£40k a year to invest - what would you do?

[humboldthunanny]

Without going into much detail, I will potentially have around £40k a year to invest for the next few years. This is after saving for a rainy day fund and all living costs to a high standard. I will be renting but that’s out of choice.

What would you invest in?

No children or plans for dc and age in late 20s

Put half of it in a Pension and half in an S&S ISA.

Use tax efficient wrappers first, so pension and stocks & shares ISA. Invest it for the long term, pension for retirement, stocks & shares ISA for 5+ years.

Are you at the point of exceeding your pension annual allowance?

Do you intend to buy property to live in, in the UK, with a value under £450k within the next few years? If so, then filling Lifetime ISA each year can be useful, so £4k to Cash Lifetime ISA, £16k to stocks & shares ISA, £20k to pension (assuming the money you are getting is earned income from employment and you have pension annual allowance available).

Buy a property

40k a year over how many years?

We need to know the detail - what is this money for and where is it coming from?
Look up “Relevant UK Earnings” is it from that? Is it money you can put away for the very long term, so using pension?
Is it money you intend to spend on something, like property, in a few years time?

What is the purpose of this money? Give it a purpose and that will help you determine what type of account to use.