# Spare Cash



## Widget (May 7, 2002)

*What would you do with some spare cash?*​
Pay off mortgage2756.25%Invest in Buy-to-Let1122.92%Stick it in a High Interest Account48.33%Other, please specify612.50%


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## Widget (May 7, 2002)

What to do with spare cash???


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## beastty (May 7, 2002)

What is this spare cash that you talk of?


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## tod (Jun 9, 2007)

Speak to an IFA but one that comes recommended by someone you trust.


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## mighTy Tee (Jul 10, 2002)

It really depends how much, what your current rate mortgage is etc.

If there is sufficient to spread the risk a bit, then some into high interest accounts/bonds, some into shares, and maybe some paid to reduce your mortgage.


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## Leg (Jan 11, 2006)

Yeah, yeah screw all that sensible stuff. You might be dead soon. Enjoy yourself....


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## garyc (May 7, 2002)

None of above.

Buy some fine art, gem stones or antiques that you like.

Anything that has gone thru one of the major houses (Sothebys, Christies etc) will have provenance and is unlikely to lose value. Quite the opposite.

Russian art had growth over 2000% from 2000-05. There are plenty of other areas where art and antiques have out-performed property in long term. And you don't need to spend huge amounts.

Low visibility, and running costs (insurance) are benefits. No management fees or overpaid city fund managers is a plus (ironically many of the fat cats also invest their bonuses in art). Having something you like to look at and own is a bonus itself. And people seldom get tax implications when disposing of private chattels at a later date....

Or just have kids. they will soak up all the spare cash you can generate. :wink:


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## YELLOW_TT (Feb 25, 2004)

It could end up costing you more to pay ypur mortgage off than leting it run i went to pay mine off in March ( it ends in December not in a fixed rate ) and when I worked it out it would cost me Â£200 more to pay it off than letting it run  
Why not invest half and have some fun half


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## kwaTTro (Jul 5, 2005)

1. pay off all high interest rate debt without incurring penalties

2. think about investing if money not required elsewhere

in that order...

ideally keep about 6months salary as cash as an emergency fund (mods etc.. 8) )


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## ratty (May 18, 2004)

Pay off your mortgage. Then with the savings either go for a buy-to-let mortgage or invest the cash in what ever....


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## Widget (May 7, 2002)

garyc said:


> Or just have kids. they will soak up all the spare cash you can generate. :wink:


You've the memory of a goldfish :wink:

http://www.********.co.uk/ttforumbbs/vi ... 3&start=20


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## Widget (May 7, 2002)

With the current housing climate, is a buy-to-let a sensible choice?

A lot of the figures I've looked at just don't add up. I'd end up forking out each month, and that defeats the object.

With a 85% LTV BTL mortgage, the rental income isn't even close to covering 130% of the interest only repayments. Not around these parts anyway.


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## jbell (May 15, 2006)

Widget said:


> With the current housing climate, is a buy-to-let a sensible choice?
> 
> A lot of the figures I've looked at just don't add up. I'd end up forking out each month, and that defeats the object.
> 
> With a 85% LTV BTL mortgage, the rental income isn't even close to covering 130% of the interest only repayments. Not around these parts anyway.


BTL is a bad idea at the moment, interest rates are too high as are property prices, I have 4 flats rented ATM but all have very small mortgauges.

Pay off your mortgauge.

I have just transferred mine to a tracker and now pay 0.4% over base, I was paying 1% over before and still pay the same amount off, the extra Â£50 a month I now pay off is saving me Â£9k in interest payments and has reduced the length of my term by 6 years.


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## Widget (May 7, 2002)

That's what I was thinking. The sums just don't give the right result at the moment.

At least with paying off my mortgage I can guarantee making money by saving in interest charged.

I'm stuck at the moment because my current 5 year 4.79% fixed doesn't come to an end until February, so in the meantime I should just stash the cash and earn some interest, yeah?

There's no way I'm paying redemption penalties just to get shot of it early.


