Advice Required....plus a bit of background.

LotsToDo

Morning All

I was a married stay at home parent and became a single stay at home parent!

I started a business, became qualified in my field and am now an employer.

Paid off all debt plus mortgage.

Started my first pension and am heavily funding this each month.

I started saving to buy a larger family home.....cash. No more debt or mortgages etc.

As a result I currently have £60,000 in the bank and this is growing (most of this will go towards buying a bigger house but am thinking of savings moving forward).

I am single and will retire in 10 to 15 years maximum. 10 ideally.

This money is really just ‘parked’ in the bank.

Can you help with thoughts on the following please:

1. Investing for a beginner to make the most of compound interest or something similar.

2. Should I buy property to rent out.....would only do this if I was buying cash.

I am terrified of doing anything with this cash....but equally am aware it’s doing nothing at the moment.

Thanks.

John_Smith_2019

LotsToDo wrote: »

Morning All

I was a married stay at home parent and became a single stay at home parent!

I started a business, became qualified in my field and am now an employer.

Paid off all debt plus mortgage.

Started my first pension and am heavily funding this each month.

I started saving to buy a larger family home.....cash. No more debt or mortgages etc.

As a result I currently have £60,000 in the bank and this is growing (most of this will go towards buying a bigger house but am thinking of savings moving forward).

I am single and will retire in 10 to 15 years maximum. 10 ideally.

This money is really just ‘parked’ in the bank.

Can you help with thoughts on the following please:

1. Investing for a beginner to make the most of compound interest or something similar.

2. Should I buy property to rent out.....would only do this if I was buying cash.

I am terrified of doing anything with this cash....but equally am aware it’s doing nothing at the moment.

Thanks.

From the information you've given, I would NOT get involved in BTL.
That is is only for major players who really know what they're doing.

Cheap multi-asset fund is probably your best starting point. VLS etc.

LHW99

Worth getting some into an ISA now - even a cash ISA. Hopefully they will remain untaxed whoever wins the next election, and if rules are left unchanged it could always be transferred into an SS ISA later.

Eco_Miser

Well done on getting this far.

I hope that £60k is earning at least 1.5% while sitting in the bank.

Don't touch BTL - it's a business, not an investment.

As mentioned a cheap multi-asset global fund, on a cheap platform, with £20k in a S&S ISA, rising to £40 next April 6th (or shortly after).

BUT if you intend buying that bigger house in the next five years, keep the money in cash - in the best paying account you can find, possibly in fixed term accounts for higher interest.

Someone will probably be along shortly with a list of the places to find the detailed information, or browse this forum for the answers to similar questions.

bostonerimus

Why do you need a bigger home?
I would invest in both the pension and and ISA using low cost tracker and multi-asset funds. Don't do BTL without first using all your tax advantaged saving and investing opportunities or without rigorously understanding the costs and potential pitfalls.

eskbanker

LotsToDo wrote: »

I currently have £60,000 in the bank and this is growing (most of this will go towards buying a bigger house but am thinking of savings moving forward).

How much of it will go towards a bigger house and when is this likely to be? By how much is your pot growing every month/year?

It's generally recommended to keep an emergency fund in readily-accessible cash form, of, say, six months worth of expenditure, but once you have that, plus funding for anything known (such as house purchase) and adequate pension provision, then investing might be an option....

Is the projected income from the pension sufficient for your anticipated requirements at the point you plan to retire?

LotsToDo

What is VLS. Am a complete novice.

LotsToDo

We have outgrown the one we are in.

LotsToDo

The pot will grow by £60 K ish per year. Putting £3,300 per month into a pension in addition to the pot savings.

I have six month emergency fund....thank you Dave Ramsey.

I am unsure how to check projected income on pension....can you advise please?

John_Smith_2019

LotsToDo wrote: »

The pot will grow by £60 K ish per year. Putting £3,300 per month into a pension in addition to the pot savings.

I have six month emergency fund....thank you Dave Ramsey.

I am unsure how to check projected income on pension....can you advise please?

Dave Ramsey:
''Mutual funds are the answer''
''Sorry, what was the question..?''

LotsToDo

Eco_Miser wrote: »

Well done on getting this far.

I hope that £60k is earning at least 1.5% while sitting in the bank.

Don't touch BTL - it's a business, not an investment.

As mentioned a cheap multi-asset global fund, on a cheap platform, with £20k in a S&S ISA, rising to £40 next April 6th (or shortly after).

BUT if you intend buying that bigger house in the next five years, keep the money in cash - in the best paying account you can find, possibly in fixed term accounts for higher interest.

Someone will probably be along shortly with a list of the places to find the detailed information, or browse this forum for the answers to similar questions.

House buy will be as soon as I find the right one.....no rush and will make it as right as possible.

The stocks and shares frighten me slightly putting £20 k in as they go so far up and down.

Is your thoughts s and s and then just a normal bank account.