bimmerman Posted October 30, 2019 Share Posted October 30, 2019 so,im doing ok at the moment and want to invest in my families future my pension contributions are matched by my employer to the max that they will pay out am i better off putting some spare money into a savings account as its accessible should something go wrong,overpay the mortgage or just pay additional into the pension? Link to comment Share on other sites More sharing options...
MaltRam Posted October 30, 2019 Share Posted October 30, 2019 If you've got a mortgage, make sure you have life insurance on it. Life insurance isn't a bad idea in it's own right if you want to keep your family secure whatever. Max out ISA's if you can, no tax to pay on your returns. If you want to invest over the long term, stocks and shares will tend to beat a savings account hands down. But then I'm just a working Joe, WTF do I know/ If you're properly minted, consider a financial advisor. Link to comment Share on other sites More sharing options...
therealhantsram Posted October 30, 2019 Share Posted October 30, 2019 14 minutes ago, bimmerman said: so,im doing ok at the moment and want to invest in my families future my pension contributions are matched by my employer to the max that they will pay out am i better off putting some spare money into a savings account as its accessible should something go wrong,overpay the mortgage or just pay additional into the pension? Payoff all non mortgage loans before you start investing. Car. Credit card. Unsecured loans. Next get yourself a cash buffer in a savings account you can access instantly. Knowing you have 6 months salary in cash savings is an enormous mental position of strength if say your employer ever becomes a jerk, you know you can just walk away. That's a good place to be. Only after that, think about investing. And that all depends on your attitude to risks. Link to comment Share on other sites More sharing options...
bimmerman Posted October 30, 2019 Author Share Posted October 30, 2019 24 minutes ago, Needlesh said: If you've got a mortgage, make sure you have life insurance on it. Life insurance isn't a bad idea in it's own right if you want to keep your family secure whatever. Max out ISA's if you can, no tax to pay on your returns. If you want to invest over the long term, stocks and shares will tend to beat a savings account hands down. But then I'm just a working Joe, WTF do I know/ If you're properly minted, consider a financial advisor. i wish i was minted,as you said,im also a working joe and its the first time ive ever had any disposable income. have got life insurance,and im not a big risk taker,not really enough to invest in anything.the isa idea,thought you could only have 1? Link to comment Share on other sites More sharing options...
therealhantsram Posted October 30, 2019 Share Posted October 30, 2019 5 minutes ago, bimmerman said: i wish i was minted,as you said,im also a working joe and its the first time ive ever had any disposable income. have got life insurance,and im not a big risk taker,not really enough to invest in anything.the isa idea,thought you could only have 1? If you are a low risk kinda guy, then premium Bonds are a good place to start. You can put up to 60k in them I think. Like an isa, income is tax free, you can get your money out any time and there is always the small chance you could win a million each month. Link to comment Share on other sites More sharing options...
Van der MoodHoover Posted October 31, 2019 Share Posted October 31, 2019 9 hours ago, bimmerman said: i wish i was minted,as you said,im also a working joe and its the first time ive ever had any disposable income. have got life insurance,and im not a big risk taker,not really enough to invest in anything.the isa idea,thought you could only have 1? 1 each year (tax year). You are limited as to how much you can put in (10,000 per tax payer per year). But everything you take out is not taxed. You can put in much less and there are providers who will let you pay in monthly. You can access your money whenever subject to whatever your Isa provider's service standards are. These days there are cheap online ones that will let you withdraw online and the money will be in your bank account for you to draw out in a couple of days. Not quite as instant as a hole in the wall but it's not far off. You are then able to choose a range of pooled funds to invest in which will hopefully give you a better return than cash. You're typically getting close to 0. As an alternative there are some bank accounts being advertised for new account holders that pay 5% or something on up to 1,000 or so. TSB have been punting one. If you're not already an account holder there might be worth looking into. Good luck......my risky isas have yielded 7% per annum for the last 15 years. But there's no guarantee of course that the next 15 years will be as good. I'm doing my planning on the assumption that I'll be able to beat inflation by 1% each year. I therefore have to take some risk.... Link to comment Share on other sites More sharing options...
bimmerman Posted October 31, 2019 Author Share Posted October 31, 2019 5 hours ago, Van der MoodHoover said: 1 each year (tax year). You are limited as to how much you can put in (10,000 per tax payer per year). But everything you take out is not taxed. You can put in much less and there are providers who will let you pay in monthly. You can access your money whenever subject to whatever your Isa provider's service standards are. These days there are cheap online ones that will let you withdraw online and the money will be in your bank account for you to draw out in a couple of days. Not quite as instant as a hole in the wall but it's not far off. You are then able to choose a range of pooled funds to invest in which will hopefully give you a better return than cash. You're typically getting close to 0. As an alternative there are some bank accounts being advertised for new account holders that pay 5% or something on up to 1,000 or so. TSB have been punting one. If you're not already an account holder there might be worth looking into. Good luck......my risky isas have yielded 7% per annum for the last 15 years. But there's no guarantee of course that the next 15 years will be as good. I'm doing my planning on the assumption that I'll be able to beat inflation by 1% each year. I therefore have to take some risk.... I've been looking at stocks and shares isas, but by the time their fee and management fee comes out it's not really worth it Am I right in that to beat Inflation, I've just gotta find an account with 2.1%apr? Link to comment Share on other sites More sharing options...
