Please explain to a numpty what my best course of savings action should be

chrissychris

hi, i'm a new and inexperienced saver, so I'm looking for some explain-it-like-i'm-five advice.

I just opened a cash isa with charter savings (£20k invested at 5.03%).

I have another £20kish in my current account that I can invest.

• I could open another isa in april
• I could open a savings account of some other kind
• I could do something else?

I have no debt, no mortage, no kids and no real responsibilities beyond just basically staying alive.

What would you do in my position, and why?

Thanks for any advice you can give me. The more straightforward and basic the better.

eskbanker

The Flowchart - UKPersonalFinance Wiki offers a structured approach to identify potential solutions....

threlkeld53

Your question is too difficult to answer in a general way. You need to supply much more info regarding your circumstances.

For example, age, employment status, emergency savings, pensions etc.
You mention that you have no mortgage, nor kids. Are those two situations likely to change in the future?

chrissychris

threlkeld53 said:

Your question is too difficult to answer in a general way. You need to supply much more info regarding your circumstances.

For example, age, employment status, emergency savings, pensions etc.
You mention that you have no mortgage, nor kids. Are those two situations likely to change in the future?

you're right, sorry.

51 years old
full time employment
income is salary around £40k per year. Some rental income of £11.5k per year.
married - wife working full time - also earns around £40k a year
My nest pension with around £24k in it
no kids or mortgage in the future
no imminent financial demands

eskbanker

chrissychris said:

My nest pension with around £24k in it

What other pensions do you have?

ColdIron

chrissychris said:

threlkeld53 said:

Your question is too difficult to answer in a general way. You need to supply much more info regarding your circumstances.

For example, age, employment status, emergency savings, pensions etc.
You mention that you have no mortgage, nor kids. Are those two situations likely to change in the future?

51 years old
My nest pension with around £24k in it

If that is the only pension provision you have between you then that would be at the top of my list

chrissychris

eskbanker said:

chrissychris said:

My nest pension with around £24k in it

What other pensions do you have?

ColdIron said:

chrissychris said:

threlkeld53 said:

Your question is too difficult to answer in a general way. You need to supply much more info regarding your circumstances.

For example, age, employment status, emergency savings, pensions etc.
You mention that you have no mortgage, nor kids. Are those two situations likely to change in the future?

51 years old
My nest pension with around £24k in it

If that is the only pension provision you have between you then that would be at the top of my list

my nest is my only pension provision (outside of state)
 my wife also has a nest pension of some kind, but not sure how much is in it.

so if pension if the first thing to look at, what's the best way of going about that? we already contribute the % to get the maximum employer's contribution so i was under the impression it's better to put spare money elsewhere for a better return

eskbanker

chrissychris said:

so if pension if the first thing to look at, what's the best way of going about that? we already contribute the % to get the maximum employer's contribution so i was under the impression it's better to put spare money elsewhere for a better return

You can open a SIPP with any investment platform, but that doesn't inherently entail better returns than the workplace one, it depends entirely on what each is invested in....

ColdIron

chrissychris said:

eskbanker said:

chrissychris said:

My nest pension with around £24k in it

What other pensions do you have?

ColdIron said:

chrissychris said:

threlkeld53 said:

Your question is too difficult to answer in a general way. You need to supply much more info regarding your circumstances.

For example, age, employment status, emergency savings, pensions etc.
You mention that you have no mortgage, nor kids. Are those two situations likely to change in the future?

51 years old
My nest pension with around £24k in it

If that is the only pension provision you have between you then that would be at the top of my list

we already contribute the % to get the maximum employer's contribution

I would view that as a minimum. You can, and in my view should, put much more in, especially at 51 years. Even if it doubles in 15 years that is a very low pension. £48K might pay as little at £1,500 per year

Your employers pension is probably the simplest way to do it. You benefit from tax relief which is valuable, free money if you like

MEM62

chrissychris said:

I just opened a cash isa with charter savings (£20k invested at 5.03%).

At the risk of being accused of hair-splitting, if it is in a cash account it is not 'invested'. Invested implies S&S. 

chrissychris said:

threlkeld53 said:

Your question is too difficult to answer in a general way. You need to supply much more info regarding your circumstances.

For example, age, employment status, emergency savings, pensions etc.
You mention that you have no mortgage, nor kids. Are those two situations likely to change in the future?

51 years old
My nest pension with around £24k in it

At your age you are way behind in your pension provision.  It is the most tax-efficient way to provide for your retirement income and you need to be ploughing as much into it as you possible can.  Some research / reading on this subject would serve you well.   

chrissychris said:

eskbanker said:

chrissychris said:

My nest pension with around £24k in it

What other pensions do you have?

ColdIron said:

chrissychris said:

threlkeld53 said:

Your question is too difficult to answer in a general way. You need to supply much more info regarding your circumstances.

For example, age, employment status, emergency savings, pensions etc.
You mention that you have no mortgage, nor kids. Are those two situations likely to change in the future?

51 years old
My nest pension with around £24k in it

If that is the only pension provision you have between you then that would be at the top of my list

i was under the impression it's better to put spare money elsewhere for a better return

Where is 'elsewhere' and why so you think that would give you a better return?  Your pension is just a tax wrapper.  It is the investments within it that dictate how well it grows (tax free) and you have some choice in those.     
 
  

j_netprofit

eskbanker said:

You can open a SIPP with any investment platform, but that doesn't inherently entail better returns than the workplace one, it depends entirely on what each is invested in....

Hope I'm not being to vauge...my wife puts a lot of her income into her workplace pension, far more than what her employer matches. I believe the investment fund is typical low risk one (I'm in the middle of finding out exactly where it is and suggesting she go for something higher risk if the platform offers it (surely it does) she is 34). My question, would she be better off opening a SIPP and investing the amount over the employers matched contribution into a global index fund?