How to save/pay of mortgage/ pension ect ect

[Petra]

24 minutes ago, GoldDiggerDave said:

Mate if you are in your 30’s you will never see a return on what you have paid in to your pension all your life, you will have to live to 84 just to break even if you are lucky.  
 

I paid my mortgage off before I was 38, the best decision I ever made, I’m 46 now and not really worked for the last 3 years, and have savings around 17 years out goings allowing for inflation and interest rates are in the up🤗 
 

The dream of a pension keeps you turning up to work every Monday morning, 

Mines paying out quite nicely thank you 🤔🫢😁

[CANV]

if you are in your thirties paying into a pension is exactly the right thing to do. especially from a tax point of view.  stock markets have always outperformed holding cash over time ..  

having debt 2.59 per cent is not free money. its better than that! its  paying you 7.5 per cent a year .  its also against an asset that in ten years time will probably be worth 30 per cent more than it is now.  

holding cash will cost you ten per cent this year and at least 5 next year. maybe more 

intrest rates won't get above 4 per cent with current debt loadings in the UK     if you want to be debt free for peace of mind thats great. good for you.  

its not a sensible position for someone in their 30's working and owning property in high inflation low interest rate environment   

[GoldDiggerDave]

9 hours ago, CANV said:

if you are in your thirties paying into a pension is exactly the right thing to do. especially from a tax point of view.  stock markets have always outperformed holding cash over time ..  

having debt 2.59 per cent is not free money. its better than that! its  paying you 7.5 per cent a year .  its also against an asset that in ten years time will probably be worth 30 per cent more than it is now.  

holding cash will cost you ten per cent this year and at least 5 next year. maybe more 

intrest rates won't get above 4 per cent with current debt loadings in the UK     if you want to be debt free for peace of mind thats great. good for you.  

its not a sensible position for someone in their 30's working and owning property in high inflation low interest rate environment   

I have read this a few times,  I did exactly the opposite that you are proposing, I did not over pay into a pension, i overpaid my mortgage while it was cheep……for me the whole idea of paying all my savings to someone then they can tell me how much I can have is just an insane concept.  AKA a pension.
 

Id rather own my property out right before I was 40 and have zero debt, and then use a few years to hard save.  Allowing for inflation for enough saved to last the next 25 years and with higher interests rates on my ISA’s I’m laughing, holding cash does not cost me anywhere close to 10% per year as I have very little exposure to inflation, no mortgage, free heating, can cook/bake on £90 per months for 2 if I have to, and only do about 3000 miles a year in my car, can get this down to sub 2000 miles if I cycle a bit more.  Even with the crazy hikes up prices of energy it only £108 per month and I’m well over paying and getting into credit every month, my mates bill is £420 per month so it’s a case how well you can manage your exposure to inflation that will determine how much it your cash savings you will lose if any……….at 4.6% fixed for 2 years on my isa is covering almost all my fixed outgoings per year council tax, energy, food, if you are not paying a mortgage and income off other investments cover your fixed out goings I consider that a fantastic proposition for anyone. 
 

paying pensions is just handing other people control of  your wealth and keeps you turning up to that job for 50 years. 

[ArgentSmith]

Outlook =  consumer price inflation and asset price deflation. Stock up on tomato sauce today defer asset purchases for 18 + months. Cash has its place.

Worth mentioning buying 5% plus dividend paying value stocks through a SIPP instantly yields 40% for higher rate tax payers and continues to yield more than a cash ISA.... so

Different strokes for different folks, game changes when the Central Banks "pivot"

[Gypsy]

On 28/10/2022 at 10:17, GoldDiggerDave said:

I have read this a few times,  I did exactly the opposite that you are proposing, I did not over pay into a pension, i overpaid my mortgage while it was cheep……for me the whole idea of paying all my savings to someone then they can tell me how much I can have is just an insane concept.  AKA a pension.
 

Id rather own my property out right before I was 40 and have zero debt, and then use a few years to hard save.  Allowing for inflation for enough saved to last the next 25 years and with higher interests rates on my ISA’s I’m laughing, holding cash does not cost me anywhere close to 10% per year as I have very little exposure to inflation, no mortgage, free heating, can cook/bake on £90 per months for 2 if I have to, and only do about 3000 miles a year in my car, can get this down to sub 2000 miles if I cycle a bit more.  Even with the crazy hikes up prices of energy it only £108 per month and I’m well over paying and getting into credit every month, my mates bill is £420 per month so it’s a case how well you can manage your exposure to inflation that will determine how much it your cash savings you will lose if any……….at 4.6% fixed for 2 years on my isa is covering almost all my fixed outgoings per year council tax, energy, food, if you are not paying a mortgage and income off other investments cover your fixed out goings I consider that a fantastic proposition for anyone. 
 

paying pensions is just handing other people control of  your wealth and keeps you turning up to that job for 50 years. 

