Retirement funded by BTL....update
Discussion
Another 6 months has passed. Remarkably quickly too. And, from a financial perspective, all bumbles along very satisfactorily. The absence of any other meaningful investment apart from property doesn't really seem to be causing any problem - quite the opposite in fact.
Well there is one problem. Which is what to do with surplus profit, other than buy more renters. So 3 more have been added to the collection. 2 commercials and a residential. And as an investor-for-income who uses a non-standard method of 'risk-assessment' I really can't find anything else that comes even close.
Just out of interest, a 'fiver-a-day' ISA was started and is now in its 7th month. So far, £8750 has been put into it. And after all charges etc it is worth £8991. That's a helluva lot better than keeping the cash in a bank. The intention was to keep max-funding it for 10 years. But the accessibility means it'll likely just be used to store funds until - yawn - another property worth buying emerges. ISAs don't seem to be the ideal vehicle for the impatient spendthrift. Decent temporary store for funds, tho.
And then there's Planet Pension. My amazing private annuities have now been paying out for almost 15 years at the princely rate of £66 a month. And by my reckoning, I'll have had their cost price back if I can stay alive for another 8 years. But a letter arrived from HMRC telling me I'm imminently due to get the state pension. Whoopee!! So I went online to check it out. Oh dear! Apparently I'm only due 2 bob a year because I've only got 10 years contributions! WTF???
So I phoned them. Apparently they had no record of me being self-employed? Eh????? Well how about that tax return that's been submitted every year, not to mention the (silly and sometimes very silly) wads of cash being constantly handed to them as s-e income tax. What about the regular inspections and intermittent investigations (including the current one)?? No record? Are you joking? From time to time it's seemed as if I'm the only person they DO have records of....(I'm sure you know the feeling). Ummm, errr, o but a but o but etc etc etc. Bit more digging. Concession of full awareness of my self employment. BUT. Apparently on my return from Spain in 1989 after a few years of non-residency and large-scale wastrelism my then accountant asked for a waiver of NI contribution. (first I'd heard). Which was granted. AND NEVER LIFTED!! So for 27 years no NI was paid, or credited!! Y'see I never once got any demand for it, as the wife gets every few months. So I assumed it was getting paid via my income tax payment (as it is now apparently). My accountant assumed I was 'buying a stamp at the PO' or some such twaddle. And in reality nothing was happening. Couldn't make that up if you tried, could you? I mean who has ever NOT had a (nasty) letter from HMRC when even a penny is outstanding to them? Anyway......
....a helpful pensions bod in HMRC showed me how 10 years could get sorted so I now have 20 years credited. And he also advised me to write to some special unit they've got to ask if, given the (highly unusual) circumstances, it would be possible to fill in any more incomplete or unpaid years. Currently awaiting reply to this.
There's something about me and pensions that just doesn't seem to or isn't meant to happen.
Recently a salesman bloke from some kind of boiler room has taken to haunting me to get me to buy into a bond thingy. There's one I actually quite fancy. It's called Dolphin Trust. Apart from the attractive return I quite like (and even know a bit about) the underlying investment plan. Anyone got a good reason to avoid it?
So the summary is, the btl funded retirement tootles on. It's simple. And it's stable. And with hindsight it was a very good decision to look to btl rather than anything else to fund my retirement, primarily because it works.
Well there is one problem. Which is what to do with surplus profit, other than buy more renters. So 3 more have been added to the collection. 2 commercials and a residential. And as an investor-for-income who uses a non-standard method of 'risk-assessment' I really can't find anything else that comes even close.
Just out of interest, a 'fiver-a-day' ISA was started and is now in its 7th month. So far, £8750 has been put into it. And after all charges etc it is worth £8991. That's a helluva lot better than keeping the cash in a bank. The intention was to keep max-funding it for 10 years. But the accessibility means it'll likely just be used to store funds until - yawn - another property worth buying emerges. ISAs don't seem to be the ideal vehicle for the impatient spendthrift. Decent temporary store for funds, tho.
