| Self-employed/sole trader/freelancer folk... 14:58 - Feb 11 with 8599 views | monytowbray |
Pension options, what's best? I've been saving a cut of my income towards it and I really need to set one up. |  |
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| Self-employed/sole trader/freelancer folk... on 15:37 - Feb 11 with 2782 views | Deano69 |
| Self-employed/sole trader/freelancer folk... on 15:33 - Feb 11 by StokieBlue |
You should really get an accountant.
Whilst it's perfectly possible to manage everything yourself in a spreadsheet the offloading of the stress and required knowledge to someone else for relatively little cost is well worth it.
You might benefit from applying for the flat rate VAT scheme and not bothering with expenses, once again for an easier life. An accountant could advise you on that.
SB [Post edited 11 Feb 2020 15:34]
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I always work on the principle that my accounts saves me more than he costs me, which has worked out well for me for 30 years.
Would also suggest the same on a financial adviser. It was my account that introduced me to my FA> As he was using him I thought it more than good enough as a recommendation. |  |
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| Self-employed/sole trader/freelancer folk... on 15:41 - Feb 11 with 2762 views | WeWereZombies |
| Self-employed/sole trader/freelancer folk... on 15:29 - Feb 11 by monytowbray |
Not bad advice to be fair, get someone else to do it :)
Also on my list is migrate domains from my current filmography one from when I did video freelancing on the side, get set up on https and sort out my business insurance.
I've been mega organised on tax and expenses by building an Excel document that does it all for me. F*ck I love spreadsheets. |
If you love spreadsheets surely you can have some fun setting up one to evaluate what you have got pensionwise, how it has performed, if you trust past performance to continue then you can run some projections through to retirement age, you can tabulate the pension options open to you, even set up a few cells for variables like interest rates, inflation and planned date of retirement so that you can set out different scenarios.
Most of all keep the paperwork from your previous employer's pension schemes, make sure each provider has your current address and enter those fund values into your spreadsheet every year as they arrive in the post. One of the pension schemes from a previous employer sent me a list of names a few months ago asking if I knew the whereabouts of any of these people - there was page upon page of them, double sided. And in the same envelope as a data protection statement! |  |
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| Self-employed/sole trader/freelancer folk... on 15:43 - Feb 11 with 2758 views | factual_blue |
| Self-employed/sole trader/freelancer folk... on 15:35 - Feb 11 by hoppy |
Is he the best bet to make sure to look after the penny's? |
And he has a 'bargain basement'. |  |
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| Self-employed/sole trader/freelancer folk... on 15:43 - Feb 11 with 2759 views | HARRY10 |
| Self-employed/sole trader/freelancer folk... on 15:10 - Feb 11 by Vaughan8 |
Assuming its a personal pension, surely you are getting an immediate benefit of the tax added (i.e. if you put £800 in, you get it topped up to £1,000) and if you are a higher rate tax payer you get your basic rate band increased (i.e. reducing the tax from 40% to 20%) to reduce your tax to pay?
That surely outweighs any charges, unless I'm missing something? I'm by no means a pensions expert so I could be. |
you are missing two things
1. a pension income is taxed - other money is not
2. noises coming out of the Treasury are that the upper rate of tax relief is to be cut to 20%
Annuity rates since 2003 have been cut from 7.3% to 5.4% so those conned into the 'pension' scam have seen an almost drop pf 40% in their purchasing power
there are other concerns about handing over your money to one of these idiocies but I will point you towards Xmas savings schemes whereby you hand over a weekly sum to have it returned at Xmas
you have no access to that money for 11 months
Often it is the form of voucherss - not cash as someone has to be paid
so even the most basic of puttng it in a tine on the shelf works out better
and I AM NOT advocating any bank account either |  | | |
| Self-employed/sole trader/freelancer folk... on 15:56 - Feb 11 with 2736 views | StokieBlue |
| Self-employed/sole trader/freelancer folk... on 15:43 - Feb 11 by HARRY10 |
you are missing two things
1. a pension income is taxed - other money is not
2. noises coming out of the Treasury are that the upper rate of tax relief is to be cut to 20%
Annuity rates since 2003 have been cut from 7.3% to 5.4% so those conned into the 'pension' scam have seen an almost drop pf 40% in their purchasing power
there are other concerns about handing over your money to one of these idiocies but I will point you towards Xmas savings schemes whereby you hand over a weekly sum to have it returned at Xmas
you have no access to that money for 11 months
Often it is the form of voucherss - not cash as someone has to be paid
so even the most basic of puttng it in a tine on the shelf works out better
and I AM NOT advocating any bank account either |
"1. a pension income is taxed - other money is not"
What other income is not tax? It most certainly should be.
