Pension

[Parrot of Doom]

Got my pension statement today, and its increased rather significantly from last year, despite me not paying enough into it.

So is now a good time to put more money into my pension?

[LeTim]

Parrot of Doom said:

Got my pension statement today, and its increased rather significantly from last year, despite me not paying enough into it.

So is now a good time to put more money into my pension?

Maybe try in the business bit of the forum mate.

FWIW, very hard indeed to say, depends on what your thinking of sticking into it, property, equities, bonds etc.

Need more info really. Otherwise it's a bit like saying "how long is this bit of string"

[Wings]

I have always felt that if a person/company can make monies/profit from my money/investments, then I ought to be able to make more monies/profit from being in control of my own money. So unless it is tax reasons/advantages for you to invest into a pension scheme, I would suggest you either use ISAs or find an alternative investment vehicle where you are left in control of the investment/s.

[LeTim]

Wings said:

I have always felt that if a person/company can make monies/profit from my money/investments, then I ought to be able to make more monies/profit from being in control of my own money. So unless it is tax reasons/advantages for you to invest into a pension scheme, I would suggest you either use ISAs or find an alternative investment vehicle where you are left in control of the investment/s.

Don't forget that a pension is ring fenced from bankruptcy though, and can be passed onto dependants.

If you snuffit you can't pass you ISA onto your wifey, the cash looses it's tax shelter. Also if you get sued, or go bust you ISA isn't protected, your pension is.

Not saying don't have an ISA, I have one. Alongside a SIPP.

You can of course have just as much control over where money in a SIPP is invested as you do in an ISA.

[Wings]

LeTim said:

Wings said:

I have always felt that if a person/company can make monies/profit from my money/investments, then I ought to be able to make more monies/profit from being in control of my own money. So unless it is tax reasons/advantages for you to invest into a pension scheme, I would suggest you either use ISAs or find an alternative investment vehicle where you are left in control of the investment/s.

Don't forget that a pension is ring fenced from bankruptcy though, and can be passed onto dependants.

If you snuffit you can't pass you ISA onto your wifey, the cash looses it's tax shelter. Also if you get sued, or go bust you ISA isn't protected, your pension is.

Not saying don't have an ISA, I have one. Alongside a SIPP.

You can of course have just as much control over where money in a SIPP is invested as you do in an ISA.

You can of course be both right and wrong, for it is very much a case of us having the bright lamp of hindsight. For from what I know now, to what I did not know 20 years ago, I firstly would not have started out with a pension with Equitable Life, and instead would have invested more of my monies in residential properties.

My pension position is such that if I draw against my pension, I not only bring the same into the taxation zone, incurring tax at the 40% rate, but also into the IHT zone, meaning the pension will be included and taxed in my estate on my death.

ISA’s at least gives the holder flexibility for the future use of the same monies, where as pensions monies are tied up.

[Parrot of Doom]

Well I take the view that historically Pensions have performed very well, and are a good bet. I'm not savvy enough (read - too lazy) to bother with anything else.

Are stock values still low - is it a good time to put more money into my pension, and 'buy' more cheap stock?

[LeTim]

Parrot of Doom said:

Are stock values still low - is it a good time to put more money into my pension, and 'buy' more cheap stock?

All I can say is it's a really uncertain time.

We're not at the bottom of a bear market like 2002 when the FTSE was at 3500, we're not in euphoria territory either.

The US looks like it'll have a consumer recession, as does the UK, but with rates looking set to fall stocks might actually do well even in the recession and as house prices fall ( as they did between 1991 and 1997 )

On the other hand if earnings growth stalls stocks could fall sharply. And who knows how many more write downs the banks will declare.

IMO you need to see an IFA ( preferably one you pay for ). But might consider holding off until spring to see what shakes out. You might consider a balanced growth fund invested in US/UK/Euro stocks.