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

lalman

1. Dont move out of your parents house if you don't feel the need to - i lived with my folks till i was 27 and if i didn't move cities probably would have either stayed with them or close. I think its just societies expectations rather than good financial management. Why pay rent/ mortgage when you dont have to i say!... build up a even healthier deposit so you dont have to have such a large mortgage...

I save around 1250-1450 a month and i have 2 regular savers and just opened a Santander current account... i think a similar strategy might be useful?

FYI i have an investment property... you could do that whilst living with your folks but you tend to need 25% for a BTL mortgage...

J.Bartlet

Should've mentioned my pension, sorry. 8% employers contribution (maximum) I contribute 4% (salary sac.) but thinking of upping this.

Noted that people think I should keep the 33k in cash until I'm settled in a property. This will probably be nearer £45k in a years time however, if I continue saving at my current rate, hence why I'm considering investing some of it.

Will not be contacting you milenoss, sorry!

Reue wrote: »

OP - Ignore this

Done

Archi_Bald wrote: »

Read up about investing, don't jump in head first

Thank you for the link. Don't worry, I'm just starting my research.

black_taxi wrote: »

Low cost indexing you won't go far wrong

I've heard vanguard mentioned in passing before. Will take a look, thank you.

ColdIron

J.Bartlet wrote: »

Should've mentioned my pension, sorry. 8% employers contribution (maximum) I contribute 4% (salary sac.) but thinking of upping this.

Does your employer match your contribution up to 8% or always contribute 8%

If the former you should seriously consider increasing your contribution as it's free money, if you become a higher rate tax payer the case is even more compelling

J.Bartlet

black_taxi wrote: »

Low cost indexing you won't go far wrong

Link

Vanguard Life Strategy seems to be exactly what I was thinking of. What's the best way to pay into this fund? Can I do it within a s&s ISA?

ColdIron wrote: »

Does your employer match your contribution up to 8% or always contribute 8%

If the former you should seriously consider increasing your contribution as it's free money, if you become a higher rate tax payer the case is even more compelling

My employer always contributes 8%. Pretty sure I'll increase my contribution regardless.

Archi_Bald

J.Bartlet wrote: »

Vanguard Life Strategy seems to be exactly what I was thinking of. What's the best way to pay into this fund? Can I do it within a s&s ISA?

As short while ago, Charles Stanley were the cheapest for investments below £10K with 0.25% fee pa. Above £10K, HL were/still are the cheapest with a £2/mth fee. But this is pre-RDR - - the charges at HL might well go up in the very near future.

There's an extensive broker comparison: http://monevator.com/compare-uk-cheapest-online-brokers/
EDIT: plus the MSE thread on S&S ISA providers: https://forums.moneysavingexpert.com/discussion/3153942 . Summary is in the first few posts.

And yes, you can have Vanguard LS in your S&S ISA

IronWolf

I started off in a similar position. I started investing slowly, only committing a few K while reading all i could on it. Over the years my knowledge grew and so did the amount I invested. i now feel comfortable having everything but my emergency cash invested.

So my advice is take your time and read up on it all, it will benefit in the long run.

Eponym

I am in almost exactly the same position as you - same age, same amount of savings, also looking to buy a house (though I'll be looking after Christmas).

What percentage deposit would that £20k get you? It's worth going for a higher percentage deposit to pay less on your mortgage payments. Don't forget that you will need to spend a good few thousand on fees and so on, and furnishings don't come cheap. Depending on those house you may need to put in new carpets, a new kitchen/bathroom, etc, so that extra £13k you will save between now and then could be swallowed up easily!

J.Bartlet

Eponym wrote: »

I am in almost exactly the same position as you - same age, same amount of savings, also looking to buy a house (though I'll be looking after Christmas).

What percentage deposit would that £20k get you? It's worth going for a higher percentage deposit to pay less on your mortgage payments. Don't forget that you will need to spend a good few thousand on fees and so on, and furnishings don't come cheap. Depending on those house you may need to put in new carpets, a new kitchen/bathroom, etc, so that extra £13k you will save between now and then could be swallowed up easily!

£20k would be a deposit of around 20%. I'm in the north west so anything much more that £100k is beyond my needs. I currently have £13k in savings after the £20k deposit. If I buy in a years time I do expect to have an extra £10 - 12k in the pot. Total £43 - 45k.

Where is your money currently?

Eponym

You could always aim for a larger deposit!

My money is mostly in ISAs - I've saved the full £3600 in First Direct's Regular Saver this year and I have a little easily accessible in a 3% instant access savings account (unfortunately not available these days!)

cynicalgit_2

Don't buy anything from somebody who wears a suit.