Endowment maturity

muzer

I have an endowment maturing soon which will pay out just over 23k. I have an outstanding mortgage of 10k and no other debts. Im looking to possibly lock the money away for about five years when my son goes to uni. Is an s&s isa the simple and logical choice?
Thanks in advance

xylophone

Five years seems a rather short period for an S&S ISA.

You might try to earn as much interest as possible in the time period.

Is the money for your son? Does he have a CTF/JISA?

Or you might consider using interest paying current accounts/regular savers - do you have a spouse?

dunstonh

Is an s&s isa the simple and logical choice?

A S&S ISA is just a tax wrapper. Its a bit like asking someone to get you a drink and asking if a cup is a good choice. Nothing about what the drink is going to be.

You can put around 30,000 different things in an S&S ISA. Some may be suitable. Some will be truly awful.

5 years is the absolute minimum you should consider for investing. its half an economic cycle and typically one half is usually better/worse than the other. You just dont know what half you are going to get. (broad generalisation and simplified).

Are you clearing the mortgage with it?

muzer

xylophone wrote: »

Five years seems a rather short period for an S&S ISA.

You might try to earn as much interest as possible in the time period.

Is the money for your son? Does he have a CTF/JISA?

Or you might consider using interest paying current accounts/regular savers - do you have a spouse?

I dont have a spouse and my kids both have JISAs. The five years is just that thats when my oldest would start uni but it may well be that the money could remain invested beyond that.

muzer

dunstonh wrote: »

A S&S ISA is just a tax wrapper. Its a bit like asking someone to get you a drink and asking if a cup is a good choice. Nothing about what the drink is going to be.

You can put around 30,000 different things in an S&S ISA. Some may be suitable. Some will be truly awful.

5 years is the absolute minimum you should consider for investing. its half an economic cycle and typically one half is usually better/worse than the other. You just dont know what half you are going to get. (broad generalisation and simplified).

Are you clearing the mortgage with it?

My immediate thought is to clear the mortgage but i guess an alternative would be to continue overpaying the mortgage for the next 18 months and investa larger chunk of the endowment payout.
The investment period could go way beyond the five years. Im hoping that id be able to get both biys through uni without dipping into savings.

xylophone

Perhaps you could clear the mortgage, gift the boys their full JISA allowance and use the balance to start your own S&S ISA - you could then make regular monthly contributions of the money that would have been your mortgage payments?

Below might suit?

https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa

https://monevator.com/using-vanguard-lifestrategy-funds-life/