Omega Owners Forum
Chat Area => General Discussion Area => Topic started by: tigers_gonads on 22 September 2018, 15:38:25
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Short and sweet for a change :P ;D
We have a lump sum of 20 grand to invest.
Looking for a minimum timescale of 3 to 5 years then we will review what to do with it ;)
Whats out there OOFers ?
Serious answers please :)
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Since last Thursday Brexit thing the Pound is low again, whilst Im no expert if I had money to invest think I might hang on a bit untill we know whether were going to get a Deal or Not, Our Financial Markets might not be worth 2 Bob this time early next year. :-\
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Short and sweet for a change :P ;D
We have a lump sum of 20 grand to invest.
Looking for a minimum timescale of 3 to 5 years then we will review what to do with it ;)
Whats out there OOFers ?
Serious answers please :)
Well....that's me f*ucked. ::)
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Since last Thursday Brexit thing the Pound is low again, whilst Im no expert if I had money to invest think I might hang on a bit untill we know whether were going to get a Deal or Not, Our Financial Markets might not be worth 2 Bob this time early next year. :-\
Zirk has a point.
Currency rates and interest rates could prove to be very unpredictable in the next year or so.
Don't be tempted by the Wellesley..........I lost a significant sum. :-\
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Short and sweet for a change :P ;D
We have a lump sum of 20 grand to invest.
Looking for a minimum timescale of 3 to 5 years then we will review what to do with it ;)
Whats out there OOFers ?
Serious answers please :)
If you want a serious answer, ask an IFA.
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And he'll tell you how to spend the £1500 you have left at the end of it ;).
If it were me, I'd be tempted by some regular savings accounts that give 5%. You and your partner can have one each, then a joint one so they add up pretty quickly. Probably you'd achieve 2.5% pa on your money. Not much, but (basically) zero risk.
All depends on your risk appetite really.
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Look at your home energy efficiency and invest if needed
eg , old boiler that's inefficient ,loft insulation, old appliances ,
something as simple as investing in Led lighting over old lamps can save you and get your investment back in a few months ,then ongoing you are also saving.
an older tv can use up more power than new tech (plus bonus new tv)
ypu'd have to put the money saved on electric under the mattress ready for the term end :y
you could consider solar power ,but it may be tight to claw back investment in 3 to 5 years (solar is expensive but going down all the time)
a good bed is important ,you spend 1/3 of your life in it ,if you don't sleep well due to a crap bed,you will be less productive ,days off work etc
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Premium Bonds? have a bit of a safe gamble.
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Premium Bonds? have a bit of a safe gamble.
Similar to lottery ticket but you get to keep your quid.
Unlikely to win much (if anything) though. :-\
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And he'll tell you how to spend the £1500 you have left at the end of it ;).
If it were me, I'd be tempted by some regular savings accounts that give 5%. You and your partner can have one each, then a joint one so they add up pretty quickly. Probably you'd achieve 2.5% pa on your money. Not much, but (basically) zero risk.
All depends on your risk appetite really.
5% PA on £20,000....where? :-\
I have 5% on £300 max a month for 12 months. Interest in month one was £1.25. Looks good but isn't. :-\
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Short and sweet for a change :P ;D
We have a lump sum of 20 grand to invest.
Looking for a minimum timescale of 3 to 5 years then we will review what to do with it ;)
Whats out there OOFers ?
Serious answers please :)
If you want a serious answer, ask an IFA.
Yes.....any interest you would have made he will take for his fee.
Oh......and if you loose your capital because he is a 21 year old whizz-kid who has decided to gamble with your money then bad luck.
I'm quite capable of losing my own money without paying some smarmy upstart to do it for me. :)
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Ok..forget the IFA, ask a bunch of old farts on a car forum instead. :y
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Ok..forget the IFA, ask a bunch of old farts on a car forum instead. :y
I've made a few howlers but by and large my judgement has been good(ish)..... :)
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Premium Bonds? have a bit of a safe gamble.
Similar to lottery ticket but you get to keep your quid.
Unlikely to win much (if anything) though. :-\
I've had a couple of decent tickles on the premium bonds , very old school I know , but worth thinking about
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3-5 Years is too short a time frame for sensible investing. Buying anything stock market related would be taking a gamble on when the next crash will be. On average they happen every 8 ish years and drop by 40%, but it has been 10 years since the last one now. If you invest it now, and there is a crash in the next year or so (say Brexit related, or China/USA trade war or...) then there won't be enough time for it to recover before your 3-5 years timescale is up.
AIUI it's possible to get 5% on up to £1K5 with TSB. Several banks offer regular savers paying 2.5%-5%. Santander pay 1.5% on up to £30K in their bank accounts. The first £1K of interest is tax free every year, and you'll struggle to get that on £20K (it would be 5% on the full amount)
So, depends how realistic your 3-5 year timeframe is. If you can stretch that to 8-12 years then investment becomes and option. 12-20 years then investment or even pensions becomes the best choice.
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We have two Tesco bank accounts paying 3% up to £3K, so £180pa. There is a minimum monthly pay in a two dd's are necessary. We got in before these conditions were required, but just another one to consider.
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Where we are getting towards the end of a much longer than average economic cycle, plus the current geopolitical/economic uncertainties of Brexit, US/China trade war and growing global political instability cash is king. The other reason I would look at having quickly accessible cash in that timeframe is within the 2022 general election and the black shadow of the Tories delivering a Corbyn government.
Savings rates are low, so you will do well to cover the capital loss through inflation but at least you will keep your capital in these uncertain times. :y
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Find the best 2 x 205 GTI's or suchlike you can and put a sheet over them in the garage, or something Japanese and tasty that's coming up to 25 yr old that the yanks will like, they can import at 25 yr old and are hoovering up those little Suzuki cappuccinos and the like currently
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Since last Thursday Brexit thing the Pound is low again, whilst Im no expert if I had money to invest think I might hang on a bit untill we know whether were going to get a Deal or Not, Our Financial Markets might not be worth 2 Bob this time early next year. :-\
Sadly, I think your spot on with that lot >:(
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Since last Thursday Brexit thing the Pound is low again, whilst Im no expert if I had money to invest think I might hang on a bit untill we know whether were going to get a Deal or Not, Our Financial Markets might not be worth 2 Bob this time early next year. :-\
Zirk has a point.
