Is anyone else not bothering with pension planning?

[snabzter]

I am intrigued by the puggy machine point you made. Are you benefiting from the puggy machine or is it just the barber?

What you have written suggests it's easy money, which begs the question why aren't more people doing it. What about licences, duty to be paid, fixing the machine etc.?

This thread suggests that they are liable to needing fixed every 6-12 months and they are not easy money, which is off putting.

http://www.pistonheads.com/gassing/topic.asp?t=928...

I put a lot into my pension but I am also keen to find other ways of generating income so I can retire early.

[bomb]

I started paying into a private pension when I was 20.

I also have some other company schemes that I contributed to.

I have utilised the 40% allowances and have loaded up my pension payments whilst I could.

Investments that have been wrapped also support my pensions.

I 'retired' when I was 54, and commenced draw down when I turned 55, very recently.

It is possible to retire with sufficient funds but you require TIME / Planning and input of £££.

Planning ensures you can wrap as much as possible for a strategic draw down when you need it.

[drainbrain]

snabzter said:

I am intrigued by the puggy machine point you made. Are you benefiting from the puggy machine or is it just the barber?

What you have written suggests it's easy money, which begs the question why aren't more people doing it. What about licences, duty to be paid, fixing the machine etc.?

This thread suggests that they are liable to needing fixed every 6-12 months and they are not easy money, which is off putting.

http://www.pistonheads.com/gassing/topic.asp?t=928...

I put a lot into my pension but I am also keen to find other ways of generating income so I can retire early.

There's a whole world of difference between this and a scaled up version of the same. I'm told the multi machine multi location operations aren't nearly the goldmine they once were although I know one individual who has a single site with quite a few of these and does well from them. Certainly amusement arcades don't get a fraction of the footfall they once did. Not to say that with a bit of a plan - especially on the site side of things - a tidy little earner couldn't be arranged. But if you're in the mood to create an earner I wouldn't necessarily fixate on fruit machines.

In my experience - limited to less than a dozen of them - the maintenance isn't a prohibitive cost unless the machine is heavily heavily used in which case it's like every other machine. Repairs become more frequent until it's scrapped and rinsed and repeated. But that's the type of machine which will make serious money (which will 100% depend on the quality of the site).

Stunningly profitable enterprises which can generate high income can be started relative cheaply. I have had a secured loans brokerage and a moneylending and cheque cashing business which cost less than £10k to set up and generated more than £10k a month in profit within 6 months of setting up. The latter can easily be set up using OPM and there is no reason why one can't be the financier rather than the operator of either. A letting company which cost £5k to set up with 200 properties belonging to its financiers was letting 500 properties within a year and 1000 within 3. By intent its financiers were hands off shareholders
only and its very hands on salaried director was given a 20% shareholding as "sweat equity". 10 years on he now owns it outright with an agreement to buy out the others on a payup. So he never has and never will need a penny from himself to own this agency (worth +/- £500k which cost £5k to set up).

Most recently I've been thinking of moneylending. Not the 'fast lane' - more funding bridging and short term commercial projects. There is a huge hole in the lending market not least because of laughable 'risk management' at the institutions. And of course that's a doorway business to - well - anything and everything really. Great business.

[mike9009]

Hi Drain Brain

Can you take over my £250 per month and invest for me..... you make it sound easy?

Mike

[drainbrain]

mike9009 said:

Hi Drain Brain

Can you take over my £250 per month and invest for me..... you make it sound easy?

Mike

Absolutely Mike.

What return are you getting on it just now? And in what form?

[OzzyR1]

okgo said:

oyster said:

Rising from £140k in 2003 to £380k in 2017 is 170% increase.

The average for London from Q4 2003 to Q4 2016 according to the Nationwide is 115% increase.



I assume you're one of those property geniuses who can't understand why others aren't as clever as you in forecasting which London borough would triple?


(When in reality you just bought somewhere because you liked the area and got lucky riding the crest of a wave).

Not at all, just wondered given OP mentioned it was a fancied area of Z6 (similar to where I am) which for terraced and semi have seen over 200% since 2003.

Wow, been away for a few days and didn't expect to see this still near the top of the page!!

Only skimmed through but definitely some food for thought, thanks for all the responses. Will digest properly over the weekend and add my thoughts.

Quick note on the above though, my little house is on Smart's Lane in Loughton. It's not in this photo but its very similar to the older terraced properties on the right.


https://www.google.co.uk/maps/@51.6483587,0.051656...


Not sure how you get to your statement of "170% increase" however...

[98elise]

drainbrain said:

snabzter said:

I am intrigued by the puggy machine point you made. Are you benefiting from the puggy machine or is it just the barber?

