£1k that I’m happy to lock away for a year or more

MovingForwards

"From 23rd April 2021, any amount over £50 each calendar month will be automatically returned to your current account. If this happens we’ll send you an SMS to let you know. The amount you’ve already saved in your Digital Regular Saver won’t be affected and we won’t amend any interest you’ve already earned." 

You may want to be careful dropping the full amount in to NW now.

OP - any money in kids accounts is money legally owned by the kids whose named on the account.

Look at regular savers, usually it's up to £250 - £500pm that can be paid in. There are little RS' where it's up to £50pm. 

bostonerimus

Alex.T said:

Thanks guys. I have a five year plan for saving some money. £1k a year seemed pretty easy, and I’m happy to lock it away if I have to. 

I’m currently earning 3% on £2k in each of our children’s Santander Mini accounts, but that money is accessible straight away and we may have stuff earmarked for it this year. 

I’m interested in learning about investments and potentially even cryptocurrency with the first £1k, and pending how that goes looking at doing the same in the following years. 

I'd organize it like this.
Save 6 month's to a year's spending in an easy access saving account. Next make sure you are contributing at least 10% of your wages to a company pension plan. If it's one where you have to invest in funds just chose a diverse multi-asset fund from a big provider...Vanguard, iShares, Blackrock etc that has at least 60% equities, the VLS range is an example. Then open an ISA and invest in a similar multi-asset fund. Don't look at the balance too often, just keep ploughing the money in.

bostonerimus

Billycock said:

RG2015 said:

Billycock said:

My oh my!! BM's knowingly participating in fraudulent behaviour, guys and gals did you tick the box accepting the T&C's for the NatWest saver jobby? Accepted that the max monthly contribution is £50? Have a funny feeling that you'll get bitten on your !!!!!!'$ 

What's a BM?

Board Members

Ha, on a music forum, BM would be "Babymetal".

RG2015

MovingForwards said:

"From 23rd April 2021, any amount over £50 each calendar month will be automatically returned to your current account. If this happens we’ll send you an SMS to let you know. The amount you’ve already saved in your Digital Regular Saver won’t be affected and we won’t amend any interest you’ve already earned." 

You may want to be careful dropping the full amount in to NW now.

OP - any money in kids accounts is money legally owned by the kids whose named on the account.

Look at regular savers, usually it's up to £250 - £500pm that can be paid in. There are little RS' where it's up to £50pm. 

I opened mine on 23/09/2020 and have £454.47 in there now which includes £4.47 interest. If I had deposited £1,000 on 23rd September I would have had about £18 in interest, so an extra £13.53.

By the time I have reached £1,000 legitimately, after 20 months, others may have earned £26 more than me.

That is all it is worth.

Alex.T

MovingForwards said:

OP - any money in kids accounts is money legally owned by the kids whose named on the account.

How I understood it to be was that they are transferable to a useable account (with debit card) when they turn 12. And the account is transferred to their name when they are 18? Its currently an 'in trust account' where I am the trustee.

Alex.T

bostonerimus said:

I'd organize it like this.
Save 6 month's to a year's spending in an easy access saving account. Next make sure you are contributing at least 10% of your wages to a company pension plan. If it's one where you have to invest in funds just chose a diverse multi-asset fund from a big provider...Vanguard, iShares, Blackrock etc that has at least 60% equities, the VLS range is an example. Then open an ISA and invest in a similar multi-asset fund. Don't look at the balance too often, just keep ploughing the money in.

Great advice, thanks.
I've been looking into and reading up about a Vanguard S&S ISA, whereby I will invest the £1000 I currently have, and setup a direct debit for £100 per month to go directly into whichever fund I choose. For the last 10months I've been saving £100p/m in my basic current account which earns no interest. So setting up a monthly DD would be a sensible way of going about continuing saving atleast £100p/m. The current plan is to invest atleast £100 per month (hopefully more) for the next five years, and then to transfer the lump sum into a pension ISA or SIPP from the age of 40.
I currently have a company pension which I've had for the last couple of years (since its been compulsory) which is total 8% of my wages (2.5% from me, 5.5% from company). This is currently one that the company set up for us with L&G.

bostonerimus

Alex.T said:

bostonerimus said:

I'd organize it like this.
Save 6 month's to a year's spending in an easy access saving account. Next make sure you are contributing at least 10% of your wages to a company pension plan. If it's one where you have to invest in funds just chose a diverse multi-asset fund from a big provider...Vanguard, iShares, Blackrock etc that has at least 60% equities, the VLS range is an example. Then open an ISA and invest in a similar multi-asset fund. Don't look at the balance too often, just keep ploughing the money in.

Great advice, thanks.
I've been looking into and reading up about a Vanguard S&S ISA, whereby I will invest the £1000 I currently have, and setup a direct debit for £100 per month to go directly into whichever fund I choose. For the last 10months I've been saving £100p/m in my basic current account which earns no interest. So setting up a monthly DD would be a sensible way of going about continuing saving atleast £100p/m. The current plan is to invest atleast £100 per month (hopefully more) for the next five years, and then to transfer the lump sum into a pension ISA or SIPP from the age of 40.
I currently have a company pension which I've had for the last couple of years (since its been compulsory) which is total 8% of my wages (2.5% from me, 5.5% from company). This is currently one that the company set up for us with L&G.

Do some research on your company pension so you understand how you are invested. I would be putting a lot more into that pension as a priority as you get a big tax advantage.

Zanderman

Alex.T said:

I’m currently earning 3% on £2k in each of our children’s Santander Mini accounts, but that money is accessible straight away and we may have stuff earmarked for it this year. 

MovingForwards said:

OP - any money in kids accounts is money legally owned by the kids whose named on the account.

Alex.T said:

How I understood it to be was that they are transferable to a useable account (with debit card) when they turn 12. And the account is transferred to their name when they are 18? Its currently an 'in trust account' where I am the trustee.

Nothing illegal about using children's accounts like this but morally, once you've put money into their accounts, it's their money not yours any more, no matter how you dress it up.  But I guess a lot of people do this to get better interest on money that isn't really being given to the kids.  

Alex.T

Zanderman said:

Nothing illegal about using children's accounts like this but morally, once you've put money into their accounts, it's their money not yours any more, no matter how you dress it up.  But I guess a lot of people do this to get better interest on money that isn't really being given to the kids.  

Absolutely, its just a place to store an amount and earn 3% interest on a max of £2k. All of the interest and their monthly standing order stays in there for when they turn 18 though.

Alex.T

bostonerimus said:

Do some research on your company pension so you understand how you are invested. I would be putting a lot more into that pension as a priority as you get a big tax advantage.

Thank you. Looks like the L&G pension that my company have set up for us is invested in the Blackrock Aquila 50/50 Global Equity Index. I can't find any information regarding how much I can put in to it in reference to a pension. Am I able to put up to 5% myself and 5% from the company then? Excuse my ignorance. I'm just trying to sort out a login for my personal account with L&G.

Going back to the original post, I'm going to aim for a minimum of £1000 deposit into a S&S ISA then a minimum of £100 direct debit for a period of 5 years, with the intention of either re-investing after 5 years of investment (the year I turn 40), or withdrawing and doing something else with the lump sum. If I remove the lump sum, I will start another savings plan which will be over a period of 20 years for my personal pension at age 60, which will coincide with our mortgage being paid off.