Van der MoodHoover Posted October 31, 2019 Share Posted October 31, 2019 Just now, bimmerman said: I've been looking at stocks and shares isas, but by the time their fee and management fee comes out it's not really worth it Am I right in that to beat Inflation, I've just gotta find an account with 2.1%apr? That's basically it at the moment - of course inflation can vary and the account apr may or may not in the future. Appreciate that fees can seem high - there are a very wide range out there and index tracking investments are generally cheaper, because you are not paying lots of researchers to find good companies, you're just mechanically investing in the same proportion as the index. Happy hunting! Link to comment Share on other sites More sharing options...
Wolfie Posted November 1, 2019 Share Posted November 1, 2019 I've invested in Ratesetter for the last 18 months or so. The return varies but normally around 3.3% and it's a pretty ethical peer-to-peer lender, with non-extortionate borrowing rates, so feel I'm hopefully doing some good in helping people get reasonably priced loans. https://www.ratesetter.com/invest/everyday-investing Link to comment Share on other sites More sharing options...
King Kevin Posted November 1, 2019 Share Posted November 1, 2019 Anyone with savings should consider an offset mortgage ,you won't get a better equivalent interest rate with a stand alone account .If you are a 40% tax payer it's even better. Link to comment Share on other sites More sharing options...
jono Posted November 6, 2019 Share Posted November 6, 2019 On 30/10/2019 at 22:09, bimmerman said: i wish i was minted,as you said,im also a working joe and its the first time ive ever had any disposable income. have got life insurance,and im not a big risk taker,not really enough to invest in anything.the isa idea,thought you could only have 1? When I last checked you could invest up 10k a year in to ISAs I think you can split that between a cash ISA and a stock investment market ISA So that is 2 you can also start other new ISAs but you have to wait until the next tax year and the 10k limit remains the same and I think you can only contribute to 2 in any one tax year. But it’s a while since I looked at the rules so talk to the provider. whatever you do avoid what I call funny money .. anything that is offering supposed big returns, green energy companies you’ve never heard of, foreign property, wine investments. Very high risk and often scams. If it’s hinting at more than 5% then I’d give it a wide berth. If you do go to a financial advisor check that they are registered with the financial conduct authority, and the check the registration yourself. There are still a lot of wide boys out there. Link to comment Share on other sites More sharing options...
Gritstone Ram Posted November 6, 2019 Share Posted November 6, 2019 2 minutes ago, jono said: When I last checked you could invest up 10k a year in to ISAs I think you can split that between a cash ISA and a stock investment market ISA So that is 2 you can also start other new ISAs but you have to wait until the next tax year and the 10k limit remains the same and I think you can only contribute to 2 in any one tax year. But it’s a while since I looked at the rules so talk to the provider. whatever you do avoid what I call funny money .. anything that is offering supposed big returns, green energy companies you’ve never heard of, foreign property, wine investments. Very high risk and often scams. If it’s hinting at more than 5% then I’d give it a wide berth. If you do go to a financial advisor check that they are registered with the financial conduct authority, and the check the registration yourself. There are still a lot of wide boys out there. I think the isa allowance is £20k now. Link to comment Share on other sites More sharing options...
bimmerman Posted November 7, 2019 Author Share Posted November 7, 2019 On 06/11/2019 at 16:13, Van Gritters said: I think the isa allowance is £20k now. Yeah it is I went down the route of halving it, kept some in a cash isa and a 2%interest savings account so it's there if needed and can be accessed The rest I banged into my pension in the hope that it'll be there when I'm older and need it/dead so my kids can have it Link to comment Share on other sites More sharing options...
Gritstone Ram Posted November 7, 2019 Share Posted November 7, 2019 1 hour ago, bimmerman said: Yeah it is I went down the route of halving it, kept some in a cash isa and a 2%interest savings account so it's there if needed and can be accessed The rest I banged into my pension in the hope that it'll be there when I'm older and need it/dead so my kids can have it I have given up on the cash ISA I have a share dealing ISA account which is handy if you go for high dividend shares. However the government allows you up to £1000 tax relief on interest on any savings for lower income tax payers and £500 for 40% tax payers. I have upped my pension contributions too. I’m hoping to get out earlier. Link to comment Share on other sites More sharing options...
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