£33k savings increasing quite quickly - Looking to start investing

J.Bartlet

I'm 26 years old, with a decent amount of savings but currently have no investment/savings strategy to speak of, other than putting a bit into a savings account each week. I don't want to waste this opportunity much longer so would really appreciate some advice.

I currently have around £33,000 in savings, split between a cash ISA and instant access savings account. I've been adding to this an additional £800 - £1000 a month (aprox half my wage, I still live with my parents) for the past year. In the new year I'll be earning an additional ~£200 a month after tax.

With this extra £200 I'd like to start a regular investment into an index fund or funds with the intention of continuing this until retirement, obviously my monthly investment may vary depending upon my circumstances. Is this a valid long term strategy? I know next to nothing about index funds, and fund suggestions or recommended reading would be appreciated.

As for the £33k, I don't intend to buy my own place for another year at least but would need around £20k for a deposit and expenses, so I assume I'd be best keeping this in cash, am I correct? Any suggestions for the remaining £13k, plus the £800 - £1000 a month I'll continue to save whilst I'm still living with my parents?

Bit of a long read I know. I'm new to this, any help would be really appreciated.

black_taxi_2

there's quite a few unknowns when buying a property

might take a winter to find out you need

central heating--upgrade fixing

,better to have plenty of liquidity,till your settled

brendon

First thing I would do is move out my parent's home. Is there any reason you are delaying this? You've got plenty of money so I don't see what's holding you back. (You say you're not buying for a year at least -- why not now?)

Reue

brendon wrote: »

First thing I would do is move out my parent's home. Is there any reason you are delaying this? You've got plenty of money so I don't see what's holding you back. (You say you're not buying for a year at least -- why not now?)

OP - Ignore this

Archi_Bald

Read up about investing, don't jump in head first: https://forums.moneysavingexpert.com/discussion/4752194

Keep your £33K cash if you expect to need £20K for a deposit. You will need all sorts of other stuff, like furniture, white goods and furnishings, and insurances. Plus you should always have some 6-12 months emergency funds in easily accessible cash, particularly if you are a home owner.

tell_it_how_it_is

Personally, I'd suggest holding off increasing your risk profile until after you're into a new home and getting familiar with what running it brings.

You don't mention a pension, so as a suggestion for what to do with some of the extra money, perhaps consider starting (or bumping up) one of those?

R_P_W

Reue wrote: »

OP - Ignore this

Why ignore?

atush

Because he is saying to spend money and stop saving?

Anyway, I agree you haven't mentioned pension, which you should have. If you haven't joined your employers pension DO IT NOW. If your employer doens' have one, when wil they (they have to) and what will they put in? Always put in enough to get the max employer's contribution.

After that, if you have spare cash from the 800-1200 ongoing you can save, use S&S isas. And yes, if you are buying soon I would not invest the 33K but keep that more liquid and go ahead and invest the new ongoing contributions.

Archi_Bald

milenoss wrote: »

Hi J bartlet,

Theres alot of good investment opportunities out there which are unknown to us.l
I think i can help you with you investment decision. If you drop me an email at [email]xxxxxxxx[/email] .

Hope to hear from you soon.

Thanks

Whatever you do, J Bartlett, do not ever contact someone who randomly invited you to send them an email. It's with almost certainty a con, particularly if the email address is a personal one.

I have reported milenoss post as spam.

noclaf

+2 for above - when someone is offering an 'investment opportunity' in this way....its best to stay away!

black_taxi_2

Theres alot of good investment opportunities out there which are unknown to us.


like ponzi,extortionate fees,scam


return of money than return on money

Low cost indexing you won't go far wrong

http://monevator.com/vanguard-lifestrategy/