Income for Pensions

[Porky]

My wife is 58 and has no pension provision other than state pension.She was recently made redundant.

With my help she has started a small business. In all honesty it will probably make £20k maybe £25k bottom line a year because she is not intending to draw a salary, gives her something to do she's interested in.

At it stands she doesnt need an income because I pay all bills but she would like to build a pension / savings for future albeit late in the day and if she retired at 68 that gives her only 10 year plan.

What would be the best way to tackle this?

 

[FreddyG]

How many years of employment is on her record?

 

[WaveJumper]

I would start with the basics first ask yourself how much would you need to "put a side" each month to give you an income / pension of ????

In the first instant look at the annuity calculations on line to see what you are likely to obtain for a given lump sum, in all honesty I cant see the figures being very high but it will give you an idea of what might be achievable.

Any other options will be dependant on your level of risk

 

[pentel]

If all of the £20k was put in a pension each year for the next 10 years and the pension achieved average returns of 8% ( typical world index fund return) then at the end of the 10 years there could be around £300,000 in the pension pot.

Taking 4% each year out of the pot would give and income of around £12,000 per year which with average returns could increase with inflation.

This is not advice, just a bit or spreadsheet juggling.

 

[FreddyG]

Given the massive disconnect between the Real Economy and asset prices, I am very reluctant to tell anyone to rely on any currency for their pension.

The canary in the coal mine is the price of gold. This is being fed by central banks buying physical gold by the truckload. The IMF insists that they report their reserves, including gold reserves. The central banks are ignoring the IMF and reporting about one-third of their real purchases - except China, which reports nothing!

China has set up a BRICS exchange system based loosely around the price of gold. If that isn't a warning sign of things to come, then nothing is!

Not only has the Yen-to-Dollar carry trade stopped as a result of Japan's interest rates rise, but it is showing signs of a possible reverse. That could burst the asset price bubble with an almighty bang! I am not saying that it must happen - but I am saying that it might happen!

 

[syedsheraz]

My wife is 58 and has no pension provision other than state pension.She was recently made redundant.

With my help she has started a small business. In all honesty it will probably make £20k maybe £25k bottom line a year because she is not intending to draw a salary, gives her something to do she's interested in.

At it stands she doesnt need an income because I pay all bills but she would like to build a pension / savings for future albeit late in the day and if she retired at 68 that gives her only 10 year plan.

What would be the best way to tackle this?

With a 10-year window, your wife can still build a solid retirement base. For a small business owner, the simplest route is a SIPP, where she can contribute even without a salary and still receive government tax relief. Pairing this with a Stocks & Shares ISA gives her flexibility alongside long-term growth.
It’s also worth checking her State Pension forecast and filling any NI gaps. If she’s trading as a limited company, employer pension contributions can be very tax-efficient.
A quick chat with an FCA-regulated advisor can help tailor things, but these are the main UK-friendly options for late-start pension planning.

 

[Newchodge]

With a 10-year window, your wife can still build a solid retirement base. For a small business owner, the simplest route is a SIPP, where she can contribute even without a salary and still receive government tax relief. Pairing this with a Stocks & Shares ISA gives her flexibility alongside long-term growth.
It’s also worth checking her State Pension forecast and filling any NI gaps. If she’s trading as a limited company, employer pension contributions can be very tax-efficient.
A quick chat with an FCA-regulated advisor can help tailor things, but these are the main UK-friendly options for late-start pension planning.

Are stocks and shares a good buy at the moment?

 

[UKSBD]

Are stocks and shares a good buy at the moment?

It's hard work asking kids that at the moment

I tell my lad to put money in to ISA's and he just laughs at me.

Hard to argue though when he's up nearly 60% in less than 12 months on his trading account.

We need a slump just to make the youngsters experience the risk and realise it isn't always going up.

 

[Newchodge]

Are stocks and shares a good buy at the moment?

Just askin' @FreddyG

 

[pentel]

I tell my lad to put money in to ISA's and he just laughs at me.

Hard to argue though when he's up nearly 60% in less than 12 months on his trading account

Hopefully he has done this in a S&S isa?

 

[UKSBD]

Hopefully he has done this in a S&S isa?

yes, on trading212

 

[WaveJumper]

So he has got an ISA then and making the most out of his investing strategy

 

[UKSBD]

So he has got an ISA then and making the most out of his investing strategy

Yes, but try and suggest they put it in a safe, fixed rate cash ISA paying 4% and they look at you as though you are crazy.

I have at least convinced him now that he should have a fall back fund rather than putting IT all in to stock/share ISA

 

[DontAsk]

Are stocks and shares a good buy at the moment?

They always are, unless you might a need the money in a hurry.

 

[WaveJumper]

Professional traders will trade 1% to 2% of their capital, scalpers may go as far as 5% (as the name suggests they in and out quick) always leave something in reserve

Diversity is key and don't invest what you cant afford to loose

 

[FreddyG]

Just askin' @FreddyG

That depends on which stocks we are talking about! If I were not already loaded up with junior miners and royalty companies in gold and silver, that would be my first port of call. But that market sector is full of penny-dreadfuls, so anyone gambling in that casino will have to sign up to a decent stock ticker service and know how to use all the information held. I recommend "Simply Wall Street". Other services are available.

Any decent ticker must also list the other main owners. I look for people who know more than I do and have a good record of investment successes. It must also list insider trades.

Right now, I would stay away from anything volatile, such as BTC and tech stocks.

If all you want to do is to preserve wealth, physical gold is the best answer. It has to increase in nominal value, but the purchasing power will remain roughly the same. A typical flat or house cost about 100 ounces of gold in the 1970s and that is the cost today.

Unfortunately, UK house prices and the value of the pound are both extremely volatile. For example, house prices were fives times higher in 1980 compared to 1970. But the pound had lost so much purchasing power that the true value of the house in 1980 was one-third, when measured in goods, gold or a basket of commodities. That is why so many people were stuck in negative equity! Wages failed to match the precipitous fall in the purchasing power of the pound and most other currencies. Over the same period, wages were three times higher, but fell to about half in real terms.

Economic illiteracy in knuckle-dragging politicians is possibly the most expensive commodity known to mankind. All parties do this, mostly by wasting vast sums. And of course, the low-paid suffer the most as a result.

 

[FreddyG]

Diversity is key and don't invest what you cant afford to loose

As long as "diversity" means not just different types of shares, but things that are not shares. If/when the markets go down from their present bubble, all shares get sold off to cover irresponsible margin accounts. That happens automatically!

 

[WaveJumper]