What you have written suggests it's easy money, which begs the question why aren't more people doing it. What about licences, duty to be paid, fixing the machine etc.?

This thread suggests that they are liable to needing fixed every 6-12 months and they are not easy money, which is off putting.

http://www.pistonheads.com/gassing/topic.asp?t=928...

I put a lot into my pension but I am also keen to find other ways of generating income so I can retire early.

There's a whole world of difference between this and a scaled up version of the same. I'm told the multi machine multi location operations aren't nearly the goldmine they once were although I know one individual who has a single site with quite a few of these and does well from them. Certainly amusement arcades don't get a fraction of the footfall they once did. Not to say that with a bit of a plan - especially on the site side of things - a tidy little earner couldn't be arranged. But if you're in the mood to create an earner I wouldn't necessarily fixate on fruit machines.

In my experience - limited to less than a dozen of them - the maintenance isn't a prohibitive cost unless the machine is heavily heavily used in which case it's like every other machine. Repairs become more frequent until it's scrapped and rinsed and repeated. But that's the type of machine which will make serious money (which will 100% depend on the quality of the site).

Stunningly profitable enterprises which can generate high income can be started relative cheaply. I have had a secured loans brokerage and a moneylending and cheque cashing business which cost less than £10k to set up and generated more than £10k a month in profit within 6 months of setting up. The latter can easily be set up using OPM and there is no reason why one can't be the financier rather than the operator of either. A letting company which cost £5k to set up with 200 properties belonging to its financiers was letting 500 properties within a year and 1000 within 3. By intent its financiers were hands off shareholders
only and its very hands on salaried director was given a 20% shareholding as "sweat equity". 10 years on he now owns it outright with an agreement to buy out the others on a payup. So he never has and never will need a penny from himself to own this agency (worth +/- £500k which cost £5k to set up).

Most recently I've been thinking of moneylending. Not the 'fast lane' - more funding bridging and short term commercial projects. There is a huge hole in the lending market not least because of laughable 'risk management' at the institutions. And of course that's a doorway business to - well - anything and everything really. Great business.

I think I've sussed who you are

Did you previously post under a different name (which escapes me) with lots of low cost BTL flats in Scotland?

Certainly money lending, taxis, lettings all rings bells.

[sidicks]

98elise said:

I think I've sussed who you are

Did you previously post under a different name (which escapes me) with lots of low cost BTL flats in Scotland?

Certainly money lending, taxis, lettings all rings bells.

yes, it's groak.

A very shrewd businessman who has been successful in some risky ventures, dealing with plenty of dubious people, who can't understand that this approach doesn't work for everyone for a multitude of reasons!!

Edited by sidicks on Saturday 18th February 09:04

[Henners]

Pensionwise for me...

1. Started paying into the traditional pension when I started work, my first big promotion saw the increase in pay going into the pension (which continues) - working well.
2. Company shares, diversifying at each maturity / vesting.
3. ISA contributions.

At some point thinking about buying a second house, but thats a good few years off.

[98elise]

sidicks said:

98elise said:

I think I've sussed who you are

Did you previously post under a different name (which escapes me) with lots of low cost BTL flats in Scotland?

Certainly money lending, taxis, lettings all rings bells.

yes, it's groak.

A very shrewd businessman who has been successful in some risky ventures, dealing with plenty of dubious people, who can't understand that this approach doesn't work for everyone for a multitude of reasons!!

Edited by sidicks on Saturday 18th February 09:04

Thats him. It its Groak then I doubt his posts are fantasy, but as you say his approach to business/investment is probably not for everyone

[98elise]

drainbrain said:

Trexthedinosaur said:

I think you need help. The incoherent nonsense you post against those people who have built professional careers in their respective fields is largely entertaining but also disturbing.

How can anyone argue that for every 1% I put into my pension my company adds 3 or 3.5% is a bad deal?

I can draw down early, with a final salary pension (max 40%, missed out on 66% by 10 days!), and retire at 55. I'm currently 28.

That's real tangible 'free' money, unlike the drivel you spout about income producing assets from nothing ... idiot.

Well there you go! You're one of the "some people" who find the pension concept especially the "free money" bit very satisfying.

Tell me, do you ever see that "real tangible 'free' money" as part of your salary package? Or do you see the whole salary as 'free money' ? Can you see why someone might see that " real tangible free money" as something you've earned from that company by working for it ?

And how do you define "tangible"? Tangibility's quite important to me where money's concerned. And in terms of the "incoherent nonsense"I've recently spouted on this thread 'tangibility' is close to the centre of matters.