To compare pensions to Xmas saving schemes is ridiculous. Putting money in a tin with no compounding does not work better.
Please stop this nonsense before someone listens to you.
SB |  | | |
| Self-employed/sole trader/freelancer folk... on 15:57 - Feb 11 with 2732 views | bluefunk |
| Self-employed/sole trader/freelancer folk... on 15:03 - Feb 11 by HARRY10 |
Why ?
At your retiement you will have an amount of money which you can either
Buy an annuity.... regular amount of money in exchange for that sum of money
or
use that money to add to any state pension
A pension can be a VERY expensive method as you will be paying caheges which can be quite heavy and will reduce what you 'put away' |
Very very poor advice |  | | |
| Self-employed/sole trader/freelancer folk... on 15:59 - Feb 11 with 2733 views | HARRY10 |
| Self-employed/sole trader/freelancer folk... on 15:27 - Feb 11 by monytowbray |
I regret asking, I'm more confused!
Can anyone dumb this all down for me please? |
yep
whatever you save now can be had when you retire
however there is no 'magic money' tree as thise seeking to shave abit off your medieval silver coin will tell you
it comes down to two choices
either yiu hand over money a pay someone else for the privilige and trsusting that the world stands still, or
keep it flaexible and save what you want to in an many ofbtax efficient savings
the latter will allow you access if needed and in my case I was able to use money to learn another skill that as I continuously upgrade returns me way in excess what a 'pension' would do
an example to put it simply
if your pension on retirement was worth £100,000 you would get
2003 £7300
2018 £5400
these rates will continue to fall - that I am certain of
I don't know how old you are but a suggestion is to count the years to your age 70 say 40 then see how much things have changed in those 40 years - the pension luddites will tell you no changes of those levels will happen over the next 40 years ! | | | |
| Self-employed/sole trader/freelancer folk... on 16:02 - Feb 11 with 2724 views | bluefunk |
| Self-employed/sole trader/freelancer folk... on 15:59 - Feb 11 by HARRY10 |
yep
whatever you save now can be had when you retire
however there is no 'magic money' tree as thise seeking to shave abit off your medieval silver coin will tell you
it comes down to two choices
either yiu hand over money a pay someone else for the privilige and trsusting that the world stands still, or
keep it flaexible and save what you want to in an many ofbtax efficient savings
the latter will allow you access if needed and in my case I was able to use money to learn another skill that as I continuously upgrade returns me way in excess what a 'pension' would do
an example to put it simply
if your pension on retirement was worth £100,000 you would get
2003 £7300
2018 £5400
these rates will continue to fall - that I am certain of
I don't know how old you are but a suggestion is to count the years to your age 70 say 40 then see how much things have changed in those 40 years - the pension luddites will tell you no changes of those levels will happen over the next 40 years ! |
i suggest you stop posting such out of date nonsense - you so obviously don’t have a clue what can be achieved by investing in a pension under the rules as they are today | | | |
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| Self-employed/sole trader/freelancer folk... on 16:03 - Feb 11 with 2722 views | HARRY10 |
| Self-employed/sole trader/freelancer folk... on 15:33 - Feb 11 by StokieBlue |
You should really get an accountant.
Whilst it's perfectly possible to manage everything yourself in a spreadsheet the offloading of the stress and required knowledge to someone else for relatively little cost is well worth it.
You might benefit from applying for the flat rate VAT scheme and not bothering with expenses, once again for an easier life. An accountant could advise you on that.
