Investment Advice for the worst investor ever!
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DavePower
Posts: 14 Forumite
Hi, I’d appreciate guidance from members on investments and savings.
Currently 58 yrs old, married, in stable employment not in the best of health (chrons) pondering retirement, not before 65.
I have reasonable pension arrangements and estimate I should be able, at 67 to draw around £500 total, a week having my first pension
(RAF) starting at 60 of just below £100/ week.
My pondering is on my capital, my house is paid for and I have amassed £67k in premium bonds, not the best investment but was just somewhere to put spare cash.
Any advice on how you would proceed greatly appreciated
Currently 58 yrs old, married, in stable employment not in the best of health (chrons) pondering retirement, not before 65.
I have reasonable pension arrangements and estimate I should be able, at 67 to draw around £500 total, a week having my first pension
(RAF) starting at 60 of just below £100/ week.
My pondering is on my capital, my house is paid for and I have amassed £67k in premium bonds, not the best investment but was just somewhere to put spare cash.
Any advice on how you would proceed greatly appreciated
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Comments
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What is your aim ?0
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You could consider moving some of your cash savings (premium bonds) into your pension where you will receive tax relief. Saving into a SIPP may allow you to build a pot which you could then draw upon to allow you to retire a little early, before your other pensions start.
But as Alistair says, without knowing what your aims are, it's difficult to offer any suggestions. For example, the suggestions above are based upon my own aim to retire early (as soon as possible) which may not be the same as your aims.0 -
You could consider moving some of your cash savings (premium bonds) into your pension where you will receive tax relief.
Tax relief going in; taxed coming out. Plus whatever the pension is invested in could fall in value. It's an option to consider though. Personally I've never paid savings into a pension as it just doesn't make sense to me; only earnings above the 40% tax threshold to mitigate my tax bill.0 -
Thanks guys,
Sorry my aims,,
Like most I d like to maximise my income, obviously, in retirement but without putting any more into my occupational pension. Always been a great believer in minimum input for maximum benefit with regards to occupational pensions.
I’d like to maybe have a bash at stocks and shares ISA’s but haven’t a clue where to start.0 -
I’d like to maybe have a bash at stocks and shares ISA’s but haven’t a clue where to start.
You could do worse than starting here;
https://monevator.com/category/investing/passive-investing-investing/0 -
Currently 58 yrs old, married, in stable employment not in the best of health (chrons) pondering retirement, not before 65.
...
Any advice on how you would proceed greatly appreciated
So that's a minimum of about 7 years before you'll retire. So normally that would mean savings rather than investing, but...
How much retirement income will you need?
What is your partners retirement position?
Have you checked your state pension and how much you'll get and your partner checked their's?0 -
Notepad_Phil wrote: »So that's a minimum of about 7 years before you'll retire. So normally that would mean savings rather than investing, but...
How much retirement income will you need?
What is your partners retirement position?
Have you checked your state pension and how much you'll get and your partner checked their's?
I hope my current pension arrangements will be adequate and the £500/week figure includes my full state pension that I have checked
I have enough contributions to be entitled too as does my spouse, although she does have negligible private/occupational pension arrangements.0 -
EdGasketTheSecond wrote: »Tax relief going in; taxed coming out. Plus whatever the pension is invested in could fall in value. It's an option to consider though. Personally I've never paid savings into a pension as it just doesn't make sense to me; only earnings above the 40% tax threshold to mitigate my tax bill.
If the OP intends to retire early, and uses a SIPP to fund those early retirement years (s)he could withdraw £12500 pa tax free. Add another £12500 pa from a partner's SIPP and a couple can achieve £25K pa tax free income which (for us) is enough to live on, so tax relief on the way in and no tax on the way out. For anyone over 55, this is an instant 25% return without having to put any capital at risk. OP is unlikely to see a 25% return on their premium bonds.0 -
Having sufficient income, while minimizing the chance of losing capital, is a better aim. (There are valid investments (as well as scams) that pay high income but at the risk of depleting capital.)Like most I d like to maximise my income, obviously, in retirement but without putting any more into my occupational pension. Always been a great believer in minimum input for maximum benefit with regards to occupational pensions.
I’d like to maybe have a bash at stocks and shares ISA’s but haven’t a clue where to start.
You could also get the pension benefits mentioned (no/low tax) from a SIPP, where you basically have the same investment opportunities as with an S&S ISA, but different taxation regime.Eco Miser
Saving money for well over half a century0
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