oh hang on... whats that?

[Mr Tiler]

So is that a standard stef? That is crazy someone told me to spwnd it as it comes in but just keep a little aside for the odd emergency as his mother had worked all her life and brought her own house... Now that she is old and in a home they have been charging her nearly 800 a week for around 2 years and all she is left with now is the house she brought which is in the process of being sold so they can bleed her dry before the government covers the costs which leaves her kids with nothing when she is gone. Shameful

 

[White Room]

You are allowed 300k Before inheritance....

 

[John Benton]

The financial adviser was dealing with it John & he says there's nothing that we can do as its the law!!
You already pay 20% tax when your working then they tax you a further 55% when you die..
I thought about paying into a pension years ago but heard a lot of not so good stories back then but after this I will never ever pay into a pension.

I'm the same Stef, investments elsewhere. Was never happy with banks/financial advisors all greedy bar staff. Wouldn't trust them at all, although I'm sure there are good ones as with all professions.

I had a look at this 55% tax and it's all down to management of pensions and age of death, so I would say he had possibly been badly advised on what the best way to avoid tax was.

 

[Stef]

I'm the same Stef, investments elsewhere. Was never happy with banks/financial advisors all greedy bar staff. Wouldn't trust them at all, although I'm sure there are good ones as with all professions.

I had a look at this 55% tax and it's all down to management of pensions and age of death, so I would say he had possibly been badly advised on what the best way to avoid tax was.

If he had got to 65 John then there wouldn't be this problem as his pension money was getting put into trust funds so they couldn't hammer him for tax.

Mark, IHT is 325k, thought we were going to get hit with this although it would have been slightly better as its 40% tax & not 55%.

 

[John Benton]

If he had got to 65 John then there wouldn't be this problem as his pension money was getting put into trust funds so they couldn't hammer him for tax.

Mark, IHT is 325k, thought we were going to get hit with this although it would have been slightly better as its 40% tax & not 55%.

It's 40% on everything over £325k and as I understand it if you die your spouse can utilise your allowance of £325k when they die giving a total of £650k as the IHT allowance is per individual.

I was asked about a pension when I was about 20 and I said to them look at it this way - would you walk into a bookies and place a bet for say £150k that you will reach the age of 65. No me neither.

 

[Rizzle from the Portizzle]

so the answer is buy a house when you are 25 rent it for 25 years after 5 years theres money left over. morgage paid off now 50 nice income dont have to work as hard. my account now says he should have listern to me pensions are a black hole where the bankers feed

 

[White Room]

so the answer is buy a house when you are 25 rent it for 25 years after 5 years theres money left over. morgage paid off now 50 nice income dont have to work as hard. my account now says he should have listern to me pensions are a black hole where the bankers feed

And that comes from your accountant, what chance has the rest of us got...

 

[John Benton]

And that comes from your accountant, what chance has the rest of us got...

I've got a friend and he started buying houses at 22 yr old. Just turned 50 and he owns 33 houses where I live all with the mortgages paid for worth between 100k and 140k each. He has an income of over 200k in rent without having to get out of bed. He started back in the 80's just before the property boom really started. He does get out of bed cos he also owns a multi million pond company that he started from scratch. Not a pension scheme in sight for him!!!

 

[Rizzle from the Portizzle]

I've got a friend and he started buying houses at 22 yr old. Just turned 50 and he owns 33 houses where I live all with the mortgages paid for worth between 100k and 140k each. He has an income of over 200k in rent without having to get out of bed. He started back in the 80's just before the property boom really started. He does get out of bed cos he also owns a multi million pond company that he started from scratch. Not a pension scheme in sight for him!!!

he had a pension scheme from 22 on. fair play lean the lesson and pass it on