How would you save spare 1.5k per month🤔

Martico

I go VWRP and also (instead of having a separate cash ISA, and for a bit of solidity) CSH2, an ETF which tracks money market funds, so running at around 5% pa at the moment. Both of those are in a SIPP, but would be available in (many) ISAs
(Edit to repeat - I am a novice and like to keep things simple and clean)

400ixl

samps1973 said:

@400ixl I have about 70k in my nest pension so far and from what I put in over the threshold and my works contributions it’s about just under 1k per month contributions.

Is that you total pension portfolio, or are there also employee pensions as well?

What age do you plan to retire and how much annual income you you think you will need in retirement?

A £70k pot today at 51 with £1k a month going in would give you an income at 67 of around £16k pa + state pension.

Do you want to be working that long and will that give you enough income? If not, investing in your pension would be the most efficient investment you can be making.

samps1973

@MX5huggy
I like the look of that one and think that’s the one I’ll go with. I read that emerging markets are risky too. The only thing now is to choose between  the accumulation or distribution funds 🤔 The acc fund seems a good choice as I’ll be investing for a minimum of 10 years but as I get older or retired, although it may be a small amount it might come in handy for a bill or something else. Something I also noticed is the acc fund performs better than the dist fund for some reason. It’s the same between the vwrl dist and vwrp acc by about 2 or 3% pa. I’m also not sure if you pay a foreign exchange fee on the dividends acc and the dist funds.

Edit.. I just realised there isn’t an fx fee as the vhvg and veve are GBP 😂 So I guess I could use the acc fund and just withdraw the dividends in retirement if required.

I also have another question if you don’t mind. With an acc fund, are the dividends still itemised so that I know what I get each month as you do with a dist fund on trading 212?

Thank you

Martico

£ or $ amounts of acc funds outperform those of dist funds because the gain is reinvested - the dist funds pay out some gains, and drop in nominal value as they pay out

samps1973

@400ixl

Hi,

70k is my total retirement portfolio at the moment.

I haven’t planned on an age to retire yet but it would be nice to retire a couple of years early. Easier said than done these days, I know. I’m not sure how much I will need in retirement at the moment but but hopefully my mortgage is paid so all I’ll have to think about is the household bills really on a 1 bed flat. I’d get rid of my car and get a bus pass. I hate driving!..I’d probably need 30k at a guess to be comfortable in today’s money.
With the money I receive back from hmrc for the overpayments, I’d probably invest in the all world fund vhvg or veve. I don’t think it would be tax efficient to put it back into the pension but I’m unsure about that.

I currently put anything I earn over the threshold into the pension to get 20% tax back at source and the other 20% I claim from hmrc. At the moment I earn 60k.

The reason I’m not keen on paying more into the pension is although I get back the 20% at source I will have to at some point pay 20% when I receive it in retirement. Apart from the 25% lump sum which is tax free, which I don’t really want to do. Any more than this that I take out before I retire will be taxed at the higher rate. Also the money is tied up too.
I also think that someone on a previous post mentioned that the government wants to get their hands on peoples pensions too. But having enough in retirement is important too. It is something that I am going to look into. Do you know a good pension calculator I can use so that I can compare figures?

Thank you

samps1973

So here are my updated thoughts

£1,000pm  -  All world fund VHVG acc
£200pm.    -  Bitcoin
£100pm.   -   Cash isa for dips of more than 10% on the VHVG fund or Nvidia. ( not sure if 10% is a good figure to use?)
£200pm     -  Nvidia…I have sold my pie with 10 stocks, it was too volatile and could imagine it being stressful down the line, lesson learned. I added a couple of 0’s on the end to see what it would be like with more money. Nvidia is my favourite stock and think it will fly in the future. It’s my personal gamble and a treat as I quit smoking and drinking some time ago. 

jimjames

samps1973 said:

@MX5huggy
I like the look of that one and think that’s the one I’ll go with. I read that emerging markets are risky too. 

I'm not sure how you are calculating your risk but I wouldn't say that emerging markets are risky. I'd think you're far more likely to lose money with bitcoin or NVidia that you're considering using than an EM tracker

samps1973

Conclusion. 

Thank you all for pointing me in the right direction.

like everyone here has said keep it simple.

Although I said £1.5k per month, I just wanted to put a figure. it will vary between £900 and 1.5k through the year.

Im going to put 90% of what ever I have at the end of the month on the all world developed fund VHVG ( Thank you @MX5huggy ) and the other 10% on nvidia. With the Nvidia I will either do very well long term or lose. It will work out as roughly a £5 per day gamble. It wouldn’t feel so bad if I lost it if I look at it that way and Nvidia was the main reason I started to look into investing.

I was going to put 10% aside for dips but I’ve decided to go for the dollar cost average route as it’s a proven method and no stress. 

Thank you all for taking the time to think and write your thoughts.

Be lucky 👍 

Bostonerimus1

Do a budget to see how you can control spending so you have even more to invest.
Make sure you have at least 6 months spending in saving account for emergencies.
Pay off any high interest debt, that's anything with an interest rate higher than you can get in a long term saving bond.
Put money into a pension, buy inexpensive index tracker funds.
Put more into your ISA buy inexpensive index tracker funds.
When pension and ISAs are fully funded, put more into your general investment account, buy inexpensive index tracker funds.