Overpay mortgage or other investment?

atush

so at least you put it up 4%? Better than nothing although not as good at catching up as 8%.

The 590 left, 400 into S&S isa, and 190 into mtg. Once 0% debt is gone, up your pension again.

And do consider your pension part of your net worth. As is the equity in your property

atush

Forgot she was not wife and following your comment about marriage. Marriage does not equal 15 k wedding. While I think it is an aberration to spend on a wedding the amount you have to save for 3 years for and see it as a human circus marriage is not about a wedding .

I agree, but you dont have to spend that much on a wedding. Have the church and the dress and a fancy cake.

Take a van to Calais and stock up on champagne and beer and wine (before brexit lol) and have a hog roast in a marquee with a band.

should cut the cost nicely

adonis10

justme111 wrote: »

Frivolous spending is good !
Re vanity - does your employer increase their contributions when you increase yours? Or is it at max already ? If not then how much do you save on NI ? Why I am asking - I wondered if benefit of increasing your contributions into work place scheme was marginal you could go for SIPP instead/in addition.You would be able to access it earlier as with employers pension the downside would be the age you could access it - is it 68 now ? May well be 70 by the time you get there. You may want to retire far earlier and SIPP would be accessible about 10 years earlier. Plus your vanity would be happier as you would see your pension pot the same as you do with your savings/investments
PS. Factor in children. I bet within 2 years your wife is going to tell you you WILL have children .
PPS. Forgot she was not wife and following your comment about marriage. Marriage does not equal 15 k wedding. While I think it is an aberration to spend on a wedding the amount you have to save for 3 years for and see it as a human circus marriage is not about a wedding .

No, e'er is maximum at 16%. I bit the bullet and opted for a 5% increase to 13% which costs me £80 net per month which saves £54 in tax, ni and s loan.


I will do research on the SIPP idea as it is now too late (submitted my request for an increase) but the worst case scenario I will only have to suck up these extra payments for a year at which point I can reduce/increase.


Re having a child, that is all well and good but it will not be happening until finances are completely sorted and I don't have to make any financial sacrifice. If she decides that she wants to force a child upon me then there will need to be a solid plan as to how her income is going to be replaced when she is not working. Sounds harsh but I have no desire to have a child and as such do not want to have to work harder for less to support one, if I don't have to.

adonis10

atush wrote: »

so at least you put it up 4%? Better than nothing although not as good at catching up as 8%.

The 590 left, 400 into S&S isa, and 190 into mtg. Once 0% debt is gone, up your pension again.

And do consider your pension part of your net worth. As is the equity in your property

Pushed the boat out and went for 5%. Talk about frivolity!

justme111

adonis10 wrote: »

No, e'er is maximum at 16%. I bit the bullet and opted for a 5% increase to 13% which costs me £80 net per month which saves £54 in tax, ni and s loan.


I will do research on the SIPP idea as it is now too late (submitted my request for an increase) but the worst case scenario I will only have to suck up these extra payments for a year at which point I can reduce/increase.


Re having a child, that is all well and good but it will not be happening until finances are completely sorted and I don't have to make any financial sacrifice. If she decides that she wants to force a child upon me then there will need to be a solid plan as to how her income is going to be replaced when she is not working. Sounds harsh but I have no desire to have a child and as such do not want to have to work harder for less to support one, if I don't have to.

Ah , as you just starting with pension I did not mean option g for SIPP now instead of additional one. I meant with remaining money /once you accrued a few grand in your occupational one resulting in your post state pension age income being sufficient
Re child - likely you will have to. Because your partner likely will want one. Children are always sacrifices. And monetary ones are only part of them. They are rewards as well though

adonis10

justme111 wrote: »

Ah , as you just starting with pension I did not mean option g for SIPP now instead of additional one. I meant with remaining money /once you accrued a few grand in your occupational one resulting in your post state pension age income being sufficient
Re child - likely you will have to. Because your partner likely will want one. Children are always sacrifices. And monetary ones are only part of them. They are rewards as well though

Ah ok, cool.

Fair point re kids but if she can work out a way to earn the difference between her current take home pay and the maternity pay (and latterly, all of it) then I'll consider it. Quite a sad state of affairs to think how many men are wandering around with kids they they didn't want but had to keep their partner happy.

justme111

Those are quite worrying words. I wish you life in which you have no greater problems than discrepancy between the amount of money that you have and the amount you wish to have .

adonis10

Back again for advice as I am in the month long window to change pension conts!

Financial situation not massively different (past year most of my surplus has gone towards credit card debt for essential house spending and a new car), but the weightings have changed slightly (58:42 cash:investments). Current state of play:

Cash - £37.5k
S&S ISA - £11k
S&S LISA - £5k
Workplace pension - 23k (29% contribution, 13 e'ee, 16 e'er)

Other info:
Debts - 141k mortgage, 13k student loan (overpaying £100/month), £700 surplus cash after bills, essential and discretionary spend.


Thinking of upping pension conts to 16-18% but wonder if I am then committing too much to funds that are not accessible.


Not a huge change from last year but any advice appreciated.

atush

adonis10 wrote: »

Any particular one? Can use up my 16/17 allowance in next 3 months so where would you put it after that?

I do like the idea of chipping away at the mortgage though due to the daily interest and the years that can be shaved off by doing so.

Pension is good on paper but I've only been in it for 10 months, 7 at the highest rate. I am 33 and it's my first proper pension so my provision is currently utterly terrible!

It depends on what you invest in- passive, active, shares etc. A FTSE fund, being all UK, is higher risk than global ones. Some pensions are better than others for each.

You ARE chipping away at the mtg- by 200/month?

You coupld add a lump sum to your pension to 'catch up'.

And yes, as ECO says, you could transfer your cash ISA to a S&S isa.

atush

adonis10 wrote: »

Back again for advice as I am in the month long window to change pension conts!

Financial situation not massively different (past year most of my surplus has gone towards credit card debt for essential house spending and a new car), but the weightings have changed slightly (58:42 cash:investments). Current state of play:

Cash - £37.5k
S&S ISA - £11k
S&S LISA - £5k
Workplace pension - 23k (29% contribution, 13 e'ee, 16 e'er)

Other info:
Debts - 141k mortgage, 13k student loan (overpaying £100/month), £700 surplus cash after bills, essential and discretionary spend.


Thinking of upping pension conts to 16-18% but wonder if I am then committing too much to funds that are not accessible.


Not a huge change from last year but any advice appreciated.

what rate do you pay on student loan? Might not make sense to overpay?

Your pension contribs look good right now, i'd concentrate on S&S isas? Unless you are paying HRT? You could put most/all of any bonuses into the pension?