Financial makeover.
Discussion
I read a lot of threads on here and taken advice from some.
However.
Touch wood got into a good company now are 3 years of poor income (2 years unemployed) and depleted savings, thanks COVID.
High rate tax payer and current projections mean I will be nudging into £100-£120k tax bracket 2025. Company I work for now puts 15% into an Aviva run pension I put in 6%.
Until above 3 months back I had 0 savings tidying up debt built up trying to stay alive while unemployed and am managing to put away £2-£3k a month. Most of it is sat in a Monzo savings making 4.1%. Have a couple of ISA locked away at 4.4% for a year.
I have H&L account and looked at the Vanguard funds on there. Trouble is there are loads. 2 years ago I put a few k into Vanguard Active UK Equity Accumulation and it’s still 15% down on when I put in? Did I manage to pick the only dud?
I feel happy with the pension contributions at the moment and thinking if it looks like I will go over £100k I will ask work to up my contributions.
Want to get to build the war chest back up but have easy ish access to it incase of emergencies. Thinking £20k at present.
Other savings will be my long term plan so ISA s&sISA what ever most tax efficient.
Is it worth moving my sons Vanguard to a different one.
Mortgage wise we are 3% fixed until 2028 with around 12 years left. Unless we decide to upsize.
However.
Touch wood got into a good company now are 3 years of poor income (2 years unemployed) and depleted savings, thanks COVID.
High rate tax payer and current projections mean I will be nudging into £100-£120k tax bracket 2025. Company I work for now puts 15% into an Aviva run pension I put in 6%.
Until above 3 months back I had 0 savings tidying up debt built up trying to stay alive while unemployed and am managing to put away £2-£3k a month. Most of it is sat in a Monzo savings making 4.1%. Have a couple of ISA locked away at 4.4% for a year.
I have H&L account and looked at the Vanguard funds on there. Trouble is there are loads. 2 years ago I put a few k into Vanguard Active UK Equity Accumulation and it’s still 15% down on when I put in? Did I manage to pick the only dud?
I feel happy with the pension contributions at the moment and thinking if it looks like I will go over £100k I will ask work to up my contributions.
Want to get to build the war chest back up but have easy ish access to it incase of emergencies. Thinking £20k at present.
Other savings will be my long term plan so ISA s&sISA what ever most tax efficient.
Is it worth moving my sons Vanguard to a different one.
Mortgage wise we are 3% fixed until 2028 with around 12 years left. Unless we decide to upsize.
The most important thing to do first is look at exactly where your funds are invested. Work placed Pension with Aviva, you say. If it's a default product is could be unfit for your needs and goals. The reality is, most investors don't check these things and 20 years later wonder why the returns are a lot less than they had hoped.
Mr Pointy said:
Does your company offer salary sacrifice for your pension contributions? It's very tax efficient.
I don't know the details, but I understand things can get complicated when you get to the 45% rate at £125k of taxable income, such as the personal allowance being removed etc. I think some doctors have had issues in this area https://www.gov.uk/income-tax-ratesOn the Vanguard fund, the OP (and this is directed at him) has selected a UK fund that is a small part of the worldwide market and then the used an active manager who will probably only own a fraction of the UK market, which is great if they get it right, but not otherwise. I gather that best practice would either be to hold numerous active equity funds over various geographical areas to cover manager or geographical risk, or hold one or two worldwide index tracker funds/ETFs. I'm told there's more of a case for active bond funds, as cap-weighted index funds hold more of the most indebted companies' bonds.
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