Hey people,

Me again! Are people paying into pensions with trading returns? The bit I’m struggling to balance is how much capital to keep back for trading purposes and how much to regularly put into my pension especially given that returns can fluctuate so much from month to month. Has anyone figured out a sensible approach to pension planning as a day trader?

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[DannyDM35]

You should really talk to a finacial advisor who understands the complxities of active trading. Sit down and explain your specific situtation (age, dependnts, housing, etc) and your long term finacial goals. Then you can figure out a plan that makes sence for your needs

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[James BarraModerator DayTrading.com Team]

Yes, consulting a professional is the sensible course of action. Your pension needs depend on a variety of factors specific to you and your circumstances. What works for one trader may not be right for another.

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[DT38]

Yeah but I don’t know if financial advisors actually know about the nuances of active trading, eg how much capital should be kept back to cover losses etc. Would love to find one that does though…..

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[Henry Hus]

I set quarterly profit goals for when I’ll chip into my pension. So if I make $25,000 in a quarter, I’ll throw 5% of that into my pension. It’s not super consistent, but it helps me avoid dipping into the cash I need for trading.

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[Paul]

What I do is allocate a fixed percentage of my profits into my pension each month. I aim for 10% and then review that each year depending on how much my returns increase/decrease from year to year. But this pretty much ensures I’m always contributing to my pension.

Mind you, I didn’t put anything in there to start with. It’s only as my results have improved that I’ve been more ‘sensible’.

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[Author]

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