A Journey of Many Pounds Starts With a Single Penny

LadyGnome

Ed's mention of the Early Retirement Wanabee thread got me reading it. Now that I have a plan for paying off the mortgage early, I have started to think about planning for ER. I have a good pension pot through work and we have a MF BTL so the foundations are there.

However, I do want to save / invest more. Its a bit of a quandry because my DC pension pot is exposed to the stock market so do I put more of my own money in to the markets? I think to get the returns this is the only option. I have a few thousand in a S&S ISA but haven't topped it up this year. Will try to squeeze a bit out of the budget to make monthly payments over the next few months. I think I will also do some research into P2P lending.

This isn't going to impact negatively on my MF plan which was fairly conservative i.e. I have assumed no pay increases in the 11 years (I hope that is not the case). The two will fit together as being MF will free up money for the RE plan.

This thinking about the future lark is dangerous. It's you lot putting idea in my head;). Before I know it, I will be MF and sitting on beach in the sun .

LadyGnome

Change of plan on the theatre at Christmas. There is a Kids Go Free offer on London Theatres in Aug. First child free and up to 2 half price with a full paying adult.

Just got £168 of Charlie and the Chocolate Factory tickets for £86:j

I've put a link on the Days Out board

shangaijimmy

Oh great idea on the retirement wannabe thread. I'm off to read for some fresh ideas/plans!

LadyGnome

Hi SJ
Its got the cogs whirring in my brain. I am slowly developing a strategy around S&S ISA, Cash ISA and Innovative Finance ISA. You can split your allowance across all three. My PSA is only £500 as I am a 40% tax payer which I should cover the various savings pots I currently have but doesn't leave me much breathing space for building up long term retirement savings outside of an ISA especially if I add some P2P lending.

OPing the mortgage remains a key plank of my plan as there is little point in generating extra income for my retirement if I am stuck in work until I am 65 to pay off the mortgage.

elleandie

LadyGnome wrote: »

Hi SJ
Its got the cogs whirring in my brain. I am slowly developing a strategy around S&S ISA, Cash ISA and Innovative Finance ISA. You can split your allowance across all three. My PSA is only £500 as I am a 40% tax payer which I should cover the various savings pots I currently have but doesn't leave me much breathing space for building up long term retirement savings outside of an ISA especially if I add some P2P lending.

OPing the mortgage remains a key plank of my plan as there is little point in generating extra income for my retirement if I am stuck in work until I am 65 to pay off the mortgage.

I currently feel like I'm spending my days weighing up different strategies and I enjoy it but once in s while feel like a lie down in a darkened room !

Eg 40% allowances vs pensions vs ISAs vs mortgage :rotfl:

LadyGnome

I know the feeling. If I wrapped a wet towel around my head at the moment it would start steaming. A bit too much of this :think::think::think:

edinburgher

What innovative finance ISA? :rotfl:

Will believe it when I see it!

LadyGnome

I didn't make it up - honest gov! Just because none of the big P2P have quite got around to setting theirs up yet...;)


(P.S. Its not really for an innovative financier 'cos that sounds like someone like someone with a striped shirt and red braces trying to sell cheese futures to small businesses.)

(P.P.S. In case anyone is wondering -It's the new ISA for P2P lending )


(P.P.P.S. Cheese futures really are a thing. They are traded on the CME.:D)

LadyGnome

LSD yesterday just some decaf coffee for work. I'm expected today to be a NSD.

I am going to review the budget on the weekend to see how I can find a bit of money for investing without compromising too much on OP and the existing savings pots. I already have an account with one of the lower cost share dealing services and their S&S ISA looks good so I will go with that.

As most of the Innovative Finance ISAs probably won't be up and running until later this year (I have faith Ed) I will hold off the P2P until then. I will cancel my workplace gym membership in Dec (can only cancel at YE) as I am not using it enough to justify the cost. That money can be used for P2P.

10 days to the end of the Xbox squeeze

edinburgher

Mhhh... cheese futures. I always liked 'lean hogs' as a future

Not so confident re. P2P ISAs. RS et. al don't offer a high enough return in their 5 year markets etc. for me to prefer them over FSCS backed 5% savings (I realise that it might be different for you as you pay more tax). The secured lenders with higher rates don't look likely to enter the fray with their own offerings as their 10%+ rates are part because they basically offer expensive bridging finance and part because they run a lean operation that probably can't be bothered jumping through FCA hoops (is it still called the FCA?))