£20 a month for 10 years ?

Midas

upton66 wrote:

Depends if you want full access to all the savings at the end of the 10 years.

If you are about 40 years old I would stretch the budget to £39 and make regular paymenst through Hargreaves Lansdown into a SIPP. Your £39 willl be made up to £50 by the taxman. When you are 50 you can withdraw 25% tax free.

Otherwise I'd go for a Mini ISA, stockmarket based

Isn't the age for accessing pensions not rising to 55 soon?

Obviously we don't know the circumstances of the OP, but if they can only afford to invest £20pm (or even £40 pm), they really probably can't afford that much risk; and risk free growth of 8-10% annually in a regular save is hard to beat.

If they can afford to invest more elsewhere, you are obviously right that an equities-based investment is likely to perform best over the 10 year term that they suggest.

bigchasbroon

upton66 wrote:

Depends if you want full access to all the savings at the end of the 10 years.

If you are about 40 years old I would stretch the budget to £39 and make regular paymenst through Hargreaves Lansdown into a SIPP. Your £39 willl be made up to £50 by the taxman. When you are 50 you can withdraw 25% tax free.

Otherwise I'd go for a Mini ISA, stockmarket based

I'd like to clear a few things up here there are lots of things that have been said that are, well, not right or half right.

If you take out a pension now you cannot withdraw any money until you are 55 and at the point you do take the tax free cash you must begin to take an income if you put 50 quid a month for 10 years thats £6000 (its cost you 4680) it might be worth 8000 you take 2k tfc then you must take income youll get about 15 quid a month on which you will be liable to tax subject to allowances.

put 20 quid in a fs bond in 10 years its cost you £2400 might be worth 3000 whats better?

an endowment gives a guaranteed amount on death or at the end of the plan this is typically 75% of the premiums paid.

When bonuses are added to a with profits plan they cant be taken away in theory. But the company can apply a market value adjustment to any policy reducing the value such as all the life companies have over the past few years due to turbulent markets.

a unit linked or unitised plan can have bonus units added but the value of the units can fluctuate according to markets.

Robert_Sterling

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