20k saved, what to do now?!

lozzaberry

I have 20k saved and I am wondering what is the best thing to do with it?! It is sat in an ISA but I want to know if there is something more productive I can be doing with it?

Live with partner who has bought a house out right, so do not have rent or mortgage.

I have thought about getting onto the property market to buy to let myself but do not earn a lot on my own to get a decent mortgage and therefore I do not feel that the property I could buy would be worth it.

Any ideas would be greatly received!

thanks!

p00hsticks

What are you saving FOR ?

How soon might you need the money ?

Do you have a pension ?

What's your attitude to risk ?

lozzaberry

Not saving for anything in particular.

Do not need to touch the money.

I have a pension

I'm not sure about the risk part!

Kendall80

What rate are you getting on it at present?


You could split it (full or partial amount) amongst the various current accounts as mentioned in this thread;


https://forums.moneysavingexpert.com/discussion/5110761

Cisco001

Put it into ISA fund?
Put it to Peer to Peer lending?

Archi_Bald

lozzaberry wrote: »

I have a pension

Can you add the £20K to it? Or start a SIPP with the £20K?

Ryan_Futuristics

If you don't want to buy property yourself, you can still invest in the property market via a property investment trust ... This gives you a share in a big portfolio of properties that are all managed and let out by someone else ... One cheap property fund is the Legal & General UK Property PAIF ... This pays an income of around 4.5% (roughly what you'd expect from rent these days) while your capital investment increases with the property market

For me this is a better way to invest in property unless you've got enough cash to buy outright (and even then it may still be preferable) ... However ... There is some risk we may be in a bit of a property bubble - so for me, property isn't a particularly appealing investment at the moment

If you plan to save for 5 years or more, the stock market is almost certainly your best bet ... With £20k, you could invest in a few well managed, income paying funds - after fees, you could expect to get 3% or so of your investment back annually into your account, with the potential for longer term capital growth too ... Traditionally, this far outstrips other investments - and I think everyone should be invested in the stock market on principle (as it means your wealth is attached to the assets and capital gains that make the world wealthier ... No one ever got rich investing in savings accounts) ... My 'no brainer' investment choice is Woodford Equity Income ... And use your £15k ISA allowance by holding your investment in a stocks and shares ISA