Pension help

stuw342

Hi i'm after some advice i'm currently 24 and have just been medically discharged from the military, this has left me with a £15,000 lump sum and £500 per month pension starting in Aug.I have a £80,000 mortgage that cost me around £490 a month but other than that i'm debt free and wondering what to do with the money for the best results any advice would be gratfull cheers.

EdInvestor

Wil you be able to work and if so, will you earn enough to cover costs without accessing the lump sum or pension?

stuw342

Yes i will be able to work and will be able to cover my mortgage with my wage.

EdInvestor

For the lump sum I would suggest you purchase a High Yield Portfolio of 15 diversified blue chip shares paying good dividends, and reinvest the dividends for long term growth.These divis are tax free for basic rate taxpayers. You would need to open an account with a low cost online broker to do this. This is a very easy and comparatively low risk way to invest in shares which needs very little attention if you have little time.

I would put the 500 per month (taxable) pension in a maxi stocks and shares ISA ( max allowed is 7k a year),so that it too achieves long term (tax sheltered) growth. For suggestions about how to invest this money, the Savings and Investment board is probably a better spot to ask.

dunstonh

How can you give advice without knowing anything about the person? We dont know personal status/information, tax position, investment needs and goals (if any), timescales, attitude to risk and a whole bunch of other things. Yet you go on to mention a medium risk investment strategy.

EdInvestor

It's not advice.This is a BB.It's information about investments he might be interested in looking at. He needs to do his own research about anything he reads here.

Surely that must be understood by now.
Do we have to argue about this again zzzzzzzzzz

If he wants proper "advice" with misselling protection and all that, he can go and see an IFA like you.

dunstonh

Sorry, your wording suggested an investment tax wrapper and one investment strategy. It comes across to me as advice. Whilst I and a number of the other regulars know you like posting suggestions without considering facts, non-regulars to the board do not know that. I have absolutely no problem with you making "suggestions" but wouldnt it be best making them at an appropriate time and with appropriate and accurate warnings.

We know nothing about this person. Yet you present just one option.

This is a very easy and comparatively low risk way to invest in shares

So, what you are saying is that investing in shares is a low risk way to invest?

If he wants proper "advice" with misselling protection and all that, he can go and see an IFA like you.

Probably better than getting inaccurate advice here then