Golddiggerdave.  I very much enjoy reading all your comments. You come across a very intelligent person.

I’m taking tips from all your posts. Thanks 

[Gypsy]

This is interesting 

 

[Petra]

Not played, but any chance that it’s another American right wing p…k gobbling about rights, government etc.?

[1stsovereign]

Have had a nice chat today with one of the most respectable dealer today regarding pension plan, well how to avoid brand new tax on it... his advise was very simple buy gold!

Would appreciate other members options/opinions on the matter as I am not a financial advisor.

Thank you

[GrahamDiamond]

The only reason paying into a company pension for me is  the FREE Life Insurance. Most firms pay 5 times your salary if you die in work. Peace of mind for me and the other half, if either of us dies whilst in work, the surviving person will be able to live a reasonable life thereafter. I agree GOLD is a good way to save instead of a pension, I have built up a tidy stack since 2017.

[Stu]

13 hours ago, 1stsovereign said:

Have had a nice chat today with one of the most respectable dealer today regarding pension plan, well how to avoid brand new tax on it... his advise was very simple buy gold!

Would appreciate other members options/opinions on the matter as I am not a financial advisor.

Thank you

Pension contributions attract tax relief (extra money in) to your pension. You can deposit up to your annual salary amount, with a ceiling of around £40k PA. 
There is a lifetime allowance of just over 1 million £ for your pension pot before you pay additional taxes.

When you crystallise (start to drawdown) your pension, you can take 25% lump sum tax free. You can also take amounts tax free subject to the usual tax free thresholds. Currently around 12k PA.

Gold and other metals can be held within personal pensions via ETF , Royal Mint etc. 

Pensions are one of the best ways of growing wealth in the UK and the allowances are still fairly generous for most. 

 

[GoldDiggerDave]

 

 

On 30/10/2022 at 20:52, Gypsy said:

This is interesting 

 

Defiantly agree the agendas are accelerating even the naysayers can't deny it's coming.   The disruption agenda, travel, postage, NHS, is front and centre for everyone to see and it's all playing into the hands who want to control every part of our lives.   

Coming back to wealth/pensions I just don't trust work place pensions and even paying into one is no guarantee of a comfortable live after working for 40+ years as it's so easy to rig the system and crush the population with inflation and the likelihood of your workplace pension evaporating to nothing when more companies start to fold is foreseeable, companies now that are going bust have 100's of millions short in their staffs pension fund.......Do you honestly trust your employer/ board of directors to look after your best interest with your pension?   

Whats coming is going to make it increasing difficult for the masses to hold onto their assets even gold due to  inflation and manipulated crisis after crisis will skin more people alive with higher costs and next to zero disposable income a larger number of workers now are pushed further into debt every month so will sell off any assets they have to try and get by,   even equity in their property will be remortgaged to nothing just so they have an affordable monthly expenditure making the home owner effectively a lifetime tenant of the bank.  This is one of the end goals to have everyone or as many people as possible on the hook with zero assets and savings so they are in perpetual serfdom. 

You will own nothing and you WON'T be happy...........

 

Edited December 21, 2022 by GoldDiggerDave

[SlowFrog]

16 hours ago, GoldDiggerDave said:

 

 

Defiantly agree the agendas are accelerating even the naysayers can't deny it's coming.   The disruption agenda, travel, postage, NHS, is front and centre for everyone to see and it's all playing into the hands who want to control every part of our lives.   

Coming back to wealth/pensions I just don't trust work place pensions and even paying into one is no guarantee of a comfortable live after working for 40+ years as it's so easy to rig the system and crush the population with inflation and the likelihood of your workplace pension evaporating to nothing when more companies start to fold is foreseeable, companies now that are going bust have 100's of millions short in their staffs pension fund.......Do you honestly trust your employer/ board of directors to look after your best interest with your pension?   

Whats coming is going to make it increasing difficult for the masses to hold onto their assets even gold due to  inflation and manipulated crisis after crisis will skin more people alive with higher costs and next to zero disposable income a larger number of workers now are pushed further into debt every month so will sell off any assets they have to try and get by,   even equity in their property will be remortgaged to nothing just so they have an affordable monthly expenditure making the home owner effectively a lifetime tenant of the bank.  This is one of the end goals to have everyone or as many people as possible on the hook with zero assets and savings so they are in perpetual serfdom. 

You will own nothing and you WON'T be happy...........

 

I'm in complete agreement with this.

The other thing I keep reading is that people are expecting the banks to pivot on interest rates. In my view, everything taking place is intentional so there will be no pivot. It's going to go higher and get harder. They want to crash it all and I will happily bet a shiny silver coin that it'll be at least 4% by the end of 2023.

