Saving

[Hedgecutter]

On 04/07/2019 at 13:28, Dindeleux said:

It can fluctuate of course but for the last year or so I’ve had it set at the most aggressive setting and I’ve put £960 in it and currently sitting at over 10% return with £1081 in the pot.

So you've made a tenner a month (not to be sneered at of course).  I suppose if it's small monthly investments then that's fair enough, but I know I wouldn't put in a bulk ~£1000 with that risk : reward.

23 hours ago, Dindeleux said:

My shares are worth about £20k at the current price, my hope is they go back to £3 a pop which will roughly double that and I may be in a position to leave my job and set up the business I want to do.  However the arrival of my daughter has made me a bit more reluctant to do this than I would've been pre-child.  Can't really take the gamble of losing my income.  My work have also been making people redundant over the last 12 months so I'm half-hoping it will come to me shortly as the payoff would probably be about a years wage upfront

 

35 minutes ago, Dindeleux said:

Just to confirm, are you saying in my situation I should cash in my work shares and use the money to pay off a bit of my mortgage.

I simply like knowing that I have a safe battle fund that I control rather than having the possibility of it dropping away.  For example, my mortgage overpayments go into a 'reserve', reducing the monthly payments and interest in future (which could in theory rocket if I don't get the balance down now).  I can however use this to underpay my mortgage at any time, and I know that'll always be there in case something like redundancy comes along, which is exactly what happened to me 4 years ago.  I know I could have shares and remove money in such a circumstance with a few days notice, but there's always the risk that pot can fail. 

I guess it's all about reward : risk/security, but to answer your question, I know I would, yes.  I'm a scaredy cat though. 

Edited July 5, 2019 by Hedgecutter

[Dindeleux]

4 minutes ago, Hedgecutter said:

 

 

 

I simply like knowing that I have a safe battle fund that I control rather than having the possibility of it dropping away.  For example, my mortgage overpayments go into a 'reserve' which when they money is in, reduces the monthly payments and interest in future.  I can however use this to underpay my mortgage at any time, and I know that'll always be there in case something like redundancy comes along, which is exactly what happened to me 4 years ago.  I know I could have shares and remove money in such a circumstance with a few days notice, but there's always the risk that pot can fail. 

I guess it's all about reward : risk/security, but to answer your question, I know I would, yes.  I'm a scaredy cat though. 

Thanks for the advice.

[invergowrie arab]

34 minutes ago, Hedgecutter said:

I'm surprised more people don't do this tbh, but I can understand seeing as I couldn't be arsed seeing as setting one up sounds like effort.

 

Working in public sector helps as it was the local authority scheme so one A4 form and it was all sorted out. 

The other advantage was I was driving a shite car at the time and you could borrow 3 x your deposit if needed although i never needed to in the end.

[pandarilla]

Is it just me that's surprised by the use of stocks and shares by so many on here?

I didn't think that was really a big thing in Scotland.

Not my cup of tea, I'd rather see a major fire rip through the 'city of London' (but one that only set fire to stock-brokers and their ilk).

Old-school shitey ISAs and savings accounts for me, and a good pension scheme. My missus has been childminding for a while and so doesn't have a pension yet (mid 30s).

Fortunately she's starting at a nursery in August so will get into the cooncil scheme.

Weans and bills generally eat up most of our income.

[Jason King]

I make about £500 a year just from dividends on my shares, which is a roi of around 7% per annum.

That return percentage is a lot better than an Isa or savings account - of course its a more volatile investment and could turn to mince tomorrow and I've made some utter shit decisions in my time (investing in RBS just before things went south a decade ago) but I've also made killings elsewhere over the same period (hello Primark!) so I'm well ahead of where I'd be if I'd stuck the moeny in a Virgin Isa or a Santander Extra  Account.

 

Edited July 5, 2019 by Jason King

[Hedgecutter]

12 minutes ago, pandarilla said:

My missus has been childminding for a while and so doesn't have a pension yet (mid 30s).

This is the other dilemma with the mortgage:  (a) put the spare cash in the pension fund; (b) plough the money into the mortgage which would save interest in future (which may or not be more than the pension-related tax savings) and when mortgage-free earlier, put the X hundred you would have been paying otherwise into the pension then?

Eta:  I'm also mid-30s with only a token amount in my pension pot, but without saving for a deposit rather putting it in the pension, I would have waved away ~£40,000 in rent that I would never have seen again.

Edited July 5, 2019 by Hedgecutter

[Granny Danger]

2 minutes ago, pandarilla said:

Is it just me that's surprised by the use of stocks and shares by so many on here?

I didn't think that was really a big thing in Scotland.