Currency rates and interest rates could prove to be very unpredictable in the next year or so.
Don't be tempted by the Wellesley..........I lost a significant sum. :-\
Looked into them during the summer and heard a few horror stories too :(
Dodgy investments on there part >:(
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There are lots of crowdfunding schemes offering high rates, and I like the idea to be honest. :y
As said earlier it depends on your appetite for risk and I think they are all very high risk options. Spread your £20k over 20 different schemes though and if 1 or 2 goes tits up you might still come out ahead.... :-\
Alternatively I'm sure you can buy a house in Hull for £20k! ;D
https://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION%5E665&sortType=1&includeSSTC=true
Edit: In fact you could! :y Just....
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Given that their ad specifically and expressly says that they are NOT covered by the FCA...
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Mmmm, decisions decisions :-\
I had a IFA recommended to me last night and will be having a work in the next week or so ........
As Zirk said, no matter what happens, the shit is going to hit the fan over the next couple of years at least so its beginning to look like its going to be a case of playing safe :-\
Yup, i've thought about Carefully investing in a motor or 2 but the problem is storing them :(
Question for you lot ............
Anybody stick there money in precious metals (i.e. gold or silver) ?
Also shares in large companies ?
British Petroleum ect ?
The money is a inheritance from when her mother passed away nearly 2 years ago.
Currently its sat in our lasses bog standard Lloyds bank account :(
Not my choice believe me but with some things, she won't listen to no oppser >:(
Sir Tiggs, we have lived in the same council house for over 27 years and would get the place for approx 50 grand (with full discount)
Its worth close to 100K and is in a pretty nice area (if you exclude me ;D)
Again, I have been trying to get her to buy it for a good 15 years but she won't budge or listen to no oppser :(
We ain't getting any younger and our lass is a little older then me so mortgages are out of the question.
She has a reasonably paid job in retail (Lidl) and i've just started working in retail myself because my business just never took off so that's getting wound down sadly :(
On the plus side, we have had a zero credit / zero dept rule in the house for over 10 years now since my depts and subsequent bankruptcy very nearly destroyed this family (and my sanity).
Bottom line is, we have sweet F All but what little we do have, its ours :y :y
I haven't even bought a lottery ticket for years ::)
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There are lots of crowdfunding schemes offering high rates, and I like the idea to be honest. :y
As said earlier it depends on your appetite for risk and I think they are all very high risk options. Spread your £20k over 20 different schemes though and if 1 or 2 goes tits up you might still come out ahead.... :-\
Alternatively I'm sure you can buy a house in Hull for £20k! ;D
https://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION%5E665&sortType=1&includeSSTC=true
Edit: In fact you could! :y Just....
Just seen this ;D ;D
Smack head city.
50 - 50 chance of getting raided by the drugs squad every month and if you ever have a car nicked around these parts, your first port of call in the garages alongside the tower blocks.
Also they may be getting flattened in the next few years (or so i've heard) ;) ;)
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You never know it might be the next 'Up and Coming' area :-\ ::) , but I get what your saying. ;D
Property is always cheap for a reason. ;)
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Just do what I do , give to the wife , it cuts out the middleman >:(
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Question for you lot ............
Anybody stick there money in precious metals (i.e. gold or silver) ?
That's a mugs game. It's speculation that the value of some precious metal will rise. It's mostly priced in dollars too, so you've got the added currency fluctuation risk. IMV the only thing worse than gold/silver is crypto - Bitcoin and the like. Or storage pods, south American forestry plantations, etc.
Also shares in large companies ?
British Petroleum ect ?
Single shares is suicidialy high risk. On a scale of 1-10, with 10 being the riskiest, it probably scores about 15. If you're determined to hold shares then it should be a basket of 8-12 different companies, but £20K isn't enough to do that efficiently. Google "High Yield Portfolio".
The UK FTSE100/250/All Share isn't a good choice either. Too UK centric. If I were you I'd be picking a global tracker, something like Vanguard LifeStrategy 100% Equity Fund, or if you want something a little less volatile then the 80% or 60% versions.
https://www.vanguardinvestor.co.uk/what-we-offer/all-products
Fund charges are 0.22%, but you also need a platform (Stocks and shares ISA) to hold them on. For the sorts of values you are talking about Hargreves Lansdown are an OK choice. Not the cheapest (0.45%) but a reputation for good service. So DIY will cost you perhaps 0.67% p/a.
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Sky shares would have been good!
I’d be tempted to be boring and shove it in multiple ISA’s or given you location a property?
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Deposit for a 1 bed flat, rent it out?
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Deposit for a 1 bed flat, rent it out?
If We end up with a Brexit No Deal scenario, House prices will definitely plummet, not good for most folk in the UK, but I dare say the savvy Overseas Investors will be buying them cheap with a long term recovery view.
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Precious metals not a good choice.
Anything less than five years and you risk losing more than you're likely to earn ;)
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Stuff it in your mattress, you know it makes sense.
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Sky shares would have been good!
I’d be tempted to be boring and shove it in multiple ISA’s or given you location a property?
I believe the drinks are on you at the moment Tunnie? :y
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Just give it to me, tigers'. I promise to
finish the Cobra with it look after it.
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Sky shares would have been good!
I’d be tempted to be boring and shove it in multiple ISA’s or given you location a property?
I believe the drinks are on you at the moment Tunnie? :y
:D :D :D
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Mmmm, decisions decisions :-\
I had a IFA recommended to me last night and will be having a work in the next week or so ........
