What is your exit strategy?

[NKR]

In February I am 35 and whether I like it or not I am old.

I am also on what is known as the tipping point in terms of having a decent retirement and a not so decent one.

I already have my company pension ticking away, but this year I am going to start investing roadshow money into a balanced SIPP of some sort. Gets an element of my money out of the business tax free and is invested for my retirement from the business. Now I need some advice on this, but if I retire from DJ'ing at 50 I should be able to draw down on that SIPP.

What is everyone else doing in terms of planning for when they have to hang the headphones up?

[Daryll]

Guess I am lucky ( well in this financial climate I think so :D )
I have a private pension as well as a West Sussex final salary pension , so at the moment all is well , income from the disco , funds the disco .

Daryll

[MORGEY]

I don't have plans for retirement at age 56 now. I may give it some thought when im am 76 :D

[CRAZY K]

In February I am 35 and whether I like it or not I am old.

I am also on what is known as the tipping point in terms of having a decent retirement and a not so decent one.

I already have my company pension ticking away, but this year I am going to start investing roadshow money into a balanced SIPP of some sort. Gets an element of my money out of the business tax free and is invested for my retirement from the business. Now I need some advice on this, but if I retire from DJ'ing at 50 I should be able to draw down on that SIPP.

What is everyone else doing in terms of planning for when they have to hang the headphones up?

In 15 years time the chances of you retiring are zero unless you earn a very considerable amount of money in the meantime AND your SIPP investments go really well.

State Pension wont kick in until your late 60s or later by the time you are 50.

I imagine annuity rates or even a drawdown would be VERY unattractive bearing in mind you might be drawing the benefits for 50 years:eek:

Get in touch with a qualified IFA and pay for some solid advice.

You could do worse than my son--1 House being let out and a second one probably by March---in retirement you only need ONE THING a guaranteed income without having to work for it.

Good luck with it anyway.

[ppentertainments]

I invested in a second house which we rent out.

The plan is to maybe look at a third property as we have no (well very little) mortgage.

This will hopefully give me the flexibility to draw on investments if neccesary or bring in a regular income.

[abracadabradisco]

I'm 60 in a few days time and not thinking much about retirement yet. Why, I just took 2 kids parties, a 40th and next NYE bookings today.

Got a private pension and in a few days my RN pension kicks in but I don't expect much from it. It would be nice if I had a company pension or the like but I reckon I can survive ok. Definately not retiring until at least 70. The kids parties are great and I don't want to give them up.

[NKR]

In 15 years time the chances of you retiring are zero unless you earn a very considerable amount of money in the meantime AND your SIPP investments go really well.

State Pension wont kick in until your late 60s or later by the time you are 50.

I imagine annuity rates or even a drawdown would be VERY unattractive bearing in mind you might be drawing the benefits for 50 years:eek:

Get in touch with a qualified IFA and pay for some solid advice.

You could do worse than my son--1 House being let out and a second one probably by March---in retirement you only need ONE THING a guaranteed income without having to work for it.

Good luck with it anyway.

I am fully qualified chartered surveyor working in commerical development, which I will work in until I am at least 65 - maybe later in some form a consultancy role. The DJ business is a side line. I am entrusted with very complex development appraisals and asset manage a substantial commercial portfolio for my employer. I work directly with the banks commerical department with regard to development finance. My degree is in Urban Land Economics so I have a very sound grounding in economics and investment.

There is not a great deal an IFA is going to be able to assist with.

[Johnny P]

I am fully qualified chartered surveyor working in commerical development, which I will work in until I am at least 65

with a bit of luck and a recovering economy - you may need your sideline job soon!

[DAVESOUNDS SERVICES]

Currently 52 and going to be a Pensioner in February!
Hoping to Both Live and DJ to 60 then probably to 70!
House paid for but car is a total shed.......
NO PLANS FOR RETIREMENT!!!! EVER

Cheers

[Megamix]

some property, deferred pension, wife's business and luck

[Excalibur]

What is everyone else doing in terms of planning for when they have to hang the headphones up?

