MFW & Retirement Planning on a Single Income

nellis10

Nothing!!

I spent £20 on 2 whisks that were demo'd in Tesco today. Foolishly I stayed for the free gift and my son guilted me into getting the whisks. Actually they are not bad at all, but still, not very MSE!!

Got my Tax codes through from Le Taxman.
I still don't undestand them.

My tax code for this year was 947L
I got pension relief bringing this amount now to 11422 for 2016/2017

Got my tax code for next year
Pension relief of £844, Med Insurance £1529,
Brings new tax code for 2017/2018 to 953L (I still pay medical insurance tax)
But they are still including the tax underpayment (£1278) in that - I've actually just paid the underpayment by cheque, so I will be getting ANOTHER tax code realignment to 1081L for the coming tax year.

This now brings me under the Taxable Income threshold of £35K so should I be getting pension relief at 40% on this year's private pension? These are rebates from previous years, so will I be dinged or should I NOT therefore get the pension relief this year for 2017/2018?

Plus is the £844 in the new tax code for last year's pension relief and not this year's pension relief? In which case I don't then claim next March for this year's relief.

I'm so bloody confused!! :o:o:o:o

nellis10

Does anyone know how to paste an excel table into MSE without all the formatting going awry?
TIA, Nat.

nellis10

My eyes are going square looking at excel spreadsheets all day today.

But a couple of decisions made:

• Coming out of Work ESPP after next purchase period (March)
• Divest all ESPP shares plus 50% options once share price hits $20 ($5 away currently)
• Use said funds for new bathroom/kitchen without requiring additional savings funds, would give me £12K gross
• Keeping 4 savings vehicles: 2 x pension, 1 x ISA, 1 x regular saver
• Attempt to retire on £20,000 at 61 - 15 years from now
• Assuming all compounding rates average out at 4-5% per annum for next 15 years, total pension fund could be £480K which would then compound itself from 61 to 67 to £600K (this seems wrong lol)
• Don't take any pensions until 67 but use cash & ISA from 61-67

FacelessNumber

Hi nellis10!


Thought I'd pop by and read your diary after you commented on mine. This all sounds very complicated! I know how you feel with deciding what to do with money though. I really want to start investing (I'm 29) but our money is stretched in so many different directions that it's difficult to invest anything meaningful. I did have a play around with funding circle this year which has made me 8% so far - I didn't put much into it though.


I just want to get the house sorted ASAP but I know that investing early is sensible. My plan is to leave things as they are for now and try and work it out later in the year when I've finished my MSc and have more brain power available for it all :rotfl:


Good luck with the plans though, I'll be subscribing to your diary

nellis10

FacelessNumber wrote: »

Hi nellis10!


Thought I'd pop by and read your diary after you commented on mine. This all sounds very complicated! I know how you feel with deciding what to do with money though. I really want to start investing (I'm 29) but our money is stretched in so many different directions that it's difficult to invest anything meaningful. I did have a play around with funding circle this year which has made me 8% so far - I didn't put much into it though.


I just want to get the house sorted ASAP but I know that investing early is sensible. My plan is to leave things as they are for now and try and work it out later in the year when I've finished my MSc and have more brain power available for it all :rotfl:


Good luck with the plans though, I'll be subscribing to your diary

Hi FN!!

Yes, I am trying to be all things to all men so to speak with regards to my finances.

I've decided that I won't increase my mortgage overpayments for now. Still overpaying by a nominal sum, but just enough to finish 3 years early, which is fine.

Going to bump up the Pension pot big time to 20% and get that rocking and rolling.

Starting to invest for long term savings...I would suggest when you get a moment to breathe after your MSc that you do too! You will have 15 years on me!! :rotfl:

Everything else will go into cash for emergency funds and general needs for house etc.

That's me simplifying it lol :o

edinburgher

The ISA will probably be the hard part, you'll need £120k for 61-67?

nellis10

edinburgher wrote: »

The ISA will probably be the hard part, you'll need £120k for 61-67?

Compounding at 3% gives me about £180K if I add 9000/annum or £750/month.

Currently I'm paying £550 to get debt free to and £200 into regular saver , so that's how I am getting my £750 for investments.

That is what I was planning to throw at the mortgage, but now convinced investment is the right way to go!

edinburgher

Curious why you're assuming 3% for ISA, but 4-5% for pension?

nellis10

edinburgher wrote: »

Curious why you're assuming 3% for ISA, but 4-5% for pension?

I've no idea. I guess they would both go up or down at the same general rate?

I'm trying to balance optimism with blind panic pessimism lol

I've compounding sums coming out my ears looking to see if I am going to make it.:)

edinburgher

I think I'm allowing for 3%, don't want to stretch things by assuming more.