I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. One way to minimize the anxiety out of stock market investing, is to make sure you keep a large cash cushion. I invest in the market, but never put all my money in market.
I’ve copied trades from a licensed wealth manager over the past few years and its better than trading blindly on your own if youre an absolute newbie. It would give you a better understanding of what's happening but keep in mind that the success of copying another trader is dependable on their transparency. That's actually how I was able to raise a profit of $610K in a few months of active sessions.
My advisor is “Jenny Pamogas Canaya” I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Your comment at 6:45 was exactly what I was thinking,I was panicking because we opted for a 30 year and overpaying, glad you mentioned weighing up overpay Vs decreasing. Great video!
Overpayments are going to be worth so much more now, especially psychologically. Historically I kind of steered away from overpayments because rates were so low and I felt I could do better with my money. Now as they go up, future me might well thank me for an overpayment or two. Top video 👍
Great video! Thanks a lot. 2 thoughts I think would be worth to mention though: 1) Like you pointed out, sretching the mortgage longer will apparently result in paying more back. Taking inflation into account though will mean paying back, let us say 1000 Pounds a month, in 20 years time will most likely feel like paying pack you mentioned probably your least favorable option. If you pay 5-6 % interest rate on your mortgage and you are are investing the rest of the money in quite a safe way (proper risk allocation assumed) you could make conservatively speaking 6-8 % per year on overage over 20-30 years (e.g. average MSCI World performance over this kind of periods are around 10%), means it would be quite a good deal in my opinion.
Great overview I'm sitting at 1.09% due to run out year end - lots of advice was to lock in something in now - but i have held off as i suspect things will come down. I'm debating whether to pay off a loan or overpay the mortgage. Despite the hikes in interest i think overpaying the loan in the short term (ideally before year end) will then leave me cash to cover the interest rises and also potentially overpay the mortgage or at least absorb the impact, or something along those lines.
Sounds like a good option to me. I certainly wouldn't jump earlier than you need to and pay a penalty, that's just further misery. I'm guessing your loan is a higher rate so makes sense to attack this
Thanks for taking the time to put this together. I always appreciate your videos. By sheer fluke, we completed our last remortgage mid-March 2020 for a favourable 5 year fix. We have just shy of 2 years left, so we are going to keep investing to get as good a return as we can between now and then - that way we've got options to pay-down/pay-off/over-pay if we got to 2025 and things aren't any better.
For some, short-term investing in floating rates is simply a default position as they find that valuations of stocks are high everywhere, meaning that perfection is often at a premium, increasing the risk for some thoughtful investors. It's not necessarily a matter of timing. For others, it's a way to build a neutral portfolio because uncertainty abounds. Finding a good investment advisor will have a good arrangement and plan for all of this. I recommend Dan Price, CFA, who has a unique understanding of the markets and how to analyze them.
Am surprised you know her too; I've already made a lot of profit investing with her over the past few months. It's really exciting to see this comment section; Mr. Daniel Price is a true investment genius. With his help I was able to get some cash to save my mom's cancer and my life and my finances were changed forever. Although I was skeptical at first until I decided to give it a try, it's amazing how much it yields!
Wow, it's great to see other people trading with Mr. Danielle Price. After my fifth trade with her, I made $70,000 in one month and my portfolio grew dramatically. I sincerely recommend that you try investing with him, I am sure you will never regret it.
Excellent, timely video, Tom - thank you for putting it together. My wife and I are both 44 years old and were fortunate to get a 5-year fixed rate mortgage deal last year at 1.44%, which runs until April 2027. We currently have a 51% LTV rate. I have been thinking about the question of overpaying on the mortgage recently, so your video was beneficial in answering all of the questions I had :) My current plan has been to pay 1/3 of our monthly savings into a SIPP, 1/3 into an ISA (both for our retirement), and 1/3 towards a newer car fund. After watching the video, I think I’ll divert some of the monthly savings into a money market fund to get a better interest rate, then make yearly overpayments on the mortgage until 2027. We’ll then see what fixed rate deals are around then.
What happens if the house value drops below the owed capital when a fixed rate expires? How does a buyer re-mortgage when the outstanding amount borrowed is greater then the house market value?
@@ThatFinanceShow Thank you for the reply. I’ve struggled mainly through the exam on understanding the administration of pension policies, understanding principles of pension taxation (LTA charges etc) - and key features or rules relating to workplace pensions.
