Best use of £30k worth of shares?

desertpokey

Hi,
I've saved up some shares from vested RSUs, and a recent vest has taken the value to about £30k.

I don't have any other investments and not really any savings (couple of thousand in a normal savings account not making any interest). I've about £120k mortgage on my house and £3k on credit cards (0%).

Common sense says it's high risk to keep the money all in shares in one company so I'll probably sell, but not sure what to do with the money. Should I just pay down the mortgage or keep some somewhere else?

xylophone

(couple of thousand in a normal savings account not making any interest).

None at all?

https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

With regard to the shares, keep enough from the sale to boost your emergency fund and then consider a stocks and shares ISA more broadly invested?

Example

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

https://monevator.com/low-cost-index-trackers/

https://moneytothemasses.com/saving-for-your-future/investing/the-best-stocks-and-shares-investment-isa-the-cheapest-fund-platform

Exiled_Tyke

1. Yes definitely get the money all out of the same basket. 
2. As Xylophone says, If you haven't got an emergency fund in an easy to access account get this sorted first. I think the suggestion used to be to have about 6 months' of cash needs saved but I'd go higher than that right now. 
3. What to do next depends on your outlook and needs. Paying down the mortgage increases your  security, re-investing is likely to offer better returns in the long run but higher risk.  The most tax efficient way of saving is through a pension but that has it's own drawbacks.   If you have money at this stage and want to invest then you either need to take advice or do your own research.  

Another consideration is Wealthify which currently has a £40 cashback offer and make the investment choices for you depending on the risk preferences you choose. It's not a bad place to start if you are unsure. (There are details and a link on the MSE main pages somewhere). 

DireEmblem

If you are considering wealthily, look at nutmeg through Quidco.  Similar deal, but you get £60 by opening an account with £500 and investing £100 a month.  So in your first year £60 for £1700, or 3% of your investment really.  I would then switch to a cheaper provider - Vanguard perhaps with their 0.15% platform fee plus fund costs.

All in all, agree with above.  Top up your emergency fund, and then depending on your future needs, that will determine the type of savings account.  If you're looking for long term growth, think at least 5-10 years, then you're thinking stocks and shares.  Any longer - you could consider using it to subsidise your salary, and top up your pension contributions.

steampowered

As you say, it is extremely high risk to have so much money tied up in a single share, so it would be sensible to diversify.

The best option is likely to open a stocks & shares ISA, and invest into a globally diversified low cost investment fund. Have a look at the Vanguard funds.

The average return generated by the stock markets - regardless of whether you are looking at the last decade or the last 50 years - is 7-8% per year. That's clearly higher than the interest you'd be saving by overpaying the mortgage.

The other option to consider would be to boost your pension. This gets you the return generated by stocks & shares, plus the added tax relief. Especially worth doing if you are a higher rate tax payer.

Exiled_Tyke

To be clear: 

I made the suggestion of Wealthify because they decide the portfolio of investments taking away all worries there. They investor merely chooses a risk profile.  

I think it's also important to be clear about stock market returns - yes average returns of 7-8% are about right but an investor needs to  accept that there is volatility and no guarantees: which is why a long term view is needed.   So great for a pension, not great (as is mentioned regularly here) if you are likely to need money out in a hurry at any point.