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## jbell (May 15, 2006)

Widget said:


> That's what I was thinking. The sums just don't give the right result at the moment.
> 
> At least with paying off my mortgage I can guarantee making money by saving in interest charged.
> 
> ...


Stick Â£3k in an ISA and find a high interest acc for the rest till Feb then pay off the mortgage


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## garyc (May 7, 2002)

Widget said:


> garyc said:
> 
> 
> > Or just have kids. they will soak up all the spare cash you can generate. :wink:
> ...


...meant MORE kids.


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## Kell (May 28, 2002)

I'm sorry.

What is this concept of 'Spare Cash'?

I'm not familiar with the term.


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## garyc (May 7, 2002)

Kell said:


> I'm sorry.
> 
> What is this concept of 'Spare Cash'?
> 
> I'm not familiar with the term.


It's a pre-wife and child condition, fleeting for some.


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## Widget (May 7, 2002)

garyc said:


> Widget said:
> 
> 
> > garyc said:
> ...


Woah. Reeeeeeewind. Let's just be sensible here


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## garyc (May 7, 2002)

[smiley=dizzy2.gif]


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## HighTT (Feb 14, 2004)

garyc said:


> Anything that has gone thru one of the major houses (Sothebys, Christies etc) will have provenance and is unlikely to lose value.


 :lol: :lol: :roll: :roll: [smiley=toilet.gif] [smiley=toilet.gif]

Buyer purchases an item at Christies for a total cost of Â£129.38.

That's a Hammer Price of Â£100

Seller Receives about Â£75.

And - Having something sold through a major auction house does not add value but if you enter something for sale and it doesn't sell, it certainly kills the value of that item.


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## KammyTT (Jun 28, 2006)

if it was me i would probably do all the thingd to my car that i always wanted or maybe a holiday :wink:


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## Widget (May 7, 2002)

That'd be some holiday!!!


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## Toshiba (Jul 8, 2004)

Depends if you are risk adverse or you like a gamble.

Personally id keep it in the bank. If you have a mortgage go for the 'one account' route as it reduces payments of interest vs savings, but allows you to access the cash if you suddenly need a 911 or an R8.


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## TTCool (Feb 7, 2005)

Leg said:


> Yeah, yeah screw all that sensible stuff. You might be dead soon. Enjoy yourself....


Yup (almost) and IFA = weather forecaster :wink:

Joe


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## ag (Sep 12, 2002)

Paying off the mortgage doesn't actually get rid of spare cash as your monthly outgoings decrease pro-rata.

Having said that I would;

1. Pay off the mortgage. This is still a tax haven and if you ever need the cash back, you can borrow against your equity quite easily.
2. Buy Â£50k Premium Bonds. This is still a tax haven and the returns are nearly as good as the best internet savings accounts after tax, but with the chance of a "big" win. They can be redeemed simply and quite quickly.
3. Stick the rest in high interest accounts. Redemption immediately.
4. Wait six months and buy a house to let. By then there will even more repossesions available than there are now and some of them will be at, relatively, bargain prices. Don't expect to totally cover any loans and running costs with the rent though as you need to allow for income tax on the rent unless you put it into a pension scheme! BTL is not the sure-fire hit it once was, however the shrewd investor can still enhance their pension with it.


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## tt dug (Jun 14, 2007)

First Â£3000 a year in to an ISA, i manage to spend the rest 8) :lol:


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## Widget (May 7, 2002)

Thanks ag

However,



ag said:


> 2. Buy Â£50k Premium Bonds. This is still a tax haven and the returns are nearly as good as the best internet savings accounts after tax, but with the chance of a "big" win. They can be redeemed simply and quite quickly.


This is debatable isn't it? I reckon with interest rates as they currently are, the net return on savings should be around 4.8%. I think Premium Bonds only return around 2% on average, don't they?


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## ag (Sep 12, 2002)

Widget said:


> Thanks ag
> 
> However,
> 
> ...


