Firstly, thanks for the advice Brendan.You say you have no mortgage? Is that because you own your home mortgage-free or because you don't own a home. If you don't own your own home, then that is the next priority after your business.
So while you will have missed out on the growth in the pension by waiting, you won’t have missed out on yearly contribution limits really.
i bought my first house aged 24 and sold it 6 years later with a modest increase of about 16k having spent at least that much on it.
My second home required a very substantial increase in mortgage (3 times as large) and over the next 10 years netted me a 100k equity but again only after spending around 50% of that on repairs and improvements
I set out some mathematical arguments for early contributions in this post
That will be the source of his wealth.
But that does not mean that you have to invest in a pension.
I think you'll find my post is well reasoned, as is yoursIt's better to use reason and analysis instead of folk wisdom or custom and habit.
OP would be wise to invest a small share of his income already in a pension, even just three figures a month.
Sure, read here.If you have an argument, then by all means, make it.
People are wise to adopt a diversified investment strategy.
I'm only suggesting that in the growth phase of a new business you can take the risk of not contributing to a pension to build wealth in the business. As soon as the business is out of that initial growth phase and making profit, I think you should start putting money into your PPR and a pension just as a non-business owner would. One side benefit of doing so in this scenario is that PPRs and pensions are easy to carve out of any personal guarantees you take on to support a growing business.Years ago I worked for a family business (related to construction) in the early 2000s. They lived the high life and didn't see the bust coming. They lost the business and it wasn't pretty.
Same here. I'm 50 and this year set up an Exec Pension. I am putting 3.5k per month in and plan to increase this next year or pay off mortgage (that is an Ecumenical Matter...) I should end up with a decent set of pension pots but I have no regrets for delaying pension while building up business.I was in a similar situation at your age and chose to invest in the business and then a home, putting a pension on the long finger - basically Brendan’s advice above. It was the right decision I believe.
When you do decide to setup the pension, an executive pension is the way to go. There’s nothing big/complex about them compared to a PRSA, you can literally ring the likes of Zurich, fill in a form and have it setup a week later. One of the benefits is the company will be able to make special contributions for the service you’ve built up. In my case (had the company had the money) it could make a frankly astounding contribution of €750k in one go. So while you will have missed out on the growth in the pension by waiting, you won’t have missed out on yearly contribution limits really.
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