Investment portfolios

Onestepcloser

LHW99 said:

In regards to wife's pension with the council they don't contribute

I think you will find they do (generously), but it won't be spelled out anywhere

Yes you are correct.

johnwakers

Nowadays Financial goals should be on first priority the select another to health both are major goals and needs of everyone. For creating the strong portfolio you have to be diversified your fund in small caps, mid caps and large caps stocks apart from that you should keep investment in mutual funds. Most important thing is that keep start with SIPs for more than 5 year. You know if you keep long term goal then you make good money. Start investing now. Well I mostly visit to Africa from USA.

johnwakers

Once again I'll recommend start SIPs and big save.

Onestepcloser

Excuse my ignorance but what is the term caps. I'm going to split the first initial payments, £135 pm to vanguard once I  change it from Isa to a SIPP and asked my wife to max out her council pension, and I will look at my pension with remaining £135pm

AlanP_2

Onestepcloser said:

Excuse my ignorance but what is the term caps. I'm going to split the first initial payments, £135 pm to vanguard once I  change it from Isa to a SIPP and asked my wife to max out her council pension, and I will look at my pension with remaining £135pm

Caps is short for capitalisation = the price of the shares x the number of shares = value of the company on the stock exchange.

So you get Large, Medium, Small and Micro Cap companies, although the value at which the the bands are set is a bit arbitrary. For the UK I would say FTSE100 is large, FTSE250 is mediuim and the rest are small or micro.

Becomes more complex as you look globally - Unilever (largest in FTSE 100) is valued at ~ £200BN, Apple is valued at $2TN, so is Unilever a genuines large cap or is it actually a medium?

How are you planning on your wife maxing out her council pension? It isn't like a DC scheme, you can't just pay more in.

You need to investigate LGPS AVCs and APCs as they are the options available to her. 

Onestepcloser

AlanP_2 said:

Onestepcloser said:

Excuse my ignorance but what is the term caps. I'm going to split the first initial payments, £135 pm to vanguard once I  change it from Isa to a SIPP and asked my wife to max out her council pension, and I will look at my pension with remaining £135pm

Caps is short for capitalisation = the price of the shares x the number of shares = value of the company on the stock exchange.

So you get Large, Medium, Small and Micro Cap companies, although the value at which the the bands are set is a bit arbitrary. For the UK I would say FTSE100 is large, FTSE250 is mediuim and the rest are small or micro.

Becomes more complex as you look globally - Unilever (largest in FTSE 100) is valued at ~ £200BN, Apple is valued at $2TN, so is Unilever a genuines large cap or is it actually a medium?

How are you planning on your wife maxing out her council pension? It isn't like a DC scheme, you can't just pay more in.

You need to investigate LGPS AVCs and APCs as they are the options available to her. 

Apologies again but what is LGPS, AVCs and APCs?

Onestepcloser

Change of plan, I've increased my workplace pension to 300pm combined. My wife is doing the same with hers.

135pm into a global equity fund with fidelity.  Not buying precious metals anymore putting it towards the loan
(had enough of debt, bar mortgage).

Car can be handed back in just over 5 month freeing up 237pm, small amount savings will be used to buy a cheap car and the 237 will go towards savings fund and loan.

I'm thinking this i better plan than the one we had, all advice welcome.

AlanP_2

Onestepcloser said:

AlanP_2 said:

Onestepcloser said:

Excuse my ignorance but what is the term caps. I'm going to split the first initial payments, £135 pm to vanguard once I  change it from Isa to a SIPP and asked my wife to max out her council pension, and I will look at my pension with remaining £135pm

Caps is short for capitalisation = the price of the shares x the number of shares = value of the company on the stock exchange.

So you get Large, Medium, Small and Micro Cap companies, although the value at which the the bands are set is a bit arbitrary. For the UK I would say FTSE100 is large, FTSE250 is mediuim and the rest are small or micro.

Becomes more complex as you look globally - Unilever (largest in FTSE 100) is valued at ~ £200BN, Apple is valued at $2TN, so is Unilever a genuines large cap or is it actually a medium?

How are you planning on your wife maxing out her council pension? It isn't like a DC scheme, you can't just pay more in.

You need to investigate LGPS AVCs and APCs as they are the options available to her. 

Apologies again but what is LGPS, AVCs and APCs?

LGPS = Local Government Pension Scheme. You said your wife worked for the council, so it will be a LGPS Defined Benefit pension that she has.


AVCs = Additional Voluntary Contributions = like a Defined Contribution pot that sits alongside the LGPS DB scheme. It can be used as the 25% tax free lump sum at retirement (subject to HMRC limits), can be used to buy additional LGPS DB pension at retirement, or transferred out to a Personal Pension (leaat preferable option in my view).

APCs = Additional Pension Contributions = buying more LGPS DB pension on a monthly basis whilst working.

AVCs or APCs are the choices your wife has through the LGPS, she can't just increase her contributions like you can to your DC sceme. She needs to choose what she wants "to buy" with the additional contribution that she wants to make. 

See https://www.lgpsmember.org/arm/already-member-extra.php for further details.

Onestepcloser

AlanP_2 said:

Onestepcloser said:

AlanP_2 said:

Onestepcloser said:

Excuse my ignorance but what is the term caps. I'm going to split the first initial payments, £135 pm to vanguard once I  change it from Isa to a SIPP and asked my wife to max out her council pension, and I will look at my pension with remaining £135pm

Caps is short for capitalisation = the price of the shares x the number of shares = value of the company on the stock exchange.

So you get Large, Medium, Small and Micro Cap companies, although the value at which the the bands are set is a bit arbitrary. For the UK I would say FTSE100 is large, FTSE250 is mediuim and the rest are small or micro.

Becomes more complex as you look globally - Unilever (largest in FTSE 100) is valued at ~ £200BN, Apple is valued at $2TN, so is Unilever a genuines large cap or is it actually a medium?

How are you planning on your wife maxing out her council pension? It isn't like a DC scheme, you can't just pay more in.

You need to investigate LGPS AVCs and APCs as they are the options available to her. 

Apologies again but what is LGPS, AVCs and APCs?

LGPS = Local Government Pension Scheme. You said your wife worked for the council, so it will be a LGPS Defined Benefit pension that she has.


AVCs = Additional Voluntary Contributions = like a Defined Contribution pot that sits alongside the LGPS DB scheme. It can be used as the 25% tax free lump sum at retirement (subject to HMRC limits), can be used to buy additional LGPS DB pension at retirement, or transferred out to a Personal Pension (leaat preferable option in my view).

APCs = Additional Pension Contributions = buying more LGPS DB pension on a monthly basis whilst working.

AVCs or APCs are the choices your wife has through the LGPS, she can't just increase her contributions like you can to your DC sceme. She needs to choose what she wants "to buy" with the additional contribution that she wants to make. 

See https://www.lgpsmember.org/arm/already-member-extra.php for further details.

That's correct, she will have word from today what the extra money can be put towards.