It was set in stone that I would retire at 50. It should now be apparent that any advice I give on this matter is worthless. :o :o :o :o :o :o :o


Currently 52 and going to be a Pensioner in February!
Hoping to Both Live and DJ to 60 then probably to 70!
House paid for but car is a total shed.......
NO PLANS FOR RETIREMENT!!!! EVER
Cheers

I like this man. :D :D :D :D :D :D

[DeckstarDeluxe]

Not even thought about retirement. Rather spend the money on stuff I dont need now rather than some gold plated walking sticks when I'm old and grey :)

[NKR]

with a bit of luck and a recovering economy - you may need your sideline job soon!

I assume that was may not need my sideline. The DJ'ing will stay as I enjoy it and it is really useful income whilst the kids are young.

2011 is going to be fairly bumpy economically again, although I am more confident about portfolio performance this year compared with last year. Last year has very hard work and performance was terrible. No enquiries and businesses going bump or downsizing like mad. Seeing some positive enquiries this year and forward movement should be possible. It will be nice to be reporting positive news to the board this year.

2012 is the year we are gearing up for from a development point of view. With a number of schemes parked ready to start early 2012 for a September 2012 product delivery. That should hopefully catch that balance of rising demand and falling supply.

Anyway miles off topic.

[wensleydale]

I already have my company pension ticking away, but this year I am going to start investing roadshow money into a balanced SIPP of some sort. Gets an element of my money out of the business tax free and is invested for my retirement from the business. Now I need some advice on this, but if I retire from DJ'ing at 50 I should be able to draw down on that SIPP.



I'm a similar age and in a similar position as you by the sounds of things- day job that provides a main income and discos on the side which I enjoy but also provides a handy extra income.

The pension side of things is something I have been looking at recently- whether there are any benefits in paying extra into a non-company pension rather than off the mortgage with a view to taking a lump sum when I am 50/retire to pay the final chunk of the mortgage off.

Unfortunately I didnt get any further than just thinking about it and looking into a couple of brokers which offer the commission rebate structures.

I'd be keen to hear what you decide to do when you know...

[wensleydale]

Not even thought about retirement. Rather spend the money on stuff I dont need now rather than some gold plated walking sticks when I'm old and grey :)

I know I sound old but I think that's a bit short sighted, especially if you are going full time and running your own company.

It's worth looking at tax efficient ways of saving regardless of your age, and pensions need not be taken when you are "old and grey".

By all means grow your business and focus on that, but there are some very interesting figures readily available showing the amount you need to put away each month the later you leave it in life.
Not starting a pension until mid 30s significantly increases the amount required.

And before people shoot me down and say "I wouldnt trust bankers with my money anymore", there are plenty of options available (not just share based) depending on your appetite for risk.

[NKR]

I know I sound old but I think that's a bit short sighted, especially if you are going full time and running your own company.

It's worth looking at tax efficient ways of saving regardless of your age, and pensions need not be taken when you are "old and grey".

By all means grow your business and focus on that, but there are some very interesting figures readily available showing the amount you need to put away each month the later you leave it in life.
Not starting a pension until mid 30s significantly increases the amount required.

And before people shoot me down and say "I wouldnt trust bankers with my money anymore", there are plenty of options available (not just share based) depending on your appetite for risk.

Wise words. I already have the pension and a reasonable amount a year goes into that. I have the Kids Uni fund which has £1,200 a year going into it and has been running for 4 years so far (which I need to look at regearing to something actually working for them).
I have some other bits and bobs knocking about.

At 35 I really need to get my stuff together and ensure I am protecting my future correctly.

Banks are rubbish, you can set up your own balanced investment vehicles in a SIPP and not pay management fees to someone. You can fill it with cash deposits, equities, bonds, property, whatever takes your fancy. I just need to look into a bit more and then get cracking with some equities.

[Leicester Ben]

This is something that I know that I need to put some serious thought into but as of yet I just haven't bothered.

My thinking at the minute is that I will simply grow both of my businesses, take on a manager to run each of them and then live off the profits.

I'll re asses everything though in 3 years time when I hit 30 and see if this is going to be feasible.

[flatliners]

Got a house i rent out .parents own 3 houses + might get a 3 bedroom house in black pool

[Charlie Brown]

I think retirement will & can be the best part of my life - if you have dosh to play around with.

I started thinking about it (no joke) last year. As soon as I hit 18, I'll start a private pension.

Property is the way to go. In ten years time, I'd like to think I had a few properties under my wing. Have a mortgage on them and let the monthly income from your tenants pay your mortgage.

