Yup to bloody right
Yup to bloody right
C
Colour Republic
Stick it all in to bitcoins mate. You could treble your money in a month or lose the whole lot. Worth a punt!
H
hotrod
Commission when they could earn it was crap for pensions for the advisers years ago when there was some scandalous advice for people to transfer some very good pensions yeah those criticisms were justified but nowadays they are the most tax efficient investment available and are far more flexible, I have been a financial adviser for quite some time and could tell you numerous accounts of people who told me they would make there own plans for retirement and then were back seeing me scratching their heads as to how their life savings were gonna last them particularly with current interest rates. But each to their own I guess, personally I've thoroughly enjoyed the taxman having to give me 40% on my contributions as opposed to the other way round, will I make it to 65 to enjoy the money? Don't care really if I don't the wife or kids will get it (yes that's right) same as if it were in a bank account paying me nothing. Does make me laugh a little though guys after the numerous threads I've read about tilers tiling builders building etc to find out you all know the best financial planning strategies hehe
whatever you choose good luck it's not easy to make money work for you at the mo and there is a very good argument to just spend it as you're likely to get more for it today than you will in 5 years and you'd be helping us all out by keeping the economy afloat!
whatever you choose good luck it's not easy to make money work for you at the mo and there is a very good argument to just spend it as you're likely to get more for it today than you will in 5 years and you'd be helping us all out by keeping the economy afloat!
H
hotrod
Haha Im not trying to sell nothing mate (I don't sell pensions either) i get paid for my advice not for arranging any products. you are right there have been thousands of horror stories and like I said some horrific advice in the past because of which the pension industry and rules were radically overhauled and protection for those contribution guaranteed (well up to a million but not many of us gonna chuck that much in) , the biggest mistake was they didn't change the name so people still associate with the old product. Like we both said each to their own I'm not trying to sell anything to anyone I'm on here to learn about tiling! But in fairness if you tell a customer they should use a certain adhesive and they ignore it should they be surprised when it goes wrong? I was just trying to provide the original post with a few alternatives to consider and no matter what anyone says I am very glad that I have managed to secure my retirement by utilising every allowance that is open (but not always advertised to the general public) to me.
for the record I've never considered any tradesman as fick else I wouldn't want to be one so maybe your own insecurity there?
H
hotrod
Last comment (I promise) there is a programme on telly called rogue traders with no end of horror stories of every trade gone wrong, should that mean the general public never trust another plumber, spark, tiler etc as they must all be the same?
Am I being told off for my opinion on pensions...please bare in mind that you actually have no idea what my pension arrangements are. Just because I don't trust them does not mean I don't use them... And as for the tax man giving me 40% ... What about the 50% he takes off of what I make when I draw it... Very few people actually take out what they put into a pension pot.... In order to do so you would need to live a long time. I do have 2 final salary schemes in place which are worth while but for the amount I can afford to save into a pension that is money purchase or some such basis i might as well spend it now and rely on the state later....
E
enduro
Set up a Tilers training school & watch your profits grow. :lol:
I think we all are Alan :lol:
The ten gallon hat school of tiling run by those two famous tiling experts "Dot" and "Dab"
H
hotrod
No no not at all sorry if it came across that way, there are many ways with many pros and cons and none can be right for everyone (which is what led to mis selling in the past I.e very inexperienced or greedy advisers selling the same bit of advice to everyone) I was just trying to give my opinion on the newer versions of private pensions which are very very different to those others are referring to.
To be fair in my first reply I did actually say if you don't want to pay someone for advice ( and I completely understand why) then check out the range of national savings at the post office as there are far better products than premium bonds.
Its your money mate so you should do what the hell you want with it
Apologies if came across condescending was not my intention.
Ill stick to the tiling threads from now on lol !
So you did... No offence taken mate, don't worry, I sell anhydrite screeds for a living so I have to be really thick skinned 🙂... I have checked that and given the amount I will have available to invest once the cost of my cruise is taken out of it the best option is still probably premium bonds and hope. I can't be bothered tying up money for £150 quid a year interest.... I shall let you all know if I win 😉
What on earth are bitcoins??
Depends on your risk profile I suppose plus what your current debts are ( including mortgage ) , would you need access to the cash in the near term etc.
For it to go into a savings account rather than paying extra off your mortgage then you'd need to be able to get a better rate on those savings Vs the IR you're paying on your mortgage. ( Not forgetting to add tax to it, ie: if Mort rate is 3% , savings rate needs to be around 3.7% to be even , or 5% for a higher rate taxpayer.
As for property , well you need to be yielding a minimum of 7% ( 10% would be better , you'll struggle to find it though unless you know someone in the business ) after allowing for voids , fees etc etc , not easy given the BoE is currently putting the prop in property by printing money ( but thats a topic for another time).
Current return on premium bonds is 1.5% , but then you could be unlucky and win less . My mum bought 30k worth 1.5 yrs ago and has barely scraped 1.5% , she gave me £10k to invest for her in a shares ISA , I said I'd beat her PB's which so far I have , up 11% over the same period , not great , but passable , I don't spend enough time researching at the moment 🙂. But like I said it's down to risk profile .
Of course you capital is safe with PBs as it's backed by the treasury .
Don't want to know what the sum and assuming you are pretty averse to risk , how about.
1. Safety stash of 3 x monthly out goings in an easy accessible account for emergencies.
2. Use your cash ISA allowance.
3. PBs
4. Anything spare leave in the best saving account you can and drip feed it off your mortgage.
DYOR as they say 🙂
Diggy
For it to go into a savings account rather than paying extra off your mortgage then you'd need to be able to get a better rate on those savings Vs the IR you're paying on your mortgage. ( Not forgetting to add tax to it, ie: if Mort rate is 3% , savings rate needs to be around 3.7% to be even , or 5% for a higher rate taxpayer.
