What would you do with £50k savings?

scotsaver97

Hello everyone,

I’m looking for some decent advice on how best to use £50k of savings, I’m open to all suggestions and all are appreciated!

So i’m 22 years old from a working class background, everything i’ve saved is by my own hard work, i’ve managed to save this large amount by working in the merchant navy since I was 17, so I don’t pay income tax on my earnings and when you are 6 months on a ship it’s surprisingly easy to save.

Anyway I’m already saving into a stocks and shares ISA as well as saving into a Help to buy ISA as i’m still living at home. I am also saving into a private pension.

Any advice and guidance is welcomed.
Thank you

Alistair31

If, as you say, you have pension and non-pension investment sorted already, it would be logical to make provision for a future home, unless that is, you intend to live on a ship/with parents forever.

atush

Congrats on the savings, the isa and the pension.

What is your intention for the money? Buying property? Retirement? Future life?

If you wont be using it in the next 5 years, investing re S&Sisas and unwrapped could be your best bet, moving some each year into ISA.

But if you might buy i'd boost cash savings. Even if not, you need soem cash savings for emergencies and upcoming spending. So make sure you are getting at least some interest, and look into reg savers too.

kinger101

Regarding the private pension, do you get any employer match from this? I'm asking, as otherwise, you might essentially by diverting tax-free income into a pot of money that would be taxed on withdrawal.

You'd do far better to hold the money in a S&S ISA for now, then divert it into a pension once you start paying tax and NI (assuming salary sacrifice is available to you in your first civvy street job).


If your planning to buy a house in the near future, I'd keep at least 20% deposit plus £10K in fixed interest accounts for now.

scotsaver97

atush wrote: »

Congrats on the savings, the isa and the pension.

What is your intention for the money? Buying property? Retirement? Future life?

If you wont be using it in the next 5 years, investing re S&Sisas and unwrapped could be your best bet, moving some each year into ISA.

But if you might buy i'd boost cash savings. Even if not, you need soem cash savings for emergencies and upcoming spending. So make sure you are getting at least some interest, and look into reg savers too.

Thank you, I would like to buy a house within the next 2 years so definitely some of it will be used for that, I already have a first direct regular saver which is great! I’ll consider investing more into S&Sisas as i’m only currently investing £100 a month into a Vanguard 100% life strategy fund.

xylophone

LISA for house purchase?

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

scotsaver97

kinger101 wrote: »

Regarding the private pension, do you get any employer match from this? I'm asking, as otherwise, you might essentially by diverting tax-free income into a pot of money that would be taxed on withdrawal.

You'd do far better to hold the money in a S&S ISA for now, then divert it into a pension once you start paying tax and NI (assuming salary sacrifice is available to you in your first civvy street job).


If your planning to buy a house in the near future, I'd keep at least 20% deposit plus £10K in fixed interest accounts for now.

Thank you. No I don’t receive any contributions from my employer which is the downside to working on foreign vessels I guess. I’m making arrangements to pay voluntary NI contributions because as I understand if I will not have enough years contributed then I will not receive a state pension.