Where to get started

CluelessGuy

Hi Folks

Looking for some advice from those more knowledgeable than myself,. 

I've always been careful with my money but probably not particularly good with it, if that makes sense. And want to start making my money work for me.

Position is i currently have £50k cash in the bank (split between 20k in santander 123 current account and 30k ns&i) both of which have recently changed rates to make these even worse places to keep your money. I have £5k in a s&s isa and contribute £200 a month to this and overpay my mortgage by £500 a month (mortgage rate 2.29%)

Have loans for the cars (both 3%apr) the trade in value of the cars would be worth more than what I owe, so wouldn't particularly be looking to clear these, given the lowish loan rate and the equity. I have no other debt. 

I pay 5% into my pension which is the highest my company will match too. 

I also have £80kish within old pensions which I'm now not contributing too. 

So questions are;

Any advice for what I should do with the £50k?

What is best to do with my excess monthly money (as above £200 currently going to a s&s isa, and £500 overpaying the mortgage, probably got another £300 that just ends up topping up the bank account funds)

And presumably I should look at consolidation of my old pensions, given the relatively low amount (£80k) is it worth speaking to a financial advisor for this or is that likely to not be cost effective. 

I will add i am going to do my own research and start doing some work to gain more knowledge however thought it would be worth getting some advice here aswell.

Thanks in advance for any help.

colsten

Given there are two cars, are there two people? Any dependents?

ranciduk

50k = premium bonds 

Albermarle

Can you say
your age ?
your approx salary 
How much is in your current pension ?

CluelessGuy

colsten said:

Given there are two cars, are there two people? Any dependents?

Yes me, my wife, and a 2 year old. 

Thanks 

TheAble

ranciduk said:

50k = premium bonds 

You'll get a much better return in the stock market. It will depend to a degree on individual circumstances but generally speaking most people don't need 50k in cash sitting around earning peanuts.

CluelessGuy

Albermarle said:

Can you say
your age ?
your approx salary 
How much is in your current pension ?

I'm 35 as is wife, salary is 75k, wife's is 35k (potential to increase if she goes back to work full time) 

CluelessGuy

Current pension pot is only about 10k, reasonably new job. 

Albermarle

As a higher rate taxpayer the usual way to go is to increase contributions to your pension due to the very generous tax relief ( which might not last forever .
Each £100 going into your pension only cost you £60 . Although you will pay some tax on it when you take it , the tax benefit is still significant . Also the more money you put in at a younger age the more the investments in the pensions have time to grow.
To add to this a £10K pension pot is very small even at your age , so even more reason to go down this route .

CluelessGuy

Albermarle said:

As a higher rate taxpayer the usual way to go is to increase contributions to your pension due to the very generous tax relief ( which might not last forever .
Each £100 going into your pension only cost you £60 . Although you will pay some tax on it when you take it , the tax benefit is still significant . Also the more money you put in at a younger age the more the investments in the pensions have time to grow.
To add to this a £10K pension pot is very small even at your age , so even more reason to go down this route .

Thanks for that, so topping up the % I pay into my current work pension? Or taking out another private pension? 
I maybe wasn't clear, my current work pension is 10k I have 80k in old pensions. 
Maybe consolidating my old pensions into a private one and making monthly contributions to this? 

Zorillo

I'd be paying £25k a year into my pension and thinking about retiring early.