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Paninistickers

Investments, stocks, shares

By Paninistickers, in General Chat

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Bellend Sebastian

Bellend Sebastian

Posted
Posted
3 minutes ago, weller54 said:

Equity release is a con! 

But it's a last resort if really necessary I suppose. 

It has a bad reputation because of a few dodgy schemes a few years back. There's nothing intrinsically wrong with it if it's a good product and properly advised on.

 

I'd agree that it should be seen as a last resort for most folk, though. Not as appealing at the moment anyway because of what's happened to interest rates

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weller54

weller54

Posted
Posted
2 minutes ago, Paninistickers said:

Interesting.... I've always been sceptical but someone earlier who seems to know their stuff suggested it ...and it's logical. Release dormant money in a house that you won't need when dead. 

 

Why do you think it is a con? 

My in-laws did it and within 15 years it's wiped out their entire equity! The interest racks up fast!! 

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Tommy G

Tommy G

Posted
Posted
13 minutes ago, Ginger_Filbert said:

Can you give any more info on this please? Never heard about it before.

https://www.unbiased.co.uk/discover/pensions-retirement/managing-a-pension/how-to-claim-higher-rate-tax-relief-on-pension-contributions
 

Have a look at this. I’m an accountant (not in practice anymore) and I don’t know enough about tax these days or have any interest to advise, so I use a tax accountant who also happens to be a good mate and has his own practice to submit my tax returns, financial planning and do all this stuff for me. For a few hundred quid a year it’s worth getting it right. 
 

 

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FoyleFox

FoyleFox

Posted
Posted
1 hour ago, weller54 said:

Equity release is a con! 

But it's a last resort if really necessary I suppose. 

 

1 hour ago, weller54 said:

My in-laws did it and within 15 years it's wiped out their entire equity! The interest racks up fast!! 

Many years ago the equity release scheme weren't very regulated and people took all of the money at once, wiping outequity quickly. Ideally you just want to take a certain tranche of money, and a few years apart. There's been a lot of clamping down now, as I understand. A bit like the PPI sales shenanigans, the schemes suffered the same mis-selling.

It's definitely something which needs independent, professional advice and careful consideration. 

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Free Falling Foxes

Free Falling Foxes

Posted
Posted

I recently retired and took the largest amount I could as a tax free lump sum from my pension.

Perfectly happy with my choice in doing that.

I sought independent financial advice on what to do with my lump sum.

I was advised to look at an investment portfolio which would be managed on my behalf - for a fee. The advice demonstrated that on past performance the return, even after fees, would still be better than placing it in a building society bond or ISA.

I wasn't convinced but intrigued. I therefore decided to go down the traditional route for me, and put most into various building society accounts.

I did, however, follow the investment advice for 20% of my lump sum.

Well, I'm glad I restricted my portfolio investment. It is, after 6 months, showing a .3% loss.

I know the advice is that it is a longer term investment but if it merely breaks even after a year, let alone goes down, my dabbling in the markets will quickly come to an end.

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Tommy G

Tommy G

Posted
Posted
13 hours ago, Free Falling Foxes said:

I recently retired and took the largest amount I could as a tax free lump sum from my pension.

Perfectly happy with my choice in doing that.

I sought independent financial advice on what to do with my lump sum.

I was advised to look at an investment portfolio which would be managed on my behalf - for a fee. The advice demonstrated that on past performance the return, even after fees, would still be better than placing it in a building society bond or ISA.

I wasn't convinced but intrigued. I therefore decided to go down the traditional route for me, and put most into various building society accounts.

I did, however, follow the investment advice for 20% of my lump sum.

Well, I'm glad I restricted my portfolio investment. It is, after 6 months, showing a .3% loss.

I know the advice is that it is a longer term investment but if it merely breaks even after a year, let alone goes down, my dabbling in the markets will quickly come to an end.

To be fair the market has been cr*p for the past 6 months, if you have a pension or a S&S ISA you will note little growth or losses, its about riding it out long term - lots of market data to suggest this is the case. Placing anything in a building society long term is pointless, and any interest you earn will be eaten up by inflation - even more so if you are a tax payer at 40/45% as your tax free allowance is heavily restricted. 

 

Have a look at Vanguard as a platform, I use that for any ''longer term'' investments and so far so good. 

 

a 0.3% loss isn't bad, could be a lot worse at the min!

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Paninistickers

Paninistickers

Posted
  • Author
Posted

Maybe not the right thread for this question, but I started the thread so I guess, my rules..

 

Question is, I have possibly a few k coming my way in the coming months ...

 Interested in any financial advice that suggests 

 

A) use that to reduce my mortgage into double figures and obvs being down the monthly payments dramatically

 

Or 

 

B) seeing as I can afford the current monthly mortgage instalments, should I keep as is and invest the few k elsewhere

 

Comments welcomed and appreciated! 

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Izzy

Izzy

Posted
Posted
10 minutes ago, Paninistickers said:

Maybe not the right thread for this question, but I started the thread so I guess, my rules..

 

Question is, I have possibly a few k coming my way in the coming months ...

 Interested in any financial advice that suggests 

 

A) use that to reduce my mortgage into double figures and obvs being down the monthly payments dramatically

 

Or 

 

B) seeing as I can afford the current monthly mortgage instalments, should I keep as is and invest the few k elsewhere

 

Comments welcomed and appreciated! 

The age old dilemma....

 

I had this same question a few years ago and naturally went onto YouTube to find the answer. Interestingly about 50% of the 'experts' on there said pay off your mortgage first, and the other 50% said invest it :rolleyes:

 

A lot of the perceived wisdom seemed to boil it down to an emotional vs rational decision. The rational thing to do (in terms of financial sense) seemed to be to invest the money and keep paying your mortgage as is. The emotional side was the peace of mind of ultimately being mortgage/debt free and then invest after that.

 

I/we took the decision to plough everything into paying our mortgage off which we've just done. We're now free to invest extra money each month into whatever we fancy.

 

I'm sure I asked the same question on here a few years ago and was 'advised' to invest rather than pay the mortgage down and that may well have given us a better return long run. But I'm glad we went down the pay the mortgage off route instated purely for the feeling of not owing anyone anything and owning our house outright.

 

Here's a few of the 'experts' I listened to back then (and obvs inflation/interest rates have changed since) 

 

 

 

 

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Grebfromgrebland

Grebfromgrebland

Posted
Posted
On 09/11/2023 at 19:09, Free Falling Foxes said:

I recently retired and took the largest amount I could as a tax free lump sum from my pension.

Perfectly happy with my choice in doing that.

I sought independent financial advice on what to do with my lump sum.

I was advised to look at an investment portfolio which would be managed on my behalf - for a fee. The advice demonstrated that on past performance the return, even after fees, would still be better than placing it in a building society bond or ISA.

I wasn't convinced but intrigued. I therefore decided to go down the traditional route for me, and put most into various building society accounts.

I did, however, follow the investment advice for 20% of my lump sum.

Well, I'm glad I restricted my portfolio investment. It is, after 6 months, showing a .3% loss.

I know the advice is that it is a longer term investment but if it merely breaks even after a year, let alone goes down, my dabbling in the markets will quickly come to an end.

You really need to see where you are after 5 years not 6 months. Over the long term cash will be the lowest performing asset class. 

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Izzy

Izzy

Posted
Posted
12 minutes ago, Paninistickers said:

One extra spanner which I've raised here before is a super modest pension pot I'm likely to have. This cash more.or doubles the amount I could use to buy an annuity

 

But thanks, I'll definitely watch those videos

Yeah, pensions are another thing to factor in!

 

You probably need to speak to a proper FA about your options rather than listen to us clowns on here tbh

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Bellend Sebastian

Bellend Sebastian

Posted
Posted
10 hours ago, Grebfromgrebland said:

You really need to see where you are after 5 years not 6 months. Over the long term cash will be the lowest performing asset class. 

Amen to that.

 

Although I'm still pleased that my pension has gone up 5.5% since I switched it in July.

 

As an exciting example of the role of how timing and chance impacts these things, my son's junior ISA which was applied for at the same time but took a bit longer to go through is up nearly 9% since August, the jammy sod 

 

 

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Lako42

Lako42

Posted
Posted
11 hours ago, Paninistickers said:

Maybe not the right thread for this question, but I started the thread so I guess, my rules..

 

Question is, I have possibly a few k coming my way in the coming months ...

 Interested in any financial advice that suggests 

 

A) use that to reduce my mortgage into double figures and obvs being down the monthly payments dramatically

 

Or 

 

B) seeing as I can afford the current monthly mortgage instalments, should I keep as is and invest the few k elsewhere

 

Comments welcomed and appreciated! 

If you take the mortgage option don't reduce the monthlies reduce the term. 

