how Can a investor build a pension pot of 1m. within 20 years by using a trader's method ??

First you can open a SIPP through Comdirect (EPML charge 175pa for the admin of funds over 15,000) and then you choose which companies to invest in. (There are other companies that also offer SIPP's)

The pension pot will be dependant on how much you contribute, & how much money you can make. But you make the decisions & the charges can work out less than what you pay in commissions etc. for a pension through one of the normal pension providers. And of course you control the investments.

That does sound like a good alternative to a standard pension, I'm in very good company pension at the mo. also putting a bit in a unit isa.
but someone has told me, unless to can save over 200,000 by the time your 65 (at todays value) in a pension, you might as well forget it!!!!
I dont know if this is true, can anyone answer this?
also back to SIPP's...
1. Are the funds/shares tax deductible each year?
2. Are you restricted to how much to can draw out in the final stages, i.e. when you reach 60 - 65?

Annuity rates tend to track gilts - at the moment 200,000 will give a man aged 65 around 14000 p.a.

If I were say 50 and had 200K I'd be more inclined to put it into a couple of brand new flats. Around here that'd bring in around 1150 a month or say with voids 12000 a year. So you have the income now and in the future plus your sproggs have the property when you shuffle off. Pensions - A right rip off.Sod the pinstripped, red bracered city types - do you really want to trust them with your money?

200,000 at age 65 in your pension pot will buy a man a 14k index-linked pension if you don't draw out the 25% tax free lump sum, 10750 if you do. If you can't live on that plus the state pension 100/wk then save harder.
If married you'll want a widow's pension too so after taking the 25% lump sum you'll only get 7k indexed, assuming wife age 60 and a drop to 4700/yr on your death. Not much for a 200000 pot!

from the book " rich dad/ poor dad", I got a idea. Assets can produce incomes.
asset > cashflow
more assets < cashflows

If asset=" good at playing the market", says a ROC of 20% a year, snowballroller it, a starting fund of 20k doesn`t need 20 yrs to
build a pension pot of 1m. Do I got it right ?

That's why I think the SIPP is a good idea. - You decide where you want the money invested. The answers you want are: -

The full fund value is available on death before retirement which can normally be paid as a lump sum free of Inheritance Tax.

You receive full tax relief at your highest rate on all personal contributions (subject to Inland Revenue limits).

Your pension fund accumulates free of income tax free of capital gains tax for the chance of greater growth.

Up to 25% of your pension fund may be taken as a tax-free cash sum at retirement.

You do not have to retire to take your benefits - a pension may normally be taken anytime between the ages of 50 to 75.

Following the 1995 Finance Act, from 50 to age 75 you need not buy an annuity from an Insurance Company, but can draw a pension from your fund while, within certain limits, keeping full investment control. This is called Income Drawdown.

You can take the maximum tax-free cash from the SIPP, while reducing the immediate pension income until a higher level is needed. This can assist capital growth and reduce your personal tax bill.


The trouble with rental property is the tax man takes such a big chunk when you sell them and there goes the extra you need to retire.... (Should be considered as part of your overall pension in addition anything you can do.)

"A SIPP is a Pension Plan which allows you to manage your own investments including, quoted shares, commercial property, unit trusts, government bonds etc. These pensions are very popular with Business Owners and Professional Partners looking to buy a commercial property and benefit from tax free rent and no capital gains tax within the fund. If you are an experienced investor, running a share portfolio through your pension may be very attractive."

As a nation we're relativly uneducated about finance. How many kids get taught the first thing about it at school? - that's one of the reasons pensions providers get away with what they do.
We're brainwashed into believing pensions are "a good thing". Sure they are but for The City more than for the individual.

What the "Own`s Pension Pot" to me means is a Lump sum of 1m I can use/control as I want. Not the silly rules of 25% pay out!!!

so if i was in the position of having 20k to invest in shares and i was lucky to gain a 20% growth each year, for the next 20 years say.
how much tax per year would i have to pay to back to the tax man?
is there any way of getting a tax relief by stating its a pension saving plan for when I'm 60 - 65???
there alway a pro and con to every solution and your right about us not being to bright in the finance world and being 'brainwasted'.
I've never liked the idea of pensions. its nice to know there so many other ways of invested as long as your careful, after all it is our futures were talking about, thats if were all lucky to reach 65!!!
thanx for the education...

