Complete newbie - mid 30’s, no pension, what and where to invest?

Duncannnn

Hi everyone, I’ve spent my youth not thinking about the future, living for today and not tomorrow but it’s time o get my finances in order.

so a few facts.

im self employed, earning min 200 a day, up to 400 a day, with no overheads.

i have a help to buy isa that I have been irregularly throwing money into and don’t own property, but rent instead

i have 40ish k in the bank.

my other half is in the same boat, earning 200 a day, self employed, no overheads but little money in the bank.

can anyone recommend any books worth reading in the investment area?

also could someone reccomend a plan of action going forward?

thanks

eskbanker

If you're paying into a HTB ISA then that would imply that you want to buy a property at some point, what's stopped you from doing so thus far?

Lack of pension is the biggest red flag here, so rectifying this should be a priority....

dunstonh

At this stage, where you invest doesn't really matter.   Actually getting on with it and starting a pension is far more important.  Different investments don't make much difference until the value gets close to £10k.

Cisco001

Start a private pension first...

coastline

Cisco001 said:

Start a private pension first...

Buy a house. Just imagine renting all your life and having a second pension. State pension to pay the basics and a second pension to pay the rent. Can't imagine any government paying your rent with two sources of income. Well you might get limited help.?
Figures suggest around 1/3rd of homes are either rented from council or private rent. With the introduction of NEST government pension many will be paying in all their lives and giving it to their landlords. It's difficult I know.

Cisco001

coastline said:

Cisco001 said:

Start a private pension first...

Buy a house. Just imagine renting all your life and having a second pension. State pension to pay the basics and a second pension to pay the rent. Can't imagine any government paying your rent with two sources of income. Well you might get limited help.?
Figures suggest around 1/3rd of homes are either rented from council or private rent. With the introduction of NEST government pension many will be paying in all their lives and giving it to their landlords. It's difficult I know.

It depends how you look at it.

1. Pension get some tax free, which is best to start ASAP

2. Increase in interest rate + self-employed + recession.
These not doing OP much favour on property purchase right now.

Albermarle

Figures suggest around 1/3rd of homes are either rented from council or private rent. With the introduction of NEST government pension many will be paying in all their lives and giving it to their landlords. It's difficult I know.

You will have to explain this statement a bit more?

NEST is very similar to all other pensions. Same rules, laws & tax apply. It just happens that NEST was set up by the government to help kick start auto enrolment. So it is not a 'government pension' in the normal understanding.

Why would paying into NEST/any pension, be giving it to Landlords?

coastline

Albermarle said:

Figures suggest around 1/3rd of homes are either rented from council or private rent. With the introduction of NEST government pension many will be paying in all their lives and giving it to their landlords. It's difficult I know.

You will have to explain this statement a bit more?

NEST is very similar to all other pensions. Same rules, laws & tax apply. It just happens that NEST was set up by the government to help kick start auto enrolment. So it is not a 'government pension' in the normal understanding.

Why would paying into NEST/any pension, be giving it to Landlords?

If you don't own your home you'll be paying rent to someone. There'll be a cut off point for support over and above the state pension. ? Let's say your rent is £600 a month and that's not as expensive as some. So  £7,000 a year. You'll need to find this out of your pension pot. Well most of it surely ? Realistically you'll need a pot of £300,000 and the rent would eat up most of that. ? £300,000 in years to could be nearer a million. ? Not saying pensions are bad they're a good thing. People need to benefit from them . No doubt the government encouraged people into pensions but it's not clear why ? In many cases as I've tried to explain all it will do is reduce the state help people get today. They'll be wondering why they've bothered. Some will win but not all.

eskbanker

coastline said:
No doubt the government encouraged people into pensions but it's not clear why ? In many cases as I've tried to explain all it will do is reduce the state help people get today.

Think you're answering your own question there!

Oasis1

Only thing not mentioned so far - open a LISA with £1. Atleast gives you the option to use it in 12 months time if you want to buy a home. And to have it open before you turn 40 and are no longer eligible.

It's superior to a Help to Buy ISA for most - see section 6 here: https://www.moneysavingexpert.com/savings/lifetime-isas/

Eyeful

As others have said start a Pension

For now forget the books but have a look at these:
https://www.kroijer.com/
https://www.bogleheads.org/wiki/Video:Bogleheads®_investment_philosophy#Stay_the_course_.28Rule_.2310.29