Where to invest from 50

eskbanker

bostonerimus said:

eskbanker said:

bostonerimus said:

The first things to do are to do a budget so you can see where to save and how much you might have to invest each month , then save 6 months spending in the bank and understand your pension. ie is it a defined benefit pension of a define contribution pension. If it is the latter you must learn how it is invested. Once you have done all that you can start to think about investing in an ISA, probably in a multi-asset fund that has a mixture of various investments that will balance growth and some capital preservation.

Additional pension contributions are often a more tax-efficient option than an ISA if the money is earmarked for retirement, as here....

Yes, depending on income levels and tax bands that is often true, but I like the flexibility and diversity of having both pre tax and post tax investments. Tax efficiency is an important factor, but so is convenience and options.

Yes, there are no right or wrong answers, but if you're going to present a structured sequential process then the bolded bit ought to involve assessing which tax wrapper (if any) is best suited for investing....

bostonerimus

Thrugelmir said:

bostonerimus said:

eskbanker said:

bostonerimus said:

The first things to do are to do a budget so you can see where to save and how much you might have to invest each month , then save 6 months spending in the bank and understand your pension. ie is it a defined benefit pension of a define contribution pension. If it is the latter you must learn how it is invested. Once you have done all that you can start to think about investing in an ISA, probably in a multi-asset fund that has a mixture of various investments that will balance growth and some capital preservation.

Additional pension contributions are often a more tax-efficient option than an ISA if the money is earmarked for retirement, as here....

Yes, depending on income levels and tax bands that is often true, but I like the flexibility and diversity of having both pre tax and post tax investments. Tax efficiency is an important factor, but so is convenience and options.

As a non UK resident of many years you are ineligible to apply for an ISA.   

That's true, I cannot have an ISA, but I think combining the tax deferral and tax free growth of a pension with the easy access and tax free growth and withdrawals of an ISA is really useful. I have similar accounts in the US to give me that flexibility...my IRAs are much like a SIPP and my ROTH account is like an ISA...but there's a far lower annual allowance on the ROTH than the UK ISA.

bostonerimus

eskbanker said:

bostonerimus said:

eskbanker said:

bostonerimus said:

The first things to do are to do a budget so you can see where to save and how much you might have to invest each month , then save 6 months spending in the bank and understand your pension. ie is it a defined benefit pension of a define contribution pension. If it is the latter you must learn how it is invested. Once you have done all that you can start to think about investing in an ISA, probably in a multi-asset fund that has a mixture of various investments that will balance growth and some capital preservation.

Additional pension contributions are often a more tax-efficient option than an ISA if the money is earmarked for retirement, as here....

Yes, depending on income levels and tax bands that is often true, but I like the flexibility and diversity of having both pre tax and post tax investments. Tax efficiency is an important factor, but so is convenience and options.

Yes, there are no right or wrong answers, but if you're going to present a structured sequential process then the bolded bit ought to involve assessing which tax wrapper (if any) is best suited for investing....

The calculations can be complex as they depend on many assumptions about the future. I feel that having something in an ISA gives you access to money for one off expenditures and also is a useful tool to control your tax bill when you eventually start taking money from the pension.

Albermarle

 You can up contributions or pay additional AVCs and you should ask your pension administrator for details and projections. 

OP - As per this comment from a previous poster , I would first research what possible benefits there could be if you  increase contributions to your current NHS pension by one method or another .

Not saying that is definitely the way to go but you should get the facts as a first step. 

eskbanker

bostonerimus said:

eskbanker said:

bostonerimus said:

eskbanker said:

bostonerimus said:

The first things to do are to do a budget so you can see where to save and how much you might have to invest each month , then save 6 months spending in the bank and understand your pension. ie is it a defined benefit pension of a define contribution pension. If it is the latter you must learn how it is invested. Once you have done all that you can start to think about investing in an ISA, probably in a multi-asset fund that has a mixture of various investments that will balance growth and some capital preservation.

Additional pension contributions are often a more tax-efficient option than an ISA if the money is earmarked for retirement, as here....

Yes, depending on income levels and tax bands that is often true, but I like the flexibility and diversity of having both pre tax and post tax investments. Tax efficiency is an important factor, but so is convenience and options.

Yes, there are no right or wrong answers, but if you're going to present a structured sequential process then the bolded bit ought to involve assessing which tax wrapper (if any) is best suited for investing....

The calculations can be complex as they depend on many assumptions about the future. I feel that having something in an ISA gives you access to money for one off expenditures and also is a useful tool to control your tax bill when you eventually start taking money from the pension.

Yes, there are arguments to be made for each, and I'm not criticising your choice, but my point was that this should be a conscious decision, based on personal circumstances and preferences, and that while you're happy to sacrifice tax relief benefits for more flexibility, others will have different priorities.

bostonerimus

eskbanker said:

bostonerimus said:

eskbanker said:

bostonerimus said:

eskbanker said:

bostonerimus said:

The first things to do are to do a budget so you can see where to save and how much you might have to invest each month , then save 6 months spending in the bank and understand your pension. ie is it a defined benefit pension of a define contribution pension. If it is the latter you must learn how it is invested. Once you have done all that you can start to think about investing in an ISA, probably in a multi-asset fund that has a mixture of various investments that will balance growth and some capital preservation.

Additional pension contributions are often a more tax-efficient option than an ISA if the money is earmarked for retirement, as here....

Yes, depending on income levels and tax bands that is often true, but I like the flexibility and diversity of having both pre tax and post tax investments. Tax efficiency is an important factor, but so is convenience and options.

Yes, there are no right or wrong answers, but if you're going to present a structured sequential process then the bolded bit ought to involve assessing which tax wrapper (if any) is best suited for investing....

The calculations can be complex as they depend on many assumptions about the future. I feel that having something in an ISA gives you access to money for one off expenditures and also is a useful tool to control your tax bill when you eventually start taking money from the pension.

Yes, there are arguments to be made for each, and I'm not criticising your choice, but my point was that this should be a conscious decision, based on personal circumstances and preferences, and that while you're happy to sacrifice tax relief benefits for more flexibility, others will have different priorities.

I totally agree, there are many ways to answer the OP's question. But that can be part of the problem as the range of options produces paralysis. My solution for that is to avoid having all your eggs in one basket and go for a flexible solution that has options. That's what I've done and what I'd recommend to the OP.