Best way to invest 5k

grumiofoundation

1813 said:

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?

Assuming you interest in the same thing a pension has a higher chance of 'decent' returns than stock and shares ISA due to tax relief. 

Drawback of pension is the lack of accessibility, so if you may need this money before retirement stocks and shares ISA may be better way for you to invest. 
https://www.moneysavingexpert.com/savings/stocks-shares-isas/
https://monevator.com/investing-for-beginners-why-do-we-invest/

Depending on your tax band/age as suggested above by Polly05 lifetime ISA is an alternative.

1813

Alexland said:

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.

What additional info fo you need? Am happy to provide

1813

Alexland said:

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.

Thanks I have looked at lifetime isa and it looks a very good option to me. 

Alexland

1813 said:

What additional info fo you need? Am happy to provide

Well at the time of drafting we didn't know your age but now do. Do you pay any tax at higher rate, what age do you want to spend this money, does it need to be accessible, are you comfortable with investment risk and if so how much volatility can you handle, etc?

1813

grumiofoundation said:

1813 said:

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?

Assuming you interest in the same thing a pension has a higher chance of 'decent' returns than stock and shares ISA due to tax relief. 

Drawback of pension is the lack of accessibility, so if you may need this money before retirement stocks and shares ISA may be better way for you to invest. 
https://www.moneysavingexpert.com/savings/stocks-shares-isas/
https://monevator.com/investing-for-beginners-why-do-we-invest/

Depending on your tax band/age as suggested above by Polly05 lifetime ISA is an alternative.

I am confident my current retirement portfolio, whilst somewhat decent, is not going to be enough. I do have certain figures in mind but I need to try and ensure my portfolio matches those particular figures. For example, is inflation a good measure to predict how much things will cost in future because some things are separate from inflation in the way they go up, which makes future planning tricky. For now, my minimum aim is to ensure I have a roof over my head and basics. Luxuries obviously are important but I am more interested to see whether or not my current investments would be good enough to ensure this. I have a db pension of £3646 a year and 18 years state contributions and am trying to, as I say, see if I have done enough for a basic standard of living and what else I may need to do for a decent retirement income, come 68. 

1813

Alexland said:

1813 said:

What additional info fo you need? Am happy to provide

Well at the time of drafting we didn't know your age but now do. Do you pay any tax at higher rate, what age do you want to spend this money, does it need to be accessible, are you comfortable with investment risk and if so how much volatility can you handle, etc?

No I do not pay a higher tax rate, as far as I am aware. I want to lock this money away until I am 68. I am happy with risk as I believe, tbh, with interest rates so low, you won't get much joy out of a regular savings account, especially if negative interest rates are being touted. 

Alexland

In which case you may well find a S&S LISA meets your needs (although it can be accessed before 60 with a penalty). Have a look at EQi as they have the lowest ongoing charges for a new account invested in fund(s). Others might comment on what funds EQi have available as ours are with AJ Bell invested in an ETF.

csgohan4

don't forget to build up an emergency fund. 

Thrugelmir

1813 said:

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?

With £5k very little. Unless you are extremely lucky. Continue to add to this over the coming years and it's a far better chance. 

1813

Thrugelmir said:

1813 said:

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?

With £5k very little. Unless you are extremely lucky. Continue to add to this over the coming years and it's a far better chance. 

Thats why i am prepared to take chances