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What to do with £500 per month?

6 replies

LaceandChintz · 15/09/2017 20:49

Just that really. Due to a change in circumstances we have £500 to put away each month. We don't have a mortgage to pay off.
Where would you put it?

OP posts:
MrsOverTheRoad · 16/09/2017 07:33

I'd buy another property.

peterpancollar · 16/09/2017 21:16

Pension
ISA

mintbiscuit · 17/09/2017 09:16

No to property (tax changes not looking favourable)

Unless you have a very lucrative final salary scheme that will pay a generous guaranteed income in retirement I would go ISA and/or pension (depends if you will need access to the money).

Don't forget the top up via tax relief you get when you pay into your pension. Also if you are saving through workplace pension are you taking advantage of all available employer contribution matching?

LaceandChintz · 17/09/2017 13:25

Thanks all.
Definitely no to property
I have ISAs so could add more.
I currently contribute to a public sector pension scheme but have an old private pension which is frozen.
Will do a bit more research. Thank you

OP posts:
JoJoSM2 · 18/09/2017 12:13

Pension too. If you're under 40, then a LISA is good. If you have children and good pensions, then I'd consider sth for them.

hollytom · 18/09/2017 12:28

Pensions are good because of the tax relief. I think you need to have a think what you want to achieve do you have emergency savings? The general recommended amount is 6 months of expenditure incase something happens like you lose your job. Then after that more long term savings; I have a work pension but it doesn't kick in until I am 65. I certainly don't want to be working at that age so I am saving mainly into a SIPP so that I can access the money when I am 55. This is monthly investments into funds on the stock market but this should be done over at least 5 years so as to lessen issues with stock fluctuations.
There are lots of good finance sites around where you can read up on things. I always like MSE.

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