Pavel's eBar

[Don Sholeone]

Really grinds on me how they took it to the media though, sure they will be full of grief but at what point do you decide to drag it to this point, the Doctors gave them all the facts and they disputed it themselves, they blame Great Ormond yet say nothing about the guy who claimed he could treat him but never even bothered to visit/examine or even read his medical files despite invitation to, people have been protesting and harassing doctors and patients families because of all this, a great institution that did all they could for the child and his family are being ridiculed and spat on for doing their job and doing what is best for their patient whilst the parents are raking in millions in donation by the whipped up hysteria they have caused. i don't doubt their grief but i do believe they have exploited it for publicity and financial gain.

[Hjl]

After shagging Kylie Minogue yesterday theres 3 things you should know. First her fanny is tight as ****, a real struggle to get into. Secondly, she takes it over the face with no complaints. And thirdly, the staff at Madame Tussauds are miserable **** with no sense of humour at all.

Brilliant!

[bodacious benny]

[bodacious benny]

TF accountants, I'm after a bit of advice...

I pay into a public sector pension which will be worth bugger all by the time I retire in 30/35 years. I've been thinking, would I be better coming out of the pension and using the money that I save (about £150 per month) to overpay on my mortgage

I did a quick calculation online at the weekend, if I overpay on my mortgage by £100 per month then I'll knock over 5 years off my mortgage and save over £15k in interest. My house is presumably a better long term investment that a public sector pension?

[overseasTOON]

My retirement plan is to die before I reach retirement age.

[bodacious benny]

My retirement plan is to die before I reach retirement age.

Takes the hassle out of getting old.

[Colback's Orange Tufts]

BB it depends on the pension type obviously (final salary).
Maybe consider a private pension (or if adventurous a sipp). The tax savings are something u don't want to give away for nothing. You'd hope over a long term the rate of return on pension > mortgage rate

[Aldridge Prior]

BB it depends on the pension type obviously (final salary).
Maybe consider a private pension (or if adventurous a sipp). The tax savings are something u don't want to give away for nothing. You'd hope over a long term the rate of return on pension > mortgage rate

This. Although I've just saved 7 years and 38k worth of interest off my bro's mortgage, he could have saved 100pcm when his rate come down but shortening the term by keeping his payment roughly the same has saved him big time.

Ideally you should do both, and spreading the risk is a good thing with private pensions apparently?
Pensions aren't really my thing, maybe DT could advise perhaps

[Speedo]

BB it depends on the pension type obviously (final salary).
Maybe consider a private pension (or if adventurous a sipp). The tax savings are something u don't want to give away for nothing. You'd hope over a long term the rate of return on pension > mortgage rate

This. Although I've just saved 7 years and 38k worth of interest off my bro's mortgage, he could have saved 100pcm when his rate come down but shortening the term by keeping his payment roughly the same has saved him big time.

Ideally you should do both, and spreading the risk is a good thing with private pensions apparently?
Pensions aren't really my thing, maybe DT could advise perhaps

I am no accountant but I would ask on the public sector pension - is your employer matching your input or anything? Because that is obviously already 100% interest on what you put in...

[bodacious benny]

Hmm perhaps I'll try to do both and see how much that leaves me each month. If I overpay £100 a month it knocks 3.5 years off of my mortgage.

Yeah my employer matches my payment.

[Duke]

http://www.themag.co.uk/2017/08/ive-eve ... stle-fans/

TJR?

[Ramone]

Ken Livingstone advocating the murder of political rivals

[Donkey Toon]

TF accountants, I'm after a bit of advice...

I pay into a public sector pension which will be worth bugger all by the time I retire in 30/35 years. I've been thinking, would I be better coming out of the pension and using the money that I save (about £150 per month) to overpay on my mortgage

I did a quick calculation online at the weekend, if I overpay on my mortgage by £100 per month then I'll knock over 5 years off my mortgage and save over £15k in interest. My house is presumably a better long term investment that a public sector pension?

I'm not a pensions guy BB but i'll make a few observations.