To be fair, things have changed a little since I last looked! Max. stake is Â£30k, Net average return is 4.0%. To get a Net return of 4.8% you are getting 8% Gross, I therefore need to move some cash. Where to?


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## Neil (May 7, 2002)

Widget said:


> I think Premium Bonds only return around 2% on average, don't they?


4%, http://www.nsandi.com/products/pb/rates.jsp


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## R6B TT (Feb 25, 2003)

I blobbed 20k into Premium Bonds in May, in time for the Anniversary Draw.

I won Â£100 in June, Â£150 in July and Â£50 this month, so the return isnt too bad so far


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## garyc (May 7, 2002)

HighTT said:


> garyc said:
> 
> 
> > Anything that has gone thru one of the major houses (Sothebys, Christies etc) will have provenance and is unlikely to lose value.
> ...


No wonder both antiques and art dealers are usually so poor. :roll:


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## Widget (May 7, 2002)

ag said:


> Widget said:
> 
> 
> > Thanks ag
> ...


Tax on savings is only 20%, isn't it?


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## ag (Sep 12, 2002)

Widget said:


> ag said:
> 
> 
> > Widget said:
> ...


Yes, if you earn less than Â£34600 per annum, otherwise 40%. It is added to your income and taxable benefits like private health assurance, company cars etc.

EDIT: Sorry, that is a little misleading, the Â£34600 is on top of any non-taxable allowances.


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## Widget (May 7, 2002)

Are you sure?

Isn't it 40% if the income from your savings exceeds Â£34,600?


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## Neil (May 7, 2002)

Widget said:


> Are you sure?
> 
> Isn't it 40% if the income from your savings exceeds Â£34,600?


No, ag is correct. You pay 20% at source, whatever your income, and then you should declare the savings income on your tax return if you have a 40% marginal tax rate, and then pay an additional 20% on top of the 20% you paid at source.


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## Toshiba (Jul 8, 2004)

You are not taxed on savings, you are taxed on interest paid against them only - however your bank normally deducts the tax from you before you get it. On your you tax return you detail interest earned, tax paid etc and the government then claw back any unpaid tax.


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## John C (Jul 5, 2002)

Some spare - Ferrari 430
Lots spare - Zonda
Heaps spare - Lear
Obsene spare - Yacht

Savings account, phhhsstt


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## mrs coope (Mar 24, 2007)

Pay off credit cards :? 
Build the extention  
Open the salon  
Buy another week at Anfi  
Get Gary to retire :roll: 
Have a few bits done  
Take my Mum back to Venice.....

.......just how much "spare cash" is there? :?


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## Widget (May 7, 2002)

Anfi? Is that in Gran Canaria? If so my friends stayed there for a fortnight a couple of years ago. Quite nice by all accounts.


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## mrs coope (Mar 24, 2007)

Widget said:


> Anfi? Is that in Gran Canaria? If so my friends stayed there for a fortnight a couple of years ago. Quite nice by all accounts.


Yup! Lovely resort complex between Aguinnegin & Puerto Rico, totally secure, excellent amenities, very high spec & high standard appartments - except the beach club is a little tired now - great kids club, everything we look for for a relaxing holiday at this point in our lives.

Everyone we know that has swaped their Anfi appartment through RCI for a change of scene has been dissapointed & wished they were back at Anfi..... We've got 77 days left until we go this year - not that we're counting or anything!! :roll:


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## mrs coope (Mar 24, 2007)

Widget said:


> Anfi? Is that in Gran Canaria? If so my friends stayed there for a fortnight a couple of years ago. Quite nice by all accounts.


Yup! Lovely resort complex between Aguinnegin & Puerto Rico, totally secure, excellent amenities, very high spec & high standard appartments - except the beach club is a little tired now - great kids club, everything we look for for a relaxing holiday at this point in our lives.

Everyone we know that has swaped their Anfi appartment through RCI for a change of scene has been dissapointed & wished they were back at Anfi..... We've got 77 days left until we go this year - not that we're counting or anything!! :roll:


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