SB [Post edited 11 Feb 2020 15:34]
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yep, spot on
trying to do everything is not good advice
just as you are selling your expertise then don't be afraid to buy in where needed - and this is needed
falling foul of the taxman can be costly - ask around for advice on an accountant that is atturned to your business needs
but above all concentrate on developing your business | | | |
| Self-employed/sole trader/freelancer folk... on 16:36 - Feb 11 with 2688 views | itfcjoe |
| Self-employed/sole trader/freelancer folk... on 15:59 - Feb 11 by HARRY10 |
yep
whatever you save now can be had when you retire
however there is no 'magic money' tree as thise seeking to shave abit off your medieval silver coin will tell you
it comes down to two choices
either yiu hand over money a pay someone else for the privilige and trsusting that the world stands still, or
keep it flaexible and save what you want to in an many ofbtax efficient savings
the latter will allow you access if needed and in my case I was able to use money to learn another skill that as I continuously upgrade returns me way in excess what a 'pension' would do
an example to put it simply
if your pension on retirement was worth £100,000 you would get
2003 £7300
2018 £5400
these rates will continue to fall - that I am certain of
I don't know how old you are but a suggestion is to count the years to your age 70 say 40 then see how much things have changed in those 40 years - the pension luddites will tell you no changes of those levels will happen over the next 40 years ! |
You clearly know nothing about pensions, maybe best to step away from this thread as you are just ruining the decent pieces of advice being given to Callis |  |
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| Self-employed/sole trader/freelancer folk... on 16:40 - Feb 11 with 2678 views | usm |
| Self-employed/sole trader/freelancer folk... on 15:43 - Feb 11 by HARRY10 |
you are missing two things
1. a pension income is taxed - other money is not
2. noises coming out of the Treasury are that the upper rate of tax relief is to be cut to 20%
Annuity rates since 2003 have been cut from 7.3% to 5.4% so those conned into the 'pension' scam have seen an almost drop pf 40% in their purchasing power
there are other concerns about handing over your money to one of these idiocies but I will point you towards Xmas savings schemes whereby you hand over a weekly sum to have it returned at Xmas
you have no access to that money for 11 months
Often it is the form of voucherss - not cash as someone has to be paid
so even the most basic of puttng it in a tine on the shelf works out better
and I AM NOT advocating any bank account either |
You need to stop posting about stuff you dont understand and/or is out of date.
Have to say though I am intrigued by your "other money is not taxed" comment - enlighten us. |  |
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| Self-employed/sole trader/freelancer folk... on 16:42 - Feb 11 with 2669 views | usm |
| Self-employed/sole trader/freelancer folk... on 15:27 - Feb 11 by monytowbray |
I regret asking, I'm more confused!
Can anyone dumb this all down for me please? |
Speak to a couple of local IFA's (independent Financial Advisers) - preferably recommended to you.
They should give you an initial briefing without charging you. | |
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| Self-employed/sole trader/freelancer folk... on 16:46 - Feb 11 with 2668 views | Darth_Koont |
Buy gold*
It's an investment AND you can pretend to be a pirate.
*Don't buy gold. That's crap pension advice. |  |
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| Self-employed/sole trader/freelancer folk... on 16:54 - Feb 11 with 2641 views | Sikamikanico |
As others have said, speak to an IFA. This should be someone recommended to you who has personal experience of using them.
I would also suggest appointing an accountant. Its not what you know that can get you into trouble but its what you don't know. Again, this should be by recommendation. | | | |
| Self-employed/sole trader/freelancer folk... on 17:02 - Feb 11 with 2620 views | Dubtractor |
As others have said, speak to a financial adviser.
I'm lucky enough to have a good workplace pension, but have got proper advice on the right products for life insurance and a few other bits for me and Mrs Dub. |  |
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| Self-employed/sole trader/freelancer folk... on 17:43 - Feb 11 with 2595 views | connorscontract |
I am not a financial advisor and this is not advice:
Do you own your own house or rent? If you are renting then you may decide that your short term financial goals should take precedence and save into a Lifetime ISA.
https://www.moneysavingexpert.com/savings/lifetime-isas/
I would hope that if my sons were in your position that they would save a deposit for a house first. If working for a company who match contributions then it is a no brainer to opt into that (doesn't apply to you, of course, callis).
Even if someone is already a house owner / mortgage wage slave then some people may prefer the flexibility of saving into an ISA over a SIPP if, for example, they may be planning to set up a business, or emigrate or... etc, and might need access to capital. It depends on circumstances, but generally the bonus of a matched employer scheme would be the most advantageous, then a SIPP or Stakeholder pension (because of the tax bonus added at the beginning, and the 25% tax free lump sum at age 55 or later), and then an ISA (either Stocks and Shares or Cash). Then, with least benefits of all for most people, a non-ISA savings account. | | | |
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