Long story short without being too identifying ideally, my DD is in her late 20s, she earns an amount that most would class as a high earner, lives in a flat share, is paying a high amount into her pension (12%, employer matched), has a significant amount of savings in a low interest savings account (from inheriting her grandparents property as they decided to skip a generation for various reasons), she maxes out her stocks and shares ISA every year but this is the extent of her investments.
Today she came to me for advice. She told me was feeling a little worried as she isn’t doing much with the money she has her reasons were as follows
She is likely to buy in the next 5 years and need the money for a deposit (London living so while it would buy a family home outright in much of the country or a flat in many parts of London, it’s likely to be used as a deposit by her) so doesn’t want to invest incase it loses value and her research suggested any money needed in 5 years or less shouldn’t be invested as it’s not long enough for any market dips to recover.
She doesn’t want a buy to let as she feels it ties her down, and the new renter reforms scare her.
She doesn’t want to buy now and get a lodger as she likes the flexibility of renting and is undecided on if she will move abroad.
Basically she has a lot of money doing not a lot and every month that amount grows as she earns significantly more than she spends.
She seems extremely reluctant to change any of this and frankly I’ve never been in her situation so don’t know how to advise. She said “I feel like I have money right now, that I haven’t matured enough to use”.
Im now worried she is effectively losing money due to inflation and will realise when the time to buy does come she doesn’t have the spending power she hoped she would.
AIBU to be concerned by this? Does anyone have any advice?