Savings and investments advice please

tinyfeetbiggob

I'm in position where my husband and I have the following assets thanks to family circumstance and fortunate opportunities -

we own a house (no mortgage) and have annual salaries of combined 65K rental income of c£10k a year. We have no substantial living costs other then food and travel (accommodation is covered by our work). we currently hold combined total of around 35k in premium bonds with a few K in cash savings with no debts other than my student loans for which repayment is deducted from my salary as required.

I'd really love some advice as to how would be best to develop what we have as to be honest we are pretty clueless I've been looking at Isas etc but am struggling to make sense of which would be best!

thanks

xylophone

You are both happy with your pension provision?

Your premium bonds represent your emergency funds?

Consider a stocks and shares ISA each?

https://monevator.com/category/investing/passive-investing-investing/

https://moneytothemasses.com/saving-for-your-future/investing/compare-cheapest-best-investment-isa-platforms

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

https://pensioncraft.com/vanguard-vs-iweb-which-is-the-cheapest-isa-platform/

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

tacpot12

Do you have Income Protection Insurance? If not, I would look to arrange this insurance asap. It is insurance that will pay you a monthly sum if you cannot work due to injury or ill health. One of the things that will make it more affordable is if you can defer the point at which it starts paying for 52 weeks. During the first 52 weeks, you will need to rely on Statutory Sick Pay and savings.

Once this is in place, any spare cash can be saved. What you save into depends on how long it is until you think you might want to spend the money:

1-3 years: Instant Access savings accounts, cash ISAs, 90 day notice accounts.
2-7 years: Fixed Rate Bonds, typically for 2-3 year periods and then reinvest if necessary
7 years+: Stocks & Shares ISA
30+ years: Personal Pension/SIPPs

Bravepants

I'm not too sure if income protection insurance is suitable for everyone. Not everyone will just get Statutory Sick Pay...I would get 6 months full pay, then 6 months half pay if ill. If I lose my job I would get a number of months salary per year of employment, not number of weeks.



I used to pay Income Protection Insurance, to the tune of £90 a month until I realised the above. It could be worse though, a friend of mine pays private health care insurance to the tune of £800 a month for him and his family!



Sometimes these insurances are just a tax on fear.