And then there's Planet Pension. My amazing private annuities have now been paying out for almost 15 years at the princely rate of £66 a month. And by my reckoning, I'll have had their cost price back if I can stay alive for another 8 years. But a letter arrived from HMRC telling me I'm imminently due to get the state pension. Whoopee!! So I went online to check it out. Oh dear! Apparently I'm only due 2 bob a year because I've only got 10 years contributions! WTF???
So I phoned them. Apparently they had no record of me being self-employed? Eh????? Well how about that tax return that's been submitted every year, not to mention the (silly and sometimes very silly) wads of cash being constantly handed to them as s-e income tax. What about the regular inspections and intermittent investigations (including the current one)?? No record? Are you joking? From time to time it's seemed as if I'm the only person they DO have records of....(I'm sure you know the feeling). Ummm, errr, o but a but o but etc etc etc. Bit more digging. Concession of full awareness of my self employment. BUT. Apparently on my return from Spain in 1989 after a few years of non-residency and large-scale wastrelism my then accountant asked for a waiver of NI contribution. (first I'd heard). Which was granted. AND NEVER LIFTED!! So for 27 years no NI was paid, or credited!! Y'see I never once got any demand for it, as the wife gets every few months. So I assumed it was getting paid via my income tax payment (as it is now apparently). My accountant assumed I was 'buying a stamp at the PO' or some such twaddle. And in reality nothing was happening. Couldn't make that up if you tried, could you? I mean who has ever NOT had a (nasty) letter from HMRC when even a penny is outstanding to them? Anyway......
....a helpful pensions bod in HMRC showed me how 10 years could get sorted so I now have 20 years credited. And he also advised me to write to some special unit they've got to ask if, given the (highly unusual) circumstances, it would be possible to fill in any more incomplete or unpaid years. Currently awaiting reply to this.
There's something about me and pensions that just doesn't seem to or isn't meant to happen.
Recently a salesman bloke from some kind of boiler room has taken to haunting me to get me to buy into a bond thingy. There's one I actually quite fancy. It's called Dolphin Trust. Apart from the attractive return I quite like (and even know a bit about) the underlying investment plan. Anyone got a good reason to avoid it?
So the summary is, the btl funded retirement tootles on. It's simple. And it's stable. And with hindsight it was a very good decision to look to btl rather than anything else to fund my retirement, primarily because it works.
Granfondo said:
It happens. I prefer comfort over "sporty" anyway now!
That's probably indicative of descent into some ghastly form of putrefying curmudgeonry.In my case, like a fine wine maturing, it's more a matter of ascent into saintly asceticism.
(basically, Motability gave me a high-spec Skoda Superb which is part of a not ungenerous non-means tested benefits package. i.e. it's for nothing. Along with its road tax, insurance, service package, and tyre replacement service. All I pay for is the fuel. Tell you what, maybe I'm hallucinating but the Superb seems to me to be a better car than the 520d it replaced - which in turn was better than the 250cdi it replaced. You should try one next time you're looking for a daily dog).
drainbrain said:
Granfondo said:
It happens. I prefer comfort over "sporty" anyway now!
That's probably indicative of descent into some ghastly form of putrefying curmudgeonry.In my case, like a fine wine maturing, it's more a matter of ascent into saintly asceticism.
(basically, Motability gave me a high-spec Skoda Superb which is part of a not ungenerous non-means tested benefits package. i.e. it's for nothing. Along with its road tax, insurance, service package, and tyre replacement service. All I pay for is the fuel. Tell you what, maybe I'm hallucinating but the Superb seems to me to be a better car than the 520d it replaced - which in turn was better than the 250cdi it replaced. You should try one next time you're looking for a daily dog).
Yoo laffin' at ma spazzwagon??? 
50 years ago it would've been a ......
https://www.google.co.uk/search?q=invacar&tbm=...
.......which a skoda beats hands down.....doesn't it???
)
50 years ago it would've been a ......
https://www.google.co.uk/search?q=invacar&tbm=...
.......which a skoda beats hands down.....doesn't it???
)drainbrain said:
Yoo laffin' at ma spazzwagon???
