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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.

Original poster

Where would you invest?

11 replies

tynvss · 15/01/2023 20:03

If you had £1,500-£2,000 a month that you could save/invest, where would you invest it?

Mortgage rate is currently 1.5% but will probably be about 3.5% by the end of the year so overpaying might not be the smart thing to do according to overpayment calculators.

Stocks? ISA? Pension? Mutual funds? Property (after a while of saving..)
If you invest, have some assets, what works for you? I have no assets (other than house with mortgage) and little knowledge at the moment but a good salary. Where would you start?

OP posts:
Tulipomania · 15/01/2023 20:06

I would put half in premium bonds and half in a stocks and shares ISA.

nannynick · 15/01/2023 20:10

Depends when that money would be needed. I am putting a lot more to pension these days, as I have enough in savings and ISA for short and mid term needs.

nannynick · 15/01/2023 20:16

Have you heard of the Ramsey baby steps?
Working through those is a good idea.

  1. £1000 starter emergency fund.
  2. Pay off all consumer debt. Not home mortgage.
  3. Expand the emergency fund to being 3 to 6 months of expenses.
  4. 15% to retirement (ISA, LISA, Pension/SIPP).
  5. Something towards children's higher education.
  6. Pay off home mortgage.

Steps 1,2,3 are done in order. Steps 4,5,6 are done at the same time.

Original poster
tynvss · 15/01/2023 20:25

Thanks all, very useful.
I have an emergency fund and have never had any consumer debt. Kids in private school at the moment so I assumed the outgoings will just stay flat once they get to uni (still about 5-7 years away). My pension isn't great at the moment as I only started paying in the last 10 years and I'm not paying huge amounts in (I'm late 30s). Maybe I should increase but hadn't considered as the company pension contribution was only the minimum.
ISA is probably a good shout, I have only done about half the annual limit so far.
Would you do pension before stocks and funds? If so, why? I'd like to understand it a bit more.

OP posts:
nannynick · 15/01/2023 20:53

Look at the work pension. There are different types so you need to know about what type you have at work.

With A defined contribution pension you get tax relief on what you pay in, so if you pay in £80 that becomes £100. If you are a higher rate tax payer you may also be able to claim up to another £20 in tax relief via your tax return.

A video about why pension wins over ISA.
m.youtube.com/watch?v=y-4s1wqwQ7k

ISA is more accessible though, so when you need the money is a factor to consider.

Original poster
tynvss · 16/01/2023 07:27

Thank you @nannynick, that is very helpful indeed. Lots to learn. If only those things were taught in school!

OP posts:
CandleCandleCandle · 16/01/2023 14:53

Pension and S&S ISA.

Sashamia · 17/01/2023 12:49

regular savers now offer 5-7% interest so make use of that (£300 a month per account)

Mger2 · 18/01/2023 14:49

Have you asked yourself what you need the money for? Once you know that you’ll be able to decide which tax wrapper to put it in. Thereafter it is just a case of picking a diverse range of investments and paying in regularly.

Cornelious · 18/01/2023 14:55

At your age a LISA. You can pay in up to 4K per year and government tops it up by 25%. You have to be under 40 when you open it.

Sunsetintheeast · 21/01/2023 21:04

Cash reserve
Pension
ISA

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