[Stu]

Folk have talked about a wealth grab from pension pots for many a year, I am old enough to remember Robert Maxwell plundering the pensions of his employees, instances are rare and few and far between. Also, many organisations, particularity public sector in the states do not have the resources to keep financing their obligations to members  years down the line, this is something different. The UK government does not have a pension pot for the state pension pot either, it just comes out of general taxation, but let’s not conflate this with private pensions.  I am easily convinced around arguments that the state will take your savings one way or tother but I am not convinced regarding pensions. The reason being is that the wealthy of this nation, I.e, the top percentiles, hold and have acquired more than half their wealth in their pensions. It is one of the best wealth generating vehicles we have and a big tax shelter. Now for the politicians to come along and retrospectively grab this money, mainly from their own? I don’t believe they would go down this route, the elites take care of each other. The wealthy have little in cash and you may find a haircut: bank bail in/ cash grab when the s**** hits the fan but the Uber rich will see this coming and have their assets elsewhere. To me, pensions are safe, have “free” money attached and encourage long term savings with the added benefit of compound interest but obviously folks must make up their own minds. I’m in my 50’s now, folks were decrying  pensions since my youth/ Maxwell era, but I wish I had saved like mad one into a pension from then, would be sitting pretty now and fairly confident it would last my lifetime and leave a legacy to pass onto my kids. 

Edited December 22, 2022 by Stu
Spelling

[CANV]

Especially when osbourne decided to let people cash in final salary pensions for their own funds .  When  this coincidied with QE sending bonds rates down to next to zero,   The value of many final salary funds went up to over 50 times the yearly payout (20,was always considered the norm) 
also when you peg it the remainder of the fund isn’t lost , as it is with final salary.   
yet another example of the 50/60’s generation being the luckiest ones financially ever 

[ant1882]

Logged into my pension account recently to see that my completely cash balance is receiving interest of around 3%, paid monthly.

This is with Vanguard, hard to find info from their website but it seems they are following the BOE rates. I was surprised, expected them to be paying nothing at all for cash just sat there.

Yes still losing to inflation of course, but I'd rather not be invested in anything to do with stocks / bonds for a while. Can't touch it anyway for 20+ years.

[SPQR]

I'll post here instead of creating new topic on similar thing.

I'm trying to save up for a deposit with intend to buy a flat/house within 2-3 years.

I have opened LISA account but sitting on a fence between spending £4k on silver/gold and dropping £4k into my LISA. Could you tell my what would you do and why. I know that LISA is better option but with all the things going on in economy, I'm not that sure sticking to fiat money is good idea (or maybe I was just influenced a bit too much by r/wallstreetsilver).

The other thing is, I could use my LISA now and start buying silver from April, when with new tax year.

Please let me know what would you do, if you would have to start over with saving for a deposit (but having £4k saved already).

[Anteater]

21 minutes ago, SPQR said:

I'll post here instead of creating new topic on similar thing.

I'm trying to save up for a deposit with intend to buy a flat/house within 2-3 years.

I have opened LISA account but sitting on a fence between spending £4k on silver/gold and dropping £4k into my LISA. Could you tell my what would you do and why. I know that LISA is better option but with all the things going on in economy, I'm not that sure sticking to fiat money is good idea (or maybe I was just influenced a bit too much by r/wallstreetsilver).

The other thing is, I could use my LISA now and start buying silver from April, when with new tax year.

Please let me know what would you do, if you would have to start over with saving for a deposit (but having £4k saved already).

So long as your plan goes ahead and meet all the requirements to use the LISA for your house purchase (and aren't using an HTB ISA, etc) then it's effectively a 25% risk free (in £s) return over the two to three years, on top of any interest or investment return. This would generally be consider to be a very good deal.

Of course, it's possible that PMs will return more over the same period (it's also possible they will lose value over that period), but then you're into crystal ball territory IMO. Additionally your two-to-three year investment period doesn't give you much time to recover from short-term drops and cash in on any long-term growth trend. If anyone can predict that better than the market then they should be earning a fortune working for a hedge fund, not giving away free advice on a forum

Personally I'd go LISA and keep it in cash and maybe cash-ish investments (eg short gilts). (Your two to three year period is too short to risk shares/etc IMO.)

Edited February 3, 2023 by Anteater

[watchesandwhisky]

LlSAs are great, I'm still paying random amounts into a stocks and shares and saving it for when I'm 60. 

We used our LISA and did receive the bonus on purchase of our first home. 

The only points I will mention is the Solicitor charged a small amount extra for applying for the LISA bonus, and as one point it was waiting for that bonus that was holding up completion. That said all went fine and it was effectively free money.

If I was doing it again I would have no hesitation using them again, but I would want to maximise the bonus to make it worthwhile. 

Edited February 4, 2023 by watchesandwhisky