Future plans now rates are dropping?

chelseablue

Since Santander announced their rate cut I've been having a think of what to do going forward.

Currently have £10,500 in my 123 account (did have 20k in there but had to pay 10 grand stamp duty )


My original plan was to build it back up to £20,000 then start paying into my S&S ISA.


Is that the best course of action?


I have a mortgage (current balance £228,000), interest rate is 1.49%

chockydavid1983

My plan, especially with mortgage rates low is:
Keep about 6 months in cash as an emergency fund
Invest the rest in S&S ISA/ pension

Whether investing is best for you will depend on your timeframes.

bigfreddiel

Well, you should open a equity ISA a sap.
Since BREXIT Mine is up 10%.
It's all very easy, it's only fear that puts people off, so JDI!

How? Just create a nice simple four or five asset ETF based portfolio in equities bonds and property, global ones, and that's it. Should take
E all of ten minutes.

Rebalance once a year.

Job done fj

Glen_Clark

bigfreddiel wrote: »

Well, you should open a equity ISA a sap.
Since BREXIT Mine is up 10%.

Is that a reason to buy now?
Banks are looking at ways to store £billions in banknotes rather than buy in at these prices. Are they all wrong?
Incidentally don't secure retail savings accounts pay better rates than secure bonds?

AnotherJoe

bigfreddiel wrote: »

Well, you should open a equity ISA a sap.
Since BREXIT Mine is up 10%.
It's all very easy, it's only fear that puts people off, so JDI!

How? Just create a nice simple four or five asset ETF based portfolio in equities bonds and property, global ones, and that's it. Should take
E all of ten minutes.

Rebalance once a year.

Job done fj

"somethinsg just gone up in price, buy it now" is not necessarily the best investment strategy

But it is most likely the worst.

Whether a S&S is best for the OP depends on a whole host of factors, including the overall aim and use of this sum of money in the future, which isnt mentioned at all.