Investment / Savings Split

Interested to know what peoples Savings and Investment Split

I am 40 years old and have about 70K in Savings/ Investments (excluding a civil service pension and a SIP pension to top up the CS pension).

Currently about 30% of that 70K is in a S&S ISA and the rest in easy access accounts (£20K) and the remainder in fixed rate term accounts which expire throughout the year and I then re invest in other fixed rates. 

Should I be rebalancing more into investments? 

Only big projected expense is a new boiler in the spring about £4K and then a new car in a couple of years which I will probably get on finance, as there are often 0% deals on cars I have my eye on and I am not to fussy about what type it is. 

Comments

  • jimjames
    jimjames Posts: 17,498
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    Personally I have the vast majority of my money invested rather than in savings
    Remember the saying: if it looks too good to be true it almost certainly is.
  • El_Torro
    El_Torro Posts: 1,426
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    Assuming you are working and your job is relatively safe it's a good idea to have an emergency fund in easily accessible cash. This is typically between 3 and 6 months worth of expenses to tide you over in case of job loss or a big expense (house repairs, a new car, etc...). The rest can be held in investments, either ISAs or pensions. 

    It doesn't really matter what the ratio is between your investments and your savings, what matters is that you have enough cash for what you need, the rest can be invested.
  • Albermarle
    Albermarle Posts: 21,169
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    Currently about 30% of that 70K is in a S&S ISA and the rest in easy access accounts (£20K) and the remainder in fixed rate term accounts which expire throughout the year and I then re invest in other fixed rates. 
    Should I be rebalancing more into investments? 

    You should look at your financial position in the round.

    For  example on the face of the above statement ,you could do with having more in investments than now.

    However your Sipp will contain investments. So if your SIPP was quite large, then you could say your S&S and cash split was more sensible, when looking at the overall picture.

    Taking that further you could say you are building up a solid retirement income with your CS pension, so maybe you should be more aggressive with other investments etc etc 


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