Stocks/Shares/Pensions

Jul 29, 2014
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1,186
UK
What is a 401k? Is that similar to a pension here in the U.K? Sorry I have no idea on American economics.
 

mandela

CHB Führer
May 16, 2013
21,735
9,576
Scotland
What is a 401k? Is that similar to a pension here in the U.K? Sorry I have no idea on American economics.
Aye, basically the same thing.

I contribute directly from my salary and my employer matches the contributions so it's pretty similar.
 
Jun 4, 2013
5,285
2,107
I'm not a fan of private pensions in any form tbh. Everyone is different but the way I see it is why pay that money if you don't have enough to survive now? And I don't mean socialising costs I mean living costs. Genuine costs. Home deposits mortgages and such. Why put yourself in a situation where you are never secure just for the sake of a future you may never reach anyway. Pension companies go bust and the dates get pushed back.

It's hard. Each person has to weigh the risks for themselves. For me I never took a pension and saved that money. I regarded it as ring fenced. Over a long time that really helped me get a foothold in life. But like I say this worked for me but not all.
 

mandela

CHB Führer
May 16, 2013
21,735
9,576
Scotland
I'm not a fan of private pensions in any form tbh. Everyone is different but the way I see it is why pay that money if you don't have enough to survive now? And I don't mean socialising costs I mean living costs. Genuine costs. Home deposits mortgages and such. Why put yourself in a situation where you are never secure just for the sake of a future you may never reach anyway. Pension companies go bust and the dates get pushed back.

It's hard. Each person has to weigh the risks for themselves. For me I never took a pension and saved that money. I regarded it as ring fenced. Over a long time that really helped me get a foothold in life. But like I say this worked for me but not all.
So you didn't invest it at all?

Tbh, if it wasn't for the company matching schemes I've always had available to me I'd take more control over my pensions but the matched contributions is a massive incentive.

I was self employed for two years but during that time I contributed the same amount, including company contributions, to a private pension. For that one I chose the highest risk category as it had a lot less to lose.
 
Jun 4, 2013
5,285
2,107
So you didn't invest it at all?

Tbh, if it wasn't for the company matching schemes I've always had available to me I'd take more control over my pensions but the matched contributions is a massive incentive.

I was self employed for two years but during that time I contributed the same amount, including company contributions, to a private pension. For that one I chose the highest risk category as it had a lot less to lose.
From the age of 19 or 20 I took 150 a month and invested. At first in ISAs which was a big mistake made fuck all then stocks when I realised these bank financial advisors are cunts on % schemes sold. With stocks you should get roughly 3% per annum dividend plus inflationary growth etc. I reinvested all dividends and I took it out and used it as a deposit for a house. Now I've got the house I have a private pension plan but split how much I pay in with more investments.
Those and my state pension should see me well into old age.

But there's other things I can do now. Remortgage and use those savings for more investments etc which means more growth more returns.

Heck if you play the long game......which takes genuine commitment expect girlfriends to berate you for being a tight ass.......you can actually pay a big % of your mortgage or rent with dividends or stock growths. The sooner you start the easier it can be.
 
Reactions: mandela
Jun 4, 2013
5,285
2,107
You can also withdraw your stocks and dividends anytime. You cant do that with a pension plan. To me that was a big deal breaker fuck paying for 20 years and seeing nothing for another 30.......

But don't just follow my advise. You have to do what's best for you. It's all a risk.
 

mandela

CHB Führer
May 16, 2013
21,735
9,576
Scotland
Heck if you play the long game......which takes genuine commitment expect girlfriends to berate you for being a tight ass.......you can actually pay a big % of your mortgage or rent with dividends or stock growths. The sooner you start the easier it can be.
This is actually a huge thing people should understand more. Unless you can guarantee a return from investments that is greater than your mortgage (or other loan) interest then the wisest investment is actually to pay your mortgage down earlier, rather than investing elsewhere.
 
Sep 17, 2012
5,214
1,363
I have a 401K. Set my investing/saving parameters to assume i would live to 100 and work till 70 with no social security.