Recommend me and my partner some ways to save for our retirement.

[watchesandwhisky]

I think its fair to say There is some pretty experienced investors and savers here so, My partner and I are looking for some ideas towards saving for our retirement. obviously I have my PMs, but that must be diversified. 

 

We are both self employed, and neither have pension plans in place, I'm 32 in june, she is 27.

 

Traditional pension plans just seem a poor move? I know my old man paid into one for years when he was working and whilst its grown it has not even come close to keeping up with inflation, he now wishes he never bothered and had he put the same money into PMs well he would be in a MUCH better place financially. 

 

We don't have our own property, and ideally one day getting a mortgage will be on the cards..

 

But for now what would you think is good to go for? 

 

I'm thinking somewhere along the lines of 30% of our income into savings split 10% ISA type accounts, 10% PMs, 10% antiques and collectables. (whilst the last is unpredictable I do have some experience in this field)

 

Very open to any recommendations or suggestions:)

[Pipers]

First off watch this youtube vid,  it puts it better than i can.  

 

[watchesandwhisky]

Interesting video, Id have to say that we will be going for the slow and steady approach. Though Maybe we could split 21% between three different "safe" asset classes like stated above and the remaining 9% in high risk investments.

 

Whilst we want safe and steady saving we are not against educated gambles neither.

[Pipers]

Belangp has a lot of youtube clips and the majority are very good.  

 

You should use up your ISA's obviously

 

I personally would stay clear of stocks at the moment, they are rich.  You should have the money ready though for when there is a big adjustment.

 

Bonds,try and find a country with a wealth fund that will pay a decent return on your bonds, this is not easy.

 

Commodities PMs, what about oil do you think oil will be this price in 2 years?  there may be a play there.  

[Kman]

Start learning about domains   or other online opportunities 

[watchesandwhisky]

Thanks pipers i will have a watch of some more videos:)

I think kman thats a great idea but it seems like a huge learing curve with quite an outlay to have potential to catch the good ones,and i dont think the missues will go for that one but certainly something i can try and learn.

Maybe cash is good to stack for now, and just do tons of reasearch in the memeantime.

[Kman]

I think kman thats a great idea but it seems like a huge learing curve with quite an outlay to have potential to catch the good ones,and i dont think the missues will go for that one but certainly something i can try and learn.

 

A bit of learning but well worth it, as for the outlay it can be extremely minimal, totally depends

 

I didn't start learning about domains till Nomber-ish 2012, I started off with about £50, bit of luck and dedication and its paid off nicely. 

 

For me saving money seems negative glass half empty, I want to make so much money I don't need to save 

 

Don't get me wrong I'm not rich atm, I'm ok, but I am rich in free time and that's what I like most, doing nothing lol. 

[watchesandwhisky]

Lol I know what you mean about making so much money you dont need to save,our buisness is where we put most of our efforts and try and grow as much as we can..Savings is just for when we retire as we may not be as well set as some with no pension in place. Doubt there will be a state one by then :/

[Fluttershy]

I`m not giving you Any advice per se, just letting you know what I`m doing for now (and will share more when the ideas hit me).

I`m staying clear of Any and All financial institutions ( I mean ALL of them!).

 

I`m putting my fiat into PMs, obsolete semiconductors and valves (Vacuum tubes), and Other "neo-antiques" like boxed near new ZX-81`s or CBM-64`s etc...

the more obscure the better, think Oric, Aquarius and so forth!

Yes it`s a niche market, yes you`ll have to learn lenty and do your homework, and YES it Will (and does) pay off

 

this whole "Diversify" thing is a crock of horse doodoo, created by those that want to exploit you Somehow, anyhow!

Keep your hard earned as Solid comodities and assets that YOU (and YOU ALONE) Hold inyour possesion, it has no counter party risk then, it`s Yours!

 

I keep OUT of the "middle men" those that create nothing, those that produce nothing, those that require a license or beuricratic crap and needless paperwork.

Those that Insert themselves between a straight forward trade and take "their cut" for doing Nothing other that beaing there because the made a law pass!

 

Beware of these people, they wish you nothing but Harm!

[Kman]

Lol I know what you mean about making so much money you dont need to save,our buisness is where we put most of our efforts and try and grow as much as we can..Savings is just for when we retire as we may not be as well set as some with no pension in place. Doubt there will be a state one by then :/

 

Hows the business going so far? 

[watchesandwhisky]

I`m not giving you Any advice per se, just letting you know what I`m doing for now (and will share more when the ideas hit me).

I`m staying clear of Any and All financial institutions ( I mean ALL of them!).

 

I`m putting my fiat into PMs, obsolete semiconductors and valves (Vacuum tubes), and Other "neo-antiques" like boxed near new ZX-81`s or CBM-64`s etc...

the more obscure the better, think Oric, Aquarius and so forth!

Yes it`s a niche market, yes you`ll have to learn lenty and do your homework, and YES it Will (and does) pay off

 

this whole "Diversify" thing is a crock of horse doodoo, created by those that want to exploit you Somehow, anyhow!

Keep your hard earned as Solid comodities and assets that YOU (and YOU ALONE) Hold inyour possesion, it has no counter party risk then, it`s Yours!

 

I keep OUT of the "middle men" those that create nothing, those that produce nothing, those that require a license or beuricratic crap and needless paperwork.

Those that Insert themselves between a straight forward trade and take "their cut" for doing Nothing other that beaing there because the made a law pass!

 

Beware of these people, they wish you nothing but Harm!

 

Great post there fluttershy, And some great points, we would certainly be investing into what we guess will be the antiques of the future like you say:) along with some more traditional investments like numismatic coins (not modern semi numi, im talking top grade Victorian coins. 

 

 

Hows the business going so far? 

 

Not to bad thanks Kman:) its been steady takings of  £1500 per month since we started, with a profit of around £800, since we have no business costs as such and have just started in jan this year I am happy with that, But looking to push it forward, Really would like to see out takings upto £2000+ within the next month. Ideally if we can keep to these takings / profit levels then if we ever get to say 10K takings a month we will be doing just fine.

[Pete]

SIPP ... SIPP ...SIPP

 

​Since I moved my poorly performing pensions into Hargreaves Lansdown and picked UK equity funds from their Wealth 150 recommendations I am seeing 30-50% growth in the last few years PLUS you get tax relief on your contributions.

From next month you can treat your SIPP as a bank account dipping in for cash when you want it, if over 55, so a great way to prepare for your retirement. The beauty of HL is low charges and for most transactions no dealing charges and you can monitor your funds on-line whenever you want with up-to-date data.

[Pete]

I`m not giving you Any advice per se, just letting you know what I`m doing for now (and will share more when the ideas hit me).

I`m staying clear of Any and All financial institutions ( I mean ALL of them!).

 

I`m putting my fiat into PMs, obsolete semiconductors and valves (Vacuum tubes), and Other "neo-antiques" like boxed near new ZX-81`s or CBM-64`s etc...

the more obscure the better, think Oric, Aquarius and so forth!

Yes it`s a niche market, yes you`ll have to learn lenty and do your homework, and YES it Will (and does) pay off

 

this whole "Diversify" thing is a crock of horse doodoo, created by those that want to exploit you Somehow, anyhow!

Keep your hard earned as Solid comodities and assets that YOU (and YOU ALONE) Hold inyour possesion, it has no counter party risk then, it`s Yours!

 

I keep OUT of the "middle men" those that create nothing, those that produce nothing, those that require a license or beuricratic crap and needless paperwork.

Those that Insert themselves between a straight forward trade and take "their cut" for doing Nothing other that beaing there because the made a law pass!

 

Beware of these people, they wish you nothing but Harm!

Would you be interested in a working Dragon 32 for your collection ?

Was mine from brand new.

Several games on cassette and plug-in fob things.