As Zirk said, no matter what happens, the shit is going to hit the fan over the next couple of years at least so its beginning to look like its going to be a case of playing safe :-\
Yup, i've thought about Carefully investing in a motor or 2 but the problem is storing them :(
Question for you lot ............
Anybody stick there money in precious metals (i.e. gold or silver) ?
Also shares in large companies ?
British Petroleum ect ?
The money is a inheritance from when her mother passed away nearly 2 years ago.
Currently its sat in our lasses bog standard Lloyds bank account :(
Not my choice believe me but with some things, she won't listen to no oppser >:(
Sir Tiggs, we have lived in the same council house for over 27 years and would get the place for approx 50 grand (with full discount)
Its worth close to 100K and is in a pretty nice area (if you exclude me ;D)
Again, I have been trying to get her to buy it for a good 15 years but she won't budge or listen to no oppser :(
We ain't getting any younger and our lass is a little older then me so mortgages are out of the question.
She has a reasonably paid job in retail (Lidl) and i've just started working in retail myself because my business just never took off so that's getting wound down sadly :(
On the plus side, we have had a zero credit / zero dept rule in the house for over 10 years now since my depts and subsequent bankruptcy very nearly destroyed this family (and my sanity).
Bottom line is, we have sweet F All but what little we do have, its ours :y :y
I haven't even bought a lottery ticket for years ::)
You have your golden goose right here.
35% discount on the first 5 years plus an additional 1% for every year you have been renting. Twenty two additional years in your case. :y
This should give you a whopping 57% discount. Based on your value of £100,000 you will pay a paltry £43000. :y
Then £20000 deposit with just £23000 spread over over, say, 8 or 10 years. Payments would probably work out less than the rent or 'dead money' you are currently paying.
What's not to like. :y
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You hit a maximum with the discount, not sure where that lies, though.
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You hit a maximum with the discount, not sure where that lies, though.
A maximum of 70% or £80900 (outside London).
So not a problem. :y
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Buying the house sounds like by far the best investment you could make.
It pays back for the rest of your life!
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Well decision made (by me) as normal ::)
Stick it in some ISA's for a year or two and see what happened with the property prices / interest rates after Brexit.
If relatively stable, we will buy the place.
In the meantime, I need to hold this job down and get my feet firmly under the table so to speak.
Not stayed in one job (with the exception of been self employed) for more then 2 1/2 years since the 80's and at my age, gaining employment is a nightmare :(
Without sounding too morbid / facts of life and all that .............. once my parents croak it (they are both well into there 70's now), I should have enough to pay off this one and maybe take a trip to the auctions for a couple of more :-\
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Well decision made (by me) as normal ::)
Stick it in some ISA's for a year or two and see what happened with the property prices / interest rates after Brexit.
If relatively stable, we will buy the place.
In the meantime, I need to hold this job down and get my feet firmly under the table so to speak.
Not stayed in one job (with the exception of been self employed) for more then 2 1/2 years since the 80's and at my age, gaining employment is a nightmare :(
Without sounding too morbid / facts of life and all that .............. once my parents croak it (they are both well into there 70's now), I should have enough to pay off this one and maybe take a trip to the auctions for a couple of more :-\
ISA's seem to offer SFA in the way of interest these days. :-\
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Well decision made (by me) as normal ::)
Stick it in some ISA's for a year or two and see what happened with the property prices / interest rates after Brexit.
If relatively stable, we will buy the place.
In the meantime, I need to hold this job down and get my feet firmly under the table so to speak.
Not stayed in one job (with the exception of been self employed) for more then 2 1/2 years since the 80's and at my age, gaining employment is a nightmare :(
Without sounding too morbid / facts of life and all that .............. once my parents croak it (they are both well into there 70's now), I should have enough to pay off this one and maybe take a trip to the auctions for a couple of more :-\
If the intention is to use the money to buy your first house, and if you're under 40, take a look at opening a LISA's. These allow you to put away £4K each per year, and the govt tops this up by 25%. You can continue putting money in till you're 50, so it'll take 3 years to get the entire £20K in, and once it's in the govt will have topped it up to £25K.
Be warned though, if you have to withdraw the money before age 60 for any other reason than buying a house, then the govt charge you. So be sure the money is for house purchase.
https://www.moneysavingexpert.com/savings/lifetime-ISAs/
If you're over 40 already, then cash ISA's probably aren't the best choice - better to use some of the high interest bank accounts coupled to regular savers.
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Well decision made (by me) as normal ::)
Stick it in some ISA's for a year or two and see what happened with the property prices / interest rates after Brexit.
If relatively stable, we will buy the place.
In the meantime, I need to hold this job down and get my feet firmly under the table so to speak.
Not stayed in one job (with the exception of been self employed) for more then 2 1/2 years since the 80's and at my age, gaining employment is a nightmare :(
Without sounding too morbid / facts of life and all that .............. once my parents croak it (they are both well into there 70's now), I should have enough to pay off this one and maybe take a trip to the auctions for a couple of more :-\
If the intention is to use the money to buy your first house, and if you're under 40, take a look at opening a LISA's. These allow you to put away £4K each per year, and the govt tops this up by 25%. You can continue putting money in till you're 50, so it'll take 3 years to get the entire £20K in, and once it's in the govt will have topped it up to £25K.
Be warned though, if you have to withdraw the money before age 60 for any other reason than buying a house, then the govt charge you. So be sure the money is for house purchase.
https://www.moneysavingexpert.com/savings/lifetime-ISAs/
If you're over 40 already, then cash ISA's probably aren't the best choice - better to use some of the high interest bank accounts coupled to regular savers.
Past 50 a couple of years ago :(
Our lass has cracked 60 ;)
I did a quick 10 mins research on ISA's earlier.
We will look into high interest accounts and see how it goes :y
Thanks lads :)
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Past 50 a couple of years ago :(
Our lass has cracked 60 ;)
I did a quick 10 mins research on ISA's earlier.
