Never heard of a double Compound Curve, well thats because I just thought of the phrase based on what I’ve learnt over the last 2 years.
You see I left corporate life in 2015 after 25 years and the final ‘cutting of the umbilical cord’ of that old life was to take full control and accountability for my pension pot. Being only 47 now, I was repeatedly told that I could not do this until I was 55 and then could take advantage of 25% tax free income. Waiting 8+ of the best years of my life to wait for this ‘opportunity’ didn’t exactly appeal to be honest.
Maybe its because I am impatient or don’t follow the norms in life, or simply don’t accept every bit of ‘professional’ advice as gospel, but I looked hard at the alternatives include SIPP and SSAS structures for instances and decided on a SSAS (Small Self Administered Pension).
That was 1 year ago, since then I have a SSAS Trust, have purchased one commercial property (which we have subsequently gained planning permission to a change of use to residential). We are now considering 3 other properties with a view to strategies for enhancing the yield over a multi-generational term.
That is the first compound curve….. now for the second….
With a SSAS we can ‘loan’ funds to another business under certain circumstances and it can also hold assets whilst forcing appreciation within, to then possibly sell to SPV for residential development. Through this direct ENABLEMENT we take control of our entire asset bank and work them as separate legal entities (which they are) to positively impact each other ratcheting the compounded yield which spirals upwards.
By orchestrating each part of your asset base in concert with each other whilst retaining independence and resilience in your financial affairs, huge benefits potentially await the accountable through enablement of this Double Compound Effect.
This is not a strategy for everyone and only for those wanting to actively take ownership of this sensitive part of their lives, however I for one have never felt better about being in control of my destiny, reducing my cost base and maximising my returns over the long term.