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Man its great that you know your mistakes, so now its good time to start. By the way, I am just highlighting few mistakes, so that others may learn from your experience and may avoid doing the same. 1) Obviously very late in planning and in thinking of investment. You lack 5-10 years of Compounding effect. 2) Life insurance must be there to safeguard ...


1

What would be the way to maximize the long term savings in this situation? Strictly speaking, you should find investments able to beat that 2.1% mortgage, and pay it as slowly as possible. However, this depends on a lot of factors. Unfortunately, the fact that you are in Spain makes the answer slightly different to the usual ones, partly because there are ...


2

What would be the way to maximize the long term savings in this situation? For short-term goals (next few years), save (as opposed to "invest") the money. For longer-term goals, invest the money in a mix of stocks and bonds (specifically low-cost "mutual funds" and ETFs -- Exchange Traded Funds). Unfortunately, I don't know where to point you in Europe.


3

It's question of costs vs. opportunity. Swapping out the windows, how much would you realistically save per year? Let's make up a number and say that it saves you (to make the math easier) 50€ / year if you swap them out. 50 / 5000 = 0.01, or a 1% return on your investment. Now, let's look at your mortgage: That has a 2.1% interest rate. As such, any ...


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In order to hedge against a potential increase in property prices, I would suggest investing in an ETF which tracks a property index. For example "The FTSE EPRA/NAREIT UK Index offers exposure to UK listed real estate companies and Real Estate Investment Trusts (REITS)." BlackRock has one, and I'm sure others do too. Then if the UK market suddenly increases ...


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Cash ISAs are usually poor investments, their rates are often low and their only benefit is the interest is untaxed. And, for most people, the personal savings allowance 1 makes it moot anyway. For just a year, an old fashioned savings account would suit. Generally, internet only banks offer better rates than the well known high street names. So, go with ...


3

You say that you're planning on buying a house. You don't seem to have any specific need to buy a house, so you can afford to take some risk. You should focus on bonds, but you can have some of your money in stocks. Even if there is a dip in the stock market, it's likely to be accompanied by a dip in the real estate market, so you'll need less to buy the ...


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From an investor's point-of-view the question is, does the view of the UK housing market indicate any macro investment opportunities ? For instance if the GBP is expected to decline then a sell position in the GBP/USD would produce about 0.75% rollover interest on the leveraged amount. Then the 45000 number easily takes a 225000 forex position which ...


4

You should be putting it in a cashlike, very low volatility investment, preferably an insured one like a CD or municipal bonds. It might seem clever to put it in the stock market and get a 10% bump, but you could just as easily take a -20% beating. That is called volatility and it's the thing to avoid.


5

In as short a time as a year, the best way to invest money is to simply save it. "A penny saved is a penny earned". Simply not eating out all the time will save you thousands of dollars a year, which is more than most investments will earn, unless you have a large amount in an investment and have some really good stock brokers working for you. For instance, ...


1

Open an account at a discount brokerage and invest in an ultra-short term bond fund -- either a mutual fund or an ETF. The better ones have been yielding as much as 3.8% for the past year, and any downside going forward should be very brief. For example, the bobble in equity markets at the end of 2018, from which some equity funds took a year or more to ...


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There are no safe one-year investments that pay a high rate of return. If they existed, then everybody would be putting all their money into them. If you want to be confident that the money will still be there in a year's time, just put it into the best bank or building society account you can find. The interest over one year will be negligible anyway. ...


30

The standard answer is that if you need the money soon (less than three or so years), you should not be putting it in risky investments and just park the money in your savings account or similar "safe" holdings. Since you plan to buy in a year, you probably should leave it in your bank account. Sure, you won't gain much interest, but you also sound like you ...


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It's been a while and I came up with some better answers. This blog: https://www.retirejapan.com have some very relevant informatiosn Mostly, the main advise would be to invest into a NISA, which allow some tax free investment into the market. Other tax advantageous accounts such as iDECO can be considered. No need to open a foreign brokerage account, ...


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Be careful of keeping your money in a bank in the foreign country. If the country is risky the banks could go under or even communists could come to power and seize your money. There is also currency risk ( local currency could be devalued )


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Some thoughts that came into my mind when reading your post - hopefully, some of them are beneficial to you; First of all, compared to others who start into their career and might plan to go abroad you have a more solid financial background - e.g. you have an 80k loan but a house, while others have no house but a student loan. So, that's definitely an ...


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Your current assets are small compared to what you can expect to earn in a lifetime and compared to what you will need for retirement. Fortunately, you are young and have decades more to save. Many people are in something like your situation of starting out, say with a graduate degree, in their late 20s or early 30s, but with no savings at all and perhaps ...


2

It's something that needs careful planning. Do you know anything whatsoever about the market for your profession in Canada or New Zealand? Any idea how difficult it is to get a work visa? Any idea what happens to your pension rights in the UK? Before I moved, I had six job interviews in my pocket, and one of them turned into a job. So be prepared, and have ...


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Considering that you can claim a tax deduction for the mortgage interest on the investment property but not on the mortgage interest on a future house you plan to live in, you are better off paying Interest Only on the investment property so that you can save as much as posible for your main residence. The more you can save means the less you need to ...


1

The main disadvantage of an interest only (IO) loan is that it typically has a higher interest rate than principal plus interest (PI) loans. If the rates were identical, then for a disciplined person it would be better to choose the IO loan, because then you can decide if and when it makes the most sense to start paying down the loan. For example, you might ...


7

Pros of Saving Points When you do decide to redeem them, you won't have to worry about meeting the minimum threshold. If there are "specials" for redeeming (like getting discounted gift cards) you'll be positioned to take advantage of them. It might feel better to be getting "more" all at once This doesn't sound like it applies to you, but for some point ...


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All the banks I have dealt with don't do the calculations as described in the answers by Lawrence and Ross Millikan but use a simplified method that works as follows. If the interest rate (APR) is, say, 0.24% per annum compounded monthly, then the amount of interest credited to the account at the end of the month is the average daily balance during the past ...


1

A typical approach is to compute interest daily on the balance of the account. You can make a spreadsheet that computes this. For each day, compute the interest from the previous day by multiplying the balance by 0.25%/365 (or 360 depending on the bank). Apply whatever rounding process the bank uses to get rid of fractional pennies. Then apply the day's ...


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First, check the account’s terms and conditions regarding interest payments. Some don’t pay interest if you make a withdrawal that period. Others require a deposit in addition to no withdrawals. Regardless of the ‘gotchas’, they should also tell you on what basis interest is earned. It could be the minimum balance that period. It could be the minimum ...


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