We will look into high interest accounts and see how it goes :y
Thanks lads :)
Ok. Next plan then. Does your wife work? If not, (or even if she does but earns bu99er all), she can pay up to £2880 p/a into a private pension and the govt will gross it up by 25% to £3600. Since she is 60+ she can then "cash it all in" again and take the whole lot out tax free, assuming her income is less than £9900 this tax year.
You can do the same providing you are 55 or older, and you earn £9900 or less.
So that's potentially 25% 'interest' on £5760 with a cast iron Govt guarantee, and you won't get anywhere close to that anywhere else. Rinse and repeat next year and the year after and the taxpayer will have given you and the mrs £4320 "interest" :D
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Well decision made (by me) as normal ::)
Stick it in some ISA's for a year or two and see what happened with the property prices / interest rates after Brexit.
If relatively stable, we will buy the place.
In the meantime, I need to hold this job down and get my feet firmly under the table so to speak.
Not stayed in one job (with the exception of been self employed) for more then 2 1/2 years since the 80's and at my age, gaining employment is a nightmare :(
Without sounding too morbid / facts of life and all that .............. once my parents croak it (they are both well into there 70's now), I should have enough to pay off this one and maybe take a trip to the auctions for a couple of more :-\
every cloud / silver lining etc
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Past 50 a couple of years ago :(
Our lass has cracked 60 ;)
I did a quick 10 mins research on ISA's earlier.
We will look into high interest accounts and see how it goes :y
Thanks lads :)
Ok. Next plan then. Does your wife work? If not, (or even if she does but earns bu99er all), she can pay up to £2880 p/a into a private pension and the govt will gross it up by 25% to £3600. Since she is 60+ she can then "cash it all in" again and take the whole lot out tax free, assuming her income is less than £9900 this tax year.
You can do the same providing you are 55 or older, and you earn £9900 or less.
So that's potentially 25% 'interest' on £5760 with a cast iron Govt guarantee, and you won't get anywhere close to that anywhere else. Rinse and repeat next year and the year after and the taxpayer will have given you and the mrs £4320 "interest" :D
Bugger
The wife earns over 15 grand a year and i'm 52 :(
Appreciate the help though :)
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Well decision made (by me) as normal ::)
Stick it in some ISA's for a year or two and see what happened with the property prices / interest rates after Brexit.
If relatively stable, we will buy the place.
In the meantime, I need to hold this job down and get my feet firmly under the table so to speak.
Not stayed in one job (with the exception of been self employed) for more then 2 1/2 years since the 80's and at my age, gaining employment is a nightmare :(
Without sounding too morbid / facts of life and all that .............. once my parents croak it (they are both well into there 70's now), I should have enough to pay off this one and maybe take a trip to the auctions for a couple of more :-\
every cloud / silver lining etc
True :)
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Something else - check yours and the MRS's NI contribution record. You can do it online.
To get a full state pension in retirement you need at least 35 years NI contributions. It's a bit more complicated if you've ever been 'opted out' into a private or occupational plan, so some people can need up to 43 full years. If it doesn't look like you're going to get to the new state pension limit (currently £164.35 per week) and if you've got any recent missing years, then it is very good value to buy some extra years. Each missing year typically costs £700-800, and gives you about £4.70 per week extra (about £244 per year) once you reach State Pension age.
Your SP age is 68, so 15 years away. The MRS's might be 66, 67, or 68 so only 6-8 years away. I know that might seem like ages away, but the SP is incredibly good value for money and you should try to ensure you will qualify for the full (35 years NI) amount.
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Something else - check yours and the MRS's NI contribution record. You can do it online.
To get a full state pension in retirement you need at least 35 years NI contributions. It's a bit more complicated if you've ever been 'opted out' into a private or occupational plan, so some people can need up to 43 full years. If it doesn't look like you're going to get to the new state pension limit (currently £164.35 per week) and if you've got any recent missing years, then it is very good value to buy some extra years. Each missing year typically costs £700-800, and gives you about £4.70 per week extra (about £244 per year) once you reach State Pension age.
Your SP age is 68, so 15 years away. The MRS's might be 66, 67, or 68 so only 6-8 years away. I know that might seem like ages away, but the SP is incredibly good value for money and you should try to ensure you will qualify for the full (35 years NI) amount.
The missus retires at 66, i'm 67 if I make it :-\
Our lass has been either in full employment or family benefit when with sprog so hers should be full.
Mine is well behind :-X :-X :-X and I have to work solid until 67 to get a full state pension.
Yes, i've got a online tax account and will look into that :y
Cheers ;)
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Mine is well behind :-X :-X :-X and I have to work solid until 67 to get a full state pension.
Yes, i've got a online tax account and will look into that :y
If you want/need to work till 67 then Ok. However, if you want (or more accurately, can afford) to retire earlier, then it's probably best to boost your current SP entitlement by buying some missing years from you history. You won't be able to reap the benefit till you reach 67, and if you do peg out before then you'll effectively lose the gamble/money. However current life expectancy for a 52 year old male in the UK is 81.35 years, so on average each year purchased will pay out an extra £244 for 14.35 years, or £3500.
I believe that you can currently buy missing years all the way back to 2005. Each year has a different cost so you'll need to work out which are the most cost effective for you. I think you have till 2020 to do so - after that you will be restricted to only the last 5 years of missing NI contribs. #
Also note that your retirement age isn't guaranteed to be 67 either. The govt have 'promised' that they will give at least 10 years notice to anyone affected by any future change. Therefore you aren't 'safe' at 67 until you reach age 57, so 5 more years. And that assumes that future govt's keep the 10 year promise. Your missus should be safe though since she is only 7 ish years away now.
Note I'm not saying this is the best use of your inheritance windfall - but it's at least worth considering.
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I have £50K to invest. We (I have to involve my wife in the decisions ) already have £50K invested in a BTL with a Mortgage for the rest. And I'd like to do it again.
