Cut the interest payments

Youknowme_2

And task number 2 for tonight is to sit down and assess pension options and balance that with OPs

Youknowme_2

Well Kindle listed on e Bay, no bids but several watchers. I remembered about a iPod Nano I have so will dig that out and list as well.

Several orange sticker purchases at coop today for the freezer and a £1 of £10 spend voucher used as well so that all helps.

A few pound and pence transfered from current account to a savings account, that I will title the Car Fund. I round down the current account balance to nearest £10 every day and hopefully these transfers add up to enough to purchase a replacement second car when the time comes.

jamesd

The pension options should be interesting. The 25% tax free lump sum from most personal pensions and defined contribution work pensions, like group personal pensions, is available from age 55. In effect the tax relief gets you free money at 55. In the meantime, the long term UK stock market return has been 5.2% plus inflation, around 8-9% overall. Fees in a tracker would be about 0.2% and that's still well above most mortgage interest rates, so you're gaining more in investment value than you're paying on the money in mortgage interest.

For this reason I have an interest only mortgage and just plan to repay with what is effectively free money. If I happen to have money that is uninvested, or stoozing money from credit cards, that goes into the mortgage offset account to save me mortgage interest.

Youknowme_2

Thanks for this input jamesd. My "issue" with pensions has really been where the money has been invested and with previous employers I was not happy with particular pension. My current employer is better so now looking to sign up, especially as significant employer contributions are available.

jamesd

Grabbing the employer money is almost always right - just extra pay being thrown away if you don't get all you can of that. Hopefully you'll be more satisfied with the current options. If you need both pension and mortgage paid off it's pretty much the most efficient way I know to get both taken care of.

I'm now at about 70% of my mortgage covered by the 25%.

Youknowme_2

Considerably lighter in the pocket today after car service set me back £230. I had optimistically 'budgeted' £210 so not far off.

On positive, auction listing for Kindle ends tonight so will get some of that back, most also get the iPod Nano listed.

Other than that a small account tidy of a few pounds goes across to the car replacement account.

Still waiting on some final information on pension but keen to get signed up before next month's pay run is done.

OH doing a bigger food shop tonight so hopefully she gets some bargains!

Youknowme_2

Well got my Kindle sold and should clear £35 after fees which is good, it was just gathering dust. Will get the iPad Nano listed later.

Got information gathered on pensions and just need to make a final decision on where to invest it to make use of employers contribution. It will mean our take home pay is reduced and hence ability to OP will also be. However looking to long term we will be better off.

Been out to town this morning with son which was good quality time but did mean we are a few pounds lighter as he likes his snack in cafe!

Another two account tidies to the Car Fund and it is building up slowly.

edinburgher

Well done on the Kindle sale

As jamesd said, the employer contribution alone means that a pension is almost always a good idea.

In the short term, your wages will feel a little on the small side, but you very quickly get used to it. If the pension has online access, it can be very rewarding to look at it tick up every now and again.

Youknowme_2

Listed my iPod Nano on eBay and then had a host of questions asking for serial number. Seems the Nano may qualify for a replacement programme and possible I may get a new IPod so I took it off eBay. Could be a little bonus.

Pension forms have been submitted but will not hit next month's payroll but will be knocked down after then.

Second car booked in for a service next week. It is an old car so will see what more work is required on it before deciding whether to tax it at the end of the year or look for a new second car.

I was looking at S&S ISA but reckon as paying 5.49% on mortgage I will in short term continue to OP rather than invest. However will continue to look at options.

Youknowme_2

Well another few months have passed without an update. However it is that time of the year when we all seem to take stock.

Sorted out our pensions and car serviced, albeit still got brakes to replace next month.

Although I have not updated I have brought the year to end with a total of £3,100 OPs since July or an average of £19/day which I am pleased with. I did not set a target for the year but will be thinking about one for next year. Got a medium term date of fix ending in spring 2016 where I really want as low a LTV as possible - minimum 60%.

Now I am in a bit of a dilemna, as really want (as opposed to really need!) a new TV for living room. We have had our current one for approaching 8 years now but it is just too small for our living room and where we sit.
Looking at the size to viewing distance ratio guides we ideally would need something between 48 and 55 but ours is only 32". I have known for a good while that it really is too small but spending money is far from natural to me.

But then one more large OP also looks appealing!

Decisions. decisions.