Saving and Investment Advice

combatrock

Hi,

looking for some advice on how to best save or invest £20,000. currently i have 2 thousand in the 5% TSB Classic + and the rest in a 123 current account. I have a higher than average salary and save a lot of it each month, so as my savings grow i am wondering what to do with it to get the best return.

I have some stocks and shares already, in addition to these savings and a few other investments. I am looking for some advice from experienced people on how best to invest the first 20k and then the next 20k thereafter. I do not currently have a mortgage but plan to get one in the next few years .

Thanks

Superscrooge

Couple of quick questions;

Are you making use of your annual ISA allowance?

Have you started a pension?

combatrock

I haven't put anything in my isa yet as it's such a low interest rate even with the tax free interest. I know it's useful o ensure the money remains tax free but with such a high yearly allowance now i could get all my money protected in a year by using mine and my partners allowance.

My new job has a pension scheme which the employer contributes to too. i'm 23 years old if that helps

Eco_Miser

You should be using an ISA to invest in stocks and shares (preferably in the form of funds), not for cash savings.

For cash savings, use multiple current accounts and regular saver accounts paying from 3% to 6% AER. See the first post https://forums.moneysavingexpert.com/discussion/5374614 for a list. Meeting the various requirements is easy for people with plenty of money.

colsten

Eco_Miser wrote: »

You should be using an ISA to invest in stocks and shares (preferably in the form of funds), not for cash savings.

I agree with this as a general statement. But if the OP needs the money for a deposit withing the next couple of years, investments should be off limits for now, and all the money should be kept in cash.

It's easy enough to have at least £50K in good accounts, as per the link you gave.

colsten

Superscrooge wrote: »

Are you making use of your annual ISA allowance?

the only ISA the OP should consider is the Halifax HTB ISA.

Superscrooge wrote: »

Have you started a pension?

that's a good point. Contributing to a pension, alongside the employer contribution, is a must, really. But money that's needed in the next couple of years can't go into a pension as you need to be at least 55 before you can touch it again.

Eco_Miser

colsten wrote: »

I agree with this as a general statement. But if the OP needs the money for a deposit withing the next couple of years, investments should be off limits for now, and all the money should be kept in cash.

Quite right. I missed the bottom line of the first post.

Al.

Specifying courses of action, bottom up, are possibly counterproductive unless the individual has told you, top down, what his/her objectives, priorities and likely future circumstances are. This should include (but not be confined to) current and future (likely) income, wealth, tax, dependents (up as well as down, generationally) health, relationship and employment (etc) situations.