What savings/investment product do I want?
Discussion
Having recently turned 30, I have decided to sort my finances out.
Summary of current circumstances:
35k salary
DB pension (currently estimated at £30k pa)
Own house with mortgage (£100k mortgage, £120k house value, fixed for 2 more years at 2%)
No savings
No debts
Mrs works part time (£10k pa - With the rest of her personal allowance transferred to me under marriage allowance). She has just set up a workplace pension, but contributions are minimal. We have a child and are not planning on having any more
I'm looking to put £100-200 a month into something long term - 15/20 years or so. Given the security (famous last words) of my pension, I am open to higher risk options.
Is a stocks and shares ISA my best option? I don't want to actively do anything, bar set up a direct debit and receive a letter once a year telling me how much is there, or has been lost, as the case may be.
I can pay more into either of our pensions, with additional voluntary contributions, but I would like the option to give my child the money should he need it when buying a house etc.
We are looking to move house in the next few years, but this won't be to anything extravagant. However, would a regular payment leaving my account affect what mortgage I could get? Ideally it needs to be something I can stop paying onto for 6 months or so to pass any affordability tests if so.
Thanks in advance for any thoughts, and no, I would not like any magic beans, unless they grow petrol.
Summary of current circumstances:
35k salary
DB pension (currently estimated at £30k pa)
Own house with mortgage (£100k mortgage, £120k house value, fixed for 2 more years at 2%)
No savings
No debts
Mrs works part time (£10k pa - With the rest of her personal allowance transferred to me under marriage allowance). She has just set up a workplace pension, but contributions are minimal. We have a child and are not planning on having any more
I'm looking to put £100-200 a month into something long term - 15/20 years or so. Given the security (famous last words) of my pension, I am open to higher risk options.
Is a stocks and shares ISA my best option? I don't want to actively do anything, bar set up a direct debit and receive a letter once a year telling me how much is there, or has been lost, as the case may be.
I can pay more into either of our pensions, with additional voluntary contributions, but I would like the option to give my child the money should he need it when buying a house etc.
We are looking to move house in the next few years, but this won't be to anything extravagant. However, would a regular payment leaving my account affect what mortgage I could get? Ideally it needs to be something I can stop paying onto for 6 months or so to pass any affordability tests if so.
Thanks in advance for any thoughts, and no, I would not like any magic beans, unless they grow petrol.
Welshbeef said:
Please note the MAX defined pension you can get is 2/3rds of your final salary so if you had done 40years service now and we're retiring your pension would be £23,333pa. If you take the 25% tax free lump sum your pension would decrease.
For you to get £30k now after 40 years service you'd have to earn £45k.
The main question though is what is your goal?
Is this your forever home?
If you paid it all into the mortgage in 10 years youd have paid off an additional £25k which along with your usual mortgage payments might mean you'd only owe £50k at the age of 40 and therefore mortgage free well before 45years old is a real opportunity.
That is an emotional threshold - "f
k you money" position so to speak ie you could walk out of work
It's a CARE scheme, not a final salary. The latest letter I had from them says I have 2 options - 1 is a yearly pension of 33k, 2 is a lump sum of 143000 and a yearly pension of 21000. Unless there are some other rules I'm unaware of? It certainly doesn't imply that in their letters thoughFor you to get £30k now after 40 years service you'd have to earn £45k.
The main question though is what is your goal?
Is this your forever home?
If you paid it all into the mortgage in 10 years youd have paid off an additional £25k which along with your usual mortgage payments might mean you'd only owe £50k at the age of 40 and therefore mortgage free well before 45years old is a real opportunity.
That is an emotional threshold - "f
k you money" position so to speak ie you could walk out of workI don't know what my goal is to be honest, I just think I should do something productive that will benefit us in the future. My current house is definately not a forever home, the next one may well be though. I had connsidered just overpaying my mortgage, but being mortgage free X years earlier didn't really appeal to me as much as having a decent amount of cash in X years instead. If for example I wanted to give my son a deposit for a house, if I'd paid off my own mortgage I'd have to remortgage to give him some, which seems silly.
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