Next Stop Recession?

[rockits]

Seems like a big scam to get the majority entirely dependent on that state, big govts and pharma to the rescue.

 

[Sam McGoo]

Hi Sam, hope you are well.
To retire early is great providing you have good plans for that extra time.
But be warned you have more time to spend! Also if you are just reply on pension pot, we'll they are just stocks and shares, bonds , etc.
I prefer tangible assets as well that you are in control of. Property will have it's blips but long term I believe it is the best place to have your money. Believe me if you're think you have enough to retire on now, in ten years time you won't have. Happy to chat more if you wish but would never advise a specific. Chat the scenarios over with an accountant. Avoid financial planners. Best of luck.

Hi Geoff, yes very well thank you! Much better than when we last met lol. Hope you're both still doing well.

As I said in another reply, I'm in no rush to retire, its more a case of being financially stable and making the right decisions at the right time. It'd be nice to work a few less days a year, but that's what I plan to do in 10-15 years. Either work part-time back on-shore, or continue offshore, but just a few trips a year to keep some spending money coming in.

I'm a creature of habit and generally comfortable taking the secure option. For example, over the last 15 years could have changed companies several times getting pay-rises and promotions, but tend to think if I'm happy with what I do and what I get for what I do, then why upset that. I'm not greedy and would rather be happy and stress free. But I suppose it's the property income that has enabled me to do that, so do I want to loose that?...

I do have a company pension, that should be 'OK' but probably no where near enough to retire fully at 55. And like you say, no telling what that will be worth when the time comes that you actually need it!

 

[Scaf]

Is anyone else on here obsessed with providing for their kids?
I can’t help myself, I was ready to retire at 56 mortgage free and with two rentals with every decreasing mortgages paid for my the tenants.
Then after 6months I got bored and decided I could restart my career, reinvest with the aim of giving my kids a head start in life.
I seem to ignore the fact they want nothing from me.
So now I am back at work with a significant “at risk” investment chasing a dream I have for my kids, that they don’t expect or even want from me.
- what a fool I am.

 

[Wattie]

Its the economy/ global uncertainty that's got me thinking about the timing of it.

This.
In all my years in finance I have never seen such a worrying set of economic conditions and we are reliant on a inept global political and banking elite to solve it.

They have and are causing it.

 

[rockits]

This is my fear too. Also the reason I'm trying to be less affected and less reliant by it all. The more I can do independently the better.

It was their ineptitude that got us here so the same ineptitude is certainly not getting us out of it.

 

[GeoffCapes]

I'll have to make sure about the taxes etc but obviously the big one being CG tax. I'll have to have a play with ownership amounts between my wife and I, as I had to transfer some to to her to be more Tax efficient on the income, but would need it back to utilise both CG allowances and private residence relief for the years we lived in them.

Good point about not being greedy...



That's always been my reasoning for keeping them, as long term, you just can't go wrong.

Although, surely if prices fall, LESS people will need to rent, as more can afford to buy?



Regarding the equity in each, its amazing how the different areas vary so much. The one I bought in 2001, two bed bungalow on Canvey Island in Essex has gone up 263% since purchase. The one purchased in 2004, again 2 bed, but an end terraced cottage in Downham Market, Norfolk has only increased 48% in pretty much the same time period. The residential house in a Cambridgeshire village, 88% in just 10 years.

More people renting as repossessions kick in and there are those who sell thinking there is a fall on the way, rent until the market 'bottoms' according to my wife there's a number of people who do this (she was assistant regional manager of one of the country's largest estate agents) so I'll take her word for it.

As for your houses, a Bungalow on Canvey will always be worth loads.
It holds a certain appeal for some.

Having lived near and worked on Canvey for a while I haven't a clue why!

 

[Sam McGoo]

Is anyone else on here obsessed with providing for their kids?
I can’t help myself, I was ready to retire at 56 mortgage free and with two rentals with every decreasing mortgages paid for my the tenants.
Then after 6months I got bored and decided I could restart my career, reinvest with the aim of giving my kids a head start in life.
I seem to ignore the fact they want nothing from me.
So now I am back at work with a significant “at risk” investment chasing a dream I have for my kids, that they don’t expect or even want from me.
- what a fool I am.

