Paid off mortgage - how to invest payments

daveyjp

If you need access in a few years a regular saver is the only sensible option.

Albermarle

caeler said:

When I paid mine off I depleted all my savings so I’ve spent some time building back up. Now I have a mix of fixed and easy access accounts using my ISA allowance as well.  I’ve just been keeping an eye on MSE Best Buy accounts. Managed to get some cash in the NS&I 6.2% fixed term bond which got withdrawn last month so got pretty lucky there! I’m pretty risk adverse too so I’ve stuck with savings rather than investments. I’ve salary sacrificed more into my pension too.  Remember to have some fun now your mortgage free! 

By salary sacrificing more into your pension then you have actually increased your investments, so maybe you are not so risk averse!
That is assuming it is not a public sector DB scheme and  that you are not just holding cash ( normally not recommended) 

caeler

Albermarle said:

caeler said:

When I paid mine off I depleted all my savings so I’ve spent some time building back up. Now I have a mix of fixed and easy access accounts using my ISA allowance as well.  I’ve just been keeping an eye on MSE Best Buy accounts. Managed to get some cash in the NS&I 6.2% fixed term bond which got withdrawn last month so got pretty lucky there! I’m pretty risk adverse too so I’ve stuck with savings rather than investments. I’ve salary sacrificed more into my pension too.  Remember to have some fun now your mortgage free! 

By salary sacrificing more into your pension then you have actually increased your investments, so maybe you are not so risk averse!
That is assuming it is not a public sector DB scheme and  that you are not just holding cash ( normally not recommended) 

I hadn’t thought of it that way before. Pension is a balanced investments so whilst there is risk hopefully not too high! 

Albermarle

caeler said:

Albermarle said:

caeler said:

When I paid mine off I depleted all my savings so I’ve spent some time building back up. Now I have a mix of fixed and easy access accounts using my ISA allowance as well.  I’ve just been keeping an eye on MSE Best Buy accounts. Managed to get some cash in the NS&I 6.2% fixed term bond which got withdrawn last month so got pretty lucky there! I’m pretty risk adverse too so I’ve stuck with savings rather than investments. I’ve salary sacrificed more into my pension too.  Remember to have some fun now your mortgage free! 

By salary sacrificing more into your pension then you have actually increased your investments, so maybe you are not so risk averse!
That is assuming it is not a public sector DB scheme and  that you are not just holding cash ( normally not recommended) 

I hadn’t thought of it that way before. Pension is a balanced investments so whilst there is risk hopefully not too high! 

Many people/posters have the idea that investments inside and outside a pension are somehow different, but they are not,

You can see a DC pension as just a way of investing long term but with some tax benefits.
One persons balanced investment maybe to too high or low risk for another person.
Being too risk averse is a risk in itself.

ThriftComrade

thanks all, really appreciate the input. Pension-wise, I'm mid 40s so I think I'll divert some extra into pension, but not make it the main focus. 
One thing that came to mind over the weekend - we have a limited company we set up to manage a letting business (with a grand total of one property!).
Would it make sense to lend the company money and get that to put it in a business current account? They pay lower interest but I imagine the interest would be taxed at corporation tax rate? 

MEM62

ThriftComrade said:

My wife is pretty risk averse so we're leaning towards putting most of it into a regular saver,

You say she is risk adverse but she is prepared to accept the inflation risk that comes with keeping cash?

DUBVENDOR said:

Money in the bank is risk free

No it isn't.  It is subject to inflation risk.  

@ThriftComrade Nothing will beat a pension in the long term.  It is very tax efficient.  There is nothing wrong with having a healthy cash buffer (only you can determine what is healthy for your circumstances) - beyond that look firstly to pensions and then perhaps to a S&S ISA