Mortgage Free - £1k Per Month to Invest

Murielson

As per title, now find ourselves mortgage free and £1k per month to invest going forward.

Money in bank for emergencies so can afford to invest for a while if return proves worthwhile. Mid 50s in age so a few years work left before we call it a day and pension pot not doing too bad with extra payments already being made.

Thoughts appreciated

Bravepants

How long is "a while"? How long is "a few years"? 5, 10, 15, 20?


What you do with your £1k a month depends on your timeframe. If you need all the money in 5 years then don't invest, save it.

jimjames

Pension or S&S ISA might be worth doing. Pension you could get tax relief on contributions depending how much you are already paying. S&S ISA no tax relief but it's tax free once inside.

atush

Pension, for the tax relief plus will be able to access by age 55. Which you seem to be near to anyway.

kidmugsy

I'd be tempted to open four of the Regular Savers that pay 5% AER and in a year's time consider whether to put the maturity money into a personal pension of some sort or an ISA. Or whatever personal finance wheeze is available at the time. (You might even wait for the Budget speech later this month in case it alters things much.)

Or do that with half and something else with the other half. For example, if your pension money is overwhelmingly in equities would you like to diversify a little by buying some gold sovereigns every few months?

Murielson

atush wrote: »

Pension, for the tax relief plus will be able to access by age 55. Which you seem to be near to anyway.

56 already and putting extra in pension already. Thinking of more accessible but thanks for suggestion, appreciated.

Murielson

Bravepants wrote: »

How long is "a while"? How long is "a few years"? 5, 10, 15, 20?


What you do with your £1k a month depends on your timeframe. If you need all the money in 5 years then don't invest, save it.

Mixture of investment and savings is the dilemma but thinking access at the moment. Willing to take some risk if I could identify suitable unit trusts or similar to put under an ISA wrapper. 5 to 10 years or beyond would be my timeframe

Murielson

kidmugsy wrote: »

I'd be tempted to open four of the Regular Savers that pay 5% AER and in a year's time consider whether to put the maturity money into a personal pension of some sort or an ISA. Or whatever personal finance wheeze is available at the time. (You might even wait for the Budget speech later this month in case it alters things much.)

Or do that with half and something else with the other half. For example, if your pension money is overwhelmingly in equities would you like to diversify a little by buying some gold sovereigns every few months?

This was my initial thought and been looking at MSE savings recommendations which deal with this option - First Direct etc.

kidmugsy

Murielson wrote: »

56 already and putting extra in pension already. Thinking of more accessible but thanks for suggestion, appreciated.

You've passed 55; unless it would force you up into a higher tax band the pension money would be highly accessible, at least if you used - for example - a SIPP.