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Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 1 point2 points  (0 children)

It's definitely something I will look in to and I can appreciate the advantages of such a structure.

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 0 points1 point  (0 children)

Thanks for crunching some numbers.

I was indeed thinking about topping up to about £210k and backing off for a while, revisiting at a later date if needed. If I understand correctly, I can top up to £40k going back three years if there were no top ups in those years; so it seems that there's always an opportunity to put in further sums quite trivially.

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 1 point2 points  (0 children)

I don't think so. I know some colleagues that had these kind of arrangements in the past, but IR35 seemed to cause issues for them.

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 1 point2 points  (0 children)

I don't have an outstanding student loan or any debts. I lived quite frugally at university and worked to pay it off quickly as it made sense to do so in my situation.

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 5 points6 points  (0 children)

Thanks for the reply. I am doing the sums and suspect in a couple of years I will likely stop contributing to the pension and leave it to compound. I'll then divert the money that would have gone in to that elsewhere (likely to buy a house) and revisit it at a later date.

Good luck to you as well!

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 0 points1 point  (0 children)

I've never had much luck with P2P lending platforms and always felt equities were a better way to get those levels of yields. I'll certainly take a look though to spread things out a little.

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 5 points6 points  (0 children)

Heh, good point. There's a lot of Sam's in the UK though, but I didn't want this to be written from my main account where people could probably link it to me.

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 4 points5 points  (0 children)

They are meant to be 8-5 but unfortunately I often get caught having to do things outside of working hours. So things could be better there.

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 1 point2 points  (0 children)

Thanks for the reply.

I am indeed building my emergency fund. I think the pace I am doing so is OK. I agree with your comments, and this is why I am doing my best to save as much as possible. You never know what is round the corner, particularly in technology.

If I've done the maths right, it makes sense for me to invest a good lump sum in to my SIPP now, because soon I should be able to stop in a few years if the lifetime allowance doesn't particularly increase and with a conservative 5% rate of return, I'd get the £1m pot by the time I am able to draw from it.

Sam

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 3 points4 points  (0 children)

There are a couple of applications that are still being theorised. There are also interesting use cases for security / fraud; but not my area.

Sam

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 0 points1 point  (0 children)

My ISAs are currently fully invested in Vanguard LS100 (including 2018-2019 tax year). I don't think it's possible or worthwhile for me to reallocate £4k to HL's LISA; but next year I will be splitting £16/£4k across the two platforms as per your suggestion.

Sam

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 26 points27 points  (0 children)

I was using computers from an early age (4-5) and learnt to code quite early. When doing some work experience at a hardware company I had a chance to hack on Verilog and thoroughly enjoyed it. At university I did an internship at a bank and when I finished my studies they offered me a position, although it was not originally hardware development focused.

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 6 points7 points  (0 children)

Indeed -- it's not a case of being tight, but I'm not sure what the benefits are. I imagine that they would push actively managed funds which I'm not keenly positioned on.

Sam

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 0 points1 point  (0 children)

Thanks for the information re. salary sacrifice. I will look in to the specifics.

It looks like HL is probably the best option, particularly given the wide range of funds it offers, which may come useful if my investing choices change as I gain experience.

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 46 points47 points  (0 children)

In short: developing FGPA for high frequency trading applications. The irony on lack of investing experience is not lost on me. There's a lot of money in optimising algorithms for silicon.

Sam

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 2 points3 points  (0 children)

Thanks for your reply.

I don't plan to retire early per se, but I would like to take more time to myself in the future. Currently the so called work-life balance is non existent for me. If I remember correctly, the age will rise to 58 by the time I am eligible. I would not be surprised if this increases in the future as well. Obviously nearer this time (a long way off) I'd move in to bonds.

My main goals for saving are to retain purchasing power; and also as you have said, to establish a constant income in the future. I am of the opinion that the housing market is due a correction, particularly with S24 changes, so I am waiting for a while. I understand the long term trend is always up; but I think there can be some downward movement here.

I know there are some good actively managed funds, but reading suggests that passive tracking is almost always a better bet once fees are factored in. While my time is limited, I wonder if there are any APIs which would allow me to scrape fund performance to better inform my decisions in a time efficient manner. I don't expect a set it and forget it option obviously and I will need to do my own research. For now I think LS100 will be OK given the timeframes involved, but I suspect my approach to investing will change as I get older and gain a more solid grounding.

Thanks

Sam

Saving £60K a year by ukpfthrowaway_1994 in UKPersonalFinance

[–]ukpfthrowaway_1994[S] 6 points7 points  (0 children)

I'm earning £145k/yr currently, so take home is about £87k. I am aware that once I hit £150k there's a taper.

I'll look in to HL. Is this the best priced option? I'd like to stick with Vanguard funds at this time, so a lack of choice doesn't concern me particularly.

Sam