Blog Plan

There is no way of predicting the future, except one day u will cross the bar and until u do u will have to pay taxes.

The plan is to use 100k of seed capital to produce a ‘pension’ of 16k within ten years without adding any capital, u may not have 100k u wish to invest but starting with a smaller amount and adding fuel to the fire, u should be able to reach a respectable figure. The 16k is not in doubt but the timescale maybe, the future is hard to predict. Anyone with a longer timeframe to invest can beat the fcast as compound interest accrues in the final few years, often at a faster rate than all the early years.

The best example of compound interest is house prices.

The dividend amount for the last tax year was £11,072.00 compounded at 7% for the next nine years would equal 20k.

BUT the current fcast is 8k with a target for the calendar of 9k which is ahead of the current plan. The amount of the portfolio is the unknown but as u intend to use the underlying Trusts to fund your ‘pension’ u can’t sell them, so the value is of no interest. If u plan to pass on your capital pse remember those wee cats and dogs. If u don’t plan u fail to plan.