| How much do you need to retire? | | | | receive around �4321 pcm or |
| Does around £25,000a year sound about right; | | | | �51,852 per year. |
| this means you will need a retirement pot of around | | | | Now I know that your pension scheme will also |
| �500,000! | | | | increase in value, however, the actual monthly or |
| Various Friends and Family members have pensions | | | | annual return is not what interests me. |
| through work, they pay in around �300 per | | | | The point that interests me is that your retirement fund |
| month and this gives you a pension of around | | | | will decrease as time goes on. Say you manage to |
| �108,000 of your own money if you work | | | | save up �500,000, in 20 years time, taking an |
| there 30 years. | | | | annual income of �25,000 all the money is |
| Now say the company you work for matches that | | | | gone! |
| money, that's �216,000, after 30 years of | | | | Using Buy to Let Property as your pension, the |
| work and an annual pension of just �10,800! | | | | property retains its value and you get your income |
| Ok, say I can show you how to have a decent sized | | | | from the rental of that property. So not only do you |
| pension and you needn't put anymore than around | | | | have a property worth �864,388 which you |
| �300 in… interested? | | | | can draw on whenever you need, you also have a |
| The Answer is Property Investment, More specifically | | | | yearly income of �51,852. |
| Buy to Let. | | | | Saying that, I would like to end up with a balanced |
| Take a �200,000 flat in Manchester… | | | | portfolio, I have some money in Shares and would like |
| Buy at a 15% discount (lots of these deals around!) | | | | to add to my portfolio as well, perhaps the secret is |
| Rent at �1000 pcm. | | | | not to put all of your eggs in one basket? |
| Management fee of �100 pcm | | | | In conclusion, the safer bet would seem to be a |
| Take home �900 pcm. | | | | pension scheme, but I will point out that over a historical |
| Buy to Let Mortgage at 5.8% of �200,000 = | | | | average, property has doubled every seven years, this |
| �1,185 repayment pcm. | | | | is around 5% per annum. The same goes for rentals. |
| This will cost you �285 per month. | | | | A friend of mine recently bought his first house and |
| Say property goes up a conservative 5% per annum | | | | was amazed a year later when he came to |
| over the next 30 years. | | | | remortgage, that it had risen �30,000. |
| In 2037 that same property should be worth | | | | He pointed out that this was more than he made in a |
| �864,388 and you will own it outright! | | | | year, to which I pointed out….imagine if you had |
| As far as rental income is concerned. | | | | 2! |
| Taking a rental increase of 5% per annum you should | | | | |