The Progressive Property Podcast Kevin Whelan: How to Use Your Pension to Invest in Property!
‘It’s not for everybody it’s for entrepreneurs – people who are willing to take responsibility for the money that they’ve accumulated in the past. They turn their pension into a business’
Following a massively successful live event at Progressive, Kevin McDonald and Kevin Whelan from Wealth Builders have moved straight into the studio to share on the Progressive Property Facebook page and the Progressive Property Podcast how a SSAS can give you the freedom and flexibility to make decisions for yourself in order to grow the investments you chose to invest in.
Most people in the UK have some sort of pension and in this episode, you can find out how to grow your pension using a SSAS, it’s a powerful thing, listen in and find out why and how.
KEY TAKEAWAYS
Small - Up to eleven people this means more leverage
Self-Administered - You are making your own decisions about where you want to invest your money providing it is within HMRC rules.
Scheme - Another word for pension, in law scheme, means pension.
SSAS - Small Self-Administered Scheme is a pension scheme that is run by business owners to make decisions for themselves in order to grow that as large as they care to in investments that they chose to invest in for themselves subject to some basic rules
Rules
There are only 2 things you can’t do
- buy personal assets such as a car, anything you get a personal gain from.
- buy habitable residential property – you can’t buy something you could live in yourself such as the home you live in or the typical buy to let property.
There are 2 types of property - Habitable residential property and exempt residential property. Properties which are exempt include guest houses, hotels, pubs and student halls of residence.
‘B’ for the buying strategy
You use your pension itself to directly buy assets and if you buy it with the pension, the pension grows, because the rental money is within the pension while it’s growing its income tax-free, corporation tax-free capital gains tax and inheritance tax-free
‘B’ for the borrowing strategy
up to half of the pension can be loaned to the company to help the business making it outside of the pension.
For people who want to grow their wealth outside of their pension, their pension can help them to do that also.
‘B’ for the bridge strategy
You could be a property investor but borrow money from other people and if you have a SSAS of your own you can lend money to other people as a bridge strategy.
Bridging money is money going away from you the borrowing strategy is money coming back to you.
Whenever you are investing money there are 2 important things – if you need advice get good advice and make sure you do due diligence.
A SSAS is a potential way of combining disenfranchised and forgotten pension pots.
It’s been mostly the domain of companies previously but following the introduction of section 24 ( the new law where if you own property in your personal name by 2021 the entire amount of rentable income will be taxed), there has been a tidal way of SSAS pensions from people who are property wise.
SIP and SSAS?
SIPP is a Self-Invested Personal Pension. It’s one person not up to 11 people, a SIPP is a product it’s not a business. You buy a SIPP of the shelf and it’s the professional who is the trustee so you have to go with what they allow you to do.
Anything you want to do in a SIPP can be done in an SSAS plus more.
Only a SSAS gives you the freedom and flexibility to make the decisions that you would want to make.
BEST MOMENTS
‘This whole tidal wave of SSAS pensions is coming from people who are property wise’
‘20 billion pounds in pensions is just laying around forgotten’
‘When you bring in your children as trustees you can teach them, educating them on finance and property’
VALUABLE RESOURCES
No Money Down Property Investing book by Kevin McDonnell
https://www.facebook.com/groups/progressivepropertycommunity/
ABOUT THE HOST
Kevin McDonnell is a Speaker, Author, Mentor & Professional Property Investor. He is an expert when it comes to creative property investment strategies. His book No Money Down: Property Invest talks about how to control and cash flow other people’s property to create financial freedom.
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