50 years ago it would've been a ......
https://www.google.co.uk/search?q=invacar&tbm=...
.......which a skoda beats hands down.....doesn't it???
)
Nothing beats a free motor! 50 years ago it would've been a ......
https://www.google.co.uk/search?q=invacar&tbm=...
.......which a skoda beats hands down.....doesn't it???
)
drainbrain said:
Yoo laffin' at ma spazzwagon???
50 years ago it would've been a ......
https://www.google.co.uk/search?q=invacar&tbm=...
.......which a skoda beats hands down.....doesn't it???
)
one of them went on its side going around a roundabout when I was a kid , my dad rescued the woman inside after a tussle with the door , which ended in ripping the door off , only to be greeted by her mumbling 'it slides' 'it slides'50 years ago it would've been a ......
https://www.google.co.uk/search?q=invacar&tbm=...
.......which a skoda beats hands down.....doesn't it???
)drainbrain said:
Just out of interest, a 'fiver-a-day' ISA was started and is now in its 7th month. So far, £8750 has been put into it. And after all charges etc it is worth £8991. That's a helluva lot better than keeping the cash in a bank. The intention was to keep max-funding it for 10 years. But the accessibility means it'll likely just be used to store funds until - yawn - another property worth buying emerges. ISAs don't seem to be the ideal vehicle for the impatient spendthrift. Decent temporary store for funds, tho.
Mind if I ask, what sort of risk profile did you go for in your ISA?Fag packet maths suggest 2.7% in the 7 months so if the trend continued in the same fashion that would be ~4.8% annually.
drainbrain said:
That's probably indicative of descent into some ghastly form of putrefying curmudgeonry.
In my case, like a fine wine maturing, it's more a matter of ascent into saintly asceticism.
(basically, Motability gave me a high-spec Skoda Superb which is part of a not ungenerous non-means tested benefits package. i.e. it's for nothing. Along with its road tax, insurance, service package, and tyre replacement service. All I pay for is the fuel. Tell you what, maybe I'm hallucinating but the Superb seems to me to be a better car than the 520d it replaced - which in turn was better than the 250cdi it replaced. You should try one next time you're looking for a daily dog).
Glad to hear that even with your busy schedule of accruing wealth and driving Ferraris, you are finding the time to collect some free taxpayer's money.In my case, like a fine wine maturing, it's more a matter of ascent into saintly asceticism.
(basically, Motability gave me a high-spec Skoda Superb which is part of a not ungenerous non-means tested benefits package. i.e. it's for nothing. Along with its road tax, insurance, service package, and tyre replacement service. All I pay for is the fuel. Tell you what, maybe I'm hallucinating but the Superb seems to me to be a better car than the 520d it replaced - which in turn was better than the 250cdi it replaced. You should try one next time you're looking for a daily dog).
emicen said:
drainbrain said:
Just out of interest, a 'fiver-a-day' ISA was started and is now in its 7th month. So far, £8750 has been put into it. And after all charges etc it is worth £8991. That's a helluva lot better than keeping the cash in a bank. The intention was to keep max-funding it for 10 years. But the accessibility means it'll likely just be used to store funds until - yawn - another property worth buying emerges. ISAs don't seem to be the ideal vehicle for the impatient spendthrift. Decent temporary store for funds, tho.
Mind if I ask, what sort of risk profile did you go for in your ISA?Fag packet maths suggest 2.7% in the 7 months so if the trend continued in the same fashion that would be ~4.8% annually.
Unfortunately the isa has dipped a bit lately and has now added £137 to £10400 invested over 8 months.
I never seem to have much fortune out of financial products. However a 'crap' property bought in Feb 17 has already returned 10% of its cost via rent so its not all glummery
rsbmw said:
Glad to hear that even with your busy schedule of accruing wealth and driving Ferraris, you are finding the time to collect some free taxpayer's money.
O it's really not time consuming at all. It gets auto-paid into an account 4 weekly. There'll be another regular wedge of taxpayer wodge coming imminently as well when the state pension starts.
Don't think I'm not grateful. I am. Thanks Mr Taxpayer.
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