Investment & Investing

I've been on the lookout for a good investment podcast for a while so thanks for that.

You could look at managed ETFs.

It's time for me to remortgage. My LTV is currently 60% and my rate is 1.64%. I can move to a 5 year fixed with my current provider at 1.59% with a product fee of £1499. (I haven't yet looked at remortgaging elsewhere).
I have £100k that I can either put into a SIPs or chuck into the mortgage. I'm nearly 42 with not much pension savings currently.
Where am I best to put the money - mortgage or pension?

pension

pension

I would do this. Credit is cheap enough to spread it till state retirement age IMO. Esp at such low LTV I'd imagine the monthly payments arent that high(?).

Stocks and shares ISAs are another option that are probably better than Pension for reasons that I’ll explain if you haven’t maxed out your ISA allowance already.

I would strongly recommend you seek the opinion of a professional financial adviser, rather than asking here. There are so many unknowns we have to your financial situation that any advice on here is meaningless.

Use a mortgage calculator like this one to see what your overall cost of the mortgage will be ie across the whole term, not just the 5 years of the fix or whatever. You might find that putting the £100k into your mortgage and shortening the term right down saves you a SIGNIFICANT amount of money overall. With mortgages, it’s the duration of the loan which results in so much interest. I took about £90k off my total repayable by simply dumping some savings in and shortening the term so that my monthly repayable amount was about the same.

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

Obviously it helps if you understand the maths. Get expert help if you think you need it.

Difficult to argue that money borrowed at 1.6% year on year or whatever producing a compounded return at 6% year on year would be better spent by not borrowing it in the first place, but agreed it's worth understanding the figures of each of your choices. Actually is mandatory - the real trick is calculating the risk and worst case / best case scenarios :)

these also echo the tubeless thread .. wish there was an independant tubeless advisor

shortening the term right down saves you a SIGNIFICANT amount of money overall

But on the other hand investing that money elsewhere can generate a more SIGNIFICANT amount of money.

Obviously depends on your appetite for risk but with the current low rates of debt you can probably generate more by not paying the mortgage off.

I worship at the tubeless church of Stredwick.

£40k contribution cap per tax year, if you decide SIPP, ideally £40k before 6th April, £40k on 6th April and rest into into ISA/mortgage.

*The pension contribution limit is currently 100% of your income, with a cap of £40,000. If you put more than this into your pension, you won't receive tax relief on any amount over the contribution limit.
https://www.pensionbee.com/pensions-explained/pension-contributions/pension-contribution-limits

Thanks for the recommendation.

Yeah I have noticed you get a MF article one week saying "buy LFGSS now they are a sure fire hit", then the opposite the next week saying it's too risky.

Stocks and shares isa is almost pointless unless you intend to rack up huge nestegg.
Dividends are £2000 tax free and capital gains £12300 outside of the isa per annum. So you'd have to better that to justify any point.
That said its 20000pa limit and rules are likely to change for the worse very soon.

Even LISA with the 1k bonus on 4k investment is no better then a pension contribution. Would be useful for a first house depostit though.

100% - they are full of shit. may pick out some interesting companies/views sometimes but you really need to look at some other sources too

So you'd have to better that to justify any point.

Short term with small beer, yeah. This was £100k. On a good year, £100k in a S&S isa will return as much as your tax free allowance, or more if you've really done well. Which is great, if you've already used your tax free allowance. Nice problem to have...

(granted you'd need to go back in time five years and start investing it then...)

Long term with large amounts of money (a huge nest egg if you will, say £200k +) here are the boring reasons why it's a better bet in some cases than a SIPP or whatever

• no tax on it when you withdraw from it
  
• less law around it that dickheads can fiddle with and ruin it
  
• can access money any time
  
• not forced in to doing something with the money, i.e. annuity.
  

Main difference is really the ease of access. With the £12k pa you may need to time selling stuff which isn't always an option.

Also, and this is a bit of a crystal ball guess, there have been lots of noises around getting rid of CGT and merging with income tax, etc. It seems this is probably a greater risk than ISA allowances going.

Really not enjoying the noises about cgt 🙁

Baby blue fixehs imo

Their time will come again

may pick out some interesting companies/views sometimes

Yeah, I feel the free stuff is still worth reading sometimes as there are companies/sectors out there you'd never think of otherwise . You just need to remember it's just, like, their opinion, man.

The articles explaining how it all works I found quite useful, with examples and numbers and stuff.

Thanks for the views everyone. When I said pension I probably should have specified I'd be looking at SIPP and SS ISAs.

This is of course the correct answer

I would strongly recommend you seek the opinion of a professional financial adviser

So, any IFA recommendations?

So, any IFA recommendations?

Last time I looked this site helped a lot: https://www.unbiased.co.uk/

Thanks

My partner is looking to transfer a decent amount of savings from her Austrian account to her UK account. Does now seem like a good time, pre brexit deal announcement? We have been tracking the rate on Transferwise and it's the lowest it's been in the last month. Don't need to transfer it immediately, could wait a month or two.