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Do you splash your hard earned contract income?

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    #41
    I've never really had expensive tastes. Always saved a lot. Share portfolio, overpayments on mortgage. The things I enjoy don't really cost much. Reading, watching movies and tv, exercise, museums with the family, tinkering with electronics. Holiday once a year, weekends away. It still leaves plenty for savings and the end goal of that is to not need to work.

    Fair play to anyone who wants to buy a porsche on finance but I just don't see the attraction.

    Comment


      #42
      Originally posted by MaryPoppins View Post
      Plus I don't really get all this stuff about pensions and investing, so probably need to find a very good advisor.
      So that's a good way to get the same end result, but also have to pay an advisor.

      Pensions are easy. Set up an account with HL.co.uk, set up a SIPP with them, set up a direct debit with them for monthly contributions from your Limited company in order to gain relief on your Corp Tax, have them put said contributions into tracker funds, e.g:

      Fundsmith Equity
      (higher annual charge of 0.97%, but has typically performed well - 31.63% growth in the past 12 months)
      Vanguard Lifestrategy
      (lower annual charges of 0.24%, doesn't typically perform quite as well - 22.04% growth in the past 12 months on the 100% Lifestrategy which is the 'riskiest'. Compares with 19.24% growth on the 80%; 16.51% growth on the Lifestrategy 60%; or 10.83% growth on the Lifestrategy 20% which is the least risky)
      Maybe also consider Lindsell Train Global Equity

      Once the fund reaches a certain size, it is worth porting it from HL and to Interactive Investor (interactive investor: low cost online trading & investment platform) for lower management fees.

      Ignore daily fluctuations as investments can go down as well as up on a daily basis - pensions are a long term strategy. Decent trackers will perform much better over the long term. Don't invest in individual shares unless you know what you are doing and want to dedicate your time to effectively running your own fund.

      Then just let the Direct Debits flow, wait for it to grow, retire early 55 with a huge wodge of cash.
      Taking a break from contracting

      Comment


        #43
        Originally posted by MaryPoppins View Post
        Me.


        I could blither on with excuses about being a single parent, having to pay back my ex's debt, buying and renovating a house (well, I just did) but I think for some reason I've just put off being sensible and thinking seriously about my own future. Plus I don't really get all this stuff about pensions and investing, so probably need to find a very good advisor.
        Advice for bad savers.

        Make a Budget.

        Decide how much you need to save to hit your target (Cards,Loans,Mortgage, car etc. paid off)

        Decide on an amount you can afford. Rationalise it as a small sacrifice and count the sleeps until you will hit your target!

        take the money out of your account before you spend it (Standing order if poss) and save it somewhere.

        Survive the month.

        Smile at your pot of money.

        Repeat until surviving the month is easy.

        Look to put the amount up- and continue the same way.

        if you get a pay rise up the amount by half the rise.


        I'm not mortgage free or able to give up work yet but I'm not short of a bob as a fairly low level permie (No reports etc). I could live on average wage & the wife's earnings.
        Always forgive your enemies; nothing annoys them so much.

        Comment


          #44
          Originally posted by chopper View Post

          Then just let the Direct Debits flow, wait for it to grow, retire early 55 with a huge wodge of cash.
          Start it early.
          No point waiting till you 'can afford' a pension. By that time it's too late to build a big pot.
          See You Next Tuesday

          Comment


            #45
            Originally posted by northernladuk View Post
            Indeed. Many don't have pensions but some have other investment for retirement that's not a pension.
            Of course, just an alternative "pension"
            Rhyddid i lofnod psychocandy!!!!

            Comment


              #46
              Originally posted by MaryPoppins View Post
              Me.


              I could blither on with excuses about being a single parent, having to pay back my ex's debt, buying and renovating a house (well, I just did) but I think for some reason I've just put off being sensible and thinking seriously about my own future. Plus I don't really get all this stuff about pensions and investing, so probably need to find a very good advisor.
              Know what you mean - theres always something else to spend on.

              In a way I was lucky with a string of ex-permie jobs with pensions. A few years I lumped them all together with h-l.com into a sipp.
              Rhyddid i lofnod psychocandy!!!!

              Comment


                #47
                Originally posted by chopper View Post
                So that's a good way to get the same end result, but also have to pay an advisor.

                Pensions are easy. Set up an account with HL.co.uk, set up a SIPP with them, set up a direct debit with them for monthly contributions from your Limited company in order to gain relief on your Corp Tax, have them put said contributions into tracker funds, e.g:

                Fundsmith Equity
                (higher annual charge of 0.97%, but has typically performed well - 31.63% growth in the past 12 months)
                Vanguard Lifestrategy
                (lower annual charges of 0.24%, doesn't typically perform quite as well - 22.04% growth in the past 12 months on the 100% Lifestrategy which is the 'riskiest'. Compares with 19.24% growth on the 80%; 16.51% growth on the Lifestrategy 60%; or 10.83% growth on the Lifestrategy 20% which is the least risky)
                Maybe also consider Lindsell Train Global Equity


                Once the fund reaches a certain size, it is worth porting it from HL and to Interactive Investor (interactive investor: low cost online trading & investment platform) for lower management fees.

                Ignore daily fluctuations as investments can go down as well as up on a daily basis - pensions are a long term strategy. Decent trackers will perform much better over the long term. Don't invest in individual shares unless you know what you are doing and want to dedicate your time to effectively running your own fund.

                Then just let the Direct Debits flow, wait for it to grow, retire early 55 with a huge wodge of cash.
                Plan on doing this when we've bought a house

                Comment


                  #48
                  Originally posted by vetran View Post
                  Advice for bad savers.

                  Make a Budget.
                  +1

                  If the only thing you ever do is make a budget soon enough you'll see the leftovers accumulate.
                  "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

                  Comment


                    #49
                    Originally posted by vetran View Post
                    Advice for bad savers.

                    Make a Budget.

                    Decide how much you need to save to hit your target (Cards,Loans,Mortgage, car etc. paid off)

                    Decide on an amount you can afford. Rationalise it as a small sacrifice and count the sleeps until you will hit your target!

                    take the money out of your account before you spend it (Standing order if poss) and save it somewhere.

                    Survive the month.

                    Smile at your pot of money.

                    Repeat until surviving the month is easy.

                    Look to put the amount up- and continue the same way.

                    if you get a pay rise up the amount by half the rise.


                    I'm not mortgage free or able to give up work yet but I'm not short of a bob as a fairly low level permie (No reports etc). I could live on average wage & the wife's earnings.

                    I'm pretty good at saving for stuff I like the sound of. I never fritter away everything I take from the business, I always have the mentality of putting away a larger proportion.


                    I just then spend a lot of that proportion in one go on a house, or a holiday, or a handbag. Perhaps if 'Pension' began with an 'h' I'd be more interested.
                    Practically perfect in every way....there's a time and (more importantly) a place for malarkey.
                    +5 Xeno Cool Points

                    Comment


                      #50
                      We budgeted a fair amount over the summer as we both were out of contract for 8 and 10 months respectively.
                      The war chest is in rude health, however didn't want to blow that at this stage.

                      A lot less eating out lots of home cooking, less Champagne and getting out and about camping etc. after our couple of months in Asia.
                      It did the waistline and the bank balance the world of good.
                      The Chunt of Chunts.

                      Comment

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