overpay on mortgage instead of saving?

System

Fenwick- you can massively reduce s&s risk using a diverse fund, that'll put into so many companies that it won't really bother you if one goes down the toilet, brexit result was nothing more than a storm in a teacup so far anyway. And regular contributions reduces the volatility as if it does go down you simply buy more next time at a cheaper price

The fund won't do astounding if its nearly all bonds, you have to speculate to accumulate, and if you own a house anyway then you already are massively speculating in residential property

You can get property funds if something tangible reassures you, commercial property is in turmoil at the moment, might be cheap to buy

Also its safer in the long term, and cash has a v high inflation risk long term, cash is arguably less safe than stocks long term

fenwick458

greenglide wrote: »

Is the "work for myself" self employed or a limited company?

If limited company there are distinct advantages in the company paying employers pension contributions as saves corporation tax.

If self employed the are less tax advantages but the question is "how will you fund your retirement"?

Ltd company. I need to look into pensions I have an employee too so I believe I have to offer him one quite soon...

fenwick458

atush wrote: »

First of all, you can invest in some lifestyle funds or global trackers whihc dont need a lot of knowledge, read the Vanguard thread.

Second, you should expect over time (ie many years/ even decades) for equities to return more than inflation b around 4% so should be beter than cash over long periods.

Third, yes pensions can be a good thing. AS you put in 80 and the govt adds 20. So you get 100 in your pension that only costs you 80. again use lifestyle funds or global trackers.

thanks I will have a look into this vanguard thread. and pensions.

System

People are saying vanguard to me but I quite like my Halifax/ Scottish windows growth fund 6

Eco_Miser

fenwick458 wrote: »

sorry I should have been clearer, the only money I was thinking about moving would be from the santander 123 account, (and the interest on that is ?? , I'm not sure, they say it's 3% but is it not more like 2.5% from reading some of the posts on here?)

It is 3% AER, which is reduced by the monthly fee, and by not compounding when a full £20K is deposited.
However the fee is payable for as long as you have the account, and you have much less than £20k in there, so for you 3% is the rate you should be comparing with your mortgage rate (unless you would close the Santander account).
The actual size of the mortgage, or Santander balance doesn't matter, just how much you overpay.

bigadaj

MatthewAinsworth wrote: »

People are saying vanguard to me but I quite like my Halifax/ Scottish windows growth fund 6

Why, how has it performed?

fenwick458

greenglide wrote: »

If limited company there are distinct advantages in the company paying employers pension contributions as saves corporation tax.

can you give a bit more information here please? I have just been on the pensions regulator website, from that I have found out I do not need to offer my employee a pension as they are under 22, but is it worth me setting up a pension for me, and what benefits would I get from it?
also, do I have to do this? if "my company" doesn't offer "me" a pension, do I get a fine?!

System

Bigadaj - havent had it long but since brexit my £200 is now £209, a little volatile but more gains than losses, i like having a tracker in it and like the mix, 0.69% not to bad but prolly beatable

redpete

MatthewAinsworth wrote: »

Bigadaj - havent had it long but since brexit my £200 is now £209, a little volatile but more gains than losses, i like having a tracker in it and like the mix, 0.69% not to bad but prolly beatable

Performance over 12 days is absolutely zero basis for making investment decisions, the currently market volatility makes it doubly so (although twice zero is still zero).

atush

fenwick458 wrote: »

Ltd company. I need to look into pensions I have an employee too so I believe I have to offer him one quite soon...

Your company can make the pension contribs for you, and it will reduce your corporation tax paid as it is a business expense.

Will also save on NI esp for your employee so do look at salary sacrifice for them.

So no you dont have to make pension contrib for your employee (now but presumably will when they get older), but you might want to (to retain them if they are good).