Saving advice on £80,000 please

wmb194

ukbootlegs said:

Beeblebr0x said:

Mark_d said:

I would put the £80k in to S&S ISAs.  With kids on the way you might need to access extra income (dividends) and capital growth before retirement. 

Wouldn't that be putting all one's eggs into one basket? 

And you can’t…..

you can only do 20k a year

Assuming the allowances haven't already been used, could do £20k per person (OP & wife) this month and £20k per person next month after the new tax year has begun (06/04).

meggles88

Would it be best to look at a ready made portfolio with H&L, vanguard/ HSBC etc initially? I have a very demanding job and I am not sure I have the time to research to DIY myself without messing it up 😂

ZeroSum

meggles88 said:

Thanks all, think I’ll need to do a bit of research on stocks and shares ISA to get a good understanding. 

I am considering a lump sum off the mortgage to either reduce payments or reduce the years I have left! 

I can wack anything left into premium bonds and maybe look at regular savings to ensure I always have a bit of pocket money etc. 

Also thank you for pointing out to put more money in my partners accounts due to lower tax band I didn’t consider this! 

If your pension deductions are made by salary sacrifice you won't be a higher rate tax payer 

Albermarle

meggles88 said:

Would it be best to look at a ready made portfolio with H&L, vanguard/ HSBC etc initially? I have a very demanding job and I am not sure I have the time to research to DIY myself without messing it up 😂

It depends to some extent what 'ready made' means. In simple terms there are a few basic ways of DIY investing;
The first three are often referred to as passive investing.

1) A global index fund. It follows the movements of stockmarkets around the world, relative to their size. Cheap, most likely good growth in the long term, but as it is 100% equity( shares) and 65% US, then it will be potentially volatile in the short to medium term, which those of a nervous disposition do not like.
2) A low cost multi asset fund. In its basic form the same as 1) but diluted by a % of more stable low growth bonds. This % can vary depending on how cautious ( or not) you want to be. 60% equities and 40% bonds is the classic medium risk type of fund. 
3) A low to medium cost simple ready made portfolio, sometimes targeted to a retirement date. In essence though not usually that different to 2) apart from being a little more expensive.
4) Actively managed funds, where a fund manager makes active decisions, in effect trying to beat the market, either when it is going up or down. These funds have higher charges and it is never clear that you get the benefit, although there are some star performers from time to time.