She however, has made this really impossible. The area she's prepared to look for a property doesn't contain the property she wants at a price that makes good investment sense. She will not consider less bedrooms, she will not consider a small compromise on area. Last week we found a house that is 2 doors down from the one we have already, it's very nice but the garden is wide but short, so the illusion is that it's small. We made an offer which is a touch low, and they rejected it. I pretty much know how much they would take, and at that price it would still give us the long term return I'm looking for. She refuses to increase the offer because the garden is too small.
Meanwhile my £50K isn't getting anything like the return it could. GRRRR
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You shouldn't buy 2 rentals on the same street anyway. ;)
Maybe you are doing renovations in one house and the tenants in the other start demanding the same. Maybe when a house becomes empty you increase the rent to the market rate for the new tenants, but they might find out that they are paying more than your other tenants. You go round to see one set of tenants, but get 'jumped' by the others.... ::)
Then there's your exit strategy. Hopefully it would never happen, but what if you had to sell up in a hurry. 2 houses for sale on the same street at the same time? Or what if you decided to sell one house, but then the tenants in the other get the jitters and move out fearing you will evict them when you have sold the first. :(
In my opinion, when building a property portfolio, buy on different streets, even if you are presented with a great deal on the same street and only let tenants know what they need to know about you. ie they don't need to know where your other properties are. ;)
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I have £50K to invest. We (I have to involve my wife in the decisions ) already have £50K invested in a BTL with a Mortgage for the rest. And I'd like to do it again.
She however, has made this really impossible. The area she's prepared to look for a property doesn't contain the property she wants at a price that makes good investment sense. She will not consider less bedrooms, she will not consider a small compromise on area. Last week we found a house that is 2 doors down from the one we have already, it's very nice but the garden is wide but short, so the illusion is that it's small. We made an offer which is a touch low, and they rejected it. I pretty much know how much they would take, and at that price it would still give us the long term return I'm looking for. She refuses to increase the offer because the garden is too small.
Meanwhile my £50K isn't getting anything like the return it could. GRRRR
Whilst there is an 'I' in 'marriage', there is no 'U'
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Past 50 a couple of years ago :(
Our lass has cracked 60 ;)
I did a quick 10 mins research on ISA's earlier.
We will look into high interest accounts and see how it goes :y
Thanks lads :)
Ok. Next plan then. Does your wife work? If not, (or even if she does but earns bu99er all), she can pay up to £2880 p/a into a private pension and the govt will gross it up by 25% to £3600. Since she is 60+ she can then "cash it all in" again and take the whole lot out tax free, assuming her income is less than £9900 this tax year.
You can do the same providing you are 55 or older, and you earn £9900 or less.
So that's potentially 25% 'interest' on £5760 with a cast iron Govt guarantee, and you won't get anywhere close to that anywhere else. Rinse and repeat next year and the year after and the taxpayer will have given you and the mrs £4320 "interest" :D
I'm now joining the few people here investing, as Sky sale has now fully completed for me.
This spiked my interest, my wife does not work I support her and our 2 children with my salary. I "pay" her a sum each month for day to day stuff she needs to buy for the family, is this classed as an income?
How do these private pensions work, do you just contact them directly? I would be concerned about them going bust over 50 year life time to ensure money is protected?
I've looked at ISA's and they pay sod all in interest, to the point of why bother setting one up with such tiny amounts on offer.
Mate of mine lives up Norf near Darlington, I could easily get a buy-to-let out there, that would give a much better return. :-\
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I can highly recommend a SIPP (Self Invested Pension Plan) from Fidelity. Have just transferred all my work pensions, 3 in total, along with two personal ones to them. Easy to do and you have full control over where and what your money is invested in. Any questions and they're a quick phonecall away... (Tonbridge).
One of my work pensions was already with them and seemed to be doing better that all the other schemes I had.
Re Mrs T, is she a fully fledged citizen with British passport and NI number?
There's probably three ways you can deal with her... In no particular order.:
1. You pay her full NI to ensure she has full access to state benefits.
2. You combine all your finances into joint account(s), work to a household budget and each have individual term life insurance along with separate pension plans. If you can, file a tax return as a married couple filing jointly.
3. You pay her as an employee and her employer contributions (including work place pension and NI) and she pays income tax and NI as an employee from her wages.
1. Is very controlling. See 3.
2. As you're married, you are to all intents and purposes, one, so might as well act like it.
3. Makes the whole thing a very different relationship.
Obviously what ever you do should be discussed through a tax advisor, and obviously shortlist and choose carefully... You want someone who listens to what you want and leaves you understanding exactly what you are doing rather than feeling like you need a shower.
I can recommend an accountant for the tax side of things, https://www.england-clarke.co.uk/ and I would also recommend the following:
https://www.daveramsey.com
https://www.financialpeace.com
Https://www.rachelcruze.com
And these to read:
https://www.ebay.co.uk/itm/Dave-Ramsey-The-Total-Money-Makeover-Book-Hard-Back-Book-/173596683927
https://www.ebay.co.uk/itm/Retire-Inspired-by-Chris-Hogan-Book-The-Cheap-Fast-Free-Post-/302669079702
https://www.ebay.co.uk/itm/Love-Your-Life-Not-Theirs-7-Money-Habits-for-Living-the-Life-Y-9781937077976-/232646023999
If nowt else, the books are useful and easy reading whilst Dave Ramsey and Rachel Cruz (his daughter) both have podcasts for summat to listen to whilst commuting to give you an idea of what's what. ;)
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Ok. Next plan then. Does your wife work? If not, (or even if she does but earns bu99er all), she can pay up to £2880 p/a into a private pension and the govt will gross it up by 25% to £3600. Since she is 60+ she can then "cash it all in" again and take the whole lot out tax free, assuming her income is less than £9900 this tax year.
You can do the same providing you are 55 or older, and you earn £9900 or less.
So that's potentially 25% 'interest' on £5760 with a cast iron Govt guarantee, and you won't get anywhere close to that anywhere else. Rinse and repeat next year and the year after and the taxpayer will have given you and the mrs £4320 "interest" :D
I'm now joining the few people here investing, as Sky sale has now fully completed for me.
