Should I invest my previous Isa?

Yanling

Hi, I am going to invest pension with HL and full amount of current year isa with Vanguard for next 12 years when I am 67. If I invest my previous isa as well I will only have 100k cash left in banks for my retirement. As investment is a kind of risk, i can not make up my mind. Please help, Thanks!

Linton

£100K in a bank account is also a risk - over 12 years it could lose significant value to inflation. So you need a range of different risk investments/savings and hope that the possible downsides dont all happen at the same time.


Over the long term, and 12 years is barely long term, history has shown that investments generally win over cash and more importantly over inflation. However you will of course be investing for much longer than 12 years unless you intend to spend your pension pots on an annuity when you retire.

Yanling

Linton wrote: »

£100K in a bank account is also a risk - over 12 years it could lose significant value to inflation. So you need a range of different risk investments/savings and hope that the possible downsides dont all happen at the same time.


Over the long term, and 12 years is barely long term, history has shown that investments generally win over cash and more importantly over inflation. However you will of course be investing for much longer than 12 years unless you intend to spend your pension pots on an annuity when you retire.

Hi, Thanks for the opinion. About the 100k cash, I am going to save some in a fixed term bond, and some in National savings and investments, how does that sound?

Albermarle

Your plan for cash investments is fine but you should be aware that you will pay tax on fixed term bonds with a bank/building society . Some NS& I accounts, including Premium Bonds , are tax free but not all :

Yanling

Albermarle wrote: »

Your plan for cash investments is fine but you should be aware that you will pay tax on fixed term bonds with a bank/building society . Some NS& I accounts, including Premium Bonds , are tax free but not all :

Thanks. I am going to save 50k to premium bonds, and the rest of it save for a fixed term bond , so they should be tax free.
I am a bit worry about the risk of s & s Isa investment.

DrSyn

Yanling wrote: »

Hi, I am going to invest pension with HL and full amount of current year isa with Vanguard for next 12 years when I am 67. If I invest my previous isa as well I will only have 100k cash left in banks for my retirement. As investment is a kind of risk, i can not make up my mind. Please help, Thanks!

Everything to do with money involves risk. It is just the type and size of the risk that varies.

You should never take on more risk than you are comfortable with. It should not cause you worry or sleepless nights.

Before Margret Thatcher, came to power, inflation reached something like 25% if I remember correctly. Those with only savings accounts really lost money. Some type of investment would have helped to alleviate that loss. Anything could happen in the future.

Have a look at the investment approach suggested below:

http://www.kroijer.com/

You have not stated what Vanguard investment you have.

The Vanguard Life Strategy Fund, basically follows the above approach. All you would have to do, would be to choose the Share/bond ratio you are comfortable with and pay them the money.

https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds

Would it not be cheaper investing directly with Vanguard than via HL?

https://www.vanguardinvestor.co.uk/

The following may be of interest to you.

https://www.ifa.com/indexfundsthemovie/