Investment ideas - how would you invest 100k?

Greymug

Hi, following the sale of my property I will be in a position of having more or less 100k in my bank account.

I don't have any outstanding debt and the only "big" expense I'm budgeting for is a new car when my current one breaks down (it's super old and on its last leg so I give it no more than 6 months). I won't spend more than 15k on the new car.

What's your advice?

How would you split it? Would you do a mix of cash and short/med/long term investment? Filling up the old pension pot?

cattie

You need to give more detail, your age, single or not, kids or not, current employment etc & whether you intend to buy another property in the near future.

I'm already retired & the way I invest may not be suitable for you.

Greymug

Good point.

Here are more details:

- 37 years old
- living with my partner in our 4 bedroom house (no mortgage)
- no kids at the moment but planning to have 1 in 12-24 months
- in full-time permanent employment
- currently I contribute 5% of my salary to the company pension fund and my employer contributes 10%
- don't want to work until I'm 65; definitely I do not want to work past 60
- not interested in buy-to-let investments. I'm not cut to be a landlord, too much effort

MEM62

Greymug said:

- currently I contribute 5% of my salary to the company pension fund and my employer contributes 10%

Greymug said:

- don't want to work until I'm 65; definitely I do not want to work past 60

Then your pension contributions are nowhere near big enough.  

AlanP_2

What is your goal for the money?


Early retirement?

Fund your future offsprings house purchase / Uni?

and so on.


If you know roughly what you are aiming for and when then suggestions can be made to help you get there.


An obvious couple are:

Open LISAs if both under 40 and get 25% bonus

Contribute more to pensions if not needed until 57/58 onwards.


If it is for Uni fees in 20 years time then alternatives might be more applicable.

kidmugsy

Are you a higher rate taxpayer (even after your 5% pension contribution)?  Can you/do you make your pension contribution by salary  sacrifice?

Note that a 21/22 and 22/23 ISA for both of you will shelter £80k.  As suggested it might be best if part of that ISA allowance is dedicated to a LISA.  You can consider a JISA (Junior ISA) for the nipper in due course.

Apart from your own pension how about your wife's?  It's best to arrange things so that both of you can use a full Personal Allowance against income tax when you retire.

Greymug

MEM62 said:

Greymug said:

- currently I contribute 5% of my salary to the company pension fund and my employer contributes 10%

Greymug said:

- don't want to work until I'm 65; definitely I do not want to work past 60

Then your pension contributions are nowhere near big enough.  

How much do you reckon I should increase them by?

tacpot12

You need an emergency pot of perhaps six months living expenses. This doesn't need to be readily available, and as you are keeping it for emergencies, you could do worse that buy premium bonds. You could also put the £15K for the new car into premium bonds as well.  

You do need to increase your pension savings. I would look to be putting 10% of your salary into your pension (so that between you and your employer you are putting 20% of your salary into your pension each year), and you  should try to help your partner to do the same.

In the absence of any other aims for your savings, I would suggest investing via a LISA in a diversified global growth fund, and plan on selling investments as you want to. 

MEM62

Greymug said:

MEM62 said:

Greymug said:

- currently I contribute 5% of my salary to the company pension fund and my employer contributes 10%

Greymug said:

- don't want to work until I'm 65; definitely I do not want to work past 60

Then your pension contributions are nowhere near big enough.  

How much do you reckon I should increase them by?

The basis for that answer will depend on;
* Your current salary
* What lifestyle / income you want in retirement
* How much you have in your pot now

DragonCapsule

I'd put 20k in a stock and share isa. I'd put 20k in a stocks and shares for your partner. In both isa's I'd invest in HSBC s&P500 tracker, amazon, google and facebook. Keep 20K cash. Keep 40K for next years isa allowance in a saving account. I'm assuming your going to hit your pension allowance limit so having money in stocks and shares isa is a good idea to start early. The pension allowance is dropping like a stone, so getting money into Isa's is a smart idea. Fang stocks are still going to do great in years to come and should be fairly resilient. If you fancy a punt, get some Telsa.

Tolteca87

Increase your emergency fund. Buy a 6 month old car. Get money into ISAs and Pension Funds while you still can.