Best next move with £20k

Abelle20

I’m interested to hear thoughts/suggestions on this scenario to grow investment for pension pot/get best returns 

The scenario:
Mortgage free on main residence and one rental property (possibility to rent room/a in main residence to boost income)
No debt
Cash Emergency Fund for 8 months and travel fund in ISA
Full time employed with small company pension
Age 44

£20k left to invest in ... something. 

Research suggest a stocks and shares ISA but maybe there is something else I should look at. I haven’t been much good at investing in markets etc to date but I am
prepared to take more risk now as everything else is secured as far as it can be. 
Thanks 🙏🏻 

Abelle20

*room/s not room/a!  

eskbanker

Abelle20 said:

small company pension

A pension from a small company or a company-provided pension that doesn't have much in it?  Assuming the latter, turning it into not such a small pension is probably worth considering, unless you're looking to access the money in the medium term?  If contributing more to the workplace one isn't an option, look at SIPPs....

El_Torro

The money you have in Cash ISAs is probably earning very little interest. I would at least move your emergency fund to Premium Bonds. You can even put your £20k into Premium Bonds and transfer £20k of your emergency fund into a Stocks & Shares ISA, that way you don't use your ISA allowance. 

If you're in a pretty good position financially (sounds like you are) then I wouldn't consider renting out one or more rooms in your residence. That's just my personal preference though, the idea of sharing my home with strangers when I don't need to doesn't appeal.

Abelle20

eskbanker said:

Abelle20 said:

small company pension

A pension from a small company or a company-provided pension that doesn't have much in it?  Assuming the latter, turning it into not such a small pension is probably worth considering, unless you're looking to access the money in the medium term?  If contributing more to the workplace one isn't an option, look at SIPPs....

A company pension that doesn’t have much in it... 

Alexland

Abelle20 said:

A company pension that doesn’t have much in it... 

Have you considered the benefits of putting more into it?

grumiofoundation

In your OP say looking to invest for pension pot and then ask where to invest.... as the 2 posters above have suggested the answer seems quite obvious? 

Are you already maximising employer contributions to your pension?
Are your pension contributions paid via salary sacrifice?

Abelle20

Thanks for the comments.
For clarity, when I said pension pot I really meant retirement fund. I do already now pay quite a bit of my salary into my company pension to boost it, and while I have thought about putting a lump sum in too, I also wondered if it might be an idea to have some money there and some money somewhere else. But if I can’t find something with a better return, then yes, it would make sense to put more there. I suppose I am investigating alternatives first. 

grumiofoundation

The investment return is not related to the wrapper (i.e. ISA or pension).

If you are investing for retirement pension is more tax efficient option (but is less accessible).

Abelle20

Thanks. For this 20k it doesn’t have to be accessible so I can put it away long term. 

Abelle20

grumiofoundation said:

In your OP say looking to invest for pension pot and then ask where to invest.... as the 2 posters above have suggested the answer seems quite obvious? 

Are you already maximising employer contributions to your pension?
Are your pension contributions paid via salary sacrifice?

Yes and yes