What are you going to live on when you retire?

Not really one to think of when your first joining the Army but certainly one to think of when you've gone past the best years of your life, are settled with a kid, have a mortgage etc

Some of the people I know who have been in the forces have been determined to stick it out for the full 22.

A former PSI I knew? Was ex-Infantry, did his full 22 and even 12 years after leaving the forces now works as a gym instructor.

Now that my business is generating a consistent turnover and I can afford to pay myself a decent enough salary in the next few months obviously the next step towards financial security is what am I going to live on when I get to the age of 55 (20 years from now?), some may say it's well late to start voluntarily putting money into your pot because as far as I can see the state pension is about 200 quid a week and after thinking how me and the wife blow over a ton a week on food shopping has got me scratching my head a bit and putting my grown up socks on,

So I have a buy to let morgage house which is rented out the old dear put in my name I've had since a little chod (which will never EVER leave me), but F all paid in due to the fact after I was medically discharged from the Army, I'm not medically fit for jobs including Police and alot of the roles I would love to do which are related to my business degree? Driving is a must, and I'm prohibited.

Business is growing gradually and I'm forecasting to turnover 6 figures in the next year so thus to be VAT registered and things generally going steady.

So I turn to my accountant now and start thinking a year from now when I will start paying myself a larger salary from the business instead ( I don't do dividends at the mo, I am basically rotating funds and reinvesting in the business), how much should I be throwing into a pension pot with a good provider a month which won';

a) Won't exceed the threshold right now, isn't too much
b) Will give a decent return steadily when I've got grey hairs

Other ways to make an income? Some people play the stock markets, buy and sell bitcoin, foreign exchange, some will want to keep working until 70, but being in my situation at the moment it's currently being a good motivator to get life sorted out now so I can also treat my son a bit when he's in his teens.

Obviously I don't have a clue what about much but other allowances I currently get are disability benefits (PIPS) and I pay a basic enough wage to myself, would love to pay more, but the main incentives I'm looking at as the business grows is perhaps larger dividends in a few years as I can carry the allowance from previous years and also putting the wife on as a shareholder to increase the tax free dividend allowance.
 
I was planning to increase my pension pot but realised there is a flaw in my knowledge so now reconsidering.

Example
£400k in pot means I can take out 25% tax free leaving £300k.

Actually taking out 25% gives you 25k tax free and 75k taxed.

However going to income draw down instead of annuity means a pension can be left to the kids outside of inheritance tax.

So mulling over options, again!!!
 
Retirement.jpg


(The way things are going, this might not be that far fetched)
 
Not really one to think of when your first joining the Army but certainly one to think of when you've gone past the best years of your life, are settled with a kid, have a mortgage etc

Some of the people I know who have been in the forces have been determined to stick it out for the full 22.

A former PSI I knew? Was ex-Infantry, did his full 22 and even 12 years after leaving the forces now works as a gym instructor.

Now that my business is generating a consistent turnover and I can afford to pay myself a decent enough salary in the next few months obviously the next step towards financial security is what am I going to live on when I get to the age of 55 (20 years from now?), some may say it's well late to start voluntarily putting money into your pot because as far as I can see the state pension is about 200 quid a week and after thinking how me and the wife blow over a ton a week on food shopping has got me scratching my head a bit and putting my grown up socks on,

So I have a buy to let morgage house which is rented out the old dear put in my name I've had since a little chod (which will never EVER leave me), but F all paid in due to the fact after I was medically discharged from the Army, I'm not medically fit for jobs including Police and alot of the roles I would love to do which are related to my business degree? Driving is a must, and I'm prohibited.

Business is growing gradually and I'm forecasting to turnover 6 figures in the next year so thus to be VAT registered and things generally going steady.

So I turn to my accountant now and start thinking a year from now when I will start paying myself a larger salary from the business instead ( I don't do dividends at the mo, I am basically rotating funds and reinvesting in the business), how much should I be throwing into a pension pot with a good provider a month which won';

a) Won't exceed the threshold right now, isn't too much
b) Will give a decent return steadily when I've got grey hairs

Other ways to make an income? Some people play the stock markets, buy and sell bitcoin, foreign exchange, some will want to keep working until 70, but being in my situation at the moment it's currently being a good motivator to get life sorted out now so I can also treat my son a bit when he's in his teens.

