How to Invest £150k

moneysaver2019

I think reading all of the comments I need to take a closer look at pensions, with not knowing so much about them it's confusing as to how toget the best from them.

I did think of buy to let, but what with the housing market and interest rates I think I've missed the boat so to speak.

Also has anyone had any experience buying gold as an investment?

bostonerimus

A pension gets you immediate tax relief and you can invest it in equities and bonds which will give some much needed diversity to your portfolio. I would avoid gold and buy-to-let because of the volatility of the first and the complexity of the other...you already has a significant amount in real estate anyway if you are mortgage free.

xylophone

it's just that I don't like the idea of having a large sum built up and not be around to make the most of it, 

Do you fail to insure your house on the basis that you might never need to call on the insurance?

You say that you are now 43 and have worked since you were 18 - you have never joined your employer's pension scheme? I hope this doesn't mean that at some point you have foregone the chance of joining a Defined Benefit Pension Scheme.

 Whatever type of pension scheme, you have missed out on the employer's contribution (in effect turned down part of your salary) and also on tax relief from the government.

You have built up your savings but may well be paying tax on interest above your allowances.

Perhaps it is time to think again about your pension?

Albermarle

moneysaver2019 said:

I think reading all of the comments I need to take a closer look at pensions, with not knowing so much about them it's confusing as to how toget the best from them.

I did think of buy to let, but what with the housing market and interest rates I think I've missed the boat so to speak.

Also has anyone had any experience buying gold as an investment?

A pension of the type we are talking about here ( a Defined Contribution pension - DC for short ) is just a way building up a pot of money, to be used later to help fund retirement. 
You put money in the pension and then it is held in investments within the pension, which you choose. With a workplace pension if you do not actively choose any investments, your ,money will be put into a default investment fund.
You get tax relief on your contributions and your employer adds some. You are restricted at what age you can start to access the pension and some of any withdrawals will be taxable. However overall you still gain some tax benefit + the employer contributions.
You can see a pension as just another way of investing, but with some special tax rules.
Pensions: Everything you need to know for retirement - MSE (moneysavingexpert.com)
Pensions and retirement | Help with pensions and retirement | MoneyHelper

moneysaver2019

Reading all the comments I think I need to look at pensions again.

dunstonh

 I've seen the forecast from a works based pension and it doesn't look very good to me compared to what I would have to put in so I always opt out, 

That is a really bad thing to do. You have cost yourself a lot of money.     And all on the basis of projections that have nothing to do with the the investments and are all synthetic.   Pound for pound, the pension would beat the LISA and other options because of the free money.

With regards to my work based pension they contribute 3%. I get that I shouldn't ignore pensions, it's just that I don't like the idea of having a large sum built up and not be around to make the most of it, and like I said, I have no dependents to think of.

Relative to your overall savings, it wont be a large amount.   You are handicapping your later years at the moment.

I think reading all of the comments I need to take a closer look at pensions, with not knowing so much about them it's confusing as to how toget the best from them.

Yet, you have chosen a LISA.    The LISA is not as efficient as the pension and you can have the same investments in a pension as you can in a LISA (or ISA).   So, why is the pension difficult but the LISA wasn't for you?

I did think of buy to let, but what with the housing market and interest rates I think I've missed the boat so to speak.

Being a landlord is more complicated than conventional investing and it ties more of your money up in illiquid assets.  

Also has anyone had any experience buying gold as an investment?

Not great for the long term.  Tends to go for long periods losing money or not doing anything (often decades).  Tends to go up in negative periods and down again in positive periods.    Positive periods outnumber negative.

allegro120

moneysaver2019 said:

Reading all the comments I think I need to look at pensions again.

I'd also look at whether Premium Bonds give you competitive returns or not.  Interest rates on savings accounts are very good at the moment and it might make sense to put your PB funds into best paying savings accounts.

Eco_Miser

If you haven't put  £20k into ISAs this financial year, do so immediately (by close of business on 5 April), either S&S ISA or easy access Cash ISA and transfer later. It's use or lose it. I'd put another £20k (£16k if you're going to keep using the LISA) into an S&S ISA later in April as well.

If you don't save in a pension, or even if you do, an S&S ISA with a sensible portfolio will provide tax-free income for your (early?) retirement.

VXman

moneysaver2019 said:

Many thanks for all the comments, I appreciate it.
With regards to my work based pension they contribute 3%. I get that I shouldn't ignore pensions, it's just that I don't like the idea of having a large sum built up and not be around to make the most of it, 

You can access pension from 55 (that's only 11 years time for you providing the government don't change the rules). You can then draw 25% of that in a lump - tax free! (having benefitted from 25% tax relief on the way in too)

They you can put the remainder in a drawdown pension and take it as and when you like. Think of it as a pot of money for you to dip into in 11 years time rather than a 'pension'

I'm 60 and already retired but I still pay into a SIPP just for the tax benefits.

whitehartal

VXman said:

You can access pension from 55 (that's only 11 years time for you providing the government don't change the rules). You can then draw 25% of that in a lump - tax free! (having benefitted from 25% tax relief on the way in too)

Personal pension access age is rising from 55 to 57 in 2028, and then increasing to 58 in 2034.