I have no clue how to best partition my savings.

WhatAboutThisName

Hello All, 

I am 21 and in a relatively privileged position. I work within the NHS and earn a good salary; my specific job role is about as recession-proof as they come. I live with my parents and have minimal overheads. 

The main objective for my savings is to afford a mortgage. I have no immediate need to move out, but ideally would like to do so in the next 2/4 years as I have a friend in a similar strong financial position.
Each year, I max out my Lifetime ISA and split the remainder 65/35 between the S&S and cash ISAs. My concern is that my savings are currently too high-risk. Or can I justify the high risk given my low-risk lifestyle? I read that S&S should ideally be for 5+ years. Should I sell the shares whilst I'm up? How might you advise splitting my savings in line with my savings goal?

My current savings pot is partitioned as such: 
- Approximately 37% with Vanguard S&S ISA (high-risk global equity fund)
- Approximately 35% in a lifetime ISA. 
- Approximately 25% in an instant access cash ISA. 
- Approximately 2% in an emergency fund.  

Thanks in advance! 
Chris 

Sam_666

Savings cant be high risk (if held with bank covered by FSCS), but investments can be high risk.

"high risk given my low-risk lifestyle". What on earth does that means?

You need to learn to distignish between savings and investments. 

Also, you are not clear in your post, if you plan to buy with "friend" or on your own.

"The main objective for my savings is to afford a mortgage." No, you got that all wrong.
Savings are there to help you build deposit, its your salary that will make mortgage affordable.

Eyeful

You appear to be mixing up savings with investments be placing them under the same heading.
This is not a good start because the risk levels & FSCS protection you get are different for both!
So to make sure we understand each other I will go over the important points a newbie should know.

Anything to do with money will have risk attached. All that changes is the type & size of the risk,

Example: A low risk savings account protected by the FSCS up to £120,000.

Is at risk of inflation, this is where the same amount of money will buy you less, as time passes.

RPI% graph 1948-2025 -- gov.uk

https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/czbh/mm23

1. (a) SAVINGS: means cash in the bank/building society (Low risk)

 Best savings Rates: https://moneyfactscompare.co.uk/savings-accounts/

(b) INVESTING: means you are putting your money at risk; Think shares, bonds, gold etc. (various risk levels)


2, FSCS Protections

(a) Savings:

Only Banks, Building Societies & Credit Unions on the FSCS list are covered by the 
"FSCS Savings Protection" up to £120,000

(b) Investments: 

You may see something like "Your investments are protected by the FSCS"

They mean the "FSCS INVESTMENT Protection", where it may or may not be protected.

This basically says if a UK‑authorised platform

(i) Commits fraud or Fails (and you suffer a financial loss as a result) --- you should be protected up to £85000

(ii) Normal investment risk or poor performance --- has no FSCS protection

(c) FSCS Protection Checkers: https://www.fscs.org.uk/check/

3. Use tax shelters wherever possible.

Pension: for the tax rebate, (you do not pay tax on the way in but on the way out)

Cash ISA,s: (Savings account you where you pay no tax)

Stocks & Shares ISA's: (Investment account where you pay no tax, at least for now)

4. Have an emergency savings account to cover at least 6 to 12 months of household bills and car/boiler break downs. You don't want to sell investments when their price may be low.

5. Any money you know you will need within 5 year should be held in either

(a) NS&I, where it is protected 100% as you are loaning  money to the UK Government. 

(b) Bank or building Society Account on the FSCS list where it will be protected up to £120,000.

6. Before investing make sure you have cleared any high interest debt such as credit cards etc.

7. Investing is for money you know you will not touch for at least 10 years.

This is because your odds of winning the game will be high.  The longer the better. 

8. You can make investing as simple or as complex as you like.

Simple can do just as well as complex.

In answer tot the question you asked about the next 2/4 years, I suggest you consider point 5, above,

HedgehogRulez

Does the friend bring any other benefits?

Albermarle

Approximately 35% in a lifetime ISA. 

Is the LISA a cash one or a S&S one ?

Normally if it is intended for use in a home purchase in the next few years, cash one is better.

Eco_Miser

Where is the emergency fund? I would be keeping it in an instant access cash ISA, along with the 25% of your savings.

Definitely stop funding your S&S ISA if you plan on spending most of your money on a house in the next few years.

Probably sell the S&S and transfer to a cash ISA while you still can. (It depends on whether you want/can afford to have investments while you are buying the house.)