[wensleydale]

Property is the way to go. In ten years time, I'd like to think I had a few properties under my wing. Have a mortgage on them and let the monthly income from your tenants pay your mortgage.

Says the estate agent.
Not sure if things are that easy nowadays Charlie. Banks are less keen to throw money at people.

[Charlie Brown]

Says the estate agent.
Not sure if things are that easy nowadays Charlie. Banks are less keen to throw money at people.

Indeed.

You need a good £20k to put a deposit down.

[Solitaire Events Ltd]

Indeed.

You need a good £20k to put a deposit down.

That would depend on the size of the mortgage/price of the house and lender I would have thought.

As Rich says, it ain't as easy as you are making out!

[wensleydale]

That would depend on the size of the mortgage/price of the house and lender I would have thought.

As Rich says, it ain't as easy as you are making out!

And also whether the buy to let rates you can get now allow you to make the types of profit that might have been possible in the past 10 years, and also whether house prices will increase at the same rate that they did.

Overall I dont think buy to let will be as profitable as it was, unless you can add value to the property through renovation etc etc.

But at least you're thinking about the future Mr B.

[Charlie Brown]

It may not be as profitable but it pays your mortgage? Once that's paid you have £150k on paper (for example)

Prices to rent a property are increasing by the day. People can't afford the deposits/mortgages etc that are involved when buying a home. IMO - renting is dead money.

Finding a mortgage for the first home you buy will always be tricky. It will get easier there on.

[wensleydale]

It may not be as profitable but it pays your mortgage? Once that's paid you have £150k on paper (for example)

Prices to rent a property are increasing by the day. People can't afford the deposits/mortgages etc that are involved when buying a home. IMO - renting is dead money.

Finding a mortgage for the first home you buy will always be tricky. It will get easier there on.

It might pay the mortgage on an interest only basis but you then still owe exactly what you did at the start.

If you are talking about a deposit of £20k I think you would struggle to find many mortgage deals and houses that would generate an income that would pay the interest and capital back- this is why the buy to let "phenomenon" we have seen in recent years has essentially ground to a halt.

Once you have the first mortgage you will only find it easier to get subsequent mortgages if you have built up equity in the first property- something that is much more unlikely over the next few years than it was for the past 10-15.

[Charlie Brown]

Your post makes sense. Thanks for making it clearer. :approve:

Who knows what will happen in 15 years time? Can we predict what's round the corner? :shrug:

[Excalibur]

Not even thought about retirement. Rather spend the money on stuff I dont need now rather than some gold plated walking sticks when I'm old and grey :)

I'm Old and Grey, and I'm still buying the toys. :D :D :D :D :D :D :D

Remember: " Growing old is mandatory, growing up is optional ".

[DeckstarDeluxe]

I know I sound old but I think that's a bit short sighted, especially if you are going full time and running your own company.

It's worth looking at tax efficient ways of saving regardless of your age, and pensions need not be taken when you are "old and grey".

By all means grow your business and focus on that, but there are some very interesting figures readily available showing the amount you need to put away each month the later you leave it in life.
Not starting a pension until mid 30s significantly increases the amount required.

And before people shoot me down and say "I wouldnt trust bankers with my money anymore", there are plenty of options available (not just share based) depending on your appetite for risk.


I understand what your saying and I'm not against it however I'm still renting a flat and it will be a few years until I can build up a deposit and I still need to put money back into the company.

[ppentertainments]

Says the estate agent.
Not sure if things are that easy nowadays Charlie. Banks are less keen to throw money at people.
Yep, I own one house outright and went to pay off my mortgage on a second house (actually the house we live in), but was told not to pay it off. Even with the security of the property already owned it would be very hard to get a 'new' mortgage.

As it happens, I am going to pay it off in the summer anyway as looking into moving abroad in a few years - probably never happen though :daft:

[wensleydale]

I understand what your saying and I'm not against it however I'm still renting a flat and it will be a few years until I can build up a deposit and I still need to put money back into the company.

There's no right or wrong on a subject such as this- in fact buying a place may not be wise for a while until access to mortgages are relaxed for first time buyers/people with low equity.

Although people perceive renting as "dead money" if the rent is lower than the interest would be on the property for you, then it might be the best option as you dont have the expense of maintenance, however you dont benefit if prices rise.

Often people become obsessed with owning their own place when actually a few more years renting and saving to increase the size of the deposit would be a better thing to do.