My daughter is only 5, so I haven't really thought that way yet, well no more than any father wants to provide for wife and kids naturally.
I'm sure that will change as she gets older and my financial security changes, but will try to remain balanced and have a mix of enjoying the fruits of my labour, while still being able to help my daughter when required. I'm certainly not planning on handing her stuff on a plate.

My (very working class) parents told me and my brother when we were teenagers, to expect nothing from them, as they were were planning on spending all they earned, (which wasn't much anyway) and that we'd only get what WE worked for.
Sounds harsh, but think it is totally understandable, and to me acceptable. Why work hard for for the benefit of someone else? We're only here once. They went on their two holidays a year and deserved it for the graft they put in. In fact, in their 70s now, have only just stopped working due to health reasons, so the holidays will probably stop now too.

I genuinely believe we both benefitted from that early advise, as coming from nothing, have both done relatively 'OK'.

In your situation, it's obviously very different, as you've got financial security already and can probably still afford to do the things you want, alongside helping the family. Perfect, what a nice place to be.

 

[Sam McGoo]

More people renting as repossessions kick in and there are those who sell thinking there is a fall on the way, rent until the market 'bottoms' according to my wife there's a number of people who do this (she was assistant regional manager of one of the country's largest estate agents) so I'll take her word for it.

As for your houses, a Bungalow on Canvey will always be worth loads.
It holds a certain appeal for some.

Having lived near and worked on Canvey for a while I haven't a clue why!

I hadn't thought of it that way, and your wife is obviously well placed to comment!

Lol about Canvey. Literally the whole of the rest of Essex hates it, never understood that. loved growing up there, and part of the reason I kept a place there, in-case I ever wanted to go back. But the occasional visit is enough for me now. It's lovely being so near the water in every direction you go, and it has that 'holiday vibe' about the place. But it's far too busy, nightmare traffic and tiny roads for me now, but that's just most towns everywhere. I've got used to the small village/countryside life now, so don't think I could go back.

 

[philw696]

Dean Nails it for me guys and quite often does.
Simple, sustainable and stress free living seems the way forward.
Only on here can we go from financial advice to obesity though

 

[GeoffCapes]

I hadn't thought of it that way, and your wife is obviously well placed to comment!

Lol about Canvey. Literally the whole of the rest of Essex hates it, never understood that. loved growing up there, and part of the reason I kept a place there, in-case I ever wanted to go back. But the occasional visit is enough for me now. It's lovely being so near the water in every direction you go, and it has that 'holiday vibe' about the place. But it's far too busy, nightmare traffic and tiny roads for me now, but that's just most towns everywhere. I've got used to the small village/countryside life now, so don't think I could go back.

2 roads in. 2 roads out.
A problem on one and the whole place is stuffed. Then there's Sadlers Farm roundabout........

 

[Simon1963]

Dean Nails it for me guys and quite often does.
Simple, sustainable and stress free living seems the way forward.
Only on here can we go from financial advice to obesity though

we made the decision 4 years ago heading towards 55 to sell the family home and downsize. Drew down on our pensions. The kids are self sufficient so we now live a reasonably stress free life, financially anyway. We both work on an add hock basis to top up funds. We didn’t intend working but at our age the extra income is handy and also as said previously you have a lot of time time to fill. I’d say we’re very happy with our lot.

 

[CatmanV2]

add hock

Will work for wine?

C

 

[Simon1963]

Will work for wine?

C

Wine, cigars or sexual favours. No column for those on the tax return.

 

[Wattie]

You can nationalise anything and sell at sub market prices as much as you want as long as the public pay more in tax on aggregate to fund it.

I’m more worried about Italy bouncing out of the euro in the next five years. That’s the biggest risk to Euroland IMHO.

Ahead of the game Bb.
https://www.zerohedge.com/markets/e...hikes-50bps-it-also-unveils-italy-specific-qe

Ponzi scheme.

 

[DLax69]

Dean Nails it for me guys and quite often does.
Simple, sustainable and stress free living seems the way forward.
Only on here can we go from financial advice to obesity though

gluttony in all its glorious forms!

