where best to invest £180,000?

xylophone

Do I really need the help of a financial adviser for this?

You can do it yourself if you wish.

Examples http://www.cavendishonline.co.uk/pensions/

http://www.aviva.co.uk/personal-pension/

http://www.standardlife.co.uk/customer/pensions-and-retirement/looking-for-a-pension/products.page

http://www.pru.co.uk/pensions_annuities/pension_guide/individual_pensions/personal_pension/


https://www.gov.uk/personal-pensions-your-rights/personal-pensions

Higher rate tax payer and pension tax relief
http://www.friendslife.co.uk/doclib/mpen15c.pdf

A landlord's life is not necessarily an easy one https://www.gov.uk/private-renting/your-rights-and-responsibilities

Some more reading..
http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/10859896/The-towns-that-offer-the-best-buy-to-let-returns.html

http://www.dailyecho.co.uk/news/11239086.Southampton_tops_buy_to_let_table/?ref=mr

colsten

A pension is an investment. Like with all investments, the annual cost is critical and buying into a packaged pension such as offered by the Pru, Scottish Widows, Aviva, Standard life etc is not necessarily the best option.

You can self-select your investments in a SIPP, in much the same way as an S&S ISA. Selecting funds with low AMC, and selecting a cost efficient platform is likely to produce better results than buying from an insurance company.

Good reading for investments:
http://monevator.com/category/investing/passive-investing-investing/

Good summary of SIPP platforms: http://www.telegraph.co.uk/finance/personalfinance/investing/sipps/10607824/DIY-pensions-The-cheapest-Sipp-fund-supermarkets.html

Not consulting with an IFA could be false economy and a very bad decision, especially if selecting the right pension arrangement seems a daunting task.

Regarding BTL: it's not something that floats my boat as you probably need a high %age of your assets tied up in bricks and mortar, i.e. too many eggs in the same basket. If property is something you cannot do without, you can easily add some property funds into your investment portfolio, alongside your other funds. No emergency repairs, no rogue tenants, no landlord insurance, no vacant periods, no agency fees to worry about.

neilsolaris

xylophone wrote: »

You can do it yourself if you wish.

Examples http://www.cavendishonline.co.uk/pensions/

http://www.aviva.co.uk/personal-pension/

http://www.standardlife.co.uk/customer/pensions-and-retirement/looking-for-a-pension/products.page

http://www.pru.co.uk/pensions_annuities/pension_guide/individual_pensions/personal_pension/


https://www.gov.uk/personal-pensions-your-rights/personal-pensions

Higher rate tax payer and pension tax relief
http://www.friendslife.co.uk/doclib/mpen15c.pdf

A landlord's life is not necessarily an easy one https://www.gov.uk/private-renting/your-rights-and-responsibilities

Some more reading..
http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/10859896/The-towns-that-offer-the-best-buy-to-let-returns.html

http://www.dailyecho.co.uk/news/11239086.Southampton_tops_buy_to_let_table/?ref=mr

Thanks xylophone, that's really useful!

neilsolaris

colsten wrote: »

A pension is an investment. Like with all investments, the annual cost is critical and buying into a packaged pension such as offered by the Pru, Scottish Widows, Aviva, Standard life etc is not necessarily the best option.

You can self-select your investments in a SIPP, in much the same way as an S&S ISA. Selecting funds with low AMC, and selecting a cost efficient platform is likely to produce better results than buying from an insurance company.

Good reading for investments:
http://monevator.com/category/investing/passive-investing-investing/

Good summary of SIPP platforms: http://www.telegraph.co.uk/finance/personalfinance/investing/sipps/10607824/DIY-pensions-The-cheapest-Sipp-fund-supermarkets.html

Not consulting with an IFA could be false economy and a very bad decision, especially if selecting the right pension arrangement seems a daunting task.

Regarding BTL: it's not something that floats my boat as you probably need a high %age of your assets tied up in bricks and mortar, i.e. too many eggs in the same basket. If property is something you cannot do without, you can easily add some property funds into your investment portfolio, alongside your other funds. No emergency repairs, no rogue tenants, no landlord insurance, no vacant periods, no agency fees to worry about.

Thanks Colsten. I'll have a read through that. It seems a bit daunting at the moment, but I haven't had time to fully investigate it. I'm four exams away from completing the ACCA (Associate of Certified Chartered Accountants), which is something I do as a kind of hobby in my spare time. I'm actually a musician. I'm hoping my ACCA knowledge might make understanding it a little easier, but I'll be back here if there's anything I don't understand!

neilsolaris

I've got another question I'm hoping someone might know the answer to.

I've been offered a job abroad in a tax free country, potentially with a three year contract (the first year is probational). If I qualify as UK non-resident whilst I'm working abroad (I need to investigate this further), would I be able to contribute up to £40,000 into a pension a year and be exempt from paying tax, or would that not apply to me?

Thanks again.

neilsolaris

I think I might have found the answer to my last question. Assuming I'm a temporary UK non-resident for tax purposes, would I be right in saying I can contribute up to £3,600 gross (£2880 actual payment from me)?

Thanks again.

neilsolaris

I've got a couple more question to ask please!

I mentioned earlier in this thread that I will be a higher rate tax payer. I made a mistake, that is not right. From January, I'll be working abroad in a tax-free country, for possibly 3 or more years. I'll have a contract, although the employers have stated that it'll be on a self-employed basis. I'm not sure that the distinction between self-employed and employee is too relevant in this instance though. My yearly income will be £54,000 (gross and net).

So my first question is, is there any limit as to what I can invest into a UK pension scheme per year? When people mention pension tax savings, does that simply refer to the offsetting of the gross pension payments against their income tax? If I were working abroad and not paying tax, how would it work in my situation? Would tax savings be irrelevant in my case?

Also, I'm debating whether to start a stakeholders pension, or a SIPP. My concern about the latter is whether I'll make the best decisions, so I'm leaning towards a stakeholders pension at the moment. Does anyone have any further advice for me regarding this please?

Are there any other considerations/advice anyone can give me regarding working abroad and investment decisions? I'm assuming I should arrange to pay NI class 3 contributions in my absence from the UK?

Thanks again.

dunstonh

Also, I'm debating whether to start a stakeholders pension, or a SIPP.

Both of those are niche options. Personal pensions cover the middle ground between them.

so I'm leaning towards a stakeholders pension at the moment. Does anyone have any further advice for me regarding this please?

Basic product. Largely obsolete now and usually more expensive than personal pensions offering the same funds or SIPPs using only their cheap options. You cant go wrong with most stakeholder pensions as they are built to be basic but they are not a low cost option for anyone other than the smallest pots.

neilsolaris

Thanks dunstonh, I hadn't appreciated the distinction between stakeholder and personal pension.

In that case, can you, or anyone else here, recommend a personal pension scheme for me please? Or at least, how do I go about assessing which ones are better? Is there a review site?

Many thanks.

kidmugsy

neilsolaris wrote: »

Thanks dunstonh, I hadn't appreciated the distinction between stakeholder and personal pension.

In that case, can you, or anyone else here, recommend a personal pension scheme for me please? Or at least, how do I go about assessing which ones are better? Is there a review site?

Many thanks.

The monevator blog regularly reviews charges.

People here like Cavendish Online, of whom I have no experience. I like Hargreaves Lansdown; their service is excellent. On the other hand they are probably a bit pricey once you've got more than, say, £40k with them. I haven't.