Here is the learning outcomes set on the modules. 2. Know the relevant financial regulators' rules 3. Know the requirements for disclosure of information 4. Know the procedures for the referral of complaints 5. Know the basic principles of pension taxation 6. Describe the key features of the basic pension product types 7. Know the key features of workplace pensions 8. Know the main pension policy issues 9. Understand the administration of pension policies 10. Know the principles of medical underwriting 11. Understand the main features of unit-linking 12. Understand the main features of with-profits 13. Know the different methods of payment and the consequences of nonpayment 14. Understand pension claims and the options available when taking benefits. any help at allll or small tips/tricks will be appreciated :)
Assuming you are on a low fixed rate mortgage, rather than overpaying it now, why not put in on a much better rate in savings account and overpay unlimited lumpsum one day after your fixed rate finishes. This way, you will earn more in interest than saving by overpaying.
Depends on the numbers, obviously the lower the mortgage the more 'profit' you make on the tenants rental. If you get to a point where it's mortgage free, that tenant income can be a really useful source of retirement money.
Im in a quandary, i have 50k left on mortgage, on a fix rate of 2.79. I can pay it off now with a £2700 erc . Do i pay off or invest the £50k into isa and saving account🤔
You missed one. Wait until the price crash is over and buy at bottom of the market. Also, if you buy before the bottom and the value drops after purchase then that value is lost forever, yet is still paid for by the mortgage. Prices will 'recover' but only by inflation and numerically, so the crash loss in buying power is lost forever. This will be a drain on personal wealth. Bear in mind that the main international bank governors are meeting and stating that bank rates will continue to increase, even the FED with a rise next time plus two more. Our governor said that 2% inflation now looks likely into 2025 and possibly into 2026, ouch, which could mean significant bank rate rises over the next two years.
Some fantastic not advice in this video. I'm so fortunate that I locked in for 5 years about 12 months ago at a super low 0.9% but I've been through this situation in the past so know how awful it can be. I really feel for the people who have pushed themselves to their limits based on the crazy low rates we've had for the last decade and don't really understand that what we're seeing now is actually the 'norm' rather than what they've been used to. A lot of people questioned the stress testing at 5% or more but now we're seeing why.....
Yep, you've got a great deal there for sure. In 4 years time when yours is up, who knows what the situation will look like. You're right though, people need to realise it was actually the crazy low rates we've had that were unusual, not these new higher rates.
The UK government just negotiated excellent support package for anyone surprised by interest rate rises. Maybe only a slim chance of a house price reductions, especially b4 an election. Besides using surplus/ printing money, Govt. ensure no one forced to sell. And who would sell for less than a house is worth unless they wanted to. Remember, inflation, WW3 & pandemic now means new build houses cost considerably more than ever before. Do not expect much discount on house prices except those needing significant renovation! Except maybe 500k to 1 million plus homes in larger cities. Why? Some will escape big city as employers move to cheaper areas! Summary. There will not be a house price crashes anytime soon. We are post pandemic in WW3 and much of our planet has been shut for 2 years. Time to realise property is a very safe bet, especially just before a stock market crash that many experts say is long overdue!
10 ways to save on your mortgage, a video brought to you by that finance show, hosted by a financial adviser. In what world would this video ever be considered anything but financial advice?
Because I’m not making personal recommendations. It’s information for you to decide what’s right for yourself. I’m just trying to make you more informed.
@@ThatFinanceShow I was being a bit cheeky, I just think it's a shame everyone has to stipulate "not financial advice" to ensure they don't wind up getting sued.
Is everyone still wrong about the HPC? Surely by the time most come to remortgage their house value will have fallen and so they will be unlikely to get a lower LTV.
I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. One way to minimize the anxiety out of stock market investing, is to make sure you keep a large cash cushion. I invest in the market, but never put all my money in market.
I’ve copied trades from a licensed wealth manager over the past few years and its better than trading blindly on your own if youre an absolute newbie. It would give you a better understanding of what's happening but keep in mind that the success of copying another trader is dependable on their transparency. That's actually how I was able to raise a profit of $610K in a few months of active sessions.
My advisor is “Jenny Pamogas Canaya” I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Your comment at 6:45 was exactly what I was thinking,I was panicking because we opted for a 30 year and overpaying, glad you mentioned weighing up overpay Vs decreasing. Great video!
