dzo
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Post by dzo on Mar 18, 2017 14:52:03 GMT
I've just had a look at his blog. Why do these early retirement blogs always sound like they're trying to sell you a bridge? It makes me sceptical of their advice even if it otherwise seems perfectly sound.
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stevio
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Post by stevio on Mar 18, 2017 15:07:54 GMT
I've just had a look at his blog. Why do these early retirement blogs always sound like they're trying to sell you a bridge? It makes me sceptical of their advice even if it otherwise seems perfectly sound. I thought this was a joke and you didn't want to tell me what MMM was!
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pom
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Post by pom on Mar 18, 2017 19:01:36 GMT
I've just had a look at his blog. Why do these early retirement blogs always sound like they're trying to sell you a bridge? It makes me sceptical of their advice even if it otherwise seems perfectly sound. As someone who is currently pondering...I have to say that MMM is about the only one I've ever bothered to read more than a couple of entries for....and even then not many. Most of it is after all common sense...spend less, need less.... in fact most of them are so dull they're enough to make me want to forget the whole idea 
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Post by p2plender on Mar 19, 2017 3:25:00 GMT
I'm a highest rate payer so can't make any more pension contributions as I've already come up against my tapered pension allowance. 17k tax free is unbelievable. I'd need to earn 38k through blood, sweat and toil to get that net, and it would obliterate my pension annual allowance. It sure is easier making money from investments than from working. Too true, I've been living off trading and other forms of investing for about 20 yrs. Started with 2k! I only had a job for about 10yrs. The 'ISA' is a wonderful vehicle. Sadly not available in the country I presently reside in 
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angrysaveruk
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Post by angrysaveruk on Mar 19, 2017 12:56:18 GMT
I'm a highest rate payer so can't make any more pension contributions as I've already come up against my tapered pension allowance. 17k tax free is unbelievable. I'd need to earn 38k through blood, sweat and toil to get that net, and it would obliterate my pension annual allowance. It sure is easier making money from investments than from working. Too true, I've been living off trading and other forms of investing for about 20 yrs. Started with 2k! I only had a job for about 10yrs. The 'ISA' is a wonderful vehicle. Sadly not available in the country I presently reside in You have been living off your investments and only started with 2K? You must be some kind of genius!
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Post by p2plender on Mar 19, 2017 13:11:32 GMT
2k in my trading account. Yep I'm good at what I do. Won't lie  |
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Post by vithca on Mar 19, 2017 14:47:49 GMT
2k in my trading account. Yep I'm good at what I do. Won't lie By now you will have dozens of PMs demanding to know your secrets 
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angrysaveruk
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Post by angrysaveruk on Mar 19, 2017 18:32:25 GMT
You have been living off your investments and only started with 2K? You must be some kind of genius! Nope, angrysaveruk is none other than George Soros in disguise.  I wasnt the guy making the claim it was P2PLender. Can I ask the size of your portfolio now P2PLender? I could probably live off my investments but I would have to take very large risks and aim to earn 10% +.
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nick
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Post by nick on Mar 20, 2017 9:46:12 GMT
It's worth remembering that you can carry forward any unused pension allowance for 3 years. If your spouse has not fully utilised their pension allowance in the prior three years it would be worth considering making additional pension contributions (there is an absolute contributions cap of £130k for any given year).
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pom
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Post by pom on Mar 20, 2017 10:20:57 GMT
It's worth remembering that you can carry forward any unused pension allowance for 3 years. If your spouse has not fully utilised their pension allowance in the prior three years it would be worth considering making additional pension contributions (there is an absolute contributions cap of £130k for any given year). Except this only works if you're earning enough as you can't contribute more than you actually earn in any single year... so unless you earn 130k+ it has limited usefulness (much to my frustration)
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stevio
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Post by stevio on Mar 20, 2017 11:51:12 GMT
It's worth remembering that you can carry forward any unused pension allowance for 3 years. If your spouse has not fully utilised their pension allowance in the prior three years it would be worth considering making additional pension contributions (there is an absolute contributions cap of £130k for any given year). Except this only works if you're earning enough as you can't contribute more than you actually earn in any single year... so unless you earn 130k+ it has limited usefulness (much to my frustration) Employer pension contributions are not limited by your earnings, but unless you can do some sort of salary sacrifice, negotiate payment by pension contributions or have your own limited company and control the employer contributions - that doesn't really help either unfortunately
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pom
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Post by pom on Mar 20, 2017 12:06:17 GMT
The other thing to bear in mind with maximising your contributions is that it's probably also not worth doing any more than pulling yourself back into the basic tax bracket either (for tax purposes anyway - may still be worth boosting your pension for other reasons!) - so as well as only being of real use to high earners, it's also only of real use to those with significant investment earnings outside their employment. Which probably rules out a lot of the people earning between 40-130k also.
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stevio
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Post by stevio on Mar 20, 2017 13:00:10 GMT
The other thing to bear in mind with maximising your contributions is that it's probably also not worth doing any more than pulling yourself back into the basic tax bracket either (for tax purposes anyway - may still be worth boosting your pension for other reasons!) - so as well as only being of real use to high earners, it's also only of real use to those with significant investment earnings outside their employment. Which probably rules out a lot of the people earning between 40-130k also. Not sure I understand what your trying to say?
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pom
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Post by pom on Mar 20, 2017 14:31:29 GMT
The other thing to bear in mind with maximising your contributions is that it's probably also not worth doing any more than pulling yourself back into the basic tax bracket either (for tax purposes anyway - may still be worth boosting your pension for other reasons!) - so as well as only being of real use to high earners, it's also only of real use to those with significant investment earnings outside their employment. Which probably rules out a lot of the people earning between 40-130k also. Not sure I understand what your trying to say? I'll try again...if you're a 40% tax payer, increasing pension contributions is a great way to reduce your tax bill, but according to my IFA it's only really worth doing this to take yourself out of the 40% tax bracket (otherwise all the tax you save putting it in just gets taken off again when you take it out at the other end, so you might as well invest/diversify elsewhere). So as well as being limited to your salary level, this further limits the usefulness....unless you also happen to have a whole load of p2p and other income to offset that would otherwise push you back into 40% anyway. Hence really only benefits those with both high salaries and wealth.
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stevio
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Post by stevio on Mar 20, 2017 15:00:32 GMT
Not sure I understand what your trying to say? I'll try again...if you're a 40% tax payer, increasing pension contributions is a great way to reduce your tax bill, but according to my IFA it's only really worth doing this to take yourself out of the 40% tax bracket (otherwise all the tax you save putting it in just gets taken off again when you take it out at the other end, so you might as well invest/diversify elsewhere). So as well as being limited to your salary level, this further limits the usefulness....unless you also happen to have a whole load of p2p and other income to offset that would otherwise push you back into 40% anyway. Hence really only benefits those with both high salaries and wealth. Not necessarily A Non-earner can contribute £3,600 gross - a payment of £2,880 to which the taxman adds £720. This could be children and non-earning spouses who don't pay any tax intially Additionally, if you salary is £11k say, you don't pay any income tax (some NI), contribute that to a pension net and it is grossed up Also depends on how you are going to take your pension, but anyone can take 25% lump sum tax free and if you stay below within the personal allowance and survive long enough to take your pension! you also won't pay the tax back that you saved on entry
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