Retiring

SWP's back said:
Then there’s the issue of tenants that refuse to pay rent. My folks got hit with that, the tenant was the eldest child of a close friend, she was a mother and worked as a nurse (so respectable one would imagine) but she stopped paying rent and it took 9 months to get her out through the courts and when they did, she’d trashed the place in his last week and they had to spend £20k on a new kitchen, bathroom and redecorating. They took her to county court for that and managed to get a court order saying she’d pay back £50 per month as it was all she could afford.

The stress of that aged my Dad very badly and wiped out much of their savings.

I’m a big fan of BTL’s, but as with anything, one can be hugely unlucky.
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Blimey...sounds like an episode from Nightmare Tenants on channel 5.

Yes, the benefits of wasting away time during lockdown last year & watching trash tele.
 
Being married and owning a house me and the Mrs can leave £1million to our kids between us before IHT kicks in, due to two personal allowances and two property allowances.
My assets are well below a million, as I expect, is true for most on here.
 
A question on gifting money my mum us getting £60k from my grandma estate, she is giving me and my brother and sister £10k each, is there any tax implications, if she and my dad died tomorrow their estate would be about £300k.
 
Blue Maverick said:
A question on gifting money my mum us getting £60k from my grandma estate, she is giving me and my brother and sister £10k each, is there any tax implications, if she and my dad died tomorrow their estate would be about £300k.
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My honest answer is that I don't know. But I'm sure you have to pay tax on 'gifts' over a certain amount?

If your parents died tomorrow *Touches wood* it would class as part of their estate as it's within 7 years of their death. That's only the case if one of them dies though. As their estate is around £300k you wouldn't have to pay any inheritance tax AFAIK.
 
Blue Maverick said:
A question on gifting money my mum us getting £60k from my grandma estate, she is giving me and my brother and sister £10k each, is there any tax implications, if she and my dad died tomorrow their estate would be about £300k.
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None at all.
There is no tax on a gift other than it having IHT implications.
The amounts you describe put the estate outside IHT.
So nothing to worry about.
 
hammocity said:
Copy of a post I placed on here last week, may help (hopefully)

Someone mentioned "dreaded equity release"

Due to the financial crisis a decade ago I lost quite a lot of money on my business, so much so I had to remortgage my house which was due to be paid off in 2013. So here I am at 62 with 34k mortgage outstanding for another 6 years and paying nearly 600pm. I've been a member of the Nationwide for a long time and I called about their lifetime mortgages.

I've had one approved and it works out like this:

I pay 136 per month for life, I look at that as about 35 a week rent.
Ive upped the amount to 50k and put the difference in my early retirement pot, when me and Mrs H die we leave a house with a current value of 200k meaning we still leave 150k. If we can't afford to pay the 136 (won't happen) we have the option to not pay and accrue the debt with the 50k, after 25 years that would be about 100k still leaving a chunk of money to pass on.

There's a charge for Solicitors usually about 700 but the Nationwide fund it by giving you a grand.

I wouldn't touch the ER companies out there but Nationwide have done over 7k of the mortgages since they started to offer them.
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When you apply and to get one of these lifetime mortgages do you have to show proof of earnings ie. still be in work. Or if you intend to use it during or starting your retirement do you have to show how much pension you will/ are receiving ?
 
Just signed a contract for another new job today! Take me past my 50th birthday. That should be it.
 
Blue Maverick said:
When you apply and to get one of these lifetime mortgages do you have to show proof of earnings ie. still be in work. Or if you intend to use it during or starting your retirement do you have to show how much pension you will/ are receiving ?
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There's lifetime interest only mortgages and Rio's, Retirement Interest Inly mortgages. The first one involves divulging your financial planning, what you and if you have a spouse are earning, savings, any other income you have. The RIO is purely based on retirement income, state and private pensions, any buy to let etc. In both cases you only need to prove you can afford the payments but as I said the Nationwide have processed 7k of these mortgages, really takes the pressure off if like me you're pressured into paying a relatively chunky mortgage when your just effectively paying to leave money behind. The kicker is in my case if we get to an age where we could do with the extra £136 per month we just stop paying and the interest is added to the original debt, as I said in 25 years a 50k ER would equate to about 100k but my house is about 200k so I'm still leaving 100k as a gift. Nationwide are reputable and it's a fantastic scheme.