Obviously I don't have a clue what about much but other allowances I currently get are disability benefits (PIPS) and I pay a basic enough wage to myself, would love to pay more, but the main incentives I'm looking at as the business grows is perhaps larger dividends in a few years as I can carry the allowance from previous years and also putting the wife on as a shareholder to increase the tax free dividend allowance.
Is your business scaleable? Can it be built into something you can sell? Or can it be built into a cash cow that pays you a dividend whilst you step back from day to day operations? If either is true, then your business is your answer.

Or is your business really just a means of employing yourself at arms length, paying you a wage / dividend but not actually building shareholder value? So when you retire, there’s nothing of value to sell on and / or nothing that can stand alone without you working in the business. In which case you need to look at how to use your drawings from the business to retire.

I commend Michael Gerber’s book, The E-Myth Revisited.
 
Is your business scaleable? Can it be built into something you can sell? Or can it be built into a cash cow that pays you a dividend whilst you step back from day to day operations? If either is true, then your business is your answer.

Or is your business really just a means of employing yourself at arms length, paying you a wage / dividend but not actually building shareholder value? So when you retire, there’s nothing of value to sell on and / or nothing that can stand alone without you working in the business. In which case you need to look at how to use your drawings from the business to retire.

I commend Michael Gerber’s book, The E-Myth Revisited.
Shareholder value is one thing I've been scratching my head at, the base consumer goods aren't exactly "fast moving consumer goods", but there is a demand for them and it's an expanding range with a good rate of return, investment however is coming from within for the time being, less starting asking for 3rd party investment which is where it gets complex, "I'll put 50k into your company and want XYZ" minimum back..."

I'm thinking maybe wait a year with patience and after a year of accurate accounts and reporting see what is available to hand from the accountant, get an accurate cash flow forecast and see what the options/oppertunities are.

There is money available from family if required, it's a case of justifying the expenditure and not wanting to look stupid when things are actually going quite well, like any business owner at this moment in time I'm being cautious with regards to how things are fluctuating as well as keeping an eye on the competition.
 
Retire?

And do what, sit and wait to die?

Build something that is a bit hands off, or do something which allows long periods of time off with decent rewards. I have hobbies, but my hobbies are not cheap, so a regular income to keep those ticking over to stop terminal boredom, allowing travel, and organised stupidity is very nice, thank you.

As an incentive for yooz lot: My lad (just 18 ) is starting an online venture at the moment, spurred on by a schoolmate of his (also just 18 ) who has been selling kitchenware online since covid kicked off and schools went to virtual attendance. Mainly drop shipping stuff from China, I suppose it helps that he is Chinese and speaks the language. He has built his little pocket money generator up to $50K a month and has splurged on the ultimate gamers setup costing him $30K..........really pissed off my own inhouse muppet who was making a couple of $grand a month doing pressure washing of driveways.
 
You don't even have to be retired for that

View attachment 563302

View attachment 563303


Tom Foley, 36, who has a degenerative back condition meaning that vertebrae are disintegrating, wants a flat so that his children can visit him.

After my twin started this thread I started work with the homeless.
He had no right to a council flat, then he started a walk around the UK so fight his case....chopper

Mr Foley, who served five years in the Royal Logistics Corps as a port operator and driver and has worked in the building trade, was told by the council on March 7 that the bedsit was its final offer.

 
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Ayatollah

Old-Salt
I would firstly fire your accountant what you pay him /Her you can invest and do some financial planning at a community college or read some good books (lots out there) After all you said you're looking forward to at least a year's time?
Do a spreadsheet of what you have now and what goes out, then put the rest in a retirement plan (Not Insurance) Not everyone's cup of tea but I trade stocks, I only use a cash account through a brokerage company (TD Ameritrade) and I decide what to buy or sell, I also don't pay a commission unless I am stupid enough to play the pinks. I'm in complete control and can access my funds anytime. My portfolio has done very well over the last few years and it keeps growing.
Do your own research, and only use a cash account, You can even buy shares from some companies direct. But whatever you do remember there is always someone waiting in the wings to take your hard-earned money away from you.

