Buying On The Sound Of Gunfire

This might seem a particularly odd time to be making a long term commitment to equities, but this week I signed up for a new pension plan.

I've been focusing on paying down the mortgage but since I'm tied to a long term low fixed rate, reducing my debt isn't an imperative in the current market situation.

Added to that, I've finally tired of handing over a huge proportion of my income to the tax man.

The nature of my work as a freelancer means that my gross earnings are subject not only to employee, but also employer, National Insurance contributions. Meaning personal pension contributions attract an effective tax relief rate of 48%.

That's quite a few BBs!

In addition, I've been rather lax about pension planning. My last contribution was a bottom-fishing lump sum some time around early-2003. At least I got my timing right!

This way I need to wait a long time to get my hands on the money, but at least more of it stays mine.