Pensions are very much in the news at the moment, both with the public sectors strikes and the move towards auto-enrolment, so this is a good time to celebrate one of the most famous and lucrative pension funds of all time. Slade singer Noddy Holder makes no secret of the fact that the royalty cheque that he receives in the early months of each year has formed a key part of his retirement planning.
Pensions continue to get a bad press, yet properly managed, and with a reasonable level of company contribution, they can be a very tax efficient form of remuneration. Auto enrolment means that all companies are going to have to do something sooner or later, so if you can get ahead of the game there could be real benefits to your business and your staff.
However “Merry Christmas Everybody” is not just an example of pension provision. It also emphasises the value of the passive income that can result from the development of an intellectual property portfolio. The premise is simple. Develop or create (or even acquire) something, licence it and then sit back and let the royalties flood in.
OK there is a little more to it than that, and we all know the problems that musicians and record labels are having in getting paid for their work in these days of illegal downloading. However most forms of intellectual property can be protected so if you want to avoid the struggle to get paid for what you do now and enjoy money flowing in from something you did many years ago make sure to take proper advice from an intellectual property specialist.
Most of us are not lucky enough to rely on a Christmas number one to solve our pension problems. However companies that embrace pension provision or take care to develop and protect their intellectual property can take heart from Noddy Holder’s Christmas perennial. As the man himself says “Look to the future now, it’s only just begun”.