drawdown stage.

During accumulation you can ride the rollercoaster and accept more risk for greater probable return. Some IFAs I know aim for 10% p/a on their own portfolios, but would be strung up by the goolies (by the regulators) if they put customers money in such a risky portfolio. Aiming for more than about 8% simply isn't allowed.

However, during the drawdown stage it is considered best to switch out of high risk, high return stuff in favour of steady eddy stuff which is much less volatile. It won't grow as much, but on the other hand it won't drop much during a stock market crash either.  Once you switch out of the high risk/high return stuff the returns will drop from 8% to perhaps only 4%.

It would be fair to say that my portfolio is very aggressive... Very little cash and no bonds, and only about 3% in greater europe.

My best performing fund is Black rock European Dynamic. Up 135% in 9 years. I also hold funds in China and India up by similar amounts. One pension pot invested in various global funds rose by over 40% in one year - 2016. Did something happen in 2016?

BTW does a 3% annual deposit increase offset 3% annual inflation?

Basically yes. It's a rule of thumb. Some providers allow automatic increases linked to CPI, or RPI or Wage inflation.

[Doctor Gollum]

As an entity, my portfolio has doubled in 5 years, worst year was 3.4%,best 34% so reasonably optimistic

When it comes to draw down, if the pot is of a decent size, the investments can be scaled back and with balanced with a reasonable income. Exact amounts won't be apparent for a good few years yet... but I do have a long term plan

The daily ups and downs are interesting to watch, especially the fact that the Emerging Market fund seems to behave opposite to the primary market ones...

[Viral_Jim]

This is an interesting point. When I was in the BTL market some 25 years ago, I could buy two properties for the price of one if I bought in the local large town instead of the village, yet the rents were barely 20% less. However, the property prices locally have risen far more than the town. So while I can't now report on percentages etc., my view would be, in our area anyway, for income, buy cheap houses (I researched and bought repos from insurance co's, who were glad to get shut) in the local towns where prices are lower but employment high, but for long term, buy in better areas with better prospect of capital gains. In short, research, research, research.

Talking BTL in front of LC0112G will get you knuckles rapped you know (I joke, he makes very valid points re. Tax). Seriously though, my personal view is that they have their place but as said, research heavily, and if done right they aren't an investment, they're a business.

[LC0112G]

Talking BTL in front of LC0112G will get you knuckles rapped you know (I joke, he makes very valid points re. Tax). Seriously though, my personal view is that they have their place but as said, research heavily, and if done right they aren't an investment, they're a business.

^^^This^^^

The days of buying a "cheap" terraced house and renting it out for large profits are gone IMV. It's still possible to get 'lucky' (crossrail), but the tax climate has changed dramatically over the past few years, and there is a budget to look forwards to next week as well.

[Shackeng]

Yes, I think locally it is about 5% on BTL before tax.

[2boxerdogs]

Did well out of our BTLs when we had them all gone now , they were well managed & was very  lucky in the tenants we had  two of them ended up buying them from us.Would not recommend it now . Latest thoughts now are buying a property in Spain got several friends over there visited a few over the last two years & quite fancy a holiday home.

[Field Marshal Dr. Opti]

Did well out of our BTLs when we had them all gone now , they were well managed & was very  lucky in the tenants we had  two of them ended up buying them from us.Would not recommend it now . Latest thoughts now are buying a property in Spain got several friends over there visited a few over the last two years & quite fancy a holiday home.

Anymore thoughts on the 'Stang'?

[Field Marshal Dr. Opti]

Did well out of our BTLs when we had them all gone now , they were well managed & was very  lucky in the tenants we had  two of them ended up buying them from us.Would not recommend it now . Latest thoughts now are buying a property in Spain got several friends over there visited a few over the last two years & quite fancy a holiday home.

Any further thoughts on the 'Stang'?

[Field Marshal Dr. Opti]

Did well out of our BTLs when we had them all gone now , they were well managed & was very  lucky in the tenants we had  two of them ended up buying them from us.Would not recommend it now . Latest thoughts now are buying a property in Spain got several friends over there visited a few over the last two years & quite fancy a holiday home.

Any further thoughts on the 'Stang'?

[2boxerdogs]

The car is on hold at present, we are both keen on getting a holiday home got friends in El Campello & for us it has got everything we want, salesman never got back to me but the car is still there as far as I am aware