Newbie needs help please

jakeyboy_3

Hi I have trawled this site and think I have a case of
"TOO MUCH INFORMATION"

I want to make the right investments for my future but there is so much to take in so here goes

My Finances
£63000 owed on a 13 year mortgage

1. My Wife has £2500 to invest

2.I have just opened a NS&I Cash Isa with £500 and plan to add more to as soon as possible.

3.My 2 kids have £1500 Each in National Savings Bonus Bonds

4.I am opening on Friday a Halifax Childrens Regular Saver account and intend to save £50-£100 per month for each child

My Plans are

1.Invest £300-£400 per month regularly between my wife and I

2.The odd lump sum of between £500 and £1000

3.Maybe use the money I can save up over the next 3 to 4 years to put a deposit on a property to rent out.


My Wife and I have no pension schemes I am self employed.

Is just saving and no pensions the best way to invest money for our future ?

Should my wife get a pension I was just thinking that maybe she could use £200 a month before Tax and NI is so then gain the %20 lost through tax or is it better to save?

I dont mind juggling things about or swapping accounts over regularly e.t.c

Any ideas, help, comments, ideas would be great as I am worried about getting to 65 and having nothing!
thanks in advance

jakeyboy_3

any ideas anyone please

dunstonh

My Wife and I have no pension schemes I am self employed.

As you are self employed you will get lower state pensions than an employed person. Assuming full qualification you will get only £4500 a year state pension.

Is just saving and no pensions the best way to invest money for our future ?

You need to realise the difference between saving and investing. Saving is using deposit and cash based plans. Investing is longer term risk based products. Cash is great for the short term but if you are planning long term you are going to make it harder for yourself if you stick with cash.

From an income only point of view, pensions are the best option. Nothing conventional beats them. In reality a combination of pensions, cash ISAs and stocks and share ISAs is usually the best option.

Any ideas, help, comments, ideas would be great as I am worried about getting to 65 and having nothing!

Quite right too. The thought of living on £4500 a year should concern you.