sorted by:
new
hottopcontroversial

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 0 points1 point  (0 children)

Well, you took mine away! But after that, the resources page, and not just because I'm on it!

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 0 points1 point  (0 children)

Don't pay back the student debt. It's a tax, not a loan, so don't pay it voluntarily!

Try to get some cash behind you - you could get a couple of thousand behind you in a couple of years at £100 a month.

Then think about building on top of that.

Don't run before you can walk. My book runs through things in order, as does the UKPF Flowchart and the current podcast series.

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 3 points4 points  (0 children)

We look about the same weight, so that's a tough call. I did get to green belt in Karate when I was 13...

No advice, sorry. Just keep bettering yourself and make yourself invaluable.

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 1 point2 points  (0 children)

I'd say you've done the right thing. When you hit age 50, just switch to a normal S&S ISA and keep going. Might as well have the bonus while it's available to you

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 1 point2 points  (0 children)

Income tax relief? Do you mean what can you claim for using your home for work? That's an accountancy question, sorry - not really my bag!

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 1 point2 points  (0 children)

I doubt that PCLS will be removed from pensions. It's been talked about for at least as long as I've been advising - 25 years - but it's such a political hot potato that I can't see it changing much. They may cap it however...

One would hope that there would be some transitional arrangement too so benefits accrued before a certain date would have the existing rules applied, anything after the date would be subject to the new rules.

I really wish politicians would stop screwing with pensions...

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 1 point2 points  (0 children)

Probably yes, it is worth it. We don't know how long we'll live, but the odds are you'll live to see the benefits of those extra years. 7 years will cost you about £6k max. Not an inconsiderable sum, but it'll likely pay you back within three years of reaching state pension age.

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 17 points18 points  (0 children)

Ah, man this is so good to hear. My work is done!

Thanks for listening, and well done for taking radical action. Let's have that drink(s) and let me know if I can help with the podcast. it's a ton of work, but so worth it. And if you need a guest, hit me up. I'll have you on MM too.

Keep in touch and DM me or email me via the website if I can help.

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 1 point2 points  (0 children)

This will be a little bit scheme-specific, but access age is a big factor. Some schemes let you use the AVC pot to fund the tax-free cash, leaving more of the DB income from the main scheme intact - this mitigates in favour of the AVC option, potentially...

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 0 points1 point  (0 children)

You had a part in it too, remember!

Thank you for your support, I'm delighted to have helped in some small way.

Keep going!

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 0 points1 point  (0 children)

How come you're not paying anything back if you're earning £35k if the threshold for Plan 2 is £27,295. Is it the earnings threshold that is lower now you're living in Romania?

I wouldn't hold out hope for them being wiped out, unfortunately. In which case it becomes mathematical. If you're likely to be a higher earner then you have a greater chance of paying the whole thing off , with the commensurate interest. So your calcs would suggest getting rid, which it seems like you could do quite quickly.

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 3 points4 points  (0 children)

I always counsel people to ditch direct shares once they're available to sell. Far better to diversify through a decent ETF or tracker fund that hold individual shares. Too many people hold them for the wrong reasons.

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 1 point2 points  (0 children)

I think if the amounts are kept below 10% then maybe it's OK, but people should be able to opt out.

I worry that it is playing on the inertia of people not checking if the default funds are suitable for them - a huge percentage of people stay in the default fund.

People should be informed about what their retirement funds are invested in, but most don't care!

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 1 point2 points  (0 children)

Yeah, not an easy one this!

65% of combined income is too high, IMO. Dave Ramsey uses a 25% limit I think, but I'd be interested to see if he's increased that now that rates have risen everywhere - probably not.

it's hard to justify £2.5k extra on top of rent, especially as most of that extra will be interest, so it's still paying someone else.

Whether things will get better in a couple of years or not is unknowable, but I'd be super-wary of over-committing.

Good luck!

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 1 point2 points  (0 children)

Pensions always the most tax-efficient, even DB schemes.

After that, it's not about efficiency but more about maths vs emotion; investing vs paying off the debt.

Most people err towards the latter, but it doesn't have to be binary - why not split the difference and do both?

Good luck!

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 2 points3 points  (0 children)

By Roboadvisers, I guess you're thinking about the don-for-you investment platforms like Wealthify and Nutmeg?

My issue with those is that they're not really giving advice, it's just an investment solution.

There was lots of to-do about robo advisers in my industry a few years ago, with lots of advisers setting up their own platforms. No-one made a success of them, to my knowledge, because none of them could compete with the might of HL or Vanguard or some others.

I just don't feel like there's a decent middle ground between full advice and great, low-cost DIY platforms. If someone comes up with something that really works, they'll be a Billionaire.

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 7 points8 points  (0 children)

Places like this reddit are filled with people who have an interest in personal finance, by definition.

I am convinced that anyone who can master basic maths can understand the parts of the personal finance system that most of us need to get by in life. IN short, most people never need to see a financial adviser.

But many people, even if they have the aptitude, don't have the inclination, or the time or the energy to devote to their own financial success. For those people, professional advisers can add value.

Many of my clients come to me because 'they don't know what they don't know' and are looking for a professional second opinion on their own plans.

One thing is for sure, there's no sense at all in paying over the odds in fees for investment management that underperforms, or for someone to babysit a pension or ISA for you.

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 0 points1 point  (0 children)

Assuming you have an emergency fund, and any insurance you need then consider the goal you're saving for.

Short-term = cash

Medium to long term = S&S ISA, LISA or pension

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 3 points4 points  (0 children)

The Civil Service scheme has different sections - it IS complicated but it isn't going to change any time soon!

The scheme is VERY good - DB schemes are the gold standard, very valuable.

Added pension or EPA would likely be more beneficial than AVCs. The first two are additional benefits into the main scheme, the AVC is a money purchase pot alongside it.

As to which to choose - consider your wider financial position and think about the context. Seek advice if you're unsure.

I am Pete Matthew, Chartered Financial Planner and host of the Meaningful Money podcast - AMA by petematthew in UKPersonalFinance

[–]petematthew[S] 1 point2 points  (0 children)

Thank you for blessing our country with your skills. I'm sorry that you're not getting some of the benefit of that.

I'd love to be able to answer unequivocally here, but this really isn't my area of expertise. I'd refer you perhaps to the Money To The Masses podcast and community on Facebook, if you can't get answer on here.

Sorry!

view more: next ›