 

[schell70]

I'll have to make sure about the taxes etc but obviously the big one being CG tax. I'll have to have a play with ownership amounts between my wife and I, as I had to transfer some to to her to be more Tax efficient on the income, but would need it back to utilise both CG allowances and private residence relief for the years we lived in them.

Hate to say but PRR (Private Residency Relief) was scrapped in Apr 2020 - I know this because I had a sale complete on March 30th 2020 - there was quite a bit riding on the sale completing on time to say the least!

I believe the only way you can claim anything now is if you were in a house share with paying tenants but owned the property.

I am also looking to retire early for quality of life reasons and because you just don't know what is around the corner. I have a small property portfolio that will hopefully allow me to do this by selling our main residence (no CGT) and downsizing to one of the buy to lets for a year or so for it to get main residence status and then selling that also (no CGT). This will then enable us to buy our final home (how scary does that sound!). The remaining property will fund daily costs of retirement but I will still do some Consulting work on and off - can't get bored.

Now, all this is dependent upon many factors that I can't control - but if you thought like that you would never do it.

Some of this is driven by an Uncle of mine who nearly died in his mid 50's but recovered and took early retirement at 58, as he said it was financially challenging at the time but his wife died only 10yrs later which means they had 10 fun years rather than just a few. He is now 96 and still driving and living in his own home, he also says that the best thing he ever did was retire early.

On financial advisors, I can't say I've ever met a particularly rich one which says a lot I think. For me I've made money and lost money in equal amounts but mind myself still in a better position than many of my friends (small mortgage, no pcp's or credit etc.) All self taught from research and hard work but not in the same league as some.

If you want to retire then try and make it work - you never know what's coming around the bend.......

 

[Sam McGoo]

Hate to say but PRR (Private Residency Relief) was scrapped in Apr 2020 - I know this because I had a sale complete on March 30th 2020 - there was quite a bit riding on the sale completing on time to say the least!

I believe the only way you can claim anything now is if you were in a house share with paying tenants but owned the property.

I am also looking to retire early for quality of life reasons and because you just don't know what is around the corner. I have a small property portfolio that will hopefully allow me to do this by selling our main residence (no CGT) and downsizing to one of the buy to lets for a year or so for it to get main residence status and then selling that also (no CGT). This will then enable us to buy our final home (how scary does that sound!). The remaining property will fund daily costs of retirement but I will still do some Consulting work on and off - can't get bored.

Now, all this is dependent upon many factors that I can't control - but if you thought like that you would never do it.

Some of this is driven by an Uncle of mine who nearly died in his mid 50's but recovered and took early retirement at 58, as he said it was financially challenging at the time but his wife died only 10yrs later which means they had 10 fun years rather than just a few. He is now 96 and still driving and living in his own home, he also says that the best thing he ever did was retire early.

On financial advisors, I can't say I've ever met a particularly rich one which says a lot I think. For me I've made money and lost money in equal amounts but mind myself still in a better position than many of my friends (small mortgage, no pcp's or credit etc.) All self taught from research and hard work but not in the same league as some.

If you want to retire then try and make it work - you never know what's coming around the bend.......

Ah, the lack of PPR would be a bit of a blow. I'm finding conflicting thing on the net, some saying you can, and some not. And as usual the HMRC pages are a little unclear and do not have an example for my circumstances, which is frustrating as there are many people in the same situation. I suppose the only thing to do, is to ask them ......

Sounds like you've got a decent plan. Good luck!

 

[ChrisQP09]

I have observed that Ferrari 360 prices have dropped around 5-10% over the last few weeks. The last time I seen this happen, a recession occurred few months later.

 

[damnawivdaplan]

energy cap rising in October is going to make things worse.
already seen a rise in shoplifting in the last 6 months.

 

[Felonious Crud]

I have observed that Ferrari 360 prices have dropped around 5-10% over the last few weeks. The last time I seen this happen, a recession occurred few months later.

I must assume that the sad emojis used to respond to your post means that not many here are planning to buy a 360. Which is also a shame.