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Investment Advice needed
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Morning Plinth. As a suggestion, you might want to think about paying off the penalty-free 10% offered by RBS, and then putting £10,680 of your cash into a Stocks and Shares ISA? You could open an ISA and buy blue chip stocks within the tax shelter that pay a hefty dividend yield, (e.g Tesco, Vodafone etc). Your annual Stocks and Shares ISA allowance is £10,680, so lets say you buy £10680 worth of FTSE100 stocks with an average dividend yield of 6% - that's a return of £640 pa, which you can either reinvest into stock or leave as cash. FYI Traders Own offer a Stocks & Shares ISA, no fees, you simply pay £9 per trade for every stock you purchase in the ISA wrapper. Info here http://www.tradersown.co.uk/sharedea...wn_isa_54.html0
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You are near the HRT threshold, and will possibly go over if you make sure you get enough interest on your balance. So you need to start a pension (OH too). Join one if employers have one and contribute. A low cost PP if not as it will keep you from paying HRT.
Anything over £42,475, assuming you have the basic tax allowance, is going to get taxed at the higher 40% rate, so if I was the OP I'd be looking at investments that would lower your gross income below that threshold.
SIP's and additional contributions towards a pension seem to be good at doing that sort of thing.0 -
He doesn't have any pension at all, so strting one and contributing heavily should 'cure' his HRT problem I think. that and putting money in ISAs.0
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Hello All
Some great advise there met with HR today and will start teachers pension scheme also phoned Lloyds TSB to open 2 isas they said I can put in £5340 so its £10680 in total going in. I have to wait for the documentation for the pension to come through- is overpaying my monthly mortage a good way to use the rest of the cash?0 -
Overpaying your mtg could be advisable, but it really depends on the rate you are paying, and if there are any penalties for overpaying.
I think you said you had already paid as much as you could penalty free this year, but could save the extra and then overpay next year? but don't forget next april you (and your OH ) can open new ISAs. And if you OH doens't have a cash ISA for this year you can gift her the cash and pay it in this year.
Just make sure you are getting one of the highest paying cash ISAs as inflation will be eating up your cash.
When NSI open a new tranch of Index linked saving certs you could move some money there. These do pay inflation plus. and are tax free so are a good thing to do, but the most recent series closed last month.0
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