Could I improve how I'm saving/investing?

grunder

I'm 33 and I have a disposable £1,350 per month and have no debts or mortgage although I live with my girlfriend and pay £600 towards her mortgage.

I currently pay £550 to a mix of fidelity funds which are below. I put £100 to my pension which my employers matches (they pay 3% of my basic salary). I also save £750 per month hoping to buy a property in 2 years to rent out which will hopefully cover the mortgage.

I hope to retire as early as possible and just wondered if I going the best way about it?

Thanks for your help.

BlackRock Continental European Acc - 10%
Fidelity China Consumer Fund - 10%
Fidelity Emerging Eur Mid East & Africa - 10%
South East Asia Fund - 10%
Newton Growth - 25%
Old Mutual Glbal Strategic Bond OEIC Acc - 25%
Schroder US Mid Cap Acc - 10%
Standard Life Inv UK Smaller Companies- 10%

gordikin

grunder wrote: »

I have a disposable £1,350 per month and have no debts or mortgage although I live with my girlfriend and pay £600 towards her mortgage.

I currently pay £550 to a mix of fidelity funds which are below. I put £100 to my pension which my employers matches (they pay 3% of my basic salary). I also save £750 per month hoping to buy a property in 2 years to rent out which will hopefully cover the mortgage.

I hope to retire as early as possible and just wondered if I going the best way about it?

Thanks for your help.

BlackRock Continental European Acc - 10%
Fidelity China Consumer Fund - 10%
Fidelity Emerging Eur Mid East & Africa - 10%
South East Asia Fund - 10%
Newton Growth - 25%
Old Mutual Glbal Strategic Bond OEIC Acc - 25%
Schroder US Mid Cap Acc - 10%
Standard Life Inv UK Smaller Companies- 10%

I make that 110%? Not a goog start?

grunder

gordikin wrote: »

I make that 110%? Not a goog start?

this is true but it gives you an idea of the split. If you need me to be more accurate then let me know otherwise thanks for feeling the need to pick up my mathematical error.

Reaper

My first thought is why are you so set on buying a house you don't plan to live in? The residential housing market looks a poor investment at the moment. Maybe that will be different in 2 years but who knows.

As your main aim is to retire early have you considered switching more money to the pension instead?

blinko

If you split up with your girlfriend what will you do for a place to live ?

1350 is alot of money to have left over at the end of the month, I agree on investing it

but seeing as you are paying her mortgage for her you may want to look at reducing your closest liability (although not yours ) depending on how serious you are ?

grunder

Reaper wrote: »

My first thought is why are you so set on buying a house you don't plan to live in? The residential housing market looks a poor investment at the moment. Maybe that will be different in 2 years but who knows.

As your main aim is to retire early have you considered switching more money to the pension instead?

Thanks for the comments Reaper. The reason for the house is maybe that I've had it instilled in me about bricks and mortar etc but I do live in London and people can’t afford the large deposits for houses. It’s that coupled with the continuous influx of people to the capital from the rest of the UK and further afield I would have thought the rental market quite buoyant and a good investment.

I have been thinking about more for the pension pot due to the tax relief but want to keep things spread too. Pension and house for long term and funds for short term (when I say short term I mean 10+ years).

grunder

blinko wrote: »

If you split up with your girlfriend what will you do for a place to live ?

1350 is alot of money to have left over at the end of the month, I agree on investing it

but seeing as you are paying her mortgage for her you may want to look at reducing your closest liability (although not yours ) depending on how serious you are ?

Thanks Blinko, I pay part of the mortgage not the full amount. We are serious but my girlfriend has a lot of equity in the house which was generated before we met with large deposit (inheritance) and buying at the right time. I think and agree with her that should always be her nest egg if she needs it in the future and I'll create mine.

grizzly1911

grunder wrote: »

Thanks Blinko, I pay part of the mortgage not the full amount. We are serious but my girlfriend has a lot of equity in the house which was generated before we met with large deposit (inheritance) and buying at the right time. I think and agree with her that should always be her nest egg if she needs it in the future and I'll create mine.

If things are serious I think you may need to "pool" your thinking and aspirations IMO a shared goal and endeavour help in the long run.

Doesn't mean you can't do some of your own things though.

grunder

grizzly1911 wrote: »

If things are serious I think you may need to "pool" your thinking and aspirations IMO a shared goal and endeavour help in the long run.

Doesn't mean you can't do some of your own things though.

Thanks, you’ve definitely got me thinking about this as it would be less money (interest) in the banks pocket and more in ours. We'd both would want some protection for her initial investment though so it would require some thought on how everything would be split fairly due to the fact I would be putting a lot of money in and I’m sure my girlfriend would want to protect her equity so far. Do you have any suggestion on how you’d do this? Talking to a solicitor?

Doe's anyone have any comments and the reminder of my investments?

Thanks again.

kidmugsy

There's not much point reducing her mortgage debt if it's cheap enough. What interest rate is she paying?

grunder

It's not a bad deal but the quicker it's paid off the less interest will be paid in the long term I suppose. Interest rates are low at the moment but that may not always be the case.