[Fluttershy]

aww Thanks sweetie, but I`m afaid I wouldn`t offer you anywhere near what you could likely get for it in a private sale, they only go for about £50 ish anyway: http://www.ebay.co.uk/itm/Vintage-Dragon-32-Computer-Games-Extras-/371297491367?pt=LH_DefaultDomain_3&hash=item56730e19a7

and that`s quite high while you can still pick them up for about £10-15 in car boot sales (I have the ability to repair anything like this also, so it`s never an issue).

 

Im also planning on Off Loading much of my collection this year in order to fund my PM habit

[Keithoil]

aww Thanks sweetie, but I`m afaid I wouldn`t offer you anywhere near what you could likely get for it in a private sale, they only go for about £50 ish anyway: http://www.ebay.co.uk/itm/Vintage-Dragon-32-Computer-Games-Extras-/371297491367?pt=LH_DefaultDomain_3&hash=item56730e19a7

and that`s quite high while you can still pick them up for about £10-15 in car boot sales (I have the ability to repair anything like this also, so it`s never an issue).

 

Im also planning on Off Loading much of my collection this year in order to fund my PM habit

 

i used to have a computer shop in the late 90's and had a decent customer base, I told them I was collecting the old type of computers bad move!! It got so bad that in the end I had to stop taking them as the shop was humpty back with them.

 

I wrote a couple of articles in the early nineties for a mag called Popular Computing Weekly. Paid and published!!!

 

I do have some nice units though, boxed C64, and the C2N cassette drive, and the 1541 drive.. A boxed Amiga 500. Zx spectrum, Dragon 32. A whole host of the old CPU's etc. Also a bagged Amstrad computer, not sure of the model.

 

All good stuff.

[BaldyBob]

Madhatter

 

Further to Pete's SIPP advice. I am pretty much anti-pension, but went for the SIPP as I feel in control, accessible from 55, transferable in death etc etc.......until of course some Government moves the goalposts again.

Still, immensely better than the usual annuity rubbish with some spiv taking a cut of your hard earned. A reason I avoid funds as well.

 

However, to get to the point. I was self employed like yourself, but went limited a few years ago.

Just to remind you that whilst you get a tax contribution for your personal payments into your SIPP, if you go Limited in the future (which may be worthwhile if you reach your £10K per month goal), your company can make contributions on your behalf, and will not be taxed (corporation) on those contributions. It is a good way of getting funds out in a tax efficient way.

 

Good luck in your business.

Bob

[Scuzzle]

The only other things to invest in I can think on is art, very seldom will a 10K and upwards painting go backwards in value, if you have a cold dark cellar investment grade wines is something to look at also.

On the subject of retro consoles the only thing I have from my childhood brand new in the box and it's worth nothing is a Rolf Harris Stylophone, I got it as a kid for Christmas 36 years ago. took it out the box, tried it for all of 2 minutes then it went back in the box and up the loft ever since, totally mint and it's not worth a damn thing while the stuff I wrecked is worth a fortune lol.

[lightjaw]

I wince every time I remember unboxing my star wars toys and putting them in holes in the garden...I could have probably bought a house now with them if I had kept them mint...ah well

[Guest]

My mum insisted I had a pension in 1988 and set one up for me at Abbey Life. She worked for them and sold life insurance.

Abbey life was a real drain and I got out with a 25% hit on my pension and took 35k to a SIPP run by the share centre and Sippdealxtra. I have been investing myself and picking my own stocks and shares. My company adds 300 a month and I have put in no more money yet with low charges my 35k is now 220k. I can't recommend SIPPs enough.

[ChrisSilver]

Do you not want to get some property? I'd be saving for a deposit if I had a regular income. Long term I think property is great.

Property that is purchased and then rented out; in the long term should hopefully increase in value whilst also providing regular passive income. (or at the worst should increase in line with inflation over a long period of time - although anything is possible and it could decrease significantly I think in general it's a very safe investment providing on the particular property purchased and at what price obviously) 

[Stu]

Do you not want to get some property? I'd be saving for a deposit if I had a regular income. Long term I think property is great.

Property that is purchased and then rented out; in the long term should hopefully increase in value whilst also providing regular passive income. (or at the worst should increase in line with inflation over a long period of time - although anything is possible and it could decrease significantly I think in general it's a very safe investment providing on the particular property purchased and at what price obviously)

I thought along the same lines as you Chris. Our intention is/ was to move to a more rural location, mortgage a new property and use our existing house on a let to buy. Having read a fair bit on housepricecrash forum, unsurprisingly most members there believe that property is in a massive bubble again, almost at levels before the 2008 crash. Looks like the government are going to inflate this bubble further by 10 to 20% with further "initiatives" and the whole thing is going to go bang with a correction of between 30 to 60% downwards.

My thinking now is to live within our means and not stack up on debt on our principle home, my better half has just come round to this way of thinking. I would love to give her a fantastic home, but now only if we have the resources to fund this, we are fortunate enough to have no other debt but are by no means wealthy. So move and take a very minimal loan at10 year fixed rate mortgage. My sincere belief is that the economy is going to go belly up within 5 years and we are going to see either a massive inflation or deflationary scenario. I am hedging my hedges and hopefully if the worst happens, lose job, economic collapse etc we will have enough assets to pay off our debt and keep the wolf from the door.

[ChrisSilver]

@Stu I also believe that London prices are inflated. Wether or not they will keep increasing or they will fall I am not sure. A young person doesn't need to worry in my opinion, if they can afford to buy, because ultimately over the course of their life this property will eventually be worth more even if a significant price crash does happen. They have more room for error if a price drop does happen as they can wait it out.

I am not sure on the rest of the UK, but I think property prices in the rest of the UK are reasonable and that there is a lot less risk. Someone told me that buy a certain date average UK house (excluding London) would be worth £250k. Which isn't that much, a couple earning the average of £25k income each should be able to afford. But the average price in London will be a staggering £1m! So although London may be in a bubble other parts of the UK might not be.

[SilverPirate]

Do you not want to get some property? I'd be saving for a deposit if I had a regular income. Long term I think property is great.

Property that is purchased and then rented out; in the long term should hopefully increase in value whilst also providing regular passive income. (or at the worst should increase in line with inflation over a long period of time - although anything is possible and it could decrease significantly I think in general it's a very safe investment providing on the particular property purchased and at what price obviously) 

I have thought about this as a future investment, i looked on you tube and the pit falls on the legality side with tenants frightened me off the idea,if you get good tenants and a long tern one to boot then it is a great idea.

[Abbotssilvercoins]

I diversify. I have a modest pension pot but have not paid into it for the past 3 years.  I avoid holding money in any bank account (including ISAs which may be tax free but return woeful interest rates), wherever possible, and try to tie up as much money as I dare in longer term, more unusual investment vehicles.

 

I do peer to peer lending on Zopa and lend to businesses on FundingCircle.  Both of these investments are returning greater than 6% per annum.

 

Take a look at www.abundancegeneration.com.  As a couple of 32 and 27 you have time on your side.  I am 37 now, but 3 years ago at 34 I invested in a 20 year debenture in a couple of wind turbines and one solar panel project.  These should give me a headline annual of nearer 8% per annum.

 

The good thing about Zopa, Funding Circle and AbundanceGeneration is that your capital is returned to you, steadily, throughout your investment term.  So, whilst the returns at 6 and 8% are very good (compared with ISAs and other current or savings accounts of any type from any lender) those returns can be compounded because regular capital returns can be reinvested.  On the lending sites, that recycling can be done automatically, or you are free to withdraw your cash to be invested elsewhere.

 

Something I haven't done yet, but am researching at the moment, is invest in woodland.  The thing I like about this is that no matter what (well, a massive fire aside) wood keeps growing!  We could have a massive financial crash heading our way, but even if that happens the trees will grow at the same relentless rate and it appears you can invest in such a way that you can choose when to sell, so you can wait for the good times to return and sell at a premium.

 

There's some of my thoughts.  I wrote more about Zopa, FundingCircle and AbundanceGeneration on another note a few days ago, so if interested check my other posts.

 

Cheers

David

[StackemHigh]

I too would like to invest in woodland !

What sort of costs are involved in purchasing and management of such an investment ?

And would it only be for investment purposes ?