Financed lifestyles
Discussion
red_slr said:
I have started to ramp up my ISAs now rather than my SIPP as I am just not happy with the possibility the goal posts might move, probably just before I get to SIPP age.
All things are possible....including a tax swipe at ISAs.... as more money gets tied up in them don't be surprised. djc206 said:
The average pot of a 45-54 year old is £71k according to an article in the independen. It’s not just millennials who can’t plan their finances sensibly.
Do you mean the pot they expect to have at retirement age? Or is that the pension pot they have accumulated at 45-54?If the latter it doesn't sound that bad an effort. Starting a pension at 30 (probably the age at which most people start thinking about what they are going to do and also have a bit of spare cash available) you'd be paying well over £200 a month to get to that - which is quite a large proportion of the average £28k annual wage
boyse7en said:
djc206 said:
The average pot of a 45-54 year old is £71k according to an article in the independen. It’s not just millennials who can’t plan their finances sensibly.
Do you mean the pot they expect to have at retirement age? Or is that the pension pot they have accumulated at 45-54?If the latter it doesn't sound that bad an effort. Starting a pension at 30 (probably the age at which most people start thinking about what they are going to do and also have a bit of spare cash available) you'd be paying well over £200 a month to get to that - which is quite a large proportion of the average £28k annual wage
Doesn't sound quite so good when you put it like that!
(5% investment growth, 2.5% inflation, plus a few other assumptions)
I 8 a 4RE said:
This will be a very unpopular post on here ... so get the pitchforks ready:
86.5% of new cars are bought on finance. Financing a depreciating asset, aka Bad Leverage.
But tell anyone and they will say "It is only such a small part of my income, I can afford it."
Buddy, the fact you had to put it on Finance is the definition of not being able to afford it.
86.5% of new cars are bought on finance. Financing a depreciating asset, aka Bad Leverage.
But tell anyone and they will say "It is only such a small part of my income, I can afford it."
Buddy, the fact you had to put it on Finance is the definition of not being able to afford it.
Monday Morning at Close Brothers Aviation Finance:
ring ring
"Good Morning. CBAF. How may I help you"?
"Hi I'd like finance for a Learjet please"
"Certainly Sir. Have you the broker's account details for the payment"?
"Eh? Is that IT"??
"Why, yes sir. What were you expecting"?
"Expecting? Oh nothing really. Just a financial and affordability checkout procedure so rigorous that there would only be the smallest risk of me defaulting"
"Oh no, sir. That was in the old days. These days we just assume that nobody who buys anything on finance can actually afford it, so we don't bother raking over your assets and liabilities and profit and loss accounts or even bank statements so hard you think you've been raped. We just hand you the money and expect you not to be able to afford it....."
"Funny that. It's just what a bloke on the internet was saying......Oh well, if it's that easy I'll take two...one for the brother in law. In fact, f
k it, make it half a dozen"."No problem sir. Money with them in half an hour. Have a good day"
Edited by Groat on Monday 22 July 12:06
Condi said:
boyse7en said:
djc206 said:
The average pot of a 45-54 year old is £71k according to an article in the independen. It’s not just millennials who can’t plan their finances sensibly.
Do you mean the pot they expect to have at retirement age? Or is that the pension pot they have accumulated at 45-54?If the latter it doesn't sound that bad an effort. Starting a pension at 30 (probably the age at which most people start thinking about what they are going to do and also have a bit of spare cash available) you'd be paying well over £200 a month to get to that - which is quite a large proportion of the average £28k annual wage
Doesn't sound quite so good when you put it like that!
(5% investment growth, 2.5% inflation, plus a few other assumptions)
I'm 32, have zero debt with the exception of my 35 year mortgage. Of my friendship group I am the one of the only ones without a PCP / Leased car. The only one that doesn't credit card juggle each month. I pay for everything (TV's, holiday's etc) from saving. This means I don't have the nicest or at least newest cars on my drive and if you were to judge from afar it would appear I am not doing as well as the others.
Not that I care but what is the right thing to do? Credit for everything or save like my parents used to?
Not that I care but what is the right thing to do? Credit for everything or save like my parents used to?
