What to invest in next?

PJD

I have paid off my mortgage, I am currently putting 45% of my wage into a pension, - I have a Vanguard S&S Lifestrategy ISA with most of my savings in.

I have some more money to invest, - shall I just pour it into the same ISA above, or maybe invest in S&P 500, or a different fund?  I appreciate the Lifestrategy is a diverse fund, but I was wondering whether I should diversify my investments even more?  Or Gold?  Or?  Appreciate your thoughts.

Mark_d

I think your current fund has plenty of diversification, both in shares and in more stable investment vehicles.  I don't think there's benefit to be had from further diversification.

Having paid off your mortgage, all you money if for you to enjoy - either now or later.  How big will you pension be when you retire?  Do you want to give this a boost?

Have you used up your ISA allowance for this year?

Premium bonds give tax free prizes.  Have you got £50k of premium bonds?

Do you want to be saving this extra money towards some goal...or do you want to be enjoying...perhaps investing in your hobbies?

Linton

I see no reason for you having to invest in a new area.  Perhaps Small Companies or Emerging Markets as part of your S&S ISA could add something more to think about especially as neither are included in the VLS funds,  but dont expect a life-changing difference.

In my view investing additionally in the S&P500 would not be beneficial given that the VLS funds already include a significant % of US.

I agree with @Mark_d that a significant investment in PBs could be worth looking at.  The returns are tax free and guaranteed by the Government plus you get a little bit of excitement once a month.

eskbanker

Linton said:

I see no reason for you having to invest in a new area.  Perhaps Small Companies or Emerging Markets as part of your S&S ISA could add something more to think about especially as neither are included in the VLS funds

The VLS funds do include a holding in "Vanguard Emerging Markets Stock Index Fund GBP Acc"?

Linton

eskbanker said:

Linton said:

I see no reason for you having to invest in a new area.  Perhaps Small Companies or Emerging Markets as part of your S&S ISA could add something more to think about especially as neither are included in the VLS funds

The VLS funds do include a holding in "Vanguard Emerging Markets Stock Index Fund GBP Acc"?

Yes, plus Pacific ex Japan.  My mistake.  Will correct.

jimjames

If you have spare room in your ISA and paying plenty into a pension then yes I would add as much as you can to the ISA.

Bostonerimus1

PJD said:

I have paid off my mortgage, I am currently putting 45% of my wage into a pension, - I have a Vanguard S&S Lifestrategy ISA with most of my savings in.

I have some more money to invest, - shall I just pour it into the same ISA above, or maybe invest in S&P 500, or a different fund?  I appreciate the Lifestrategy is a diverse fund, but I was wondering whether I should diversify my investments even more?  Or Gold?  Or?  Appreciate your thoughts.

Which VLS fund do you own? What type of pension do you have  DB or DC, and if DC how is that invested?

Eyeful

I hope the following will help you answer your question.
Watch this:   https://www.kroijer.com/

Consider either
(a) passive low cost Global Index Fund or ETF:
https://monevator.com/best-global-tracker-funds/
(b) passive low cost Global Multi asset Fund with a share/bond split you are comfortable with, such as 60/40.
 https://monevator.com/passive-fund-of-funds-the-rivals/
(c) Target day funds:
Example,  https://www.vanguardinvestor.co.uk/investing-explained/what-are-target-retirement-funds

PJD

Bostonerimus1 said:

PJD said:

I have paid off my mortgage, I am currently putting 45% of my wage into a pension, - I have a Vanguard S&S Lifestrategy ISA with most of my savings in.

I have some more money to invest, - shall I just pour it into the same ISA above, or maybe invest in S&P 500, or a different fund?  I appreciate the Lifestrategy is a diverse fund, but I was wondering whether I should diversify my investments even more?  Or Gold?  Or?  Appreciate your thoughts.

Which VLS fund do you own? What type of pension do you have  DB or DC, and if DC how is that invested?

Many thanks for everyone's thoughts.

I have a VLS 80% Equity Fund (20% bonds)

My understanding of the pension is that I would make a decision about whether to withdraw DB or DC when it comes to retirement?  I am currently 49 years old.

I've got more room in my ISA allowance, and I don't own any premium bonds.

No comment on the gold!?

wmb194

PJD said:

Bostonerimus1 said:

PJD said:

I have paid off my mortgage, I am currently putting 45% of my wage into a pension, - I have a Vanguard S&S Lifestrategy ISA with most of my savings in.

I have some more money to invest, - shall I just pour it into the same ISA above, or maybe invest in S&P 500, or a different fund?  I appreciate the Lifestrategy is a diverse fund, but I was wondering whether I should diversify my investments even more?  Or Gold?  Or?  Appreciate your thoughts.

Which VLS fund do you own? What type of pension do you have  DB or DC, and if DC how is that 

No comment on the gold!?

Why do you think you need it?

ColdIron

PJD said:

No comment on the gold!?

Gold is a speculative asset, it could go up, it could go down. No capital gains tax on UK legal tender coins which is nice, but you may not get any capital gains. Of course the same is true of pensions and ISAs so no advantage there and they are also free of tax on interest and dividends which you won't receive with gold as it doesn't pay any

It has its place for a small number of people but most (95%?) would (should) avoid it

If you have headroom in your ISA allowance it's a no brainer to use that first, this year and every year