Thanks Shawn. Some people would benefit from the discipline of reducing but for me, flexibility is important. Things change!
Overpayments are going to be worth so much more now, especially psychologically. Historically I kind of steered away from overpayments because rates were so low and I felt I could do better with my money. Now as they go up, future me might well thank me for an overpayment or two. Top video 👍
Exactly, thanks David.
Great video! Thanks a lot.
2 thoughts I think would be worth to mention though:
1) Like you pointed out, sretching the mortgage longer will apparently result in paying more back. Taking inflation into account though will mean paying back, let us say 1000 Pounds a month, in 20 years time will most likely feel like paying pack you mentioned probably your least favorable option.
If you pay 5-6 % interest rate on your mortgage and you are are investing the rest of the money in quite a safe way (proper risk allocation assumed) you could make conservatively speaking 6-8 % per year on overage over 20-30 years (e.g. average MSCI World performance over this kind of periods are around 10%), means it would be quite a good deal in my opinion.
Great overview
I'm sitting at 1.09% due to run out year end - lots of advice was to lock in something in now - but i have held off as i suspect things will come down.
I'm debating whether to pay off a loan or overpay the mortgage. Despite the hikes in interest i think overpaying the loan in the short term (ideally before year end) will then leave me cash to cover the interest rises and also potentially overpay the mortgage or at least absorb the impact, or something along those lines.
Sounds like a good option to me. I certainly wouldn't jump earlier than you need to and pay a penalty, that's just further misery. I'm guessing your loan is a higher rate so makes sense to attack this
@@ThatFinanceShow the loan rate was good at the time 😁 but I can clear it relatively quickly.
Thanks for taking the time to put this together. I always appreciate your videos.
By sheer fluke, we completed our last remortgage mid-March 2020 for a favourable 5 year fix. We have just shy of 2 years left, so we are going to keep investing to get as good a return as we can between now and then - that way we've got options to pay-down/pay-off/over-pay if we got to 2025 and things aren't any better.
Glad it was useful Mark, yes - doing something similar myself.
Step 11: save on haircuts
Exactly.
For some, short-term investing in floating rates is simply a default position as they find that valuations of stocks are high everywhere, meaning that perfection is often at a premium, increasing the risk for some thoughtful investors. It's not necessarily a matter of timing. For others, it's a way to build a neutral portfolio because uncertainty abounds. Finding a good investment advisor will have a good arrangement and plan for all of this. I recommend Dan Price, CFA, who has a unique understanding of the markets and how to analyze them.
Am surprised you know her too; I've already made a lot of profit investing with her over the past few months. It's really exciting to see this comment section; Mr. Daniel Price is a true investment genius. With his help I was able to get some cash to save my mom's cancer and my life and my finances were changed forever. Although I was skeptical at first until I decided to give it a try, it's amazing how much it yields!
Wow, it's great to see other people trading with Mr. Danielle Price. After my fifth trade with her, I made $70,000 in one month and my portfolio grew dramatically. I sincerely recommend that you try investing with him, I am sure you will never regret it.
@@Jack-smith991 Well I will put his info below this comment. You can look up his name and you will see all you need to know about him
Daniel Price CFA
Excellent, timely video, Tom - thank you for putting it together. My wife and I are both 44 years old and were fortunate to get a 5-year fixed rate mortgage deal last year at 1.44%, which runs until April 2027. We currently have a 51% LTV rate. I have been thinking about the question of overpaying on the mortgage recently, so your video was beneficial in answering all of the questions I had :)
My current plan has been to pay 1/3 of our monthly savings into a SIPP, 1/3 into an ISA (both for our retirement), and 1/3 towards a newer car fund. After watching the video, I think I’ll divert some of the monthly savings into a money market fund to get a better interest rate, then make yearly overpayments on the mortgage until 2027. We’ll then see what fixed rate deals are around then.
Glad it helped Simon, sounds like a solid plan. Either way, good to know you're safe until 2027 - things could look remarkably different by then.
What happens if the house value drops below the owed capital when a fixed rate expires? How does a buyer re-mortgage when the outstanding amount borrowed is greater then the house market value?
Hello! Could you please do a video on Pensions Administration (if possible) , currently sitting the FA2 exam and struggling getting the pass.
Hey, which stuff you struggling with?
