Just wondering what i should be sorting out for later in life.
Ill admit im not one for all this, never really spoke to anyone about it, shockingly never had a canvasser knocking my door down about it.
Thinking to myself what i should be doing? What do you lot do?
Also, what if i wanted to invest some cash, how do i go about it etc?
Thanks
Have you got a pension?
Have you got any dependents?
Quote from: BigSoyHave you got any dependents?
No dependents, no pension
Life insurance only pays out if youre dead, so baring canoe based scams theres very little point unless theres someone who would need looking after financially after youre gone.
Health insurance is potentially another matter
Quote from: BaconQuote from: BigSoyHave you got any dependents?
No dependents, no pension
Why do you want Life Insurance then?
Start here...
http://www.moneysavingexpert.com
Quote from: BigSoyQuote from: BaconQuote from: BigSoyHave you got any dependents?
No dependents, no pension
Why do you want Life Insurance then?
Start here... http://www.moneysavingexpert.com
No idea.
But people buy pensions, insurance or whatever and people invest in stuff and i have no clue.
If you have no dependants/partner forget life insurance, theres no point in it for you. Almost inevitably medical insurance will be a waste of money too.
The best Pensions are normally job based ones from your employer, it depends on how long you work for companies though and if they actually have one.
Get an ISA and put money into it every year. Keep some more money in a high interest savings account. Shares is only for money you are prepared to risk, you might lose most or all of it.
At the end, providing you have paid in enough to the government, youll get a pension off them, this rates little more than subsistence. Its also presently being discussed by the Tories to move the pension limit to 66 for everyone, that might go further too.
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Egg alternative: save up a good bit then spend it all on alcohol and drink yourself to death before you reach 65...
Quote from: BaconQuote from: BigSoyQuote from: BaconQuote from: BigSoyHave you got any dependents?
No dependents, no pension
Why do you want Life Insurance then?
Start here... http://www.moneysavingexpert.com
No idea.
But people buy pensions, insurance or whatever and people invest in stuff and i have no clue.
Soy is right, life insurance is for when you die and your wife needs looking after.
gimme £20 a month & Ill give you £10k when you die.
sorted.
I came to the conclusion your better doing baccy runs or some such with your cash then banking the profit you make each time, it works out a lot more than putting into ISAs or savings. :w00t:
I did read MSE as well. Think ill just settle on a pension for now.
What to do with your cash:
Income Protection : If youre out of work due to accident/illness this will pay a major % of your normal salary : Usefull if you have Mortage/Rent & Other high bills. Take this out as young as you can for the cheapest deals. Be carefull of the small-print many policys have detailed specific clauses that can make them difficult to claim. i.e. No payout for lung cancer if youre a smoker, no payout for broken bones if you drive a sports car etc...
Life Insurance : If you die - A Lump sum is paid on death to your next of kin. Good for wife/children other dependants.
Pension : Pay into a pension plan, on retirement the plan is auctioned for the highest pidder to provide you a yearly income. You can not withdraw/invest or otherwise move money once its paid into a Pension. - Persoanly I suggest paying the minimum and investing your cash in real savings.
Savings:
ISA - TAX FREE Savings : Limit is over £3600 soon to rise higher, all interest is tax free and best place to saves money
Shares - Gambling on the market - Dont invest anything you cant afford to loose.
Bank Account - Minimal Interest & Taxed against as income - So you dont get all the cash.
Quote from: dogbertWhat to do with your cash:
Income Protection : If youre out of work due to accident/illness this will pay a major % of your normal salary : Usefull if you have Mortage/Rent & Other high bills. Take this out as young as you can for the cheapest deals. Be carefull of the small-print many policys have detailed specific clauses that can make them difficult to claim. i.e. No payout for lung cancer if youre a smoker, no payout for broken bones if you drive a sports car etc...
Life Insurance : If you die - A Lump sum is paid on death to your next of kin. Good for wife/children other dependants.
Pension : Pay into a pension plan, on retirement the plan is auctioned for the highest pidder to provide you a yearly income. You can not withdraw/invest or otherwise move money once its paid into a Pension. - Persoanly I suggest paying the minimum and investing your cash in real savings.
Savings:
ISA - TAX FREE Savings : Limit is over £3600 soon to rise higher, all interest is tax free and best place to saves money
Shares - Gambling on the market - Dont invest anything you cant afford to loose.
Bank Account - Minimal Interest & Taxed against as income - So you dont get all the cash.
blow it on hookers
Youll get screwed out of it anyway
Quote from: dogbertPension : Pay into a pension plan, on retirement the plan is auctioned for the highest pidder to provide you a yearly income. You can not withdraw/invest or otherwise move money once its paid into a Pension. - Persoanly I suggest paying the minimum and investing your cash in real savings.
Mixed economy probably best if youre looking to live to retirement... pensions in general are much more tax efficient than normal savings.
Quote from: BigSoypensions in general are much more tax efficient than normal savings.
