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    • MF2015
    • By MF2015 9th Jan 18, 1:05 PM
    • 299Posts
    • 91Thanks
    MF2015
    Best place to invest - does this seem reasonable?
    • #1
    • 9th Jan 18, 1:05 PM
    Best place to invest - does this seem reasonable? 9th Jan 18 at 1:05 PM
    Hi all,

    A little bit about me.

    I'm 39 and currently enrolled in my company pension paying 7% of my basic into a DB scheme., this has recently changed from 4.75%. The company pay 14.7%, up from 9.55%. This is only on my basic, I receive a 35% shift enhancement that is not pensionable.

    The company are looking to change from a DB scheme to a DC, this is now on hold for 2 years.

    I was wondering if it's better to change to this earlier or stick it out for the 2 years before been forced to swap?

    As well as the DB contribution I also put another 500 per month into AVC's and have done for the past couple of years, I then put in a lump sum at the end of the year to take me just below the higher rate tax bracket. This is in a couple of tracker funds.


    We have a house we live in worth around 500k with a mortgage of around 250k, as well as a BTL giving around 250 pcm profit, let for 400pcm.

    My student loan is due to be payed up in a couple of months so I'll have at least 215-500+ extra per month depending on how many hours overtime I do.

    Where would you put this if it was yours?

    I'm thinking of putting it into a SIP into individual shares that I buy each month based on my own research, possibly holding or selling depending on how they do. With this in mind it will need to have relatively cheap dealing fees. I think I've got my bases covered so this part is for a bit of fun and is not detrimental to my plans of early retirement.

    Can you see any holes in my plan?

    Many thanks.

Page 1
    • bostonerimus
    • By bostonerimus 9th Jan 18, 1:58 PM
    • 1,940 Posts
    • 1,280 Thanks
    bostonerimus
    • #2
    • 9th Jan 18, 1:58 PM
    • #2
    • 9th Jan 18, 1:58 PM

    I'm thinking of putting it into a SIP into individual shares that I buy each month based on my own research, possibly holding or selling depending on how they do. With this in mind it will need to have relatively cheap dealing fees. I think I've got my bases covered so this part is for a bit of fun and is not detrimental to my plans of early retirement.

    Can you see any holes in my plan?

    Many thanks.
    Originally posted by MF2015
    Buying individual shares is a risky (and I believe a foolish) way to invest. Look at using funds to meet your goals.
    Misanthrope in search of similar for mutual loathing
    • MF2015
    • By MF2015 9th Jan 18, 2:09 PM
    • 299 Posts
    • 91 Thanks
    MF2015
    • #3
    • 9th Jan 18, 2:09 PM
    • #3
    • 9th Jan 18, 2:09 PM
    Thanks for the reply but I already invest quite a lot into DB and funds.

    I'm only looking to invest the additional money I would have paid for my student loan.

    • Bravepants
    • By Bravepants 9th Jan 18, 5:49 PM
    • 402 Posts
    • 436 Thanks
    Bravepants
    • #4
    • 9th Jan 18, 5:49 PM
    • #4
    • 9th Jan 18, 5:49 PM
    Thanks for the reply but I already invest quite a lot into DB and funds.

    I'm only looking to invest the additional money I would have paid for my student loan.
    Originally posted by MF2015
    If you want to retire earlier than 55 then start a S&S ISA and stick your spare cash in funds that hold a mix of equities and bonds. Why dabble with individual stocks when you can invest in hundreds or thousands at a time.
    • MF2015
    • By MF2015 9th Jan 18, 7:07 PM
    • 299 Posts
    • 91 Thanks
    MF2015
    • #5
    • 9th Jan 18, 7:07 PM
    • #5
    • 9th Jan 18, 7:07 PM
    If you want to retire earlier than 55 then start a S&S ISA and stick your spare cash in funds that hold a mix of equities and bonds. Why dabble with individual stocks when you can invest in hundreds or thousands at a time.
    Originally posted by Bravepants
    I already invest around 1100 per month in DC's and funds, the 215-500 is additional investment that I would like to have control over. Call it a little fun money, a hobby researching and investing in individual shares.

    • Bravepants
    • By Bravepants 9th Jan 18, 7:14 PM
    • 402 Posts
    • 436 Thanks
    Bravepants
    • #6
    • 9th Jan 18, 7:14 PM
    • #6
    • 9th Jan 18, 7:14 PM
    I already invest around 1100 per month in DC's and funds, the 215-500 is additional investment that I would like to have control over. Call it a little fun money, a hobby researching and investing in individual shares.
    Originally posted by MF2015
    Yes, that's fair enough, but for me that 215 to 500 could mean the difference between my retiring at 55 or retiring 52! I wouldn't want to faff about with it.
    • MF2015
    • By MF2015 9th Jan 18, 7:23 PM
    • 299 Posts
    • 91 Thanks
    MF2015
    • #7
    • 9th Jan 18, 7:23 PM
    • #7
    • 9th Jan 18, 7:23 PM
    Yes, that's fair enough, but for me that 215 to 500 could mean the difference between my retiring at 55 or retiring 52! I wouldn't want to faff about with it.
    Originally posted by Bravepants
    Or it could mean the difference of retiring at 50 ;-)

    • IanSt
    • By IanSt 10th Jan 18, 11:20 AM
    • 260 Posts
    • 194 Thanks
    IanSt
    • #8
    • 10th Jan 18, 11:20 AM
    • #8
    • 10th Jan 18, 11:20 AM
    I'm 39 and currently enrolled in my company pension paying 7% of my basic into a DB scheme., this has recently changed from 4.75%. The company pay 14.7%, up from 9.55%. This is only on my basic, I receive a 35% shift enhancement that is not pensionable.

    The company are looking to change from a DB scheme to a DC, this is now on hold for 2 years.

    I was wondering if it's better to change to this earlier or stick it out for the 2 years before been forced to swap?
    Originally posted by MF2015
    I take it that the company's 14.7% is what they will pay into the DC pension?

    If it were me then the answer of whether to move early to the DC would depend on (in no specific order):
    - the company and what they will be paying into it
    - how confident you and your partner are in investing
    - what pension continues to be paid to your partner on your death
    - the age you are considering taking retirement and the % reduction you would face in taking your pension at that age in a DB pension.

    In most cases I'd expect that the best course of action would be to continue to pay into the DB pension for as long as possible - as an experienced investor I'd be very happy to have the relative safety of a DB pension as a basis for retirement for myself and my wife.
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