Good Luck
 
When I finally retire* I plan on being a burden to society, if I make it that far.

*On my second career after 22 years in the RN.

Going on 6 years I have been the burden on the ever young Mrs B&B.
 

Daxx

MIA
Book Reviewer
I plan to retire as early as possible while the Mrs keeps on grafting to supply the beer tokens.

(Don't tell her I said that.)
 
Not really one to think of when your first joining the Army but certainly one to think of when you've gone past the best years of your life, are settled with a kid, have a mortgage etc

Some of the people I know who have been in the forces have been determined to stick it out for the full 22.

A former PSI I knew? Was ex-Infantry, did his full 22 and even 12 years after leaving the forces now works as a gym instructor.

Now that my business is generating a consistent turnover and I can afford to pay myself a decent enough salary in the next few months obviously the next step towards financial security is what am I going to live on when I get to the age of 55 (20 years from now?), some may say it's well late to start voluntarily putting money into your pot because as far as I can see the state pension is about 200 quid a week and after thinking how me and the wife blow over a ton a week on food shopping has got me scratching my head a bit and putting my grown up socks on,

So I have a buy to let morgage house which is rented out the old dear put in my name I've had since a little chod (which will never EVER leave me), but F all paid in due to the fact after I was medically discharged from the Army, I'm not medically fit for jobs including Police and alot of the roles I would love to do which are related to my business degree? Driving is a must, and I'm prohibited.

Business is growing gradually and I'm forecasting to turnover 6 figures in the next year so thus to be VAT registered and things generally going steady.

So I turn to my accountant now and start thinking a year from now when I will start paying myself a larger salary from the business instead ( I don't do dividends at the mo, I am basically rotating funds and reinvesting in the business), how much should I be throwing into a pension pot with a good provider a month which won';

a) Won't exceed the threshold right now, isn't too much
b) Will give a decent return steadily when I've got grey hairs

Other ways to make an income? Some people play the stock markets, buy and sell bitcoin, foreign exchange, some will want to keep working until 70, but being in my situation at the moment it's currently being a good motivator to get life sorted out now so I can also treat my son a bit when he's in his teens.

Obviously I don't have a clue what about much but other allowances I currently get are disability benefits (PIPS) and I pay a basic enough wage to myself, would love to pay more, but the main incentives I'm looking at as the business grows is perhaps larger dividends in a few years as I can carry the allowance from previous years and also putting the wife on as a shareholder to increase the tax free dividend allowance.
I'm putting 24% of my salary into a pension at the moment (10% from me, 14% from my employer). I'll also have my Army pension eventually.

On top of that, the wife and I are putting about £2k/month - ostensibly for our emigration / escape plan, but also as an emergency fund.

Mortgage should be paid off in 20 years; possibly sooner if I throw my annual bonus at that - once that's paid off (assuming I'm in the same industry) I'll either be able to take a lower-stress job, or maintain the one I have and bump up the savings.

Edited to add: This will, of course, all change when they find out that I am grossly overpaid for the little bit of knowledge that I have around my particular subject area.
 
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Shareholder value is one thing I've been scratching my head at, the base consumer goods aren't exactly "fast moving consumer goods", but there is a demand for them and it's an expanding range with a good rate of return, investment however is coming from within for the time being, less starting asking for 3rd party investment which is where it gets complex, "I'll put 50k into your company and want XYZ" minimum back..."

I'm thinking maybe wait a year with patience and after a year of accurate accounts and reporting see what is available to hand from the accountant, get an accurate cash flow forecast and see what the options/oppertunities are.

There is money available from family if required, it's a case of justifying the expenditure and not wanting to look stupid when things are actually going quite well, like any business owner at this moment in time I'm being cautious with regards to how things are fluctuating as well as keeping an eye on the competition.
Your account will only look backwards; that’s what they do. They sort out your compliance which, if you aren’t turning over much, isn’t much of a task.

Do some serious business planning. Understand your potential market, your ideal customer, your costs and margins and above all your marketing ROI.

Because once you’ve systematised your business so that you know that for every pound put in to the front end, two pounds (or whatever) comes out attracting money is easy.

Took me nearly five years to get there....
 

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