Which pot to spend first?

[Where2start75]

Hi

I'm looking to spend around 50k on an extension.

I have similar amounts across Vanguard S+S ISA (up 45% over 4 years, currently slightly dropping) premium bonds and savings accounts (max interest rate ~6%).

Which pot makes most sense to use?

PBs - lowest return but 'could' win big?
Vanguard - cash in to bank the growth and reinvest with future savings?
Savings - easy access.

Thanks!

Savings first!

As long as you'll still have enough of a cash emergency fund, keep anything in a tax wrapper and go for the easy access savings first. Premium Bonds aren't the best savings/investment vehicle but I know what you mean about the 'win big' dream (statistically very unlikely to happen).

Make sure you have contingency for the extension costing more - they often do.

Enjoy your extra space!

I was coming on to say exactly this but less eloquently 😁 . Two votes for this ⬆️

Brilliant, thank you!
I'm a single parent so no other adult to discuss with and 2nd guessing every decision. I've been wanting to do this for ages and have at long last got quotes, and it's doable!

Congratulations on being able to do this, it will be fab once it’s all done! What’s in your stocks and shares is for the long term, so draw on those last and only if you have to!

Slightly opposite to what the person. Above said. If you think you’ll need anything from your S&S in the next 6 - 18 months I’d be drawing it now whilst the market La pretty good. If trump announces anything like he did last Feb the markets tanked and took a few months to recover what you don’t wanting NEED to withdraw in a small window when the market could be doing badly because that’s the only time you materialise on the loss

Ie if you need 50k and you’ve got 25 grand in each S&S and PB I’d be getting the 25 grand out of S&S now.

if you need 50k and you’ve got 50k in PB and S&S it might be slightly different. I reckon I still might take 10k from S&S now in this situation tho.

I wouldn’t touch the S&S on the basis that things are pretty unstable at the moment, there is usually a gap of a few days between notifying the provider and a sale, in that time value can go down, I don’t think now is a good time to sell.

You'd be crystallising losses if you sold S&Ss now. Investing should be for the medium to long term.

As I said up-thread, also make sure you still have an emergency fund and 10% contingency for the extension (or be prepared to leave non-essential things unfinished until you save up again if it runs over budget).