My mate has a saying, "fly first class, if you don't your kids will" get it done e if it suits you.
 
hammocity said:
There's lifetime interest only mortgages and Rio's, Retirement Interest Inly mortgages. The first one involves divulging your financial planning, what you and if you have a spouse are earning, savings, any other income you have. The RIO is purely based on retirement income, state and private pensions, any buy to let etc. In both cases you only need to prove you can afford the payments but as I said the Nationwide have processed 7k of these mortgages, really takes the pressure off if like me you're pressured into paying a relatively chunky mortgage when your just effectively paying to leave money behind. The kicker is in my case if we get to an age where we could do with the extra £136 per month we just stop paying and the interest is added to the original debt, as I said in 25 years a 50k ER would equate to about 100k but my house is about 200k so I'm still leaving 100k as a gift. Nationwide are reputable and it's a fantastic scheme.

My mate has a saying, "fly first class, if you don't your kids will" get it done e if it suits you.
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Thanks for the reply, my wife and I are both 60 and looking to retire, we still have a relatively high mortgage but we part own a property in Florida that we wish to start using. After reading your post we could pay down our mortgage to £50k like yourself use the company pensions we are now receiving to pay the monthly charges. This may then allow us to stay in Florida for a few months then come back to the UK and stay in our house here. The only issue is the costs of the house whilst we are in the US, such as utilities and council tax.
 
cityontheup said:
Thanks for the reply, my wife and I are both 60 and looking to retire, we still have a relatively high mortgage but we part own a property in Florida that we wish to start using. After reading your post we could pay down our mortgage to £50k like yourself use the company pensions we are now receiving to pay the monthly charges. This may then allow us to stay in Florida for a few months then come back to the UK and stay in our house here. The only issue is the costs of the house whilst we are in the US, such as utilities and council tax.
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I'm no financial expert pal but to me it's eminent sense, by continuing to make high mortgage payments you're just leaving more money behind when you pop your clogs. It's taken the pressure of me, I'm £460 a month better off and have put circa £15k into my ever growing pension pot. I had a financial blip a few years ago but this puts me back on track, life's for living, I'm never going to have the liquidity some on here have but I'll be able to fully retire in 18 months, play golf, have a couple of holidays and a couple of nights out per week plus going to City of course.
 
hammocity said:
I'm no financial expert pal but to me it's eminent sense, by continuing to make high mortgage payments you're just leaving more money behind when you pop your clogs. It's taken the pressure of me, I'm £460 a month better off and have put circa £15k into my ever growing pension pot. I had a financial blip a few years ago but this puts me back on track, life's for living, I'm never going to have the liquidity some on here have but I'll be able to fully retire in 18 months, play golf, have a couple of holidays and a couple of nights out per week plus going to City of course.
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Good for you pal all the best, thanks for the info
 
A slight tangent for the retirement thread but I wanted to get a little advice. I retired from my job as an automotive account manager at the start of the first lockdown and I've been happy since, returning to golf, regular cycle rides and generally being free to do whatever I like with SWMBO. I was approached by my former customer earlier this year as they wanted me to consider joining their team, using the skills I developed while managing their EMEA account for my last employer... That opportunity hasn't totally materalised yet because they are working on internal re-structuring and currently there is no way they can accommodate me into the team... The approach was heart-warming and I felt like I could do another year or two if the money was right and then hang my boots up for good... It would have been working because I wanted to and not because I had to....

Fast forward to the end of last month and another old acquaintance calls me. The company he is working with to grown their automotive network in EMEA want somebody with a good working knowledge of automotive equipment and installations, the exact area I was involved with before I retired.... Long story short, I signed an NDA and I've since seen their equipment list / requirements and it's very similar to the equipment list for my last customer. I'm very confident that I could build a list of vendors or even partner with my last employer to deliver what this new company wants as it's the exact same field (but for a different manufacturer) as my last account.

The new company want me to deliver consultancy to them and have asked for a "fixed price quote" for this. I assume that this means I will offer consultancy but any essential travel etc. will come out of my hourly / day rate. I've got zero experience of consultancy so that's where I need guidance. How easy is it to set up as a self-employed consultant or is this unnecessary... I know I can help this company with my experience but I'm not sure I can be bothered with the whole setup company / self-employment scenario if that's what is needed....
 
Ive just upped my AVC to 125/week and my mortgage by 200/month

I'm determined to make age 55 realistic.I can hopefully then cope for 5 years when two other Defined schemes kick in.
 
Bluemanc100 said:
A slight tangent for the retirement thread but I wanted to get a little advice. I retired from my job as an automotive account manager at the start of the first lockdown and I've been happy since, returning to golf, regular cycle rides and generally being free to do whatever I like with SWMBO. I was approached by my former customer earlier this year as they wanted me to consider joining their team, using the skills I developed while managing their EMEA account for my last employer... That opportunity hasn't totally materalised yet because they are working on internal re-structuring and currently there is no way they can accommodate me into the team... The approach was heart-warming and I felt like I could do another year or two if the money was right and then hang my boots up for good... It would have been working because I wanted to and not because I had to....

