Peering over the hill...

Grogged

Happy New Year everyone - here's to a better one!

savingholmes

Happy New Year

Jessy103

Happy New Year 😃

Cornish_mum

Happy New Year to you and MrsG

caeler

Happy new year @Grogged
I’m also looking forward to a time when zoom doesn’t play such a big part in social events! 

Grogged

The nice end of 2020 Update

In keeping with a few other MSE folk, this update is sponsored by Sugar & Spice and all things nice.

Family and Social

I now feel that my childhood love of Thunderbirds has finally paid off – I always wanted one of their paintings that allowed you to have video calls with friends and family and I now have (sort of) thanks to the popularity of numerous video messaging services! 😊

I also like the fact that it’s brought the, er, older generation, into the 21st century – it can only hasten the end of traditional voice only calls.

MrsG took up hair cutting, I’d call it more of a hobby than a vocation… (She doesn’t read these, does she?).

Work

Unfortunately, like a lot of people, I have been more productive this year with fewer water cooler moments – its just not the same with instant and video messaging… ☹

It has meant though that we have kept in touch more, the move to messaging means that I can dip in out of conversations without feeling rude.

The team also won an award this year, but unfortunately no big night out in London, just a pre-recorded results ceremony and a few beers shared virtually on the night.

MSE & Lifestyle

It’s amazing how much you can save when you’re not allowed to spend it and then realise why was I spending it?

We tend to physically shop an average of three times a month for food.  The rest of the shopping has been mainly (95%) on-line.

At least 2/3 of the month is a NSD.

Apart from eating out or being able to go out on a whim, not much has really changed for us.

I’d like to say that we cook more, but nearly all our meals were cooked fresh anyway.

What has changed is our nightlife (ooh, err!).

We have a regular music night (Thursdays) listening to albums from various charts – we’ve had the top 10 by year for the US and UK, by style, “you have to listen to these!” type charts, etc.

We puzzle/quiz/game on Fridays, (puzzled pint is good, but hard), board, adventure, escape room, mystery games, etc.  Sometimes by ourselves and sometimes with family and friends.

We also have a TV/Film night were we catchup on recorded shows, stuff we missed first time around, etc.

We’ve also rejigged and simplified our finances and bills.

I’ve met lots of lovely people on MSE and it’s stayed a great community.

House and Garden

We upgraded to smart central heating (h1ve) which has worked well for us.

We (finally) bought a shed, which may even be delivered one day next week…

The garden has had a general tidy up and we re-joined the green bin scheme with the council after our local tip closed.

Our mystery monster tree had a haircut (I miss those!), the garden no longer resembles Murkwood…

Final Thoughts

As for 2020? We showed it the back door a few nights ago and welcomed in 2021 through the front.

Here’s to you all, stay safe, keep well, and have a great year.

ATB, G.

Grogged

The December Update

The December update is not affiliated with Halloween.

Usual money stuff first; gossip, tea and biscuits follows...

 

Mortgage

Jan 2020               £99,012

Dec 2020              £87,985

Change                 £10,190

%Change             10.4%

Overpaid              £2,948

Dec 20 OP           £198

 

The normal OP is still going into the EF pot, but Santa kindly allowed me to break the £88K barrier! 😊

The goal for 2021 is to pay off £10,000, with a view to paying it off in full in 9 (stretch of 8) years.  We’re scheduled to pay £8K off through normal payments.  I will look to make between 2 and 4 extra payments throughout the year.  Our NW mortgage is structured so that if you OP by at least £500 you get to either instantly reduce eth term or monthly payment.

 

EF/Cash

Jan 2020               £10,400

Dec 2020              £24,550

Change                 £14,150

%Change             136.1%

Target                   £18,000

In Dec 20              £1,578

 

R@tesetter finally repaid everything, so most went into the pension pot, but some went to the EF.

The plan for 2021 is to add a month to the EF and continue this every year going forward.  This will enable early retirement if needed (although not by much!).

Each month I aim to open a new 12 month high interest (lol) account to try and maximise the EF savings.  This will ultimately provide a years buffer, the excess will be held in PB, etc.

Pensions

Jan 2020               £186,400

Dec 2020              £221,400

Change                 £35,000

%Change             18.8%

Target                   £350,000

In Dec 20              £3,709

Ret Return           3%

Dec 2020              £6,642

Target                   £10,500

 

Just in case it's not clear the "Ret Return 3%" section just shows what the annual retirement income would be if taken as interest only today or at current target.