Overpaying your mortgage to save on interest is obviously a good idea and property is indeed a very good long term investment. But when you are considering pensions you are talking about either a guaranteed income or a block of spendable cash. Property is neither of those, unless you plan to sell and downgrade, thereby using the balance as a pension pot, or rent out and downgrade or move somewhere where rent is cheap and use the extra rental income.

As others have said your employer matching your contributions already doubles your investment in terms of your pension so in terms of future income streams that is exactly what you should be looking for in terms of future income.

You also have to consider what you will be doing with the £15k mortgage interest you will be saving. If you end up spending it before retirement then it will have be no help in providing financial stability for your old age. Personally my mortgage will be paid off in about 3 years, after which I intend to instead pay the same amount into an account which I will invest in government bonds etc. and allow to accumulate until retirement and beyond, hopefully paying enough interest to supplement any pension income I will have.

Ideally in your position I would attempt to do both. Keep paying into your pension and see if you can find others areas where you can cut back on expenses to fund overpaying your mortgage. Easily said I know but as your aim is to provide future income security you are better off cutting current expenses rather than cutting contributions into investments which will provide future income.

But like oT I consider any talk of my pension income as hopelessly optimistic as I very much doubt i'll be around to be bothered one way or the other.

[bodacious benny]

TF accountants, I'm after a bit of advice...

I pay into a public sector pension which will be worth bugger all by the time I retire in 30/35 years. I've been thinking, would I be better coming out of the pension and using the money that I save (about £150 per month) to overpay on my mortgage

I did a quick calculation online at the weekend, if I overpay on my mortgage by £100 per month then I'll knock over 5 years off my mortgage and save over £15k in interest. My house is presumably a better long term investment that a public sector pension?

I'm not a pensions guy BB but i'll make a few observations.

Overpaying your mortgage to save on interest is obviously a good idea and property is indeed a very good long term investment. But when you are considering pensions you are talking about either a guaranteed income or a block of spendable cash. Property is neither of those, unless you plan to sell and downgrade, thereby using the balance as a pension pot, or rent out and downgrade or move somewhere where rent is cheap and use the extra rental income.

As others have said your employer matching your contributions already doubles your investment in terms of your pension so in terms of future income streams that is exactly what you should be looking for in terms of future income.

You also have to consider what you will be doing with the £15k mortgage interest you will be saving. If you end up spending it before retirement then it will have be no help in providing financial stability for your old age. Personally my mortgage will be paid off in about 3 years, after which I intend to instead pay the same amount into an account which I will invest in government bonds etc. and allow to accumulate until retirement and beyond, hopefully paying enough interest to supplement any pension income I will have.

Ideally in your position I would attempt to do both. Keep paying into your pension and see if you can find others areas where you can cut back on expenses to fund overpaying your mortgage. Easily said I know but as your aim is to provide future income security you are better off cutting current expenses rather than cutting contributions into investments which will provide future income.

But like oT I consider any talk of my pension income as hopelessly optimistic as I very much doubt i'll be around to be bothered one way or the other.

Cheers DT

I've decided that I'll keep the pension going, but from the end of this month however much is left in my bank account I'm going to use that to make over-payments on my mortgage. So some months I might pay of £70 a month, others maybe £150-£200 depending on what I've got left. If I can average £100 per month then I can realistically be mortgage free by mid-40s which would be ideal.

Edit: mortgage free assuming I stay where I am now and don't move somewhere more expensive for whatever reason.

[Colback's Orange Tufts]

You have an life-time overpyament limit BB, or just an annual one

[Donkey Toon]

Cheers DT

I've decided that I'll keep the pension going, but from the end of this month however much is left in my bank account I'm going to use that to make over-payments on my mortgage. So some months I might pay of £70 a month, others maybe £150-£200 depending on what I've got left. If I can average £100 per month then I can realistically be mortgage free by mid-40s which would be ideal.

Edit: mortgage free assuming I stay where I am now and don't move somewhere more expensive for whatever reason.

Sounds like a plan to me

Yeah i'll be 51 when mine is paid off. And the if like me you decide to divert all or at least some of the money you were paying on your mortgage into savings/investments, as well as having pension investments, you should be well covered by the time you hit 65.

