New here and need advice......

tashlovestosave

Hi everyone......FAB site by the way. I have got some really helpful tips just by scanning the site today.

Right.....The dilema.....Hubby and I are both in the RAF. I have three years left until I come out after 12 years service. Hubby has 7 years till he comes out after 22 years service. I will have about a 9k payout and hubby will have (after communting his pension) about 35k.
My first issue is......we own a house at the moment and it has a fairly big mortgage, interest only!!! (we rent it out). We aren't sure whether to sell it and buy a smaller, rentable property until hubby comes out or to hold on to the one we have and go to capital and interest mortgage. So then when we get our gratruity we can pay off part of our mortgage.

The second issue I have is............I have NO idea what to do when I come out. I mean I have ABSOLUTELY no idea what to do work/career wise. I have the option to stay in but to be honest......the way things are going.....the Military isn't really for me anymore. I have been in since I was 19 and although I have 'trade' qualifications.....I don't really have any 'civvy' qualifications. I don't know whether to start a OU degree/Diploma as I don't know what to do. The things I am interested in would probably take me years of full time education and years I dont have (someone needs to pay the mortgage). I like the idea of Interior Design/Property Development/Web Design......that kind of thing. Hubby thinks I'd be a good mortgage/financial advisor!!!! I guess what I am asking is for some help and ideas from people out there in the know because all i have known is the 'military life'.

:eek:

Curious_Moose

Make sure you take financial advice before commuting that pension. How much cash will you get for each £1 of pension given up? How do you know which is more valuable, the cash or the pension given up?

You wouldn't blindly sell shares without valuing them. Don't do the same with a pension!

tashlovestosave

The thing is......if something were to happen to Hubby (god forbid) then the pension that would come to me would be less than half that of the pension commuted if you see what i mean

tashlovestosave

God that sounds awful i know.............just trying to think forward........quite morbid really!!!

tashlovestosave

Any takers????? No????

Sloppy_Saver

I agree with the previous poster, NEVER commute/cash in or do anything with a pension, no matter how broke you are. You'll need that when you're old and grey and cant work anymore.

also, you might want to ask this question in the pensions/Annuities thread. probably get a better response?

skysky69

What do you do in the RAF?

tashlovestosave

Oooooh nothing exciting.........Mechanical Transport.

tashlovestosave

Sloppy_Saver wrote:

I agree with the previous poster, NEVER commute/cash in or do anything with a pension, no matter how broke you are. You'll need that when you're old and grey and cant work anymore.

also, you might want to ask this question in the pensions/Annuities thread. probably get a better response?

Thanks for the advice..........i will look into it but my original post was about Mortgages and Careers really. The Pension thing is pretty much what we have already decided.

skysky69

Would you like to do something mechanical transport related outside of the RAF?

chun831

Some points for you:
a. If you are going to sell the house, consider the tax implications of selling - any profit must be ploughed back into property pretty sharpish so sell and buy another whilst in military digs I suggest.
b. Have you any early redemption penalty on your mortgage if you pay off a lump sum?
c. As a military guy (RN) myself, I guess you will get resettlement package, get them to pay for an IT course, HGV or bus licence, PGCE for teaching or whatever. Ask your pay office about Learning credits - the military will pay a huge amount toward some quals for you.

Good luck

ps - leaving RN myself soon no idea about job. Am commuting my pension as much a possible as money now is money now! You can never tell what is round the corner