Exactly. And the one thing about a pension is the longer the funds have to mature the more you get out in retirement, so the earlier you start the better. In the future especially, the pressure on retirement age will be high, so if you want to be able to afford to retire at 60 or before, start now. Most people on this forum wont have ever considered when they are going to retire, but in 40 years time, therell be so many oldyuns roaming the streets HM Gov will be making you work til 70 ;)
I thought pensions were getting a lot of negative views lately because they are being seen as unreliable? I have to admit I dont have that much knowledge about them, but I thought a lot of people were losing their pensions (like the problems with the RM deficit) or they wernt paying out like they were supposed to?
Had my pension for 5 years now and im 26........need to up the payments though to be honest. Work pays in 7% of my salary which isnt too bad I dont think.
One problem with a company pension fund is that the company controls the fund and potentially can use it to their own ends. Ive seen my employer take a contributions holiday where the value of the fund was doing well enough they didnt need to pay into it to achieve the target value. Later they had to come cap in hand to the employees and ask for them to put more in when there was a shortfall :roll:.
I have a personal private pension, so at least this cant happen. If you are self employed then you have no option but to sort it yourself; unless you think you are going to make so much money you wont need a pension.
Mine is a private pension with Aviva, and the company pays in 7% still.
yep, all employees in the UK have to be offered the option of a pension now... employee puts in whatever% and the employer also has to put in another%
(cant remember the numbers)
luck for me you can opt out of it.... and the guys working for me did !
I dont know much about them really, but why would you opt out? Surely its free money?
Quote from: dogbertWhat to do with your cash:
Income Protection : If youre out of work due to accident/illness this will pay a major % of your normal salary : Usefull if you have Mortage/Rent & Other high bills. Take this out as young as you can for the cheapest deals. Be carefull of the small-print many policys have detailed specific clauses that can make them difficult to claim. i.e. No payout for lung cancer if youre a smoker, no payout for broken bones if you drive a sports car etc...
Life Insurance : If you die - A Lump sum is paid on death to your next of kin. Good for wife/children other dependants.
Pension : Pay into a pension plan, on retirement the plan is auctioned for the highest pidder to provide you a yearly income. You can not withdraw/invest or otherwise move money once its paid into a Pension. - Persoanly I suggest paying the minimum and investing your cash in real savings.
Savings:
ISA - TAX FREE Savings : Limit is over £3600 soon to rise higher, all interest is tax free and best place to saves money
Shares - Gambling on the market - Dont invest anything you cant afford to loose.
Bank Account - Minimal Interest & Taxed against as income - So you dont get all the cash.
Income protection, not worth it as almost inevitably they will limit the amount you are paid or not pay at all. Loads of items about this happening. If you have money for this and are buying something big you are better off saving it in an account instead.
Pension, if you arent rich put a nice wedge in this as it will help a lot. If you are rich then you should be investing in shares, bonds and the like too.
ISA fill it up if you can.
bank account, go for a high interest one and keep some money in for emergency bills.
Property, can be a good investment but now pricey. Take care and investigate properly if you wnt to go this way
The property market is bottoming out, if anyone is thinking about property now is the time to be saving a very healthy deposit - in the next few years it will be at its lowest and it will be time to buy again. But not just yet.
Quote from: chrisdickoI dont know much about them really, but why would you opt out? Surely its free money?
well.... if youre on min. wage, live in a council house, and never want to get your own place / save up for anything.... then theres not much point in having a private pension... the government will look after you.... youd be better off with an extra tenner/whatever in your pocket every week instead of in the pension
Quote from: Clockd 0NeThe property market is bottoming out, if anyone is thinking about property now is the time to be saving a very healthy deposit - in the next few years it will be at its lowest and it will be time to buy again. But not just yet.
Were already picking up - now is the perfect time to buy. But in a year it will still be good value.
Quote from: Clockd 0NeI thought pensions were getting a lot of negative views lately because they are being seen as unreliable? I have to admit I dont have that much knowledge about them, but I thought a lot of people were losing their pensions (like the problems with the RM deficit) or they wernt paying out like they were supposed to?
http://www.moneysavingexpert.com/savings/discount-pensions is probably a better explanation than mine but....
Its important to understand what a pension actually is - a tax-efficient wrapper for types of investment to encourage people to save for retirement... so you can either have low-risk, relatively low-gain cash investments inside that wrapper, or you can have high-gain high risk investments inside the wrapper... lots of peoples bad pension performance is around picking a high risk mix of investments within the wrapper (assuming they have a choice over this).
Also, not sure whos comment was on pensions being free money... not really... if your company has to pay 7% into your pension that cost has to come from somewhere... aint magic ;)
the thing is, unless youre over 40 (or a bit older) it wont really make any difference to your pension anyway.... its just a blip on the radar... youll probably be better off still because the economy was doing great before this...
Quote from: knightythe thing is, unless youre over 40 (or a bit older) it wont really make any difference to your pension anyway.... its just a blip on the radar... youll probably be better off still because the economy was doing great before this...
To an extent - hence you should reduce risk in your options as you get closer to retirement.