Fast forward to the end of last month and another old acquaintance calls me. The company he is working with to grown their automotive network in EMEA want somebody with a good working knowledge of automotive equipment and installations, the exact area I was involved with before I retired.... Long story short, I signed an NDA and I've since seen their equipment list / requirements and it's very similar to the equipment list for my last customer. I'm very confident that I could build a list of vendors or even partner with my last employer to deliver what this new company wants as it's the exact same field (but for a different manufacturer) as my last account.

The new company want me to deliver consultancy to them and have asked for a "fixed price quote" for this. I assume that this means I will offer consultancy but any essential travel etc. will come out of my hourly / day rate. I've got zero experience of consultancy so that's where I need guidance. How easy is it to set up as a self-employed consultant or is this unnecessary... I know I can help this company with my experience but I'm not sure I can be bothered with the whole setup company / self-employment scenario if that's what is needed....
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It's quite simple really to set up and run a ltd company but whether that's the right option for you is tricky to say without knowing what they mean by consultancy. Do they just want to book you as and when they need you, or will they be saying they have a project that runs 3 months, for example?

If you're unsure, then just use an umbrella company to handle your pay. You'll be taxed as a normal employee so base your rate on that. Some accountancy firms run umbrella services and they can give you advice on whether it's worth going Limited.
 
Bluemanc100 said:
A slight tangent for the retirement thread but I wanted to get a little advice. I retired from my job as an automotive account manager at the start of the first lockdown and I've been happy since, returning to golf, regular cycle rides and generally being free to do whatever I like with SWMBO. I was approached by my former customer earlier this year as they wanted me to consider joining their team, using the skills I developed while managing their EMEA account for my last employer... That opportunity hasn't totally materalised yet because they are working on internal re-structuring and currently there is no way they can accommodate me into the team... The approach was heart-warming and I felt like I could do another year or two if the money was right and then hang my boots up for good... It would have been working because I wanted to and not because I had to....

Fast forward to the end of last month and another old acquaintance calls me. The company he is working with to grown their automotive network in EMEA want somebody with a good working knowledge of automotive equipment and installations, the exact area I was involved with before I retired.... Long story short, I signed an NDA and I've since seen their equipment list / requirements and it's very similar to the equipment list for my last customer. I'm very confident that I could build a list of vendors or even partner with my last employer to deliver what this new company wants as it's the exact same field (but for a different manufacturer) as my last account.

The new company want me to deliver consultancy to them and have asked for a "fixed price quote" for this. I assume that this means I will offer consultancy but any essential travel etc. will come out of my hourly / day rate. I've got zero experience of consultancy so that's where I need guidance. How easy is it to set up as a self-employed consultant or is this unnecessary... I know I can help this company with my experience but I'm not sure I can be bothered with the whole setup company / self-employment scenario if that's what is needed....
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You are not supposed to set up a company and work self employed if you only have one Customer, info here:

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Bluemanc100 said:
A slight tangent for the retirement thread but I wanted to get a little advice. I retired from my job as an automotive account manager at the start of the first lockdown and I've been happy since, returning to golf, regular cycle rides and generally being free to do whatever I like with SWMBO. I was approached by my former customer earlier this year as they wanted me to consider joining their team, using the skills I developed while managing their EMEA account for my last employer... That opportunity hasn't totally materalised yet because they are working on internal re-structuring and currently there is no way they can accommodate me into the team... The approach was heart-warming and I felt like I could do another year or two if the money was right and then hang my boots up for good... It would have been working because I wanted to and not because I had to....

Fast forward to the end of last month and another old acquaintance calls me. The company he is working with to grown their automotive network in EMEA want somebody with a good working knowledge of automotive equipment and installations, the exact area I was involved with before I retired.... Long story short, I signed an NDA and I've since seen their equipment list / requirements and it's very similar to the equipment list for my last customer. I'm very confident that I could build a list of vendors or even partner with my last employer to deliver what this new company wants as it's the exact same field (but for a different manufacturer) as my last account.

The new company want me to deliver consultancy to them and have asked for a "fixed price quote" for this. I assume that this means I will offer consultancy but any essential travel etc. will come out of my hourly / day rate. I've got zero experience of consultancy so that's where I need guidance. How easy is it to set up as a self-employed consultant or is this unnecessary... I know I can help this company with my experience but I'm not sure I can be bothered with the whole setup company / self-employment scenario if that's what is needed....
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It's ridiculously easy and if you think you're going to be earning more than £35k pa, you can also set yourself up vat registered
I did this for 13 years, worked self employed for one company for an agreed fixed weekly fee
 
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