Best way to invest 5k

1813

Hello,
I have 5k to invest .. my question is, what would be the best way to invest this ? I do not want to touch this money until ideally I am at retirement age. Many thanks for any help. 

Thrugelmir

Are you currently contributing to a pension scheme? 

1813

I am with the NHS scheme. sent you a pm too

coachman12

Have you thought of a shot at Premium Bonds, given that you can't get any real return in interest at present ? And keep an eye out for( if) interest rates in savings accounts make it worth your while tucking it away in such an account. Good luck and let's hope your £5000 has increased in value when you come to retirement.

Albermarle

1813 said:

Hello,
I have 5k to invest .. my question is, what would be the best way to invest this ? I do not want to touch this money until ideally I am at retirement age. Many thanks for any help. 

It depends a lot on your age and how far you are from retirement . Also it depends if you want to invest it in risk based investments with potential for higher return or save it in safe savings account with a low interest rate ?

1813

Thrugelmir said:

Are you currently contributing to a pension scheme? 

My dad suggested this but what real shot do I have with them at making anything somewhat decent by the time I get to retirement?

Polly05

Are u under 40? What about a retirement isa? Put £4k in it and u get £1k bonus. Plus interest. And u could do that every year until ur a certain age. You're not allowed to take it out til ur 60 tho. 

1813

Albermarle said:

1813 said:

Hello,
I have 5k to invest .. my question is, what would be the best way to invest this ? I do not want to touch this money until ideally I am at retirement age. Many thanks for any help. 

It depends a lot on your age and how far you are from retirement . Also it depends if you want to invest it in risk based investments with potential for higher return or save it in safe savings account with a low interest rate ?

Definitely no to low interest rate products. Bank accounts, for example, are rather pointless, at present. I would rathrr try my hand at risk based investments as I do understand there is potential for loss as well as gain but if I am being honest, Indon't want to really playnit 100% safe. I have been thinking a lot on my retirement and I have no real clue if I am on track or not, which is why, with a 30 year window to play with, I need to try and come up with a plan that best suits my needs. I am 38 btw and work in the NHS. I have a small db pension and 18 years state contribution. I was planning to retire at 68, take my odiham pension at 60 and invest the monthly sum for about 8 years to try and build a semi decent pot. I am hoping that my db and state pension will be somewhat decent at 68. Also been toying with taking my pension earlynat 50mfor long term investing (about 20 years - 8k lump sum and about £100! a month infusions). I have seen some scary numbrrs at 68 but I am not sure what my number should be to aim for. It may be I need to relocate as living down south is expensive. I do not know if investing £5k in a portfolio is too small an amount of cash so basically, what is the best method for the most positive result for a 5k investment over 30 yeas? Sorry to ramble on but that is basically my situation.

grumiofoundation

Polly05 said:

Are u under 40? What about a retirement lifetime isa? Put £4k in it and u get £1k bonus. Plus interest. If saving for retirement a stocks and shares lifetime ISA is more suitable - in this case wouldn't pay interest And u could do that every year until ur a certain age. 50 You're not allowed to take it out til ur 60 tho. Yes you are - you just have to pay a penalty.

Lifetime ISA is accessible (albeit with penalty so you will get back less than you paid in).  

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

Alexland

Polly05 said:

Are u under 40? What about a retirement isa? Put £4k in it and u get £1k bonus. Plus interest. And u could do that every year until ur a certain age. You're not allowed to take it out til ur 60 tho. 

S&S Lifetime ISA - can open under 40 and contribute until age 50 to withdraw from 60. Good for basic rate earnings (in addition to taking full advantage of workplace pension options) and doesn't have to be used for retirement - most of ours will probably be gifted to kids. You wouldn't want to earn below inflation interest for 20 years you would want investment returns.
In terms of the OP's question so much depends on circumstances which we don't know.

1813

Polly05 said:

Are u under 40? What about a retirement isa? Put £4k in it and u get £1k bonus. Plus interest. And u could do that every year until ur a certain age. You're not allowed to take it out til ur 60 tho. 

Thanks ill take a look at that but 60 would be just fine as I can take my db pension at 60 too. I am 38. So far I have a small db pension of £3646 a year, which, hopefully, has 30 years to grow, as well as the state (I have 18 years contributions). Think I may need to write to my db company and ask them what the pension may be worth come 68. I am hoping that the state pension may be worth about 9,000, but thats if things remain the same, which is probably unlikely.