Where to Invest £400 per month

mh93

Good evening,
Apologies if this question has been asked a thousand times but I've searched the forum and still none the wiser.

Recently I remortgaged on my house and with the money, I bought 2 BLT properties. My previous mortgage was £800 per month and with both properties rented, all 3 mortgages are covered.

I'm on a 5 year fixed deal so I'm looking to invest £400 per month with the view in 5 years, pay a lump sum of one of the higher rate mortgages.

I have a private pension from my early teens but haven't paid into it for 30 years. 

Any advice is greatly appreciated 

Grumpy_chap

mh93 said:

Good evening,
Apologies if this question has been asked a thousand times but I've searched the forum and still none the wiser.

Recently I remortgaged on my house and with the money, I bought 2 BLT properties. My previous mortgage was £800 per month and with both properties rented, all 3 mortgages are covered.

I'm on a 5 year fixed deal so I'm looking to invest £400 per month with the view in 5 years, pay a lump sum of one of the higher rate mortgages.

I have a private pension from my early teens but haven't paid into it for 30 years. 

Any advice is greatly appreciated 

Far too little information for a meaningful reply.
What exactly does "all 3 mortgages are covered" mean, and how is this achieved?
What emergency fund do you have?
How secure is your regular income?
What other liabilities do you have?
What total pension pot do you have?
Dependents?  University fees?  Weddings to pay for?
What age are you?
etc. etc.

[Deleted User]

You generally won't get a straight answer to that question on here because it depends on different factors. It's a bit like saying "what should I do as my job?", there isn't really a right answer and people will just tell you to do your own research rather than saying anything specific.

But if I were to ignore all that and tell you what to do in this situation, I'd say go on Vanguard and put your money in the FTSE Global All Cap Index Fund (accumulation) if you feel a little risky or the Lifestrategy 60% Equity Fund (accumulation) if you feel less risky. These are basically investments for people who don't know anything about investing, you can set them up easily and they have low fees.

Someone will be along in a minute to tell me off for giving you such dangerous information but I don't really care about that. These are the kinds of vanilla investments thousands of people in your position make to try and outperform a savings account and researching those options will at least give you a start even if you decide to do something else with your money.

Albermarle

I'm on a 5 year fixed deal so I'm looking to invest £400 per month with the view in 5 years, pay a lump sum of one of the higher rate mortgages.

The issue here is the shortish  time scale . Normally the minimum recommended time for investing is five years and better if it is over 10 years . The reason is that investments go up and down but with a long term trend of up ( hopefully) , so the longer you keep them , the less chance of losing money .

As you are planning to invest monthly , then in reality most of the money will be invested for less than 5 years , less than one year for some of the money. So if you do this you will have to have a Plan B , in case your pot at the end has not seen any growth or even is worth less than you put in . Hopefully the opposite will happen but best to go in eyes wide open.

I have a private pension from my early teens but haven't paid into it for 30 years. 

You could be better putting the £5Kpa in this and gain tax relief ( assuming you earn at least £5K ) and leave it alone until you retire