general financial health check

Mistermeaner

Hi all

Been reading various threads etc here and in the retirement section, appreciate it won't be full financial advice but would appreciate the opinions of the well informed as to whether my savings / debt strategy is ok or if I am doing anything particularly flawed.

Not an excuse but I am a single father and work abroad 2/3 days a week, I find I am so busy I just can't find time to really scour the huge range info out there.

I am 34, earn 70k +/- a bit

No debts apart from mortgage, 70k remaining, 7 years (deliberately short term) costs me 1k per month (house value 130 - no plans to move)

Savings wise I have approx 2k in cash isa paying in 100 per month, 2k in virgin stocks and shares isa paying in 300 per month

My son has a trust account with 9k in (I have stopped paying in to this now figuring that's enough) he is 7

My work offer a very generous pension which is invested with zurich, I currently have 50k in my pot and pay in a total of 800 per month

I am not materialistic at all and generally find my income exceeds outgoings (Inc current investments) by 500 - 1000 each month (ie I have 500 - 1000 per month spare cash)

Life insurance and private healthcare are paid for by work as well


Basically I know I'm in a fairly stable position and want to maximise mine and my son's future security, current plan is mortgage free asap while maintaining my savings + investments. I have thought about buy to let but not sure if want hassle.

Is my current strategy generally ok or have got the balance wrong at all, could I be using my cash / debt more effectively.?

Ideally I would like the option to ditch this very demanding job in my mid forties and do something I enjoy, so want to maximise financial efficiency / my current earnings over the next 10 years.

Any thoughts appreciated

Your_Hero

ggb1979 wrote: »

I am not materialistic at all and generally find my income exceeds outgoings (Inc current investments) by 500 - 1000 each month (ie I have 500 - 1000 per month spare cash)

I used to hear this a lot with new clients, and it tends to be an inaccurate figure as it doesn't factor in their social and leisure expenses as well as other costs. If you are really left with 500-1000 per month spare cash after your regular savings, where is the lump sum built up? Your level of savings tell a different story. Unless you have been overpaying on your mortgage or only recently started having this level of disposable income.

Your finances generally look ok, probably could do with a higher emergency fund. Continue saving into your stocks and shares ISA and pension since you are a higher rate payer. May wish to consider income protection to protect you and your son in the event of long term ill health.

masonic

Another consideration is whether you will want to use some of the capital you build up before your career change to supplement your income afterwards. This could affect how much you wish to allocate to your pension.

Mistermeaner

Hi thanks for prompt reply

You are correct that my current position is relatively new, I have a couple of hefty pay rises in last couple of years and thus far focussed on clearing debt (personal and student loans)

My take home is 3500 a month (after tax and pension) from that approx 1k goes on mortgage, 400 isa savings, 600 bills etc (council tax, utils, phone, internet, sky, gym, child support) then 500-1000 on general expenses / fun generally leaving 500-1k 'free' each month. Currently this is staying in current account which has approx 5k in it.

I will max overpay lump sums against mortgage but am limited per annum on doing this for next 3 years.

I guess I could just put more in isas but is there anything else I could be doing

Thanks

jimjames

ggb1979 wrote: »

I guess I could just put more in isas but is there anything else I could be doing

Thanks

Personally I certainly wouldn't bother putting any more into cash ISAs when you can get 5% on the amounts you have in there which beats any ISA rates - but it does involve some admin to set up.

Make sure you have the best price S&S ISA for your requirements, Virgin is a very expensive provider.