AVC advice please

artha

EdInvestor wrote: »

artha wrote: »

Yes, but it will rise to around 10k over the next couple of years.



Age allowance clawback - the details

Thanks
I've checked the link and I think my calculation is correct and an extra £240 tax a year doesn't seem that significant if I am on that pension level not sure how I can avoid that situation. Have I done the calculation correctly?

artha

Jennifer_Jane wrote: »

1) Just to add here, that you cannot compare the performance of £18,500 paid in OVER 14-15 years against having invested £18,500 14 years ago as a lump sum. Your last monthly amounts have not had time to grow yet (but you will have been buying them cheaply).

I think the learning is more to keep a close check on what's going on both with your own money and with the economy/finance in general - and get advice, as often as is possible.

It's sad and unfortunate that these days, everyone needs to be responsible for their own financial portfolio, so it's best to stay watchful.

Regards
Jen
x

Points taken. With respect to investment return I did do a fairly simple calculation (which may be flawed). After tax relief I've paid 14.8k into the avc. Had I saved the £88/mth from my salary after tax I would be in the same position with an average interest rate of 4.8% after tax .

As for the learning, I've made this point in several posts when some people seem to advocate that 5-10 years is in an investement is the key factor to a return. This is too simple an approach as I've learnt. On another post someone suggested that I should have switched my investments 5 years ago to a safer home if I had intended retiring now. Trouble is that 5 years ago we were in a similar stock market position and i was waiting for a recovery. I clearly waited a few months too long before moving and missed the peak. Entirely my fault in relation to your final point.

Further to your final point shouldn't some sort of financial management be part of the education system?