Thursday, Jan 28, 2010
Loads of green shoots today!
Guardian: More job losses amid fears recession will blight Britain for years to come
The news of thousands of job losses follows a stark warning from a group of labour market experts earlier this month that unemployment may continue to rise for years after the recession ends
Posted by waitingtobuy @ 03:03 PM (927 views) Add Comment
9 Comments
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1. matt_the_hat said...
Off topic does anyone know how to get money out of a pension - I have one idea - sell commercial property that you own into a SIPP - is there any restrictions on this?? How much of someone's salary can you put in a pension. Who decides the value of the commercial property you sell to your own pension??
2. jack c said...
matt - your last message seems a bit garbled to me -
Q "does anyone know how to get money out of a pension"
A "vest the pension" ie draw tax free cash usually max 25% of fund with balance as income in form of annuity
The other bit relates to getting money into a pension - do you want me to have a go at that part as well?
3. Crunchy said...
Blight Britian for years to come?
The way things look to me there is a good chance. However, the destroyers may have another system for us.
Big global quangos spring to mind, funded of course by the taxpayer who many of which will by employed within this sector.
I have said before that Britian is in danger of eating itself alive but with a cashless society system now a distinct possibility, that I can now mention without to much controversy, who knows what our creative money masters have dreamt up?
Let's just hope they are not all jailed if that wonderful system becomes our only alternative. The possibility of both look very likely.
All because some of the globe can't be asked to do a solid days work. The outcome of which may well be a system that the vast majority may have to accept with gritted teeth and a realisation that they really should have seen it coming.
4. matt_the_hat said...
2. jack c - sorry I was unclear - I don't want to buy an annuity (give my money away to some insurance company) I want to get at the cash.
One way I thought was to buy commercial property - let it appreciate by valuing it yourself - then sell it to your SIPP and get the cash out of your pension. Is this possible?
5. jack c said...
@matt_the_hat - you cant generally get more than 25% of the pension fund out as cash with the balance being used to purchase a regular income (there are some pension busting schemes (promises of 100% cash) but they are normally deemed illegal). Note the earliest you can currently draw the benefits is age 50 but this option will close in the current Tax year and the age limit will then rise to age 55.
On your idea - if you sell the commercial property to your Sipp then the Sipp has to have the funds to purchase the property (borrowing is permitted but usually restricted to 50%). Keeping things very simple and assuming you can buy the commercial property (on the cheap is what I think you are hinting at) with your Sipp you will ultimately need to liquidate the fund in order to draw the proceeds and of course commercial property is often a very illiquid asset - not like having a mix of blue chip shares where there is almost certainly a ready made market. The bottom line is you cant get your hands on 100% of the cash in a pension fund (it might however have a return of fund facility in the event of death for your family) I believe I get your thinking but I'm not sure there would be a net gain in your case.
6. mr g said...
M-T-H@3
I could be wrong but I have always understood that once you have contributed to a pension, be it a SIPP or any other type of private pension, the only cash you are going to be able to get out is the 25% tax free lump sum that jack c refers to.
The remainder of the fund has to either buy one of what I can only call the "drawdown" products, a traditional annuity or remain invested until at some point you still have to buy an annuity.
Someone correct me if I'm wrong please.
7. fallingbuzzard said...
The 25% lump sum is in no way guaranteed to be available for withdraw. Its the current state of law, can change and will change.
8. matt_the_hat said...
Sorry it looks like we need an example:
I buy a commercial property for £100. I have £1000 in a SIPP. I sell the commercial property to my SIPP for £1000. Have I not extracted £1000 cash from my SIPP and deposited an asset with a market value of £100 into my SIPP?
9. mr g said...
M-T-H@8
Agree with the logic but there's sure to be something that will prevent you doing this.