Help
Comments
-
Her brother has somekind of mortgage where it's offset towards his savings or something like that and his parents gave him their £30,000 savings so he could use it and he gives the something like £60 a month and that's why he wants me to give him some so it's more off set or something like that. I have been married 10 years and no sign of trouble I was just thinking out loud.
No I don't have the knowledge at all. I'm only going to get one shot at this with this amount of money and I don't want to mess it up for my family. The advisor that came last night was an advocate of diversity and was on about putting some in bank accounts and some in stocks and shares and even buy to let, he himself said he had two properties he rents. I'm worked out of the uk for 10 years so would have to top up my NI payments to get a state pension so that will be something to look at. My wife's pension has been running a few month if that and as far as I know she doesn't have anything else, she was a hair dresser. I'm not a Ltd company but have it registered at companies house if I want to be Ltd in the future but it's not a huge turn over company, it was never designed to £14,000 at the most when it makes profit, I could push it more but I don't really need to if that makes sense0 -
So far I should be looking at this?
ISA for both of us £20,000 each per year
Stocks and shares
Look into Ns&I with treasury guarantee
Maximum pension deposit a year £3600 per year
Possible BTL
Rainy day nest egg
Pay mortgage and loan and CC off0 -
Davethepioneer wrote: »Her brother has somekind of mortgage where it's offset towards his savings or something like that and his parents gave him their £30,000 savings so he could use it and he gives the something like £60 a month and that's why he wants me to give him some so it's more off set or something like that.
Right, but you're not his dad. In fairness, it probably is a good deal for his parents as it means they get 2.4% on what is essentially instant access - however it requires absolute trust in the person you're giving the money to. In other words, it requires you to completely ignore, and take no reward for, the risk that he never pays back the money. (Plus, I hope they have provided for the possibility that he goes under a bus, in which case the £30,000 would be distributed to his heirs and not the parents, if they don't have the loan in writing.)
For you it would be a bad deal as you can get close to 2.4% per annum with virtually zero risk to capital in fixed rate bonds, and much better than 2.4% per annum with much much less risk to capital in a diversified stockmarket investment.
Your adviser's advice sounds very sensible.0 -
Difficult to know where to start...
Pension: if you can increase your State pension by 'buying' extra years of NI contributions, then that is a no-brainer. Since you are now self-employed you might get an even better deal;
It is almost certainly sensible for you to begin a personal pension, which could be a Stakeholder pension (cheap and simple) or a SIPP (self-invested personal pension). In each case the maximum amount that you can invest each year is the greater of; your taxable earnings in that year, or 3660 if you have no earnings. And you might consider doing this for your wife as well: the cost is very small in relation to the total sum available to you, and the benefits to her and so to your relationship greatly outweigh that cost;
As for the rest: you will have to invest or face the certainty of losses from inflation. Either you can find an IFA you trust and just rely on her/him, or you can teach yourself. One resource you could use is this online course from the Open University, which you can watch at any time. If you get stuck or confused at any point, there are plenty of people here who are happy to help.
https://www.futurelearn.com/courses/managing-my-investments0 -
Thank you all for your input I have a lot of thinking to do that's for sure0
-
Yes, £20000 S&S ISA for you, £4000 S&S LISA (to get the £1000 government bonus) and £16000 normal S&S ISA for her. Repeat after April 6th each year.Davethepioneer wrote: »So far I should be looking at this?
ISA for both of us £20,000 each per year
Yes, each of you can have up to £2000 dividends each year tax free, and £11300 realised capital gains free of CGT from S&S not in ISA or pension. Each year you could each sell £20000 worth of unwrapped S&S CGT free (probably) and put it into your ISAs.Davethepioneer wrote: »Stocks and shares
Don't just look into it, as soon as you get the money put most of it into NS&I until you decide exactly what to do with it.Davethepioneer wrote: »Look into NS&I with treasury guarantee
or your earnings if higher.Davethepioneer wrote: »Maximum pension deposit a year £3600 per year
but note all the caveats given.Davethepioneer wrote: »Possible BTL
This could be 'high' interest accounts, but the high interest is on only a few thousand per account. Again, one for you, one for your wife and one joint, with each bank offering such accounts, to maximize the interest. Or you could just consider part of the NS&I amount as your rainy day fund (easier but lower interest).Davethepioneer wrote: »Rainy day nest egg
Certainly the loan and CC, consider whether investing rather than paying the mortgage early will bring a better return.Davethepioneer wrote: »Pay mortgage and loan and CC offEco Miser
Saving money for well over half a century0 -
Investing is shares might eventually give a better return than paying off the mortgage however given the OP is risk averse and the mortgage is only a small proportion of the lump sum I would suggest clearing the mortgage at the earliest opportunity just be careful of early repayment penalties.
The ups and downs of the investments will be easier to mentally accommodate if the OP knows they are completely safe in their home. Think of it as ballast in the portfolio to limit the overall volatility of your wealth. I keep the weekly Zoopla valuation (yes it's not perfect) in my wealth tracker spreadsheets so that even when there are big stock market falls the number at the bottom has only moved by a smaller percentage and it makes me less likely to make a behavioural investment reaction.
I can understand the aversion to contributing to the wife's pension however a small token might be both tax efficient and show goodwill. The wife's pension would be considered in a divorce anyway.
In addition to the OP putting 2880 into their pension each year for the government boost to 3600 is it also worth doing this for the 2 children? What about putting a couple of years of 4,128 (this year's limit per child) into Junior ISA investments to help with uni or house deposits in future?
Are there any other family (perhaps not the brother), friends or good causes you would want to gift small sums to?0 -
That right there is how I need things to be set out in a breakdown list, do this and do that.
No I have no family members and I give to charity through my business a certain percentage of everything I sell as I have a corporate partnership agreement with them.
we did have an advisor come to the house who deals with stocks and shares etc but am I best to speak to a few different ones first before making any decision like you would if you were getting a quote for something?0 -
Davethepioneer wrote: »That right there is how I need things to be set out in a breakdown list, do this and do that.
No I have no family members and I give to charity through my business a certain percentage of everything I sell as I have a corporate partnership agreement with them.
we did have an advisor come to the house who deals with stocks and shares etc but am I best to speak to a few different ones first before making any decision like you would if you were getting a quote for something?
Yes, but to my mind the £value of the quote is not as important as the working relationship.
The £value part has to be sensible admittedly, but it's not like getting a quote to have your house painted or something. If that goes wrong you can pay an extra couple of thousand to redo it, if this goes wrong it could take a long while to recover the situation.
Meet as many as you need to meet so that you are comfortable.0 -
However, you are dead right that you will not have a claim against any of the money in your wife's name, and I can understand you being cautious in that regard.
Exactly wrong, at least in England. A divorce court will split up all assets between husband and wife in whatever way it thinks fit. With two young children, normally the wife keeps the children and will get the bulk of the assets. So the OP might as well get the tax advantage of contributing to his wife's pension because if he keeps the money in his own name it'll still be handed over to the wife.
They are more rational in Scotland, but even there the existence of the two young children would weigh heavy.Free the dunston one next time too.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards