The gain (profit) you make on the capital value is taxable too.Income from property is taxable the same as other investment income, so you could pay 20%, 40% or even 45% tax on the rent.Buying and selling property costs thousands in fees, and all these costs diminish your profits.Every year you need to budget for general maintenance, and every 5-10 years for more major refurbishment.Compared with pensions and other savings vehicles, investing in property has other downsides too: However property is subject to cycles just like everything else. This works for many people because they understand property and can see the asset there each time they drive past it.īetween 19 property had a long steady period of growth in the UK. Others buy properties to rent out and create an income stream this way. Some people think that their business will provide a pension in retirement, but what happens if you retire in a recession? So how much should you aim to save for retirement? We can help you calculate how much you need to live a comfortable and secure future, and then create a plan tailored to what you are able to afford. After your death the rest of the pot can go to your spouse or children.You still have the option to buy a guaranteed income using an annuity.You can draw the rest any time after 55 flexibly, but subject to income tax.When you retire you can take 25% of the fund tax free.You won’t pay any capital gains tax on your investment growth.If you pay higher rate (40%) tax, or additional rate (45%) tax, you get the higher rate refunded.Your savings are increased by a rebate of Income Tax (known as “tax relief”).The government offers a number of “tax breaks” to encourage people to save to be self-reliant in retirement: Pensions are one of the most tax-efficient long-term savings vehicles, but also probably the least well understood. You may have heard about how you can flexibly access a pension in retirement. This shows when you will need money and how much, and helps you to work out how much you need to save. We can help you to identify your goals and we will encourage you to spend time with us building a lifetime cash-flow model. Let’s be clear, this is not just about pensions, it is about building, storing and preserving wealth for the future.Īt Apex CB Financial Planning we offer specialist retirement planning advice. Retirement planning is about making sure that you have enough money to live on when you retire.īut most people want to thrive and not just survive, so building a retirement fund should be one of life’s major goals.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |