Only freedom will do

Karmacat

If I understood it all the way through, I would have understood it was a typo, sorry - cos I don't I questioned the *level* of my misunderstanding

I do track my net worth, honestly - the explanation you linked to made me glaze over in fear I *mustn't* spend this morning trying to understand it, but it might be one for this afternoon, when I tend to get distracted and need a focus ... I *will* get there. Want to get there on matched betting more, so that I've got a chance of actually getting to real world FI.

Sorry about being so dopey equations traumatise me :cool:

edinburgher

Me too, that's why I let Excel pick up the hard work

NorthernMonkey1

I was chatting at work about this, needing to increase net worth by a grand and a bit a month, and we all agree its mostly do-able.


There is a little friendly rivalry between me and the guy I sit opposite about, on how to squash our mortgages more quickly.


Do we pay off the mortgage, or invest in our companies share save scheme, or pay more into the pension? It's a bit of a puzzle for the unskilled investor

edinburgher

Well, the first two are no-brainers, as the mortgage is guaranteed return and share save is risk free (bar opportunity cost), pension depends on what funds are available to you, marginal tax rates etc.

NorthernMonkey1

I can't do all 3 at once, though. I have to choose which is the most cost effective method for planning for the future. I'll probably be looking to invest an extra £300 a month over the next 3 year period, now all my cards and loans are gone


Paying off the mortgage is probably the one which has the lowest pay off rate, but it's also the most comfortable psychologically.


Sharesave is a good deal, but fixed over 3 years, and pension will save me tax at 40%.

edinburgher

Strikes me that pension is probably the best deal then, fill yer boots!

NorthernMonkey1

One possible option is to invest in the sharesave, for 3 years, then live off that for a year, while paying a much larger amount into the pension. Agghhhh. I don't know what to do..

edinburgher

When do you retire?

NorthernMonkey1

I'm 36, so somewhere between 19 and 29 years time

edinburgher

NorthernMonkey1 wrote: »

I'm 36, so somewhere between 19 and 29 years time

Lol, wouldn't plan on living off sharesave any time soon then, more conventional pension investing would probably work best