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Old 18-01-2021, 17:28   #101
Arthur Fowler
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Originally Posted by cjanderson View Post
i am trying to work out this year if its worth me putting extra into pension when I am now a 20% tax payer.

As you then pay 20% on it when you get the money in the future

Though it also will save me NI won't it at 12% (and employer gives me half of their NI saved) so I get an extra 19% on top of the tax saving.

Before I always tried to get just below 40% band via pension so not thought about the maths of doing it at lower salary levels.
Good point on the paying tax when you take your pension. Should have made that clear on my previous post.
I intend to take a big chunk of the extra contributions I am making now in the tax free lump sum when I retire.
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Old 03-02-2021, 17:58   #102
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Yes, 0.4%.

I would phase it in equal amounts on a monthly basis if putting the full amount in rather than a one-off payment. The way the markets are at the moment i'm thinking a correction is due.

Might be best to call Vanguard and speak to someone about any questions you may have before investing.

As far what benefit you're getting from your financial advisor for that extra 1.6%, that will be be between you and your advisor to determine that. I would be scrutinising their investment prospectus to fully understand their investment strategy as it may or may not be something that you can do yourself. They have the product knowledge and will have passed the necessary financial planning certificates in order to be able to advise clients.
Well we have told the financial advisor where to go after getting advice from other FAs [ it helps when your OH works for one ] and are going down the DIY route

From what they could tell we were definitely going to be paying the FA for doing FA

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Old 03-02-2021, 19:27   #103
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Well we have told the financial advisor where to go after getting advice from other FAs [ it helps when your OH works for one ] and are going down the DIY route

From what they could tell we were definitely going to be paying the FA for doing FA
Brilliant! I think you have made the right choice.
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Old 04-02-2021, 12:15   #104
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Brilliant! I think you have made the right choice.
We think so too

Just checking out which platform to use now; current contenders are AJ Bell ( Youinvest.co.uk ), Vanguard and TPinvestor.com ( which is the one my brother is using though they seem quite expensive compared to the other two )

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Old 04-02-2021, 15:30   #105
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We think so to

Just checking out which platform to use now; current contenders are AJ Bell ( Youinvest.co.uk ), Vanguard and TPinvestor.com ( which is the one my brother is using though they seem quite expensive compared to the other two )
OMG! You took notice of what people on the Internet said? You'll be broke by Sunday!

Joking apart, https://monevator.com/compare-uk-che...nline-brokers/ has a comparison of a lot of brokers - might be handy based on investment value and how many transactions you intend to make.
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Old 04-02-2021, 16:43   #106
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OMG! You took notice of what people on the Internet said? You'll be broke by Sunday!



Joking apart, https://monevator.com/compare-uk-che...nline-brokers/ has a comparison of a lot of brokers - might be handy based on investment value and how many transactions you intend to make.
That's the thing with trying to work out the costs ...

Up until April '22 there will only be two 'transactions'; two bulk deposits of £20k [ well ... 4 when you include the same transactions for my OH's ISA for the same amount ]. This is definitely a dump it and leave it plan
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Old 04-02-2021, 17:22   #107
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We think so too

Just checking out which platform to use now; current contenders are AJ Bell ( Youinvest.co.uk ), Vanguard and TPinvestor.com ( which is the one my brother is using though they seem quite expensive compared to the other two )
Good luck with whoever you go with. Wishing you many high returns.
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Old 06-02-2021, 14:15   #108
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My only experience of an independent financial adviser was my parents who invested a lump sum from an early retirement. Their investment did badly, they'd have been better after five years sticking it in their mattress. Yet the IFA every six months sent them a letter saying he'd bought a new car and was going on a nice holiday.

I've just took some money out of premium bonds and stuck it in some steady shares that historically pay a few dividends, with a couple of low level gambles thrown in. Nothing flashy, am struggling to see me lose £30 in my first day though but got to remember this is for the long haul.
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Old 06-02-2021, 15:00   #109
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Good luck with whoever you go with. Wishing you many high returns.
Went with AJ Bell in the end. £20k invested so far ( at a cost of £152 ) mainly due to daily withdrawal limit on the account that is holding all the money

Now need to remember not to check it daily and worry
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Old 06-02-2021, 15:06   #110
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Went with AJ Bell in the end. £20k invested so far ( at a cost of £152 ) mainly due to daily withdrawal limit on the account that is holding all the money

Now need to remember not to check it daily and worry
Nice one, and yes best not to check it daily. I've got in to the habit of checking mine once a month when I look up to see if i've won anything with my premium bonds.

In case you haven't thought of it, I would rebalance once a year in line with your age/investment goals (that's if you have a combination of stocks and bonds that is).

