What should I invest in or do?

Jayjrt

Hi everyone,

So bit of a long story stick with me please.

I’m 36 currently living at home with my parents, just had to return home due to personal reasons, I have no children and no real commitments (I own my car etc) and have no debt. I have around 12k savings, some in a cash isa some in a regular savings account and most in my current account, all with Santander and as I’ve had them years have very little interest, I have there 123 account both current and savings and there credit card which I do not use at all. I only earn around 20k a year atm.

I have recently had some bad news regarding my health, and it’s unclear how much longer I will be able to work full time for. So this has obviously given me a kick up the back side, because I will not and can not survive off benifits alone... I’m planning on trying to stay employed for at least the next five years all being well even longer.... but I have to plan for the what if I can’t... now... sadly....

So I’m wondering what do I do!? Do I save more and try and buy to let to try and give me an income if the worst does happen with my health?! Or is btl just not worth it?? And I’m not sure I qualify both with my earnings... and the fact I no longer own a property as well...... but I just thought as I have no real commitments or any real outgoings, maybe this would be the ideal time to buy some terraced properties..nothing fancy as I can’t afford it haha.. then I know I will have something for the future.....

Or am I better to try and save more and Invest in stocks and shares... or even just in ISAs? I’m really not sure what is best to try to do... to cover me (the best I can) for my impending doom lol

Any advice greatly received, I really am a bit clueless so apologies in advice, but that’s why I’m asking for advice

Albermarle

Do I save more and try and buy to let to try and give me an income if the worst does happen with my health?! Or is btl just not worth it??

BTL is not as attractive as it used to be due to removal of some tax reliefs .
Also to make BTL as profitable as possible , you need to be hands on with it . ie dealing with tenants , doing as much of the DIY necessary yourself etc .
Investing in stocks and shares etc can be done with the click of a mouse from home.
So following your comments about your poor health outlook , the latter would seem a more obvious route forward , although it is usually better to keep some reasonable easy cash access cash savings as well , as investing in stocks and shares is best for the long term ( >10 years ideally )
Can you clarify what pension arrangement you have with your current employer ( and any previous ones )?

pip895

How about saving up for the house for yourself and then renting out a room/rooms under the rent a room allowance to help pay the mortgage. Just thinking you might want to get your independence back again at some point.

DairyQueen

Have you discussed your plans with your parents? They must be close to retirement or retired. Considering that any plans you make may have a significant impact on them this may be a courtesy or a necessity depending on their circumstances and views.

Eco_Miser

Jayjrt wrote: »

I have recently had some bad news regarding my health,

Commiserations. May you still manage a long and enjoyable life.

Jayjrt wrote: »

I will not and can not survive off benefits alone...

So what are you going to do when you can't work and your money runs out? Be realistic, plenty of people do more than survive on disability benefits.

Jayjrt wrote: »

I’m planning on trying to stay employed for at least the next five years all being well even longer.... but I have to plan for the what if I can’t... now... sadly....

So I’m wondering what do I do!? Do I save more and try and buy to let to try and give me an income

BTL is a terrible idea.

Jayjrt wrote: »

Or am I better to try and save more and Invest in stocks and shares... or even just in ISAs?

You can't invest 'just in ISAs.' An ISA is a tax wrapper, you invest in the Stocks & Shares (or preferably collective funds) inside the ISA wrapper, or you save in bank accounts within a Cash ISA wrapper.

Jayjrt wrote: »

I’m really not sure what is best to try to do... to cover me (the best I can) for my impending doom lol

Any advice greatly received, I really am a bit clueless so apologies in advice, but that’s why I’m asking for advice

Yes, save as much as you can and invest within an S&S ISA. Go for a diverse, inexpensive multi-asset fund. There are many threads on here about investing for newbies. See also the Monevator blog.

Be aware that having too much stashed away may make you ineligible for benefits, and worse off than if you had spent your income. I have no idea of current rules and limits. You should make yourself familiar with them.

Presumably it's too late to insure against the effects of your condition, but you should make sure of that.