As with many things, hindsight is a wonderful thing and these are only my views on this.

[NKR]

Says the estate agent.
Not sure if things are that easy nowadays Charlie. Banks are less keen to throw money at people.


It may not be as profitable but it pays your mortgage? Once that's paid you have £150k on paper (for example)

Prices to rent a property are increasing by the day. People can't afford the deposits/mortgages etc that are involved when buying a home. IMO - renting is dead money.

Finding a mortgage for the first home you buy will always be tricky. It will get easier there on.

Its always interesting to see how many people advocate houses to rent. Everyone doing their landlords gas and NICEIC electrical testing. Done a water hygiene test lately (got any capped of redundant tails in the house - legionella anyone).

It doesn't always make sense. You need to be aware its a capital gains game on any capital growth and the income is taxable. So, you should be working back through the figures to work out your annualised rate of return after interest cover and in many cases you are better in a balanced equities portfolio, which as ever continues to outperform property as a long term asset class. The above costs of testing need to be factor in as does insurance cover and believe me its tight when assessed again other returns. Fixed rate bonds of over 4% in some cases, which yes are illiquid, bt so is property.

I am a surveyor working for a developer and I can't see the rate of return in it myself.

[Corabar Entertainment]

...not to mention those periods where the property isn't tenanted / agents fees - plus, of course, the maintenance costs that every property owner has (whether it's your home or rented out) .

[NKR]

And if you think you can dodge the tests. Its a manslaughter charge last time I checked. I hate asset management for that reason. Papertrail the length of a barge pole for me and thats on commercial and resi is even tighter.

Plus if you are not tenant during winter you need to drain down the systems. That includes if your tenant goes on holiday or your insurance may be invalid. Check you unoccupied winter clauses.

[Megamix]

I think the idea is you invest capital (deposit) into a house - the rent covers the interest only mortgage with a profit. Insurance covers bad payers, you buy the property where demand is high and as a long term investment it has been proven to be a safe bet. Inflation is 4.7% so leaving money in low risk interest accounts is in fact losing you money - with property you can make a small profit and wait for house prices to rise - sometimes its quick, sometimes its slow.

[Excalibur]

And if you think you can dodge the tests. Its a manslaughter charge last time I checked. I hate asset management for that reason. Papertrail the length of a barge pole for me and thats on commercial and resi is even tighter.

Plus if you are not tenant during winter you need to drain down the systems. That includes if your tenant goes on holiday or your insurance may be invalid. Check you unoccupied winter clauses.

I know someone whose tenant went away in the cold snap, and turned the heating off!!!!:eek: :eek: :eek: :eek: You can guess the result. :bang:

[CRAZY K]

Its always interesting to see how many people advocate houses to rent. Everyone doing their landlords gas and NICEIC electrical testing. Done a water hygiene test lately (got any capped of redundant tails in the house - legionella anyone).

It doesn't always make sense. You need to be aware its a capital gains game on any capital growth and the income is taxable. So, you should be working back through the figures to work out your annualised rate of return after interest cover and in many cases you are better in a balanced equities portfolio, which as ever continues to outperform property as a long term asset class. The above costs of testing need to be factor in as does insurance cover and believe me its tight when assessed again other returns. Fixed rate bonds of over 4% in some cases, which yes are illiquid, bt so is property.

I am a surveyor working for a developer and I can't see the rate of return in it myself.

Out of interest did you catch the news flash yesterday stating that because first time buyers cant afford to buy houses ( even with reduced house prices) theres a drastic shortage of rented property.

That wont hurt rental rates.;)

[NKR]

Out of interest did you catch the news flash yesterday stating that because first time buyers cant afford to buy houses ( even with reduced house prices) theres a drastic shortage of rented property.

That wont hurt rental rates.;)



Neither will the current lack of supply for a while as its hard work making housing development work. However a shift of 300 basis points should shake things up. Did you read the news flash that 3,000,000 people are using credit cards to pay mortgages and rent.

The long term average of 3.5 salary is still not there. Property is 20% overvalued. These things have a way of correcting and its usually painful.

I know the banks are eyeing up business premises and calling time on overgeared debts. Once the little box is sorted they will call time on the big box. That is why you can't get a loan unless you have an LTV of 80% (well you can but the risk premium is built in to the rates) because that is where they are laying their base repo value. That's how they value.