[Colback's Orange Tufts]

Cheers DT

I've decided that I'll keep the pension going, but from the end of this month however much is left in my bank account I'm going to use that to make over-payments on my mortgage. So some months I might pay of £70 a month, others maybe £150-£200 depending on what I've got left. If I can average £100 per month then I can realistically be mortgage free by mid-40s which would be ideal.

Edit: mortgage free assuming I stay where I am now and don't move somewhere more expensive for whatever reason.

Sounds like a plan to me

Yeah i'll be 51 when mine is paid off. And the if like me you decide to divert all or at least some of the money you were paying on your mortgage into savings/investments, as well as having pension investments, you should be well covered by the time you hit 65.

Traditional advice is don't leave saving until you are middle aged/50. You want to benefit from compounding as early as possible to maximise your pot (plus at 50+ might not be able to work full time, have to pay kids student costs etc). Saving an extra £1000 a year from 25 to 50, at like 4% return comes to 44 grand, you've gained 18k in returns...
The old rule of thumb is "Take the age you start your pension and halve it. Put this % of your pre-tax salary aside each year until you retire." Realistically very few young people do this (and one should include employer contributions).

[Donkey Toon]

Sounds like a plan to me

Yeah i'll be 51 when mine is paid off. And the if like me you decide to divert all or at least some of the money you were paying on your mortgage into savings/investments, as well as having pension investments, you should be well covered by the time you hit 65.

Traditional advice is don't leave saving until you are middle aged/50. You want to benefit from compounding as early as possible to maximise your pot (plus at 50+ might not be able to work full time, have to pay kids student costs etc). Saving an extra £1000 a year from 25 to 50, at like 4% return comes to 44 grand, you've gained 18k in returns...
The old rule of thumb is "Take the age you start your pension and halve it. Put this % of your pre-tax salary aside each year until you retire." Realistically very few young people do this (and one should include employer contributions).

Agreed. I've always saved, since I started work in my teens. 10% of take home being my target.

Good job as well. Became i'll over eight years ago and although I get some income it isn't enough to cover mortgage and living expenses, so I make up the balance from my savings. But this means I've been drawing from them the last 8 years rather than adding, but i'll reverse that once the mortgage is paid off.

Don't know how people can sleep at night without savings to fall back on. As the saying goes "you are only two pay cheques from being homeless" ... unless you have savings.

[bodacious benny]

You have an life-time overpyament limit BB, or just an annual one

Annual and I'll be well within limits so won't incur any ERCs

It's only recently that my Mrs and I have started saving again (about 12 months ago). Before that we didn't really save as we'd bought our first house and lots of our spare money has gone into that. Now that we've done a lot of the big stuff we're in a position to save again. I don't have a big pot of savings by any stretch, but if the worst happened and one of us lost our job we could survive on one salary for several months and only have to dip into savings a little bit.

[biggeordiedave]

Traditional advice is don't leave saving until you are middle aged/50. You want to benefit from compounding as early as possible to maximise your pot (plus at 50+ might not be able to work full time, have to pay kids student costs etc). Saving an extra £1000 a year from 25 to 50, at like 4% return comes to 44 grand, you've gained 18k in returns...
The old rule of thumb is "Take the age you start your pension and halve it. Put this % of your pre-tax salary aside each year until you retire." Realistically very few young people do this (and one should include employer contributions).

Agreed. I've always saved, since I started work in my teens. 10% of take home being my target.

Good job as well. Became i'll over eight years ago and although I get some income it isn't enough to cover mortgage and living expenses, so I make up the balance from my savings. But this means I've been drawing from them the last 8 years rather than adding, but i'll reverse that once the mortgage is paid off.

Don't know how people can sleep at night without savings to fall back on. As the saying goes "you are only two pay cheques from being homeless" ... unless you have savings.

Some people don't have any appreciation for money and see credit cards and pay day loans as free cash that you only have to worry about later. I work with 20 year olds who have loans. Why?! I see teenagers driving round in bloody Audis, Mercs and BMWs which tells me their parents have bought them it on finance and are footing the bills. How does that help? Some people just can't learn to live without the things they want.

Rant over. Really f***ing winds me up though.