Not my cup of tea, I'd rather see a major fire rip through the 'city of London' (but one that only set fire to stock-brokers and their ilk).

Old-school shitey ISAs and savings accounts for me, and a good pension scheme. My missus has been childminding for a while and so doesn't have a pension yet (mid 30s).

Fortunately she's starting at a nursery in August so will get into the cooncil scheme.

Weans and bills generally eat up most of our income.

Christ almighty.  Where do you think your pension scheme is, and your wife’s future pension scheme will be, invested?

[Melanius Mullarkey]

Money chat.

zzzzzzzzzzzzzzzzzzzzzzz

[Dindeleux]

1 minute ago, Melanius Mullarkey said:

Money chat.

zzzzzzzzzzzzzzzzzzzzzzz

And yet you joined in?

[Jason King]

48 minutes ago, Dindeleux said:

Just to confirm, are you saying in my situation I should cash in my work shares and use the money to pay off a bit of my mortgage.

Depends - if the Yes vote wins the next independence referendum, as is looking likely, I'd certainly be looking to pay off my mortgage ASAP as its not with a Scottish based bank and I suspect a new independent currency will get killed for the first few years against the pound that non-Scottish banks are still likely to be charging in.

Edited July 5, 2019 by Jason King

[Melanius Mullarkey]

9 minutes ago, Dindeleux said:

And yet you joined in?

Shut up you fanny.

[Mr Pikey]

Mortgage is payed off in September , plan was to have no debt whatsoever  at 55 (achieved) and start saving to try and retire a few years earlier than 67 . My brother whose a year younger got cancer last year so now its screw that and live for the present.  So it's off to Spain in two weeks and the Caribbean at Xmas with a trip somewhere inbetween . I'll worry about retirement if and when I reach 67. Those Tory b*****ds will probably put it up to 75 anyway then try and steal anything you have managed to.put in the bank 

[Granny Danger]

15 minutes ago, Melanius Mullarkey said:

Money chat.

zzzzzzzzzzzzzzzzzzzzzzz

^^^ has absolutely nothing worthwhile to contribute but can’t help himself from posting.

[Melanius Mullarkey]

1 minute ago, Granny Danger said:

^^^ has absolutely nothing worthwhile to contribute but can’t help himself from posting.

Ironic.

[Sergeant Wilson]

1 hour ago, Raidernation said:

I have approximately 15 years of SPPA pension waiting for my retirement plus whatever I can accrue here.
Still looking for some daft rich bint to marry me though

Fucksake, you're sailing a bit close to the wind big man.

[Hedgecutter]

22 minutes ago, Mr Pikey said:

Mortgage is payed off in September , plan was to have no debt whatsoever  at 55 (achieved) and start saving to try and retire a few years earlier than 67 . My brother whose a year younger got cancer last year so now its screw that and live for the present.  So it's off to Spain in two weeks and the Caribbean at Xmas with a trip somewhere inbetween . I'll worry about retirement if and when I reach 67. Those Tory b*****ds will probably put it up to 75 anyway then try and steal anything you have managed to.put in the bank 

A slippery slope this one.  A family member of an older friend of mine died in his early 40s, resulting in my friend embracing the YOLO approach.  She then decided to take out loans for a brand new Audi / house extension / holidays and then when her business dropped somewhat combined with some health issues, it kicked off a period which ended in her having to sell the house and car.  Rather than being close to being mortgage free, she's now making ends meet whilst paying a new mortgage for a site on a holiday park.  Highlights the fine balance that needs to be struck, which some people struggle to do.

[Dindeleux]

37 minutes ago, Melanius Mullarkey said:

Shut up you fanny.

Ah I still like you.

[Granny Danger]

23 minutes ago, Hedgecutter said:

A slippery slope this one.  A family member of an older friend of mine died in his early 40s, resulting in my friend embracing the YOLO approach.  She then decided to take out loans for a brand new Audi / house extension / holidays and then when her business dropped somewhat combined with some health issues, it kicked off a period which ended in her having to sell the house and car.  Rather than being close to being mortgage free, she's now making ends meet whilst paying a new mortgage for a site on a holiday park.  Highlights the fine balance that needs to be struck, which some people struggle to do.

I can understand the YOLO approach, but the overwhelming majority of folk live very long lives.

Living in pensioner poverty has no appeal.

[invergowrie arab]

I get the cancer YOLO thing. My step mum went at 60, 2 months after a diagnosis but, most people dont.

Was a finacial adviser on radio a while back saying to be really cautious about taking lump sums off pension at 60 when you might have to make it last another 35 years 

[Derry Alli]

Loving Mullarkey swinging font punches, the site needs this more.

More surprisingly though - Hedgecutter is in his 30's. I thought he was about 65.