As for property , well you need to be yielding a minimum of 7% ( 10% would be better , you'll struggle to find it though unless you know someone in the business ) after allowing for voids , fees etc etc , not easy given the BoE is currently putting the prop in property by printing money ( but thats a topic for another time).
Current return on premium bonds is 1.5% , but then you could be unlucky and win less . My mum bought 30k worth 1.5 yrs ago and has barely scraped 1.5% , she gave me £10k to invest for her in a shares ISA , I said I'd beat her PB's which so far I have , up 11% over the same period , not great , but passable , I don't spend enough time researching at the moment 🙂. But like I said it's down to risk profile .
Of course you capital is safe with PBs as it's backed by the treasury .
Don't want to know what the sum and assuming you are pretty averse to risk , how about.
1. Safety stash of 3 x monthly out goings in an easy accessible account for emergencies.
2. Use your cash ISA allowance.
3. PBs
4. Anything spare leave in the best saving account you can and drip feed it off your mortgage.
DYOR as they say 🙂
Diggy
Blimey diggy ... That's a good post... All this talk of interest and returns and stuff.... My risk factor is very simple to define... I want zero risk. However I do like your 4 options plan. Not sure if the amount will cover 3x my monthly outgoings plus the ISA. The amount is yet to be confirmed so will have to wait and see. Migh get a nice surprise and they will pay out what they said the would when I took out the endowment.
Tracking the BoE or your banks rate?
As for you emergency / ISA connudrum , I'd go for the Emergency fund myself , but thats me.
The voluntary overpaying ( which you currently seem to be doing anyway ) is good to keep going imho , as if hit a bad patch , and the overpayments being voluntary , they can be postponed to lower costs temporarily , unlike if you made those overpayments official as it were by deliberately shortening the term of your mortgage.
Diggy
As for you emergency / ISA connudrum , I'd go for the Emergency fund myself , but thats me.
The voluntary overpaying ( which you currently seem to be doing anyway ) is good to keep going imho , as if hit a bad patch , and the overpayments being voluntary , they can be postponed to lower costs temporarily , unlike if you made those overpayments official as it were by deliberately shortening the term of your mortgage.
Diggy
Tracking at 0.5% above the bank of England base rate for the life of the mortgage. Took the mortgage out when the BoE rate was 8 or 9 % I think. I am also allowed to pay off as bigger over payments as I like although there is an early completion charge built in if I pay the mortgage off early. It's only a couple of hundred quid though. I am about five years ahead at the moment s if worst happened and I lost my income I would be able to take a complete five year payment holiday.
Was a great deal at the time but I do think we appreciated how good a deal it was till the interest rates came right down to 0.5%.
Mortgage deals like that just dont exist anymore.
Was a great deal at the time but I do think we appreciated how good a deal it was till the interest rates came right down to 0.5%.
Mortgage deals like that just dont exist anymore.
Of course the other thing you could do is something I'm looking into at the moment , if you have kids that is , is start a pension going for them.
For me it's grand kids 🙂
The beauty is , unlike the former CTFs and junior ISAs they can't get there hands on the money until they retire - (currently 55 is earliest )
You'll be giving them a great start if they are young , which they can take over the payments of when they start to work.
Diggy
For me it's grand kids 🙂
The beauty is , unlike the former CTFs and junior ISAs they can't get there hands on the money until they retire - (currently 55 is earliest )
You'll be giving them a great start if they are young , which they can take over the payments of when they start to work.
Diggy
Sounds like the mortgage is going ok ( repayment I take it? ) , don't pay it completely off though, for as long as it's going it means you have an easy-ish way to raise some money without have to re-mortgage , assuming no neg Eq of course :0)
Forgot to say as well , you could make a lump sum payment into your pension
Good luck with it all.
Diggy
Forgot to say as well , you could make a lump sum payment into your pension
Good luck with it all.
Diggy
Longer you leave it the worse it gets.
Rule of thumb , you should be paying in halve your age as a % ie: if you're 30 = 15% of income , 40 = 20% of income etc etc.
another rough calc for you , 15% IR's double your money every 5 yrs , 7% every 10 yrs and the average inflation rate halves the value of your cash every 15 yrs.
Food for thought
Diggy 🙂
Rule of thumb , you should be paying in halve your age as a % ie: if you're 30 = 15% of income , 40 = 20% of income etc etc.
another rough calc for you , 15% IR's double your money every 5 yrs , 7% every 10 yrs and the average inflation rate halves the value of your cash every 15 yrs.
Food for thought
Diggy 🙂
H
hotrod
Nice one diggy someone else talking sense lol!
Just for info. I have been paying into various pensions since I was 22years old. Two are very good final salary schemes into which i paid 15 and 25 percent of my salary respectively and the other four are to consolidated into one scheme based part on money purchase and part on share equity which will change as I approach retirement to reduce risk to the capital.
i have no pension worries. Despite this I still believe pensions are a legalised rip off and a huge gamble.
now can we stop talking about pensions. I am not putting my endowment return into a pension scheme 🙂
i have no pension worries. Despite this I still believe pensions are a legalised rip off and a huge gamble.
now can we stop talking about pensions. I am not putting my endowment return into a pension scheme 🙂
and now we are talking sense 😉 mind you the wife might object the the women part... Oh bu**er, and the wine and the fast cars bit.... Oh well back to square one.... What to do with the money?? Lol
H
hotrod
Whatever you do it's a nice dilemma to have !
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