IFA meeting next week. Will my IFA do this for me...?

Nine_Lives

I forgot to address this yesterday:

bristol_pilot wrote: »

You are on a low wage.

Agreed

Between you, you and the future wife have a relatively low level of savings with which to buy a house and establish an emergency fund.

Not quite sure i agree here though.

We currently have £40k in savings. By the end of next year, we're hoping to have £50k-£60k.
The budget we'll be looking at roughly is £120k.

So we'll have 1/3 the house price as a deposit. Personally i don't think that's a bad ratio, certainly for a couple in the 20s as most people our age just piddle their money down the drain, or are only just waking up from their early 20s & realising they better start saving.
If the mortgage calculator i used is in any way near accurate, then the mortgage would be very affordable.

grizzly1911

K_P83 wrote: »

I forgot to address this yesterday:

Agreed
Not quite sure i agree here though.

We currently have £40k in savings. By the end of next year, we're hoping to have £50k-£60k.
The budget we'll be looking at roughly is £120k.

So we'll have 1/3 the house price as a deposit. Personally i don't think that's a bad ratio, certainly for a couple in the 20s as most people our age just piddle their money down the drain, or are only just waking up from their early 20s & realising they better start saving.
If the mortgage calculator i used is in any way near accurate, then the mortgage would be very affordable.

I think your second IFA gave sound advise and Bristol Pilot topped it up nicely.

Yes you have a a very good deposit and you have done well to pull it together.

I think BPs "low wage" should be "relatively low wage in relation to living fully with all the commitments of home ownership".

As you have said your current board and keep are modest and you have possibly maxed your savings thus far to reach your deposit. targets.

Once you have a mortgage and are paying all the bills associated with the property, living expenses, travel etc you then have to find money for "stuff".

Nobody really tells you what "stuff" costs but it is all the associate necessities of life.

Until you have been living "untethered" for a couple of years you won't know what that "stuff" amounts to. Don't forget that just because you have brought everything you may want for the house, on day one, it doesn't just stay that way.

Whilst it is sensible to be planning for retirement you first have to live today (or when you commit to that house purchase forwards).

I certainly wouldn't be looking to put all my eggs in one basket, you obviously have the ability to save and not squander. If you chose the ISA regular saving (be it cash or S+S) in the short term you would still be edging your bets but leaving you with flexibility until you really establish what you can commit to, pension wise.

In reality 2/3 years based on the contributions you suggest will not make a "significant" difference to your standard of living 40 years hence. Certainly hooking in employer contribution would probably have a bigger impact.

Out of interest did you end up paying the 2nd IFA anything?
.

tartanterra

K_P83 wrote: »

I forgot to address this yesterday:

Agreed
Not quite sure i agree here though.

We currently have £40k in savings. By the end of next year, we're hoping to have £50k-£60k.
The budget we'll be looking at roughly is £120k.

So we'll have 1/3 the house price as a deposit. Personally i don't think that's a bad ratio, certainly for a couple in the 20s as most people our age just piddle their money down the drain, or are only just waking up from their early 20s & realising they better start saving.
If the mortgage calculator i used is in any way near accurate, then the mortgage would be very affordable.

Good for you. You are obviously doing your homework, and TBH it's been really enjoyable to read this thread as it's developed.

You are taking advice, listening to second opinions and gathering as much knowledge as you can. All in all, I would say that you are getting yourself a good head start in life which seems to be borne out by the deposit you have amassed for a house.

I wish you the best of luck, and would like to see this how you are doing in a few years time. It's good to see someone younger doing well (especially on a relatively low wage) when all that appears to be out there at the moment is doom and gloom.:D

Nine_Lives

grizzly1911 wrote: »

As you have said your current board and keep are modest and you have possibly maxed your savings thus far to reach your deposit. targets.

Annoyingly neither of us have made the most of it. My gf moved down in 2005 (end of). At this point i had 5k i think. She had 2k of debt & no savings.
When we look at the money (net) coming in each year, and then the spends, I personally think of how much has been wasted (eating out, car modding, little treats that weren't needed etc) as we should be making the total most of this situation. Add to that that during this time i had 51 weeks signed off work on SSP (£80/wk approx) during various scattered periods & it's a LOT of money wasted. I could've been so much further on. I could be at 45k-50k myself by now.
My gf on the other hand last year, she received 16k (net). This was obviously wages & also bank interest, lotto wins (ANY income). She spent ..... 16.5k.

So it's frustrating ... but it always is when you're a pessimist.