In fairness, if you have a salary of 28k and can walk away with an pension of 17k, that isn't too bad. (Assuming mortgage is paid off ect).
That said I'm glad I started my pot early. I have nearly 60k in there with another 35 years of work ahead of me. Saying that by my reconning I'll need about 750k-1Mil. To retire on in 35 years time.
That said I'm glad I started my pot early. I have nearly 60k in there with another 35 years of work ahead of me. Saying that by my reconning I'll need about 750k-1Mil. To retire on in 35 years time.
RobinBanks said:
I 8 a 4RE said:
This will be a very unpopular post on here ... so get the pitchforks ready:
86.5% of new cars are bought on finance. Financing a depreciating asset, aka Bad Leverage.
But tell anyone and they will say "It is only such a small part of my income, I can afford it."
Buddy, the fact you had to put it on Finance is the definition of not being able to afford it.
BOOM! 86.5% of new cars are bought on finance. Financing a depreciating asset, aka Bad Leverage.
But tell anyone and they will say "It is only such a small part of my income, I can afford it."
Buddy, the fact you had to put it on Finance is the definition of not being able to afford it.
But but but “my investments are 3x the interest on my PCP”
Edited by RobinBanks on Monday 22 July 10:06
But there is so much s
t and nonsense posted on here by the PCP club of Frog, Brooking and Deep Thought (aka. not much thought just a constant steam of nonsense with no value add). Plus they do like to attack people personally for posting contrary views, I've never seen anything like it. Almost like they've got something to protect...orangesrule said:
In fairness, if you have a salary of 28k and can walk away with an pension of 17k, that isn't too bad. (Assuming mortgage is paid off ect).
That said I'm glad I started my pot early. I have nearly 60k in there with another 35 years of work ahead of me. Saying that by my reconning I'll need about 750k-1Mil. To retire on in 35 years time.
That would be pretty much the old 2/3rds... guess it would take some doing & sacrifice on an average salary though. That said I'm glad I started my pot early. I have nearly 60k in there with another 35 years of work ahead of me. Saying that by my reconning I'll need about 750k-1Mil. To retire on in 35 years time.
Joe5y said:
I'm 32, have zero debt with the exception of my 35 year mortgage. Of my friendship group I am the one of the only ones without a PCP / Leased car. The only one that doesn't credit card juggle each month. I pay for everything (TV's, holiday's etc) from saving. This means I don't have the nicest or at least newest cars on my drive and if you were to judge from afar it would appear I am not doing as well as the others.
Not that I care but what is the right thing to do? Credit for everything or save like my parents used to ?
Assuming you're actually creditworthy and can get the credit and have confidence in your affordability factor, then IT IS A CHOICE.Not that I care but what is the right thing to do? Credit for everything or save like my parents used to ?
Usually people would have a mixture of needs/wants they want instantly gratified and those they prefer gratified in the future.
You should ask your friends if they regret financing. Some people do. Plenty don't. Thinking about it helps, because in my opinion unplanned impulse purchases on credit are the ones most likely to be regretted.
Groat said:
Assuming you're actually creditworthy and can get the credit and have confidence in your affordability factor, then IT IS A CHOICE.
Usually people would have a mixture of needs/wants they want instantly gratified and those they prefer gratified in the future.
You should ask your friends if they regret financing. Some people do. Plenty don't. Thinking about it helps, because in my opinion unplanned impulse purchases on credit are the ones most likely to be regretted.
Please dont give young people poor financial advice. Usually people would have a mixture of needs/wants they want instantly gratified and those they prefer gratified in the future.
You should ask your friends if they regret financing. Some people do. Plenty don't. Thinking about it helps, because in my opinion unplanned impulse purchases on credit are the ones most likely to be regretted.
Whilst asking questions, please also ask what the number 1 reason for divorce is ... i'll give you a hint: MONEY.
Keep living like you are my friend and ask yourself:
Would you rather pay £1.00 for a pint of milk today, or £1.10 over the next week but spread in a deposit and daily payments?
Oh and since you now pay so little, you can go for uber-flash cool milk that's actually beyond your budget but you can "afford" the payments...
After 10 weeks, you have saved so much on interest, you got a free pint of milk.
If it works for the pennies, it works for the pounds.