This spiked my interest, my wife does not work I support her and our 2 children with my salary. I "pay" her a sum each month for day to day stuff she needs to buy for the family, is this classed as an income?
No. Income has a fairly narrow definition, and basically means money you receive from an employer that you pay tax and national insurance on. For instance, income from a BTL does not count, and nor does pension income. If your wife has no relevant income, then she (you) can (should IMHO) pay in £2880 per year, and the govt will top this up to £3600.
How do these private pensions work, do you just contact them directly? I would be concerned about them going bust over 50 year life time to ensure money is protected?
You pick a pension/SIPP provider - HL, III, Fidelity etc. They provide the SIPP/Pension account, often called the "wrapper" or "pot". You then pay cash into the pot, and the pension provider reclaims the tax from HMRC for you. For every £80 you pay in they reclaim £20 from HMRC. So you end up with £100 cash in you're pot. You then choose what shares/funds/bonds you want to buy with that £100. If you want advice on what shares/bonds/funds to buy, then you either read up yourself, or pay someone (an Independent Financial Adviser IFA) to manage the account for you.
Once you've paid the money in, there is NO LEGAL WAY to withdraw it until you reach minimum retirement age - currently 55 but may rise to 57/58 in the near future. So don;'t put any money in that you may need before then. The money in the pension cannot be used as security for a loan, or a house deposit, or anything till you're 55.
If your pension/SIPP provider goes bust, then you still own the funds/shares/bonds that are in the 'wrapper'. It'll be a mess for a while whilst it's all sorted out, but your investments will be safe. They are held in trust for you - they aren't part of the assets of the pension/SIPP provider.
However, if you buy some shares in a dodgy company (Poly Peck, Carrillion, Northern Rock, Sky ::) ) and that company goes bust, then you will loose your money. That's why it's important to invest across a wide range of companies in a wide range of industries around the world.
Mate of mine lives up Norf near Darlington, I could easily get a buy-to-let out there, that would give a much better return. :-\
Unlikely.
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Also with an investment property you will almost certainly pay Capital Gains tax on it when you sell, so not entirely tax free ;)
You can use investments for general saving purposes, ie outside of a pension, but needs to be for at least 5 years to minimize the risk of loss. Short term saving might as well be cash in a savings account at the moment :-\
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Re Mrs T, is she a fully fledged citizen with British passport and NI number?
My replies assume she's legally registered in the UK and has NI/Tax status.
There's probably three ways you can deal with her... In no particular order.:
1. You pay her full NI to ensure she has full access to state benefits.
Probably not necessary. If you're registered for child benefit then she will be credited with NI even if she's not paying any NI. Even if your earnings are above the child benefit cutoff (£50K-60K) you can still register for CB even if you don't actually claim it.
2. You combine all your finances into joint account(s), work to a household budget and each have individual term life insurance along with separate pension plans. If you can, file a tax return as a married couple filing jointly.
Tax is always personal. There is no option to do a joint tax return. The only thing you can do is transfer some of her unused personal allowance to you.
https://www.gov.uk/apply-marriage-allowance
3. You pay her as an employee and her employer contributions (including work place pension and NI) and she pays income tax and NI as an employee from her wages.
Possible, but very unlikely to actually save you money and involve a shed load more documentation/red tape.
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Options 1 & 3 wouldn't be my first choices. Ever. 3 possibly if I had a permanent live in Nanny but not really appropriate for a wife.
Option two is the best way of dealing with money and marriage, as both people should always be on the same page as equals. Anything else creates/reinforces trust issues.
Shame about not being able to file a joint tax return, as that would simplify things...
I believe Mrs T hails from the green isle, but not sure which end, hence my mention of that ;)
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Options 1 & 3 wouldn't be my first choices. Ever.
1) would be first choice once the kids are old enough (youngest = 14) such that she doesn't qualify for NI credits by virtue of the CB registration.
3 possibly if I had a permanent live in Nanny but not really appropriate for a wife.
3) is obligatory if you employ a Nanny. As an employee you must enrol them in a pension scheme, and comply with all employment legislation.
I believe Mrs T hails from the green isle, but not sure which end, hence my mention of that ;)
Ahh, I see, One of the dangers of commenting on things without knowing all the facts.
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Thanks.
To answer a few questions, MrsT is full UK passport/NI etc and British citizen.
I will contact IFA to understand best route forwards, but most beneficial way does appear to be contribute to her pension pot.
She did work for number of years for banks and consulting company, before coming a full time mum. I need to enquire if she paid into anything previously, I could then add into that pot.
You got me excited on this:
Tax is always personal. There is no option to do a joint tax return. The only thing you can do is transfer some of her unused personal allowance to you.
https://www.gov.uk/apply-marriage-allowance
But I'm not eligible, as my income exceeds the limit. :(
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Whereabouts in Norn Irn is Mrs T from ?
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Whereabouts in Norn Irn is Mrs T from ?
Her parents hail from Galway, Ireland.
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Obviously LC0112G knows his onions re UK tax gubbins, but don't dismiss the links I posted, granted they're a bit American so some of the details don't quite fit over here, but the principles are sound :y
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Not qualified in any way, but I do take a keen interest in tax/pensions. Usually get the chancellor to give me about £2K back every year :-) But the more you know the more you realise you don't know.
Tunnie, hopefully the thing that an IFA will try and drum into you is how tax efficient pension income is in retirement if it's spread equally between two of you, rather than all from one person. You both have a tax free allowance of £11850, and that will apply to pension income too. So take the following two scenarios...
1) You have a pension income in retirement of £23700, but the wife has nothing. You get the first £11850 tax free, but then pay 20% on the rest - so £2370 tax. That means your family income is £21330 p/a.
2) You have a pension income of £11850, and the wife has a pension income of £11850 as well. Neither of you pay any tax, so your family income is £23700 p/a.