20k per year into a pot that grows 20% compound would accumulate to 3,733,760 after 20 years. (Or in theory 6,222,933 including tax relief of 13333 per year added in too). But remember the upcoming 1.4 million limit for tax relief coming in from 2005.
You only get tax relief if your money goes into a formally organised scheme with a supervising manager. You pay tax on what you take out (except for the 25% free allowance). If your money isn't in such a scheme you pay income tax and CGT as normal.

Any tax you pay when you retire is on the actual income you receive depending on your entire tax situation. If you become non resident, you don't have to pay any UK tax on income paid in the UK, and sent to you overseas.

So you now understand why many people retire abroad!

hi,thanks a lot,exotoxin,
How much is the POT after 20yrs if paying high rate income tax & CGT every yrs?

This just made me cry with laughter.......

HOW TO GIVE YOUR CAT A PILL:

1) Pick cat up and cradle it in the crook of your left arm as if holding baby. Position right forefinger and thumb on either side of cat's mouth and gently apply pressure to cheeks while holding pill in right hand. As cat opens mouth pop pill into mouth. Allow cat to close mouth and swallow.

2) Retrieve pill from floor and cat from behind sofa. Cradle cat in left arm and repeat process.

3) Retrieve cat from bedroom. Throw away soggy pill.


4) Take new pill from foil wrap, cradle cat in left arm holding rear paws tightly with left hand. Force jaws open and push pill to back of mouth with right forefinger. Hold mouth shut for a count of ten.

5) Retrieve pill from goldfish bowl and cat from top of wardrobe. Call spouse from garden.

6) Kneel on floor with cat wedged firmly between knees. Hold front and rear paws. Ignore low growls. Get spouse to hold head firmly with one hand while forcing wooden ruler into mouth. Drop pill down ruler and rub cat's throat vigorously.

7) Retrieve cat from curtain rail. Get another pill from foil wrap. Make note to buy new ruler and repair curtains. Carefully sweep shattered figurines and vases from hearth and set to one side for gluing later.

8) Wrap cat in large towel and get spouse to lie on cat with head just visible below armpit. Put pill in end of drinking straw, force mouth open with pencil and blow down drinking straw.

9) Check label to make sure pill not harmful to humans. Drink one glass beer to take taste away. Apply plaster to spouse's forearm and remove blood from carpet with cold water and soap.

10) Retrieve cat from neighbour's shed. Get another pill. Open another beer. Place cat in cupboard and close door onto neck to leave head showing. Force mouth open with dessert spoon. Flick pill down throat with elastic band.

11) Fetch screwdriver from garage and put cupboard door back on hinges. Drink beer. Fetch bottle of scotch. Pour shot. Drink. Apply cold compress to cheek and check records for date of last tetanus jab. Apply whisky compress to cheek to disinfect. Toss back another shot. Throw ripped tee-shirt away and fetch new one from bedroom.

12) Ring fire brigade to retrieve the f***ing cat from tree across the road. Apologize to neighbour who crashed into fence while swerving to avoid cat. Take last pill from foil-wrap.

13) Tie the little bastard's front paws to rear paws with garden twine and bind tightly to leg of dining table. Fetch heavy duty gardening gloves from shed. Push pill into mouth followed by large piece of fillet steak. Be rough about it. Hold head vertically and pour 2 pints of water down throat to wash pill down.

14) Consume remainder of Scotch. Get spouse to drive you to Emergency Room. Sit quietly while doctor stitches fingers and forearm and removes pill remnants from right eye. Call furniture shop on way home to order new table.

15) Arrange for RSPCA to collect mutant cat from hell and ring local pet shop to see if they have any hamsters.

HOW TO GIVE YOUR DOG A PILL:

1) Wrap it in bacon.

hi,guys,
so that is the end of the story.
no body can make a living in the market.no body can get rich from the market.
no wonder 95%+ of traders are loser, but can the other few % taught us somethings?