26 y/o looking for advice on what to do with earnings

[bleedingknight]

Hi all, I'm a 26 year old earning a gross wage of 45k. My aim is to eventually buy a house, and long term I'd like to retire early, or at least go on job share for at least ten years before retirement.

Currently, I have just over 38k in savings, but I am not in a position to buy a house just yet - although planning to within the next 5 years. I should hit 50k in savings in the next two years.

I have recently started investing in ETFs on Degiro, and invest around €300-€400 per month.

I do have a pension as part of my job, but since I started work post 2013 I know I'm at a slight disadvantage regarding my pension.

My question is, should I start prioritising investing in AVCs? Or should I stay with investing in ETFs, despite the amount of tax I'll have to pay.

Thanks in advance!

 

[startupchristian]

@bleedingknight Max out pension before making any other investments. Don't invest anything that will be needed in the next five years for a deposit.

 

[bleedingknight]

@startupchristian Thank you!

 

[starmesmom]

@startupchristian What does ‘max out on pension’ mean, allocate maximum percentage allowed for the age group? I am in a similar situation as OP except the savings. Don’t have much saved till now hoping to be serious with my money this year.

 

[startupchristian]

@starmesmom Yes, so if you're under 30 you contribute up to 15% of your salary to a pension and claim tax credits.

 

[starmesmom]

@startupchristian Thanks! If the employer deducts the contribution from my pay, I don’t have to explicitly claim tax credits correct? Thanks again!!

 

[startupchristian]

@starmesmom AFAIK yes. Check your payslip, it should show how much tax credits you get.

 

[a3yan]

@bleedingknight There's a flowchart pinned to this sub that would help

 

[bleedingknight]

@a3yan Thanks a mil!

 

[hkdr]

@bleedingknight Why do you say your pension is at a disadvantage? Just curious.

I'd start upping the pension to max. I'd certainly max that out before investing that quantity in degiro.

 

[bleedingknight]

@hkdr Because I started my job post 2011 I don't have the same entitlements as colleagues who started their job before 2011! At least that's as far as I'm aware!

 

[hkdr]

@bleedingknight Ah I see. You're a teacher then I take it. All I know is teachers pensions are complex, I'd dicuss things with a FA if you can. I think cornmarket do a lot of work with teachers.

 

[riverwolf1975]

@hkdr The new pension scheme is for most of the public sector, so they might not be a teacher

 

[riverwolf1975]

@bleedingknight Sounds like public sector.

You are at disadvantage vs older colleagues, but a big advantage vs the private sector.

Look at AVCs

 

[berk]

@bleedingknight im a teacher. use your spare time to educate yourself on Bitcoin. Read the bullish case for bitcoin by vijay boyapati for starters. free online article.

 

[didier]

@bleedingknight All in on Bitcoin. €38k will net you 1.34 BTC.

 

[crc134]

@didier This guy Bitcoins

 

[bleedingknight]

@didier Unfortunately crypto is way out of my risk tolerance lol

 

[koinonialover]

@bleedingknight Username containing the word 'bond' checks out

 

[bleedingknight]

@koinonialover Lol