£1250 - 'spare' pcm

Colin297

cashbackproblems wrote: »

The lodger idea is a great source of income and only marginally increases bills.

I would definitely join the company pension as mentioned as its free money you are turning down.

I personally have an S+S ISA with HL where i invest £50 p/m into 7 funds, ranging from emerging markets to Blackrock Tracker funds (which have v low annual fees e.g. 0.15%). You don't have to be an expert to just pick a few trackers and they have a wealth 150 with suggestions, all have performed well over the years.

How can I set up a s and s Isa where I can contribute a fixed sum pm?

cashbackproblems

Colin297 wrote: »

How can I set up a s and s Isa where I can contribute a fixed sum pm?

check out HL website it is easy to set up. Btw i meant 50p/m for each fund…the minimum is only £50 per fund.

Colin297

cashbackproblems wrote: »

check out HL website it is easy to set up. Btw i meant 50p/m for each fund…the minimum is only £50 per fund.

Thanks

I already have a cash ISA with Coventry, am i able to have a different S&S Isa provider? If not, ill wait until April.

jimjames

Colin297 wrote: »

Thanks

I already have a cash ISA with Coventry, am i able to have a different S&S Isa provider? If not, ill wait until April.

Yes, the cash ISA and S&S ISA can be with completely different providers. Many cash ISA providers don't sell S&S ISAs

Colin297

jimjames wrote: »

Yes, the cash ISA and S&S ISA can be with completely different providers. Many cash ISA providers don't sell S&S ISAs

Thanks.

One more thing - the likes of the HL S&S platform charge circa £11 "per share deal".

How does that apply to the, for example, £50p/m direct debit that I will set up? Will every monthly payment be subject to that unit charge when i go to use it against a share or fund?

ColdIron

The £11.95 (plus 0.5% stamp duty) is for shares not funds which are free to trade. If you buy shares with the monthly direct debit I think they are £1.50 a go

Doshwaster

Colin297 wrote: »

Thanks.

One more thing - the likes of the HL S&S platform charge circa £11 "per share deal".

How does that apply to the, for example, £50p/m direct debit that I will set up? Will every monthly payment be subject to that unit charge when i go to use it against a share or fund?

The purchase fee only refers to shares. Buying funds is free although each has an annual fee. See: http://www.hl.co.uk/investment-services/vantage-service/regular-savings

BillJones

atush wrote: »

you have it wrong way round.

1K into pension, play with the 250 into a S&S isa.

Well, it depends.

If he's 40 years until retirement, then that's 40 years of fees to pay on the first year's investment, and 40 years during which the money is pretty much completely tied up, and the government has clear visibility of it, shoudl they choose to raid pensions again (as Labour have suggested today that they will).

Yes, the tax incentive is good, but it is not without downsides, and you so can't really give a blanket recomendation about when and how much makes sense.

somethingcorporate

You may have only been working a few years but I'm a year younger than you and my pension is about to tick over £50k, mostly thanks to a generous employer contribution and a fair bit of sacrifice from myself. My wife has around £40k with no employer contribution.

If you want a comfortable retirement you need to start early to gain the benefits of compound interest.

atush

BillJones wrote: »

Well, it depends.

If he's 40 years until retirement, then that's 40 years of fees to pay on the first year's investment, and 40 years during which the money is pretty much completely tied up, and the government has clear visibility of it, shoudl they choose to raid pensions again (as Labour have suggested today that they will).

Yes, the tax incentive is good, but it is not without downsides, and you so can't really give a blanket recomendation about when and how much makes sense.

40 years of compound investment returns is what makes a pension. Tax relief is a nice boost to strt it off, but compounding the investment returns gives the biggest boost over all. So yeah, it is worth locking it up for now.

Generally future raids by govt will be things that will affect you in future not now, such as reducing the allowance
(but as it has come down from 255K to 40K i don't think it will drop much further).

Or reducing TR to basic rate. But these things would not be retroactive.

So using them as scare stories to stop others investing (esp in this case where they threw away employers contribs) is a poor show. The OP has quite a bit of ground to make up.