Once you have a mortgage and are paying all the bills associated with the property, living expenses, travel etc you then have to find money for "stuff".

Nobody really tells you what "stuff" costs but it is all the associate necessities of life.

Indeed I hope i'm ready for it, but you never know. Things that will be a problem will be out of the blue things - such as washing machine blowing & flooding your kitchen. I think i can manage your basic bills that you KNOW are coming out each month. If you know something is going to happen, you can prepare and plan - which i do, probably very anally.

Until you have been living "untethered" for a couple of years you won't know what that "stuff" amounts to. Don't forget that just because you have brought everything you may want for the house, on day one, it doesn't just stay that way.

Ah, you're talking about the missus here. I don't like change, however she'll be refurbing the house every 12 months :rotfl:"Untethered"??

Whilst it is sensible to be planning for retirement you first have to live today (or when you commit to that house purchase forwards)

Exactly what the 2nd IFA said to me. It's all well & good preparing for retirement, but you need to have a house.
But my argument is it's all well & good having a house, but you need to be able to live when you're at your most restricted in life (or at least adult life). So a good balance of the 2 is a must IMO.
That's easily said. The question is what is the correct balance - this takes some trial & error.

I certainly wouldn't be looking to put all my eggs in one basket, you obviously have the ability to save and not squander. If you chose the ISA regular saving (be it cash or S+S) in the short term you would still be edging your bets but leaving you with flexibility until you really establish what you can commit to, pension wise.

I've all but decided to go S&S ISA based on the advice given.
I've questions in the ISA subforum, but that forum doesn't seem to have a speedy turnover like the pensions forum. I could probably ask my ISA questions here & get fast responses, but it's not an ISA forum.
That said, it is a retirement planning forum, so i could maybe ask that here on that basis.

Certainly hooking in employer contribution would probably have a bigger impact.

That'll only ever happen when NEST comes in & they will only ever pay the bare minimum.

Out of interest did you end up paying the 2nd IFA anything?
.

Nope, he said the first meeting was free. If he was to implement anything, his initial quote of £300 would actually be about £200-£250 he said.

tartanterra wrote: »

I wish you the best of luck, and would like to see this how you are doing in a few years time. It's good to see someone younger doing well (especially on a relatively low wage) when all that appears to be out there at the moment is doom and gloom.:D

Thank you.
It's a sad fact that the majority of 20 somethings these days don't really save. They open up a credit card, don't understand how it works & then get in debt.
Then we get in the mess that we're all looking at today (no i'm not saying it's all because 20 year olds took out credit cards :rotfl:)

It also helps that i'm:
* a tight fisted get (at times, but then i can have a moment & spend silly, so i guess a part time tight fisted get)
* i look out bargains
* i CAN be bothered to open up 10 accounts, shifting money around. EVERY person i've talked to has said it's too much hassle. I'm sorry but £100 for 10 minutes application is not hassle to me. Who do you know that gets paid £100 an hour, nevermind £100 for 10 minutes work
* boring :rotfl:It doesn't bother me if i don't go out on the piddle. I have done, but we've not been out since 2008 on a night out (as in on the razzle & dazzle). I see it as £50-£100 down the drain. I may draw out £100 from an ATM & actually stick it down the drain. I'm happier sitting in on a Saturday with the missus & watching TV, or going to the cinema - £15 for the pair of us.
The missus on the other hand, would not agree with the statement regarding going on a night out lol.

grizzly1911

Glad to hear your first assesment with the 2nd IFA was gratis. That guy seems pretty fair minded based on your circumstances.

You mentioned the gf wanting to "refurbish" don't forget the other "NESTing" instinct that may well follow in short order.

Good luck.

snowcat53

I'm sorry to have to raise this but I think you ought to look at the issue of whether you are financially compatible with your OH. These differences you mention are like small clouds in a sunny sky at present and can be laughed off, but in time are likely to become serious storm clouds and a major cause of conflict.

Nine_Lives

snowcat53 wrote: »

I'm sorry to have to raise this but I think you ought to look at the issue of whether you are financially compatible with your OH. These differences you mention are like small clouds in a sunny sky at present and can be laughed off, but in time are likely to become serious storm clouds and a major cause of conflict.

You've raised nothing that i haven't already mentioned to my OH tbh. You're on point.

I've told her she is currently a financial liability & while she wants to move out more than i do, i wont be taken down. If we operate as we currently do as a team, then we'd sink, no question.

So she has next year to show that she can save, rather than just talk about it. If she can sort it out then we can go. If not, then we'll keep going until she can get it sorted.