getting ahead was easy with property, how to stay ahead?

Sorry, I did a quick keyword search of this thread and couldn't find a mention of pension.
Taking an example of someone selling up. Mid forties, mortgage of 200,000 outstanding on a house they just got 450000 for. They're paying income tax at the higher rate.
The first obvious place to invest is in your pension up to the max tax free cut-off point. 25% when you are in your forties.
I assume people bought their investment properties as their pension(early or not). So...... wouldn't it be best to maximise your pension contributions even if it means dipping in to your lump sum for day to day living expenses and try to funnel as much of the income in to a pension for the next few years and just keep it on deposit in the meantime.

I'll assume these people are busy living their lives and don't have time to actively manage an investment so a pension really seems to be a good place to invest.
Also they're selling up on the assumption the market has topped and may drop so how many good investments will be left locally?
 

Me confused. Whats the difference between a 'pension' and pile of assets giving off cashflow? Are you talking about an Irish PRSA?
 

Bingo. This is also line with my view....
 
walk2dewater said:
Me confused. Whats the difference between a 'pension' and pile of assets giving off cashflow? Are you talking about an Irish PRSA?
Click to expand...
No mention of PRSA either up until now.

No cash coming out of a pension in the near future but most people aren't looking for a big pile of cash(at least that's my experience of the people I know), if they are already comfortable they are just looking for security, an earlier retirement and the potential to pass on the money they put in to their pension to their children which depending on what they decide to do with the pension fund on maturity is quite possible.
 
Dipole said:
No mention of PRSA either up until now.
Click to expand...

I think w2dw's point was "what is a pension"? When you say you are investing in a pension you mean you are giving the money to a pension fund manager to invest in an asset class (or in several) on your behalf. This may be more tax efficient than investing yourself but that is a side issue. It still doesn't answer the question of in what asset classes should that money ultimately reside.
 

OK. point taken but with the tax relief on pensions it's hard to find investments that perform as well and that's my main point; it's at that point that most people would stop considering actively investing and start concentrating on the merits of individual pension plans.
 
Did selling property in france hit you in the pocket tax wise as i too have a property over there??
 
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