What to do with savings

art-vandelay

I've just turned 32. I've always rented, don't have a mortgage. I have approx 70-80k in savings, most of which is sitting in a Cash-ISA. The Cash-ISA was a fixed rate, but has expired over a year ago and will be the default variable rate now.
I have been working full time pretty much since finishing uni. I make a pretty good salary these days, will be starting a new job in March, estimated take-home pay will be around 3k.
I've had pensions in each job previously.
My goal is to eventually quit the 9-5 life (I don't know how I'm going to accomplish that yet). I'd like to have multiple streams of income, I don't mind a little bit of risk.
My girlfriend and I have talked about moving (just talk, no plans) so I'm not sure buying a flat is right for me yet, maybe I'm wrong? I live in a popular city, I don't think I'd have much trouble selling it.
Just looking for some advice. Should I invest? Should I keep it in an ISA? Are there any decent books/resources I can use to educate myself? I have heard Tim Hales book is good but looks quite old now?
Thanks

xylophone

If you are looking to buy in the future, had you each considered a LISA?

https://www.moneysavingexpert.com/savings/lifetime-isas/

Would there be any advantage to you in consolidating your pensions/transferring to your new employer's scheme (if possible)?

https://www.amazon.co.uk/DIY-Simple-Investing-Guide-Effective-ebook/dp/B00YPF6RCQ - various books by John Edwards listed here.

https://monevator.com/index-investing/

Are you taking advantage of the best current account(s) for your purposes?

art-vandelay

Thanks.

Yes, I've changed my current account last week.

I need to look into my pensions. I have just left previous pensions alone after switching jobs. I would like to consolidate purely for simplicity. My new pension will be slightly worse (less contribution) than previous.

I will look into a LISA, thanks. But like I say, still unsure if I want to buy.

Thanks for links to the books and resources, will take a look

Albermarle

If you are a higher rate taxpayer then the pensions route is clearly the best financially . For every £100 you contribute the taxman gives you an extra £50 tax relief. The negative is that the money is tied up until you are older .

Bravepants

Start with bullet point number 1 and then choose other bullets as appropriate, or consider them in order:

• Pay off any non-mortgage debt first, then

• Start with 3, 6 or 12 months outgoings (maybe even swap the word "outgoings" for "salary") as an emergency fund in some sort of (or several) instant access account. Find out about current accounts, regular savers etc. and the interest rates they provide.

• Keep an eye on your work pension and how much extra your company contributes for any additional contribution you make, pensions (work, private or SIPPS) are particularly good if you are a higher rate tax payer

• Buy or borrow a copy of Tim Hale's "Smarter Investing", and once you have point 2 in place:

• Check out www.monevator.com, particularly the passive investing section, and,

• Read up about the tax advantages of Stocks and Shares ISAs and SIPPS, and

• If considering retiring early check out www.mrmoneymustache.com and theescapeartist.me for inspiration

• Make sure you have any cash needed for expenditure in the short term, such as house purchase deposit, replacement car, wedding (don't overspend on this) etc., then stash as much as you can, monthly (taking advantage of "pound cost averaging"), in a global index fund (read up online about these). As you get older switch to funds that contain a mix of equities and bonds (read up online about these, but Tim Hale talks about it too)

• Whatever fund(s) you plan to invest in make sure you don't pay too much in annual fees; a good passive index fund should be around 0.5% or so, including platform charge, active funds (those managed by humans) are around 1% to 1.5% but try to keep close to 1%. In no way pay 2% in annual fees for any of your investments!

• Learn about the concept of a "phased" retirement, using certain pots of money to carry you through periods before work pensions become payable at Normal Retirement Age, and/or think about actuarial reduction if appropriate.

• Learn to use Microsoft Excel (other spreadsheet software is available) and write yourself a retirement planning spreadsheet!