long term investments

fevdou

Hello,

I am about to inherit £20,000 and I would some advice on where to invest it.

I am 28 and I dont think I will have a good pension so I would like to invest the money in a long term investment that will produce a nice nest egg when I am 60.

I am not sure where to look for advice.

Can anyone help?

Wywth

fevdou wrote: »

Hello,

I am about to inherit £20,000 and I would some advice on where to invest it.

I am 28 and I dont think I will have a good pension so I would like to invest the money in a long term investment that will produce a nice nest egg when I am 60.

I am not sure where to look for advice.

Can anyone help?

http://www.unbiased.co.uk/

BLB53

Over that sort of time span, You probably need to invest in equities - my preference would be a few investment trusts - but you could also consider a low cost tracker like Vanguard Lifestrategy.

Probably worth visiting a few sites to get more info - Monevator (https://www.monevator.com) is a good one, also diy investor (http://www.diyinvestoruk.blogspot.co.uk/) has some good articles for beginners.

The other option is to consider putting the lump sum into a sipp or stakeholder plan - the main advantage would be the immediate tax credit and also the fact it would be inaccessible.

JoeCrystal

fevdou wrote: »

Hello,

I am about to inherit £20,000 and I would some advice on where to invest it.

I am 28 and I dont think I will have a good pension so I would like to invest the money in a long term investment that will produce a nice nest egg when I am 60.

I am not sure where to look for advice.

Can anyone help?

Really? Well, you would NOT have a good pension unless you do something about it and plan for it appropriately.

So what are you going to live on when you retire at 60? That nice nest egg? What if you got a dire need and you decide to use that money for something else. There is a reason why pension funds are inaccessible.

Ideally, you should save into pension & ISAs so you get an income AND a nice nest egg. But alas, that is not possible for everyone.

atush

Is that your only savings/investments so far?

Do you spend 100% of what you earn (or more) do you have any debts?

Do you own a home (and do you plan to)?

Does your employer offer a pension now? If so, why have you not joined it?

fevdou

Hello,

Thank you for your replys - will have a look at the websites.

atush:

My only savings is about £2,000 ISA

I also have joint savings with my husband but we just got married last June and then moved into our house so the savings are for reproving the house.

My husband has rainy day savings, a good salary and a good pension.

We own our home

My employer doesnt offer a pension scheme.

I make less than £15,000 which unless I change jobs will go up. There is no career progression in my current job and the company will not raise my salary by any real amount.

Thank you all again.

xx

atush

Your employer WILL have to offer you a pension soon, if not immediately so inquire what they intend to do.

In the mean time, with no debts, and only 2K savings, I'd top up your ISA to the max for this year, then set up a PP going forwards using some of the inheritance (and continue to add to it each month from your salary) and put the rest into a S&S Isa.

Consider going out for a meal, or buying a bottle of bubbly to share with your OH to toast the relative who left you the money.

My OH was left a small inheritance from an uncle, and we used a small amt of it to charter a sailboat for the day while on holiday and toasted him then.

Being practical with 99% of it is good, but remembering your relative is also a nice idea.

xylophone

My employer doesnt offer a pension scheme.

http://www.thepensionsregulator.gov.uk/individuals.aspx

If nothing else use your and your husband's cash ISA allowance - you could tax shelter 2X £5760 in this way. http://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

Hurry up if you are thinking of the Coventry! http://www.thisismoney.co.uk/money/saving/article-2311057/Best-buy-Coventry-BS-Poppy-Isa-paying-2-6-vanish-tonight.html

Consider opening stocks and shares ISA (another £5760 for you) and perhaps start a personal pension if enrolment date is a few years from now - it might be possible to transfer this into your occupational pension in due course.
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