Not difficult to see that given the choice, spreading the pension savings as equally as possible between the two of you is more efficient - up to £2370 more efficient - than all the pension being in your name, and none in the wifes. Enough for a 'new' Omega every 3-4 months. ;D
You can both currently start to draw the pension down at 55 - though that may increase to 57/58/60. Your state pension (£8500 ish currently) will be at 67/68/70. So as an absolute minimum you should be thinking of ensuring that your wife has 35 years NI, and a separate pension pot large enough to bridge the gap from the SP to the PA (11850-8500 = £3350 ish) at SP age. That'll require a pension pot in excess of £110K. If she want's to retire before SP age, then she'll need more to cover the gap.
It's unlikely she'll be able to pay into any past pension pots if they were company pensions.
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Nothing to prevent her from moving all of them into a SIPP or similar, with the added benefit of being able to control the investments ;)
Incidentally, is 15% of household income a reasonable pension contribution?
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Incidentally, is 15% of household income a reasonable pension contribution?
Based on my projections .. if you're OK with about £1k pcm, sure...
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Incidentally, is 15% of household income a reasonable pension contribution?
Based on my projections .. if you're OK with about £1k pcm, sure...
15% of what though? Suspect big Jezza's of Sky, his 15% is a larger pile of cash than mine. :D
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Whereabouts in Norn Irn is Mrs T from ?
Her parents hail from Galway, Ireland.
Ah, by your post above I thought you meant she was from Norn Irn and therefore British.
Galway is a lovely place btw. Ive seen the sun go down on Galway bay. Wtf is she doing moving to greater London ? - apart from the ability to make money and meet the man of her dreams. ;D
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Wtf is she doing moving to greater London ?
She's clearly deranged. I mean, she is a lovely lady and all that, but look what she married :P
Tunnie - you know you're batting above your abilities there ;D
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Your household income, so if you take home £2k a month, that would be £300...
I believe that pension calculators under estimate the pot value/market performance, and make no allowance for any specific portfolio.
Using a compound calculator I get anything from £127-145k if it makes 7% and £549-714k if it averages 14%...
Depending on retiring at 65 or 67 and me not adding to current pot.
Paying in £250 a month with a 3% annual increase sees that rise to £343-406k at 7% and £1.08m to £1.48m at 14%
Worst case, I do nothing more and run out of money aged 83 on £1k pm, paying £250 pm will see me to 90/92 at £1,750-2,100 pm at 7%.
14% growth will give me an income of £10k- 13.75kpm to 90/92.
The lower number assumes drawing on pot at 65 vs 67, and drawdown income is gross and assumes the same growth rate as the original investments. It also does not include state pension.
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Nothing to prevent her from moving all of them into a SIPP or similar, with the added benefit of being able to control the investments ;)
Incidentally, is 15% of household income a reasonable pension contribution?
You need to work backwards. Work out what you think you'll need to live on per year when you retire. At that point you need a big enough pot such that the income from the pot gives you your required income. Income from the pot is a bit finger in the air, but 3-4% above inflation is the kind of rates I plan on. So if you'll need (say) £20K income in retirement, £8500 comes from the SP, you need enough pot to supply the other £11500 p/a, which at 3% means you need a pot of about £383K at your SP age.
Between now and your SP age you need to accumulate (say) £400K to be safe. If you invest evenly between the ages of 27 and 67 (40 years), and if you achieve investment return rates similar to the long term average of 5% + inflation, then you need to be putting away about £260 per month. If you start saving later you'll have to put more away. If you don't start till you're 37 (so 30 years) then you'll need to be putting more like £480 per month. Start at 47 and it's £730 per month. You're 47 year old self will thank your 17 year old self if you started then - it'd only need £150 p/m.
If you want to retire earlier you'll have to put more away, or start earlier. If you want more income, you'll have to put more away, or retire later. If you never put anything away you'll be living your old age in abject poverty.
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Wtf is she doing moving to greater London ?
She's clearly deranged. I mean, she is a lovely lady and all that, but look what she married :P
Tunnie - you know you're batting above your abilities there ;D
Irishwomen do tend to be a bit crazy. Thats why I didn't marry one. ;D ;D
On the other hand, Irish men tend to be even more crazy and my wife married one of them. :D
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Your household income, so if you take home £2k a month, that would be £300...
I believe that pension calculators under estimate the pot value/market performance, and make no allowance for any specific portfolio.
Using a compound calculator I get anything from £127-145k if it makes 7% and £549-714k if it averages 14%...
Depending on retiring at 65 or 67 and me not adding to current pot.
Paying in £250 a month with a 3% annual increase sees that rise to £343-406k at 7% and £1.08m to £1.48m at 14%
Worst case, I do nothing more and run out of money aged 83 on £1k pm, paying £250 pm will see me to 90/92 at £1,750-2,100 pm at 7%.
14% growth will give me an income of £10k- 13.75kpm to 90/92.
The lower number assumes drawing on pot at 65 vs 67, and drawdown income is gross and assumes the same growth rate as the original investments. It also does not include state pension.
No-one would plan on 14% returns nowadays. Even 7% is considered aggressive. An IFA has to work with rates prescribed by the regulator, and I think they're cautions = -1%, average = +1%, aggressive = +3%. I agree these are overly pessimistic, but whilst 14% may be possible you'd have to be very very lucky. Most would pick a year on year growth rate between 4% and 8%.
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Even 8% would see an income of £3800 ;)
It would be fair to say that my portfolio is very aggressive... Very little cash and no bonds, and only about 3% in greater europe.
BTW does a 3% annual deposit increase offset 3% annual inflation?
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Past 50 a couple of years ago :(
Our lass has cracked 60 ;)
I did a quick 10 mins research on ISA's earlier.