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Old 06-02-2021, 15:22   #111
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I invested £5000. I've already lost £36.05. £25 of that would be the stamp duty I've paid on the shares. So overall I'm not worried, I'm just obsessively checking it every hour or so (although no point on the weekends).
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Old 06-02-2021, 16:21   #112
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In case you haven't thought of it, I would rebalance once a year in line with your age/investment goals (that's if you have a combination of stocks and bonds that is).
10 years (ish) away from retirement and went for their "Adventurous fund". Once retirement kicks in, I will presumably move this (and my pension pot) into one of their Income / "Income with Growth" funds ?
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Old 06-02-2021, 16:44   #113
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10 years (ish) away from retirement and went for their "Adventurous fund". Once retirement kicks in, I will presumably move this (and my pension pot) into one of their Income / "Income with Growth" funds ?
I think you'd want to change this before you retire so you don't get caught out and have to delay retiring.

Vanguard have funds which automatically adjust as you age: https://investor.vanguard.com/mutual...-retirement/#/

Not saying you should use these but they might give an idea of the ratio of stock to bonds you should aim for. You can click through to get some actual numbers.
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Old 06-02-2021, 16:53   #114
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Not

I think you'd want to change this before you retire so you don't get caught out and have to delay retiring.

Vanguard have funds which automatically adjust as you age: https://investor.vanguard.com/mutual...-retirement/#/

Not saying you should use these but they might give an idea of the ratio of stock to bonds you should aim for. You can click through to get some actual numbers.
Absolutely, it will be monitored a lot towards the end. And looking at it, this fund is currently 92% shares, 3% bonds and smaller amounts elsewhere.

This isn't a retirement fund per se - we already have several pension pots on the go for that - but rather what we're doing with 90% of what remains of an inheritance after the mortgage has been paid off It is being split 50/50 between a S&S ISA for me and a S&S ISA for my OH. This also means as we can balance out the risk a bit more as we won't pick the same fund for hers.
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Old 27-02-2021, 09:32   #115
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Trying to stick to my "don't check it daily" mantra. Good job really as the fund I chose is on a bit of a rollercoaster

Shot up the first couple of days, then fairly big drop but slowly on its way back up. It is also interesting that it seems to have no correlation with how the FTSE, etc indexes are doing either. Still the medium and long term past performance is good so need to panic.
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Old 27-02-2021, 10:08   #116
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I obsessively check mine. But I am in it for the long haul. I just think how much I paid and what the dividend yield will be, I invested about £20k so far and would be chuffed with £1000 of dividends for it, looking good so far.

You've got to be in it long term, if I wasn't I'd have cut my losses already. But some of the shares are doing pretty well, 25% up on a couple, but quite a few are down.

It's just the way it is, the whole thing went down 2.5% on Friday, something to do with US bond yields or something.

I really don't have enough put away for retirement, I had a good final salary pension for 15 years, I'm only 40, but can't see myself returning to a job that gives a good pension again.
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Old 08-03-2021, 02:44   #117
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Scottish Mortgage down more than 25% so could be a good time to buy into it:

https://www.thisismoney.co.uk/money/...lar-trust.html

Due to the risk involved, I wouldn't put any more than 10% of total funds in an Investment Trust.

Last edited by jmdomain; 08-03-2021 at 02:48.
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Old 08-03-2021, 12:54   #118
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Scottish Mortgage down more than 25% so could be a good time to buy into it:

https://www.thisismoney.co.uk/money/...lar-trust.html

Due to the risk involved, I wouldn't put any more than 10% of total funds in an Investment Trust.
Mortgage trusts could be ok but they are a long term investment and can fail catastrophically if there is a sudden mortgage related financial crisis like in 2008. Hopefully that will not happen again.

I am still considering what to do with my cash in the UK. I am considering buying property with it, but am a little limited as do not have a huge amount of free cash and do not want a mortgage or to buy outside of the Derby area where family can help take care of it etc.
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Old 12-03-2021, 10:35   #119
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You've got about 3 weeks to use your ISA limit, £20k in stocks and shares (sorry Kryten, I think you're US based)

SM Investment Trust has quite a lot of money in the big techs, and heavily invested in the electric cars such as Tesla, NIO, etc. Hence the massive rises and following crash. I don't think these are bad investments, but just make sure you're not over exposed to that sector (by having this and Tesla shares yourself for example).

Plenty of ways to make a decent passive income without the hassle of owning a house. Plenty of safeish shares pay decent divs.

Aviva
Legal and General
Vodafone
Tobaccos (bit of a decline)
BP
Shell
Big house builders - Wimpey, Redrow, Persimmon, etc.
Unilever
Glaxosmithkline

I just spread some money around using freetrade. It seems to do OK and with a £22k investment, should be looking at making about a grand off dividends alone.

Just don't obsess too much with the share price and be fairly conservative. Unilever ain't going anywhere.

Just be a bit careful with booming stocks at the moment on the basis they'll do well after COVID, I'm a little less optimistic (I don't see carnival cruises about to have a super duper 2021), they seem to be getting over inflated.

I'm not a natural risk taker, this is the first year I've had shares or felt I had the money to risk in shares due to a redundancy payment.

But if I can make more than 0.5% in a year, I think I'm ahead.
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Old 12-03-2021, 10:57   #120
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0.5% in a year is not really, IMHO, a realistic target to get from stocks and shares. Until, relatively, recently any decent hight street bank savings account would give you at least that. And, in terms, of being in it for the long haul may well again in the future.

S&S you should be looking at getting at least treble that or maybe more
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