@@ThatFinanceShow Thank you for the reply. I’ve struggled mainly through the exam on understanding the administration of pension policies, understanding principles of pension taxation (LTA charges etc) - and key features or rules relating to workplace pensions.
Here is the learning outcomes set on the modules.
2. Know the relevant financial regulators' rules
3. Know the requirements for disclosure of information
4. Know the procedures for the referral of complaints
5. Know the basic principles of pension taxation
6. Describe the key features of the basic pension product types
7. Know the key features of workplace pensions
8. Know the main pension policy issues
9. Understand the administration of pension policies
10. Know the principles of medical underwriting
11. Understand the main features of unit-linking
12. Understand the main features of with-profits
13. Know the different methods of payment and the consequences of nonpayment
14. Understand pension claims and the options available when taking benefits.
any help at allll or small tips/tricks will be appreciated :)
Assuming you are on a low fixed rate mortgage, rather than overpaying it now, why not put in on a much better rate in savings account and overpay unlimited lumpsum one day after your fixed rate finishes. This way, you will earn more in interest than saving by overpaying.
Yep this works too!
@pacemorby is a US guru for subto buying but I want to ask in the UK can a person takeover the owners mortgage and will the banks allow it?
Is it worth overpaying on a rental property since the tenant is paying the mortgage? It's a repayment mortgage.
Depends on the numbers, obviously the lower the mortgage the more 'profit' you make on the tenants rental. If you get to a point where it's mortgage free, that tenant income can be a really useful source of retirement money.
Im in a quandary, i have 50k left on mortgage, on a fix rate of 2.79. I can pay it off now with a £2700 erc . Do i pay off or invest the £50k into isa and saving account🤔
No need to pay a erc, wait until deal ends then decide?
Looking medium to long term, current interest rates are about at their average level
You missed one. Wait until the price crash is over and buy at bottom of the market. Also, if you buy before the bottom and the value drops after purchase then that value is lost forever, yet is still paid for by the mortgage. Prices will 'recover' but only by inflation and numerically, so the crash loss in buying power is lost forever. This will be a drain on personal wealth.
Bear in mind that the main international bank governors are meeting and stating that bank rates will continue to increase, even the FED with a rise next time plus two more. Our governor said that 2% inflation now looks likely into 2025 and possibly into 2026, ouch, which could mean significant bank rate rises over the next two years.
Can this be used on shared ownership or government schemes
Which tip? You'd need to check the terms of the deal you've got, especially if considering overpaying
Some fantastic not advice in this video. I'm so fortunate that I locked in for 5 years about 12 months ago at a super low 0.9% but I've been through this situation in the past so know how awful it can be.
I really feel for the people who have pushed themselves to their limits based on the crazy low rates we've had for the last decade and don't really understand that what we're seeing now is actually the 'norm' rather than what they've been used to.
A lot of people questioned the stress testing at 5% or more but now we're seeing why.....
Yep, you've got a great deal there for sure. In 4 years time when yours is up, who knows what the situation will look like. You're right though, people need to realise it was actually the crazy low rates we've had that were unusual, not these new higher rates.
The TATTOOS 😮😍 How have I never seen them before?!
Must have been hiding!
The UK government just negotiated excellent support package for anyone surprised by interest rate rises. Maybe only a slim chance of a house price reductions, especially b4 an election. Besides using surplus/ printing money, Govt. ensure no one forced to sell. And who would sell for less than a house is worth unless they wanted to.
Remember, inflation, WW3 & pandemic now means new build houses cost considerably more than ever before.
Do not expect much discount on house prices except those needing significant renovation! Except maybe 500k to 1 million plus homes in larger cities. Why? Some will escape big city as employers move to cheaper areas! Summary. There will not be a house price crashes anytime soon. We are post pandemic in WW3 and much of our planet has been shut for 2 years. Time to realise property is a very safe bet, especially just before a stock market crash that many experts say is long overdue!
10 ways to save on your mortgage, a video brought to you by that finance show, hosted by a financial adviser. In what world would this video ever be considered anything but financial advice?
Because I’m not making personal recommendations. It’s information for you to decide what’s right for yourself. I’m just trying to make you more informed.
@@ThatFinanceShow I was being a bit cheeky, I just think it's a shame everyone has to stipulate "not financial advice" to ensure they don't wind up getting sued.
Is everyone still wrong about the HPC?
Surely by the time most come to remortgage their house value will have fallen and so they will be unlikely to get a lower LTV.