We will look into high interest accounts and see how it goes :y
Thanks lads :)
Ok. Next plan then. Does your wife work? If not, (or even if she does but earns bu99er all), she can pay up to £2880 p/a into a private pension and the govt will gross it up by 25% to £3600. Since she is 60+ she can then "cash it all in" again and take the whole lot out tax free, assuming her income is less than £9900 this tax year.
You can do the same providing you are 55 or older, and you earn £9900 or less.
So that's potentially 25% 'interest' on £5760 with a cast iron Govt guarantee, and you won't get anywhere close to that anywhere else. Rinse and repeat next year and the year after and the taxpayer will have given you and the mrs £4320 "interest" :D
I'm now joining the few people here investing, as Sky sale has now fully completed for me.
This spiked my interest, my wife does not work I support her and our 2 children with my salary. I "pay" her a sum each month for day to day stuff she needs to buy for the family, is this classed as an income?
How do these private pensions work, do you just contact them directly? I would be concerned about them going bust over 50 year life time to ensure money is protected?
I've looked at ISA's and they pay sod all in interest, to the point of why bother setting one up with such tiny amounts on offer.
Mate of mine lives up Norf near Darlington, I could easily get a buy-to-let out there, that would give a much better return. :-\
This is an interesting point. When I was in the BTL market some 25 years ago, I could buy two properties for the price of one if I bought in the local large town instead of the village, yet the rents were barely 20% less. However, the property prices locally have risen far more than the town. So while I can't now report on percentages etc., my view would be, in our area anyway, for income, buy cheap houses (I researched and bought repos from insurance co's, who were glad to get shut) in the local towns where prices are lower but employment high, but for long term, buy in better areas with better prospect of capital gains. In short, research, research, research. :y
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And having rental property any distance away means either travelling to/fro regularly or paying someone else to (not/mis) manage it for you... Either way it comes out of your rental income and therefore profit, as does any refurbishment costs.
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Even 8% would see an income of £3800 ;)
You need to distinguish growth during the accumulation stage from growth during the drawdown stage.
During accumulation you can ride the rollercoaster and accept more risk for greater probable return. Some IFAs I know aim for 10% p/a on their own portfolios, but would be strung up by the goolies (by the regulators) if they put customers money in such a risky portfolio. Aiming for more than about 8% simply isn't allowed.
However, during the drawdown stage it is considered best to switch out of high risk, high return stuff in favour of steady eddy stuff which is much less volatile. It won't grow as much, but on the other hand it won't drop much during a stock market crash either. Once you switch out of the high risk/high return stuff the returns will drop from 8% to perhaps only 4%.
It would be fair to say that my portfolio is very aggressive... Very little cash and no bonds, and only about 3% in greater europe.
My best performing fund is Black rock European Dynamic. Up 135% in 9 years. I also hold funds in China and India up by similar amounts. One pension pot invested in various global funds rose by over 40% in one year - 2016. Did something happen in 2016? ::)
BTW does a 3% annual deposit increase offset 3% annual inflation?
Basically yes. It's a rule of thumb. Some providers allow automatic increases linked to CPI, or RPI or Wage inflation.
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As an entity, my portfolio has doubled in 5 years, worst year was 3.4%,best 34% so reasonably optimistic ;)
When it comes to draw down, if the pot is of a decent size, the investments can be scaled back and with balanced with a reasonable income. Exact amounts won't be apparent for a good few years yet... but I do have a long term plan :y
The daily ups and downs are interesting to watch, especially the fact that the Emerging Market fund seems to behave opposite to the primary market ones...
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This is an interesting point. When I was in the BTL market some 25 years ago, I could buy two properties for the price of one if I bought in the local large town instead of the village, yet the rents were barely 20% less. However, the property prices locally have risen far more than the town. So while I can't now report on percentages etc., my view would be, in our area anyway, for income, buy cheap houses (I researched and bought repos from insurance co's, who were glad to get shut) in the local towns where prices are lower but employment high, but for long term, buy in better areas with better prospect of capital gains. In short, research, research, research. :y
Talking BTL in front of LC0112G will get you knuckles rapped you know ;) (I joke, he makes very valid points re. Tax). Seriously though, my personal view is that they have their place but as said, research heavily, and if done right they aren't an investment, they're a business.
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Talking BTL in front of LC0112G will get you knuckles rapped you know ;) (I joke, he makes very valid points re. Tax). Seriously though, my personal view is that they have their place but as said, research heavily, and if done right they aren't an investment, they're a business.
^^^This^^^
The days of buying a "cheap" terraced house and renting it out for large profits are gone IMV. It's still possible to get 'lucky' (crossrail), but the tax climate has changed dramatically over the past few years, and there is a budget to look forwards to next week as well.
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Yes, I think locally it is about 5% on BTL before tax. :y
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Did well out of our BTLs when we had them all gone now , they were well managed & was very lucky in the tenants we had two of them ended up buying them from us.Would not recommend it now . Latest thoughts now are buying a property in Spain got several friends over there visited a few over the last two years & quite fancy a holiday home.
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Did well out of our BTLs when we had them all gone now , they were well managed & was very lucky in the tenants we had two of them ended up buying them from us.Would not recommend it now . Latest thoughts now are buying a property in Spain got several friends over there visited a few over the last two years & quite fancy a holiday home.
Anymore thoughts on the 'Stang'?
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Did well out of our BTLs when we had them all gone now , they were well managed & was very lucky in the tenants we had two of them ended up buying them from us.Would not recommend it now . Latest thoughts now are buying a property in Spain got several friends over there visited a few over the last two years & quite fancy a holiday home.
Any further thoughts on the 'Stang'?
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Did well out of our BTLs when we had them all gone now , they were well managed & was very lucky in the tenants we had two of them ended up buying them from us.Would not recommend it now . Latest thoughts now are buying a property in Spain got several friends over there visited a few over the last two years & quite fancy a holiday home.
Any further thoughts on the 'Stang'?
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The car is on hold at present, we are both keen on getting a holiday home got friends in El Campello & for us it has got everything we want, salesman never got back to me but the car is still there as far as I am aware