Advice for future planning
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Basic rules:-
1. Pay off your mortgage ASAP
2. Save up in super.
These are likely your biggest investments in your life.
If you follow these rules, you won't do too badly.
Then you can think of other investments eg, shares and properties.
Financial advisors ( bad ones) will tempt you to borrow to invest in some bad investment for the sake of gearing in order to pay less tax and have more money for your mortgage. You just have to be careful of what to invest.
1. Too simplistic and often a poor choice when contrasted with (2).
2. "Super" is I presume Australian for a pension? Often in the UK it's better to do 2 before 1. Especially if you are a high rate taxpayer due to the highly favourable tax treatment.
In the MFW forum there are many people bending over backwards to pay their mortgage at almost any costs whilst their pensions suffer (unbeknown to them) and longer term whilst they may relish being mortgage free earlier , financially they've lost many tens of thousands.
What's so special about the SIPP being sold by Pilling? Why point that one out ? Ata quick glance their charges look very high to me.0 -
AnotherJoe wrote: »1. Too simplistic and often a poor choice when contrasted with (2).
2. "Super" is I presume Australian for a pension? Often in the UK it's better to do 2 before 1. Especially if you are a high rate taxpayer due to the highly favourable tax treatment.
In the MFW forum there are many people bending over backwards to pay their mortgage at almost any costs whilst their pensions suffer (unbeknown to them) and longer term whilst they may relish being mortgage free earlier , financially they've lost many tens of thousands.
What's so special about the SIPP being sold by Pilling? Why point that one out ? Ata quick glance their charges look very high to me.
Spam presumably.0 -
PrudentSpender wrote: »2. Super? whats this, please can you explain.
"Super" is what our Ozzie cousins call pensions i.e. superannuation.
Compare with our USS = Universities Superannuation Scheme.Free the dunston one next time too.0 -
What to do.
(i) Put aside a decent emergency fund in cash e.g. equal to six months worth of outgoings. Use a Santander 123 account, or Premium Bonds, or high interest current accounts, etc. Ensure that your bank/BS accounts never total more than £85k in one name on the one banking licence.
(ii) Consider owner-occupied housing. Is your mortgage expensive? Would you like to reduce the interest rate by overpaying so that you are on a lower LTV? Would you like to clear the mortgage (and if so, why)? Would you like to move to a house that suits you better?
(iii) Consider a Lifetime ISA ("LISA"). It takes £4k p.a., leaving £16k p.a. of your annual ISA allowance for other use.
(iv) Once you've maximised your employer's pension contribution, don't rush to contribute more to pensions unless (a) you can do so by salary sacrifice, or (b) you find yourself to be a 40% tax payer.
(v) Personally I would also invest some modest sum (e.g. £5k each for a couple) into Gold Sovereigns as long as you have some secure way of storing them.
The trick is to combine (1) diversification with (2) low charges, and (3) tax avoidance.Free the dunston one next time too.0 -
Must ask Gold Sovereigns, why?0
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What to do.
(i) Put aside a decent emergency fund in cash e.g. equal to six months worth of outgoings. Use a Santander 123 account, or Premium Bonds, or high interest current accounts, etc. Ensure that your bank/BS accounts never total more than £85k in one name on the one banking licence.
(ii) Consider owner-occupied housing. Is your mortgage expensive? Would you like to reduce the interest rate by overpaying so that you are on a lower LTV? Would you like to clear the mortgage (and if so, why)? Would you like to move to a house that suits you better?
(iii) Consider a Lifetime ISA ("LISA"). It takes £4k p.a., leaving £16k p.a. of your annual ISA allowance for other use.
(iv) Once you've maximised your employer's pension contribution, don't rush to contribute more to pensions unless (a) you can do so by salary sacrifice, or (b) you find yourself to be a 40% tax payer.
(v) Personally I would also invest some modest sum (e.g. £5k each for a couple) into Gold Sovereigns as long as you have some secure way of storing them.
The trick is to combine (1) diversification with (2) low charges, and (3) tax avoidance.
thanks mate, that all makes sense.
But yes, why the Gold?0
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