23 New Job and I don't know what to do with my money

stefanovich

ixus wrote: »

I don't really believe in Random Walk average in beimg a Trader.

Either there was a typo in that phrase or I don't know enough to understand what you are saying. The latter I presume...

You have no mortgage and no pension because you prefer to manage your own investments??

ixus

I trade for a living. Why would i risk the capital i earn by "investing". My risk tolerance is already full.

Random Walk is a strategy of ignoring the market and just averaging in overtime because you can't beat the market. Most can't. Especially hedge funds!

Mortgage is a debt. I don't like debt. Less is better.

runawaybishop

ixus wrote: »

I disagree with loading pension. Sure, it is tax efficient but, it is not financially efficient IMHO if you intend purchasing a home in next ten years. You want as much of a deposit as possible to reduce borrowing amount and, in turn, repayments.

Assuming, you qualify and earnings rise significantly in the medium term, save. When salsry grows to near six figures as it should (solicitor right) over time. Attack pension with lump sums and better tax rates aling with a reduced mortgage.

I rent, no debt, no pension. If i buy, i will have insignifcant mortgage. I am mid 30's, if i decide to attack pension, i will max it out pretty fast. Pretty much all cash as I don't really believe in Random Walk average in beimg a Trader. But that's not for everybody.

That massively depends on your employer contribution - if its more than you are putting in then you'd be a fool to not take advantage of that when the going is good. Ideally you should both save for a mortgage and hit your pension hard when you are younger.

edit: also in the OPs case a lot of his cash is going straight to tax already so ther eis no downside to adding onto his pension.

Neon_Lights

Throw half of it in an easy access savings account at the start of a month as a test.. This is what I have done. You should then see if you can live off the rest.

Howard Roark

Thanks again everyone.

phantom_lord

ixus wrote: »

I disagree with loading pension. Sure, it is tax efficient but, it is not financially efficient IMHO if you intend purchasing a home in next ten years. You want as much of a deposit as possible to reduce borrowing amount and, in turn, repayments.

Assuming, you qualify and earnings rise significantly in the medium term, save. When salsry grows to near six figures as it should (solicitor right) over time. Attack pension with lump sums and better tax rates aling with a reduced mortgage.

I rent, no debt, no pension. If i buy, i will have insignifcant mortgage. I am mid 30's, if i decide to attack pension, i will max it out pretty fast. Pretty much all cash as I don't really believe in Random Walk average in beimg a Trader. But that's not for everybody.

Seems mad not to take the 40% gain from tax in a pension though, and that compounded over time has to add up to more than you could ever save in interest.

I hate tax more than I hate debt though!