Don't succumb to peer pressure. It will give you financial obesity and diabetes.
red_slr said:
Condi said:
boyse7en said:
djc206 said:
The average pot of a 45-54 year old is £71k according to an article in the independen. It’s not just millennials who can’t plan their finances sensibly.
Do you mean the pot they expect to have at retirement age? Or is that the pension pot they have accumulated at 45-54?If the latter it doesn't sound that bad an effort. Starting a pension at 30 (probably the age at which most people start thinking about what they are going to do and also have a bit of spare cash available) you'd be paying well over £200 a month to get to that - which is quite a large proportion of the average £28k annual wage
Doesn't sound quite so good when you put it like that!
(5% investment growth, 2.5% inflation, plus a few other assumptions)
boyse7en said:
Do you mean the pot they expect to have at retirement age? Or is that the pension pot they have accumulated at 45-54?
If the latter it doesn't sound that bad an effort. Starting a pension at 30 (probably the age at which most people start thinking about what they are going to do and also have a bit of spare cash available) you'd be paying well over £200 a month to get to that - which is quite a large proportion of the average £28k annual wage
Their pot as it stands. The same article says they need ~£450k to retire comfortably so basically they’re pretty screwed if that’s all they’ve got at that point.If the latter it doesn't sound that bad an effort. Starting a pension at 30 (probably the age at which most people start thinking about what they are going to do and also have a bit of spare cash available) you'd be paying well over £200 a month to get to that - which is quite a large proportion of the average £28k annual wage
I 8 a 4RE said:
Whilst asking questions, please also ask what the number 1 reason for divorce is ... i'll give you a hint: MONEY.
.
amongst the laughable nonsense (which I genuinely enjoy, by the way), that stood out. Only for me to discover it's just even more nonsense.....
https://www.huffpost.com/entry/10-most-common-reas...
Which makes me wonder how sensible your financial lifestyle advice really is.
mccrackenj said:
Exactly. Full state pension now £8.7k, so £9.7k + £8.7k X 2 = about £36.8k or £2,875 per month net. that sounds OK to me too. How much does a couple in their 70s need? Especially if they can release a bit of housing equity by downsizing.
Relying on the state pension being both available and of equivalent value decades in the future is brave.I 8 a 4RE said:
This will be a very unpopular post on here ... so get the pitchforks ready:
86.5% of new cars are bought on finance. Financing a depreciating asset, aka Bad Leverage.
But tell anyone and they will say "It is only such a small part of my income, I can afford it."
Buddy, the fact you had to put it on Finance is the definition of not being able to afford it.
It’s not the finance that makes buying a new car a bad idea it’s the buying a new car at all. I say this as a 33 year old who has had 4 new cars and has a 5th on order.86.5% of new cars are bought on finance. Financing a depreciating asset, aka Bad Leverage.
But tell anyone and they will say "It is only such a small part of my income, I can afford it."
Buddy, the fact you had to put it on Finance is the definition of not being able to afford it.
A lot of houses are now falling in value in real terms, a mortgage would count as bad leverage for such a purchase no?
I am yet another sub 30 year old poster on here with no pension, no investments and no real planning for the future.
Many of my mates don't rent but nearly all have been helped out by their parents to buy places, a few haven't however so it is possible to do!
Our generation wants it all now, social media has a lot to do with this!
Oh and
I have never understood the whole lease thing I am 28, I drive a works van and a £2000 Peugeot. I could afford to hire a car for 3 years its just spending thousands of pounds on something that I will never own I don't get!
Many of my mates don't rent but nearly all have been helped out by their parents to buy places, a few haven't however so it is possible to do!
Our generation wants it all now, social media has a lot to do with this!
Oh and
I have never understood the whole lease thing I am 28, I drive a works van and a £2000 Peugeot. I could afford to hire a car for 3 years its just spending thousands of pounds on something that I will never own I don't get!
djc206 said:
mccrackenj said:
Exactly. Full state pension now £8.7k, so £9.7k + £8.7k X 2 = about £36.8k or £2,875 per month net. that sounds OK to me too. How much does a couple in their 70s need? Especially if they can release a bit of housing equity by downsizing.
Relying on the state pension being both available and of equivalent value decades in the future is brave.
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