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Discuss investments with other users on our Investment forum. For more advice read our tips for saving for your child's future.

Who do I speak to for advice? !

5 replies

Istherehopeforme · 22/04/2022 14:02

Hello, some help appreciated please- I’m Wondering who would be best to speak to for advice , myself and my husband mid 30’s 2 children. Have a small home that we have a relatively small mortgage left on ( could pay off with savings over the next few years) or it’ll be payed off in approx 10years . We have been trying to buy a bigger family home for years but demand where we live is crazy and now prices have shot up so we feel we will have to stay where we are. My worry is that we won’t have any need to “ downsize” in the future if we stay in this house and there therefore won’t be building equity that we could release when we would downsize.
In the meantime staying in this House our bills now are very manageable , we have £50k that is sitting in savings towards the new house that’s likely not happening and I just don’t know what to do to make sure we are investing well for the future. We have pensions through work but one small ( part time working) and one better one but not great at all- we havnt added anything additional to standard payments . Maybe we should start there. I contemplate buying a house to rent out If that would be possible - we would get a mortgage id imagine ok- this seems like a better way to use the money we have saved as an investment. Property prices high at min though.
Would love to know who I should speak to about this, we have a mortgage advisor and previously had a financial advisor that did wills and insurances etc but want someone to give me all the options?! Maybe I’m asking too much, maybe we are too risk adverse. . I’m so conscious of not making sensible choices in these years financially meaning il regret it in the future. Totally appreciate we are in a privileged position as it is, we live very cheaply, no lavish spending at all etc and work hard for the money we do have.
Any advice?much appreciated thank you.

OP posts:
Istherehopeforme · 22/04/2022 14:05

Also to add don’t have isa accounts or anything like that as tbh don’t know where to start, advise appreciated on that also. Childrens money ( few thousand each) sitting in standard savings accounts providing approx 2p a year interest!

OP posts:
maddy68 · 22/04/2022 14:07

Always speak to an INDEPENDENT financial advisor.
My oh is one if you want to drop a pm or ask for recommendations.

CurlyhairedAssassin · 22/04/2022 20:17

You say the move "likely" won't happen now. You'd probably need to decided on this for definite. Re a buy to let, personally I wouldn't do that at the moment with house prices so inflated, there's a risk of a drop and unless you bought it in cash outright I'd feel it's a bit risky. Being a landlord is a hassle these days I think, too, in lots of ways. I decided against it.

The stock market is pretty up and down at the moment but if you don't need access to your money (or some of it) for 5-10 years then it might be worth putting some in a stocks and shares ISA. Something that's just done for you. I use Vanguard Lifestrategy funds for my ISA. It's hands off. You can put 20k per year into an ISA so you could put 20k in for this year and just see how it goes, as long as you don't think you'll need access to it. The rookie mistake is to watch it each month and panic when you see the value go down though and withdraw it all at a loss. It's there to be invested for the long term, and it will go up if you wait.

Re pension, you could look into topping it up a bit. That's very tax efficient. Obviously means the money is not accessible till at least 55 though so you'd need to think about that. You can pay in up to 100% of your annual earnings each year.

How old are your children? If they are likely to go to university are you aware that you will be expected to top up their maintenance loan yourselves, as parents, if your household income is less than £25k? For some uni accommodation even topping up would not cover it. I've had a shock at the cost of it all, and it comes about faster than you'd think when they are still primary age. So I'd definitely be putting some aside for that.

Interest rates are slowly increasing as I'm sure you know. A one year fixed savings account for some of it might guard against inflation a little bit. It'll lessen the impact any way. Other savings accounts might have a less competitive rate but may let you withdraw a few times before the end of the term. Personally I wouldn't fix for any more than a year at the moment as rates are likely to continue going up.

I know it sounds a bit odd saying this, but these days 50k isn't a HUGE amount of money. If you do a lot of research and learn loads yourself you could probably figure out how to put it to good use yourself with no need for a financial advisor who would take their cut. (and may not be interested in such a small sum anyway, unless you're already dealing with them for other things).

I think the world is a volatile place at the moment, personally, and I don't think ANY financial advisor could be 100% of giving great advice, other than "You need to minimise the impact of inflation".

CurlyhairedAssassin · 22/04/2022 20:19

sorry, meant to say you will be expected to top up their maintenance loan if your houshold income is MORE THAN £25k!!!!!

Istherehopeforme · 22/04/2022 21:40

@CurlyhairedAssassin thanks for your helpful reply! I will look into the ISA for sure. I know that 50k is not much money in the grand scale of things but it’s the sitting in the bank doing nothing to ward off inflation is that worries me. I think your point about “likely “ not going to happen Is true- I’d absolutely Like it to happen but currently where we live houses have shot up dramatically and there is so few coming onto the market.

I will do some research myself as you say I would have been unsure if a financial advisor would have even been interested given the amounts.
I had a rental property once ( owned half with a sibling who lived abroad), bought in high, was a hassle and Bain of my life dispite paying a letting agent to manage it , took years to recover price and then sold it once at pretty much break even. So yes I need to remind myself of that every time
i think of rental again. I live beside 2 universities and several hospitals so rental is in demand but house prices are high at the minute. Interesting point about university fees etc, another cost we need to factor in for.
Will look into the Isa details you mentioned and possible fixed savings . Thanks for you help and taking the time to reply.

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