 

 

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urban fox

urban fox

Posted
Posted
2 hours ago, Lako42 said:

If you take the mortgage option don't reduce the monthlies reduce the term. 

 

 

We did this many years ago. As interest rates were falling we continued paying the same monthly amount, with the occasional lump sum payment when we could afford it. Finished paying our mortgage off 5 years early which left us with lots of spare cash to invest in preparation for eventual retirement and allowed us to spend a bit more on ourselves, which I think we deserved after years of grafting and bringing up kids etc.

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dsr-burnley

dsr-burnley

Posted
Posted
On 09/11/2023 at 19:09, Free Falling Foxes said:

I recently retired and took the largest amount I could as a tax free lump sum from my pension.

Perfectly happy with my choice in doing that.

I sought independent financial advice on what to do with my lump sum.

I was advised to look at an investment portfolio which would be managed on my behalf - for a fee. The advice demonstrated that on past performance the return, even after fees, would still be better than placing it in a building society bond or ISA.

I wasn't convinced but intrigued. I therefore decided to go down the traditional route for me, and put most into various building society accounts.

I did, however, follow the investment advice for 20% of my lump sum.

Well, I'm glad I restricted my portfolio investment. It is, after 6 months, showing a .3% loss.

I know the advice is that it is a longer term investment but if it merely breaks even after a year, let alone goes down, my dabbling in the markets will quickly come to an end.

A lot of it is timing.  In the year to about October 2022 my pension pot went up by over 10%.  This year, nothing.  

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dsr-burnley

dsr-burnley

Posted
Posted (edited)
14 hours ago, Paninistickers said:

One extra spanner which I've raised here before is a super modest pension pot I'm likely to have. This cash more.or doubles the amount I could use to buy an annuity

 

But thanks, I'll definitely watch those videos

One thing to possibly bear in mind is potential future changes in government policy.  Specifically, depending what you mean by a modest pension pot, whether the extra amount you could receive in pension would be matched by a reduction in benefits/pension credits, or even means tested state pensions if they ever dare introduce it.  You might get little benefit from the extra income.

Edited by dsr-burnley
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Babylon

Babylon

Posted
Posted
15 hours ago, Paninistickers said:

Maybe not the right thread for this question, but I started the thread so I guess, my rules..

 

Question is, I have possibly a few k coming my way in the coming months ...

 Interested in any financial advice that suggests 

 

A) use that to reduce my mortgage into double figures and obvs being down the monthly payments dramatically

 

Or 

 

B) seeing as I can afford the current monthly mortgage instalments, should I keep as is and invest the few k elsewhere

 

Comments welcomed and appreciated! 

C) Take the money. Invest half of it, and use the other half to pay off some of your mortgage... BUT... keep your payments the same and overpay your mortgage far quicker. You have a nice middle ground then. 

 

I was mortgage-free 5 years to the day I bought my house by overpaying dramatically each month. The financial freedom that comes with knowing nobody can take your house no matter what; you can't put a price on it. It enabled me to start my own businesses, which means I work about 2/3's the amount I used to for twice the money. I'd never have made that jump without the financial freedoms that come with it. There is more you can do, cut back on hours etc. Quality of life is what it's all about. 

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whoareyaaa

whoareyaaa

Posted
Posted
On 14/12/2023 at 19:24, Paninistickers said:

Maybe not the right thread for this question, but I started the thread so I guess, my rules..

 

Question is, I have possibly a few k coming my way in the coming months ...

 Interested in any financial advice that suggests 

 

A) use that to reduce my mortgage into double figures and obvs being down the monthly payments dramatically

 

Or 

 

B) seeing as I can afford the current monthly mortgage instalments, should I keep as is and invest the few k elsewhere

 

Comments welcomed and appreciated! 

All in Bitcoin

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CheeseHead

CheeseHead

Posted
Posted
On 14/12/2023 at 19:24, Paninistickers said:

Maybe not the right thread for this question, but I started the thread so I guess, my rules..

 

Question is, I have possibly a few k coming my way in the coming months ...

 Interested in any financial advice that suggests 

 

A) use that to reduce my mortgage into double figures and obvs being down the monthly payments dramatically

 

Or 

 

B) seeing as I can afford the current monthly mortgage instalments, should I keep as is and invest the few k elsewhere

 

Comments welcomed and appreciated! 

 

1 hour ago, whoareyaaa said:

All in Bitcoin

 

All in the AI revolution, which really means Nvidia, Google, Microsoft, Meta, Amazon and Tesla

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