Prosperous soul embraces creativity & mortgage neutrality

MovingForwards

Finance sounds good.

savingholmes

Well I've put the heating on briefly as I didn't have the shower last night. Temperature in the lounge had fallen to 13 degrees. Just having breakfast and then I need to have a quick shower and go. I still need to prepare for a meeting. 

£200 has gone into the regular saver - so for now my savings are going up - until I know what's happening with my sis at least. 

My mortgage has gone out so that's around £650 off the capital. 

Blackcats

Pleased to hear you are writing again.  Looking forward to reading book number 2. 

EssexHebridean

All sounding lovely and organised. I love a regular saver - something very satisfying seeing the amount gently rise through the year! 

girlatplay

I'm glad you're writing again.  

doingitanyway

All power to you with the writing 

mark55man

Happy to see you are writing again, I imagine it may be frustrating but a lovely creative release now that your day to day pressures are falling into line

savingholmes

Thanks Mark, Blackcats, GAP, EH and DIA

I appreciate the encouragement.

I've opened the new savings acct from B at 5%. Nice as before my instant access with them was just 1%. Moved over £500 so far. I'm going to wait at least a week and see if my remaining regular savers up their rates as they are now all uncompetitive!

My pensions chat yesterday was disappointing. It felt like I needed a tax and a payroll specialist in the room as he couldn't answer most of my questions. He doubts that the AVCs will be taken this month but couldn't commit. He has named someone I can email and ask though. Even if they aren't taken - I'm due to pay enough on my purchase of holidays and my AVCs this tax year to mean I shouldn't pay HR tax even after the COL is agreed and paid and I get my next increment in Dec. It's a nice problem to have. I need to check with payroll/HR whether I get tax relief at source or whether I need to reclaim the difference. The pension person was clueless on what I felt was one of the most important points!

I want to redirect any £ that would otherwise be subject to 40% tax to my AVCs - which I am counting as my mortgage neutral pot anyway. I can then take that as a tax free lump sum in its entirety providing it's 25% or less of my overall DB & AVC pots combined. I would be very lucky to get even close to that figure but a rising market (LOL) would help!!

I also looked into buying additional pension as an alternative as it would be a more guaranteed return. I would love to do half and half but that wouldn't help me clear the mortgage in the same way - although it would give me guaranteed income for life. Because I think I'll end up taking this pension early - and there are hefty reductions - I'm not convinced it will work in my favour. I can buy added years later if I want but it's likely to cost more as it will have had less chance to grow. Given that my AVCs will hopefully grow that might not be as big a deal as it is in my head. Lots to think about. 

I recognise I'm privileged to even be able to have this debate. I am frugal in some areas to help make it happen. No heating on yesterday - just an elec blanket a few hours in the evening as I went to work during the day. I spoke to someone at work yesterday who'd been asked to increase their monthly payment to £700!! They are busy investing in elec blankets instead and going into work more.

L9XSS

Hi SH, just catching up (again), I’m so busy at the moment, weeks seem to fly by! Regarding the pension discussions, I had a similar problem (ie I felt more knowledgeable than the person I was having the discussion with!). The pension forum is a good place to start, there are some very knowledgeable people on there. I’ve had very specific answers to DB and DC pensions. I would post your question about tax implications and AVCs I’m sure you will get the information you are looking for. Likewise I’m trying to build my EF. Next months pay will be part utilised to my savings account rather than my SIPP. Some car repair bills needed and boiler fund for when the inevitable happens! Back to work this weekend, family meet up was lovely, just a few days but nice to be back where I grew up.
As always the photos of your holiday looked idyllic. On my bucket list to visit now. Have a great day.

savingholmes

Thanks @L9XSS

Yes I may check with someone at work first but if I get no joy from them ask on the pensions board. I read quite a few threads on there yesterday but they didn't seem to answer my specific question. I want to know the order that deductions happen in ie

• My annual leave purchase which drops my salary from a tax and NI perspective I think.... 
• Is that followed first by my AVCs - so I get the benefit of any extra tax relief - or is it my normal DB work pension..... Do I have to claim for the 40% tax relief separately or is it automatic?

I won't hit HR tax until part way through March so time to get it sorted / answers yet. 

I worked a long day today. I owe time so trying to pay it back - and on top of that have a messy day of appointments tomorrow - including my new 'dental bridge' fitting tomorrow for 20mins mid afternoon followed a few hours later by counselling which I need to travel 15-20 mins to get to. A manager was also hounding me for a report as they are about to go on leave and want to have input into it before they go away. I had the equivalent of 5 meetings today - 3 of which were impromptu - so that delayed me actually producing stuff... People only stopped contacting me after 6pm so that was when I got my best work done. DD was also out today which helped.

My cleaner has been and worked her magic. Glad I'm not skimping on that. I was a bit distracted when she first came though.

I missed my exercise class and can't go tomorrow either so backsliding again on the exercise front.

I've done a load of washing today - now need to dry it. I will use the TD for some as I need to soft towels... Will hang some things on hangers and let them dry naturally.

No heating on today and my lounge is 15 degrees so just using a cardi and an elec blanket and over blanket.