You believe that the company contribution to your pension is "free". It isn't. You probably work very hard for it. You believe that this contribution is "tangible". Sorry, ducks, but you'll live your whole life over again before a penny of it becomes 'tangible'. So if you don't know what you're involved with which of us do you think is the idiot?

Assets? You couldn't even spell 'asset' never mind find an income-producing one (so I corrected it for you).

Tip: play nicer. You'll get a nicer response.

You are right that its not free as such. Its part of the whole package on offer, however the if you don't take it up as a pension then the company keeps iti.

Its one of the resons I went freelance. I would rather have the cash and choose my investments. For a few years that was property, now its pensions

[drainbrain]

98elise said:

You are right that its not free as such. Its part of the whole package on offer, however the if you don't take it up as a pension then the company keeps iti.

Its one of the resons I went freelance. I would rather have the cash and choose my investments. For a few years that was property, now its pensions

The company pension in whatever shape or form is great for some people and can even be a reason why they take up a particular job. You seem to feel it was too "Big Brother" and prefer to DIY it which is again great for other people.

I think the word "pension" with all its connotations should be scrapped. Call it "The Investment" instead.

So the worker contributes to the Company Investment Scheme and the freelancer pays into the Private Investment Scheme. Why should there not be an option for the profit gained from that investment to be taken as income along the way as well as taken as income when/if they stop working? It needn't necessarily be taken as income, or always taken as income. It could be re-invested into The Investment Scheme if and when the contributor chose, along with their continuing regular contributions. I think that would be a lot more appealing to people than enforced investment into long range benefit maturity and well worth tax incentivising too.

Obviously senility is stopping me from seeing the obvious flaw in this, so point me to it.

[sidicks]

drainbrain said:

The company pension in whatever shape or form is great for some people and can even be a reason why they take up a particular job. You seem to feel it was too "Big Brother" and prefer to DIY it which is again great for other people.

I think the word "pension" with all its connotations should be scrapped. Call it "The Investment" instead.

Of course that would be wrong, the pension is the wrapper which contains the investment(s).

drainbrain said:

So the worker contributes to the Company Investment Scheme and the freelancer pays into the Private Investment Scheme. Why should there not be an option for the profit gained from that investment to be taken as income along the way as well as taken as income when/if they stop working? It needn't necessarily be taken as income, or always taken as income. It could be re-invested into The Investment Scheme if and when the contributor chose, along with their continuing regular contributions. I think that would be a lot more appealing to people than enforced investment into long range benefit maturity and well worth tax incentivising too.

Obviously senility is stopping me from seeing the obvious flaw in this, so point me to it.

It's been explained to you on numerous occasions.

[drainbrain]

sidicks said:

It's been explained to you on numerous occasions.

That's the thing about senility. It gets so hard to remember......one day it'll be you, y'know.

Sitting there in the bath chair with the rug round your arthritic knees. Small line of drool running down your chin as you stare blankly at the wall. Trying to focus on that small speck of clarity through the dense fog of what remains of consciousness. Clutching that A4 sheet of paper on which is written your latest pension statement. You can see what it is. And there's this massive number at the bottom of it.....

But the damn thing is, you just can't remember why the hell you decided to accumulate it....

[treetops]

What if the markets are hit hard, correction coming soon. Pots are wiped out or down and then clawing your way back.

Yes smoothing over time etc. but it's gambling, big companies are going pop, 20 years from now millions will be unemployed, automation will be well underway, it's going to be a very bumpy ride.

[Jockman]

treetops said:

What if the markets are hit hard, correction coming soon. Pots are wiped out or down and then clawing your way back.

Yes smoothing over time etc. but it's gambling, big companies are going pop, 20 years from now millions will be unemployed, automation will be well underway, it's going to be a very bumpy ride.

Start moving your money into safer funds if you are concerned. There's always fixed interest if that appeals. Property funds?

[sidicks]

treetops said:

What if the markets are hit hard, correction coming soon. Pots are wiped out or down and then clawing your way back.

Yes smoothing over time etc. but it's gambling, big companies are going pop, 20 years from now millions will be unemployed, automation will be well underway, it's going to be a very bumpy ride.

What sort of poorly diversified ‘pot’ have you got that would be ‘wiped out’ in a market correction?

[treetops]

Safer funds and a poorer return, fees and inflation wiping out returns.

Property funds like the ones frozen in recent times as investors dashed to get their cash out - which they couldn't.

Everyone assumes it's an upward trajectory, it not as we are deep in a bear market just now.

[anonymous-user]

Try a defined benefit public sector pension. Definitely worth having.

[treetops]

Rules changed on many, rarely available. Most moved onto DC.