The state pension would be added on top of that (another £9K at today’s rate).

This could be boosted by drawing down on the capital, changing the rate, etc.

 

Currently the monthly income from dividends is £205 (based on 3 months at Interactive Investor).

 

We are mortgage neutral with our savings, so if needs be, at least the mortgage is covered.

 

Grogged Towers News

In October I bought a shed.  It was on sale for Halloween (who knew).

This was supposed to be installed in December, but has been rescheduled till January after a late-night delivery and build attempt...

 

We had a virtual Christmas quiz afternoon with MrsG parents, following our Christmas lunch.

Luckily we had a bit of turkey left over… and over.. and over…🍗

 

Biscuit rationing has been suspended for Christmas!

Bought shortbread, which is a Christmas tradition, just like the chocolate Orange…

 

Still on the hunt for a rescue dog, but given the current news, I think this won't happen until the new year now.

We exchanged books this year - MrsG got the David Niven memoirs and I got the Thursday Murder Club.

 

Stay safe and here's to a good 2021! 🎉🍻

G.

savingholmes

Great update. I bet you were relieved to get your £ out of ratesetter. Great OPs off the mortgage and your pension is going up nicely.

Grogged

The MrsG December SIPP Update

 

This is the story of the good SIPP MrsG which started her voyage in June 2020 with an investment of £1,440 and a transfer from a previous plan.

As MrsG earns no income, her maximum contribution per year is £2,880, which the kind tax man will top up to £3,600.

The remaining £1,440 will be contributed monthly, from April 2021 this will rise to the maximum £240 per month.

 

The aim is to get a pot of £50,000 by retirement in 2035.

 

MrsG had a windfall in December, her previous pension which we transferred, wrote to tell her that there was a secret second part.  Really! How interesting.  After a short call to check that there were no more secret parts, it was transferred and arrived on Christmas eve!

 

Currently contributing £200 per month (£160 + £40 tax relief).

 

The portfolio is fully invested, with the aim of keeping a running cash balance of £5 to cover the quarterly charges.

 

Weight Symbol Investment

80.0%              Equities

5.0%   VMID   FTSE 250 UCITS ETF

20.7% VHYL   FTSE All-World High Dividend Yield UCITS ETF

24.8% VWRL  FTSE All-World UCITS ETF

29.4% VEVE   FTSE Developed World UCITS ETF

20.0%              Bonds

20.0% VAGP   Global Aggregate Bond UCITS ETF Distributing

 

Cash  £57

Total £12,542 - November (£11,531).

 

Average monthly income is £12.71 after 7 months – a quarterly dividend was paid on New Years eve.

The estimated annual income is £133 after charges (0.09%).

Total return to date is 5.8%, estimated annual return is 4%.

 

Annual values are calculated as (current value / portfolio age) * 12.

They will be a little patchy until a full 12 months have elapsed.

 

The bond funds pay dividends monthly and the equity funds quarterly.

 

The current weighting is 80/20 equities/bonds.

The plan is to move to 65/35 by retirement.

 

The equities will be 5% for the UK (VMID) and 75% global (20% VHYL, 25% VWRL and 30% VEVE).

 

Each £160 monthly payment buys one VAGP and one VEVE share, the rest is deposited as cash, with a £40 government top up 8 weeks later.

This flexibility allows the right weightings to be maintained going forward.

The portfolio will be rebalanced following payment of the quarterly fee.

 

After moving the main pension portfolio to Interactive Investor, we've decided to simplify the portfolio going forwards.

 

VGOV was sold for a profit of £11 (£5 investment and £6 dividends).

The money was invested in VAGP.

 

This removes the last of the main overlaps and gives a nice simple portfolio that replicates much of what a LifeStyle fund would do, but at a cheaper cost overall.

 

The portfolio is held with Vanguard, which whilst not the cheapest, is fairly close for the level of investment and peace of mind.

 

Stay safe,

G.

savingholmes

How lovely to uncover an additional pension pot. I found one of mine - and it had over £2.5K in it. It's now at around £3.1K. It all helps. I am thinking of moving mine to Vanguard -either literally or via the current provider.