How best to invest

[HowBest2Invest]

Our situation is that I'm going back to work very part time after being off for a few years with the kids. I will take home about 15k pa once NI, tax and childcare costs are taken off.
We have been getting along fine on my DHs income. We have pensions and decent equity in our house. We don't plan on moving. We have 4 kids and we are in our mid- late thirties.

I would really like to invest a large chunk of my salary in some way rather than it getting eaten up in day to day stuff. We have been thinking of doing some work to the house to add value or possibly buying a second home to use as a holiday house or rent out. We don't have the deposit for it handy though, we would need to save up.

What else should I be considering? Is there a better way of investing maybe 1k per month?

[Redtartanshoes]

Watching with interest as have slightly smaller amount from payrise to put somewhere. I know the sensible answer is pensions but I am tempted by holiday let... the idea of having someone else pay a mortgage that could be sold in 20 years is tempting although I know the tax rules have recently changed so it’s becoming less viable

[HowBest2Invest]

I just wanted to add that whilst I'm a big fan of planning for the future my Dad died very suddenly when I was young and he was early 40's, so I also want to enjoy the money that I have. I suppose that's why the two options i listed in my OP are "fun" ones. I don't mind putting away money, but I don't want to go hell-for-leather investing in a future at the expense of today.

[nannynick]

Pension
LISA (Lifetime ISA)
ISA

Probably a combination of all three.

These are tax wrappers, they are like a jacket which protects your money from HMRC raiding it.

Pension, you get tax relief added but HMRC also taxes it on withdrawal at retirement. The main advantage for a lower rate tax payer is Employer Contribution - your employer puts in money, as well as you. So more goes in.
Accessible from age 57 (probably), taxable.

Lifetime ISA - the new baby... still an infant and mostly used for buying a first home but it can be used for retirement. You get a bonus on the money you put in (until your 50th Birthday) which is the same as the tax relief on a pension as a lower rate tax payer. Access at age 60... tax free.

ISA -Invest for the long term in the global market. You can access at anytime, tax free. Aim to not pull money out in the first 5-10 years but should you need the money you can access it.

[nannynick]

Finding a balance between spending it now and investing for the future can be tricky.
Investing in your home is not a bad idea, spend on things that make your home better for you but keep in mind that at some point you will sell.

[nannynick]

Children - maybe invest for them using Junior ISA which would be theirs at age 18.

Also invest in them by encouraging their strengths. Use some money to pay for tuition, musical instrument, sports equipment, whatever it is that they would benefit from.

[HowBest2Invest]

Thanks everyone.

[savvy7]

I think balance is important in investing. Look at the value of your pensions, your equity in your house and cash held and try to keep things in balance.

Also liquidity is important. Do you have enough cash savings?

Aside from the social impact of people buying properties they don't need, housing is a very illiquid asset. Also, it is likely to imbalance your investments - avoid having too many eggs in one basket.

[HowBest2Invest]

Thank you savvy. I will definitely be putting some aside as savings.

[CurlyhairedAssassin]

Was your DH paying into a pension for you for the years you were not working?

If he is going to be the main earner, what are your plans for covering outgoings if he drops dead tomorrow? Sorry to be blunt, but this does happen. Have you arranged life insurance?
lA

[CurlyhairedAssassin]

I assume when you talk about what you'll have left after factoring NI etc, and childcare, it's not literally YOU paying for the childcare costs? Do you pool your money with DH?

[CurlyhairedAssassin]

Sorry, I skim read a bit. Sorry to hear about your dad dying young. So you do have personal experience of it happening. How was your mum provided for? I would be making sure everything is fine on that score in your own situation, for your own peace of mind.

BTL isn't a great idea in your situation, I wouldn't have thought. There are loads of threads on here saying why so I won't go into it.

"Getting on fine" on your DH's salary doesn't imply any level of "being comfortable" which is really what you need these days if going for BTL, in my view, especially when you have young children (expenses increase for them as they get older with things like driving lessons, university etc)

[HowBest2Invest]

If DH dropped dead we have life insurance that would pay off the house and he has an extra policy through work that would pay out 4 his annual salary.

Mum also had good life insurance in place and was thankfully totally fine financially after my dad died. He worked in finance so he had everything in line.

We pool money, have a joint account we both have free access to, we would both be paying for the childcare. I was just talking about it alongside my income as it's an extra expense starting up at the same time as my wage is coming in.

I have a pension that has continued to be paid into.

I really do take everyone's advice re the BTL onboard and will rule it out. I appreciate the feedback.