Saving Ideas vs Pension

[dundeedude]

Hi there.

Having had a good look around, I can see that there are people firmly in the anti-pension camp and those in the pro-pension camp.

I'm 28, currently have good day-rate and am averse to using standard savings accounts. I have some share and fund investments and have used my cash ISA allowance.

Owning no property, I consider whether I should just save as much as possible and buy a house/flat outright with no mortgage, or whether I should really be using my Limited Co to contribute a significant (£2k per month or more) contribution to an existing personal pension I have open.

My outgoings are less then a grand a month, whilst statistically pulling in >£6k a month in.

I'm going to pay off my £8k student loan within the next month, but am very confused as to how to now save money I have coming in. If you were my age again, or are roughly my age, what would/do you do?

Single, reasonable car, flexibly working away from home at the minute.

Thanks for any input!

[doodab]

If you were my age again, or are roughly my age, what would/do you do?

Spunk it all on booze and holidays. That's what I did last time and it worked out quite well.

[northernladuk]

Coke and prostitutes.... the clap is a bit of a bitch to shift but by god times were good... spare some change?

[TimberWolf]

Spunk it all on booze and holidays. That's what I did last time and it worked out quite well.

They can't take memories away. Not yet anyway.

[worzelGummidge]

Buy a house. Everyone needs somewhere to live.
You don't have to save up the full amount you know.
Buy in the next three years before things start to get moving.

In this order...
Save the money in an ISA for a property.

Spread the money about and save in different accounts.
several banks pays £5 per month for if you have more than £1,000 per month going in. Other banks pay you for opening a new account.

Put some money into Zopa and lend it out - not too much mind because one day it will go pop.

Start a pension
A pension is a rip off but you have to live on something when your past working.
£800 per month, rising by 10% every year up up to about 6-7K per month to a max pot of 1.3 Million which will provide you with about £15,000 per year indexed linked when you are 67

Yes a rip off but what else do you live on.

Waste some cash on a new PC or whatever you like.
Buy a lottery ticket.

Buy a rental property

Good luck

[escapeUK]

Gold coins, a dozen every year.

[Scoi]

I'd go down the property route, you dont need to buy it outright just get a lump saved up, put in 15-20% deposit and keep the war chest there to give enough for 6 months living expenses. After the 2 year mortgage runs its course you can overpay as much as you like. My 20 year mortgage is looking to be complete in 5, then even if you're benched for a long time you have so little outgoings you won't need to worry. Property can then become part of/all of your pension pot, hopefully repeat a few times and get 3 or 4 by the time you call it a day.

Without the employer contributions into a pension I don't see them as very attractive.

Why are you paying your student loan off? Its interest free and not penalised by lending companies, use that money towards your deposit/war chest. £9k could keep you going for a year.

[SimonMac]

Clear any debt before looking at investments.

[BrilloPad]

I look at what I saved into my pension in the good times and what it will buy now. What a waste!

Clearly having a house to live in is a good idea - but I am not convinced property for investment is a good deal.

I reckon you ought to Squander it. Take as many holidays as you can. Don't do anything silly!

[Mich the Tester]

Coke and prostitutes.... the clap is a bit of a bitch to shift but by god times were good... spare some change?

I bet the whores are more trustworthy than the banks too.