Working in a 18+ slot/fruit machine arcade

Maccy said:
^^He'd be liable for tax deductions if paying in over £40k/year, but I'd definitely be maximising that and then investing some elsewhere into a fund.
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Yeah before any major nonesense I'd be doing 40k/year into pension, leaving 80k fun tokens for a nice mortgage in a long term property. Then grab a decent motor. Then worry about finding a job once life is in 'order'.

Then, coke and hookers.
 
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If you had that much money, wouldn't you just invest it in ways that allow the funds to be more readily accessible than a pension would afford? What I mean is, why shove so much into a pension pot that effectively locks in the money until retirement age that you may never reach? Not to mention, if you did reach close to retirement age and needed to draw it out for a specific reason (let's say ill health or family emergency) you'd have to sacrifice a large percentage to get at it?

It's something I worry about as someone that has always topped up the pension pot with voluntary contributions of x% above the employer, for instance.

Personally, I'd set up a standing order for £2.5k into savings / investments and forget about it and live a comfortable lifestyle off the rest. That standing order alone equates to £30k a year or £900k over the 30 years which would cover any sort of retirement plans and more, without the hassle of waiting for x time until you can touch it.

It's easy for us all to say we would "carry on working" but I think the reality is you'd paying more income tax than it would be worth to keep working plus your motivation may not be what it was knowing you didn't need to be there.

@LeeUK - have you been offered financial support from the lottery? I imagine having to explain £10,000 a month on any potential PAYE for any jobs you undertake may raise questions :D
 
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Black Noir said:
If you had that much money, wouldn't you just invest it in ways that allow the funds to be more readily accessible than a pension would afford? What I mean is, why shove so much into a pension pot that effectively locks in the money until retirement age that you may never reach? Not to mention, if you did reach close to retirement age and needed to draw it out for a specific reason (let's say ill health or family emergency) you'd have to sacrifice a large percentage to get at it?

It's something I worry about as someone that has always topped up the pension pot with voluntary contributions of x% above the employer, for instance.

Personally, I'd set up a standing order for £2.5k into savings / investments and forget about it and live a comfortable lifestyle off the rest. That standing order alone equates to £30k a year or £900k over the 30 years which would cover any sort of retirement plans and more, without the hassle of waiting for x time until you can touch it.

It's easy for us all to say we would "carry on working" but I think the reality is you'd paying more income tax than it would be worth to keep working plus your motivation may not be what it was knowing you didn't need to be there.

@LeeUK - have you been offered financial support from the lottery? I imagine having to explain £10,000 a month on any potential PAYE for any jobs you undertake may raise questions :D
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Not a bad shout - capital gains tax versus pension income tax. Being able to tap into it possibly something you want to engineer against tho. Could be tempting :cry:
 
Black Noir said:
If you had that much money, wouldn't you just invest it in ways that allow the funds to be more readily accessible than a pension would afford? What I mean is, why shove so much into a pension pot that effectively locks in the money until retirement age that you may never reach? Not to mention, if you did reach close to retirement age and needed to draw it out for a specific reason (let's say ill health or family emergency) you'd have to sacrifice a large percentage to get at it?
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Indeed, I'd prioritise the 20k ISA allowance over the pension. A big benefit of the pension is being able to invest gross earnings and get taxed on them later... but this prize is already free of income tax do you really want to lock it away and then have to pay income tax later on? There is still the shield against CGT within the pension wrapper I guess, you've got to decide if that's still useful for a given situation.

This is where an IFA, tax advisor etc.. does come in useful. Like say he does decide to go down the self-employed route and wants to purchase a business premises at some point, the pension wrapper could be handy there, get a mortgage, stick the shop/industrial unit into a SIPP and let your pension rent it to you business.

Freefaller said:
Thinking about it, I could contribute (in addition to my salary) £5k towards my pension every month, that's 60k of yearly contributions!
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^^^ contributions while working also makes sense (could also do this from your salary while self-employed), though you probably don't want to contribute in addition to your salary (again the prize is tax-free) you'd want to sacrifice up to 40k per year of your salary (that's the limit) and use the regular tax free income from the prize for living expenses if needed.
 
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dowie said:
^^^ contributions while working also makes sense (could also do this from your salary while self-employed), though you probably don't want to contribute in addition to your salary (again the prize is tax-free) you'd want to sacrifice up to 40k per year of your salary (that's the limit) and use the regular tax free income from the prize for living expenses if needed.
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Good point and yes you're right. I just spoke in general terms, however your post is far more helpful.
 
Thought about this yesterday when I set up a direct debit in hope of winning :D

If it was me, I would definitely still work to keep active and a 'bit' of normality.

I actually like my job so I would just go part time. But if you have ever really fancied doing any job. Then go for that. You need to do a job your happy with. Especially with the fact you don't need to
 
First thing you should do is upgrade your rig!

But seriously, I would also struggle to come up with what to do.. Maybe travelling the world could help give you ideas.
 
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