The truth about investment opportunities and retirement
Investment Property can be overlooked as a retirement option, but jumping to such conclusions could be costly.
In this article, I’m going to look at the story of two twin brothers, Paul and James, who both inherited £20,000 in 1996 when they were aged 40 years. They each decided to do something very different with their inheritance, but with the same goal in mind: to semi-retire when they were 60.
James’s story – stock market returns and tax advantages
James spoke to his financial advisor. He explained his ambition and decided that he would put the entire sum into a personal pension rather than investment property
. He was a higher rate taxpayer at the time, and so claimed full tax relief on his contribution. By doing so, his total investment wasn’t £20,000, but £28,000.