£1000 pm

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henryandmay
henryandmay Posts: 54 Forumite
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If you had £1000 pm to invest, where would you invest it and why?
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  • eskbanker
    eskbanker Posts: 31,054 Forumite
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    It obviously depends on individual circumstances, in terms of age, employment, family, health, income, other assets, timescales, objectives, risk tolerance, etc, etc.

    What did you think of the suggestions you got last time you asked, at https://forums.moneysavingexpert.com/showthread.php?t=5810416?
  • henryandmay
    henryandmay Posts: 54 Forumite
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    I'm still confused tbh on what to do with it :-(
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    I recently looked back to see what we did when we had plenty of spare monthly cash. Although I had forgotten all about it until I looked, I had opened an income protection policy (then called Permanent Health Insurance). I took out some extra term life insurance. I contributed to the contemporary version of a personal pension: I put the money into a Far Eastern Equities fund. I bunged money into a PEP each (like the modern S&S ISA) investing particularly in international investment trusts. We also bought some Index-Linked Savings Certificates, and contributed to a Tax Exempt Savings Policy each at a Friendly Society. It all did terribly well - the secret was to happen to have spare money available when equities were about to zoom upwards in price: then all I had to do was sell them at the right moment. If I'd known about gold as an investment vehicle I might have bought some of that too because I liked the idea of diversifying.

    And then our income and expenditure pattern changed dramatically and the accumulation stopped. It was good while it lasted.
    Free the dunston one next time too.
  • jimjames
    jimjames Posts: 17,619 Forumite
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    henryandmay wrote: »
    If you had £1000 pm to invest, where would you invest it and why?

    Pension and S&S ISA because investments are better than cash long term and I get tax relief on pension
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Terry_Towelling
    Terry_Towelling Posts: 2,279 Forumite
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    edited 23 May 2018 at 4:24PM
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    How much do you pay per month for your £79K mortgage? You say you'll put bonuses and like towards overpayments. You could just shove the £1K per month on top and clear it in no time at all.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    henryandmay wrote: »
    If you had £1000 pm to invest, where would you invest it and why?

    What are your short, medium and long term objectives?
  • henryandmay
    henryandmay Posts: 54 Forumite
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    Thrugelmir wrote: »
    What are your short, medium and long term objectives?

    Short = save and invest as much as I can each month

    Medium = Hit £100k in savings/investments by the time I'm 45. Im 35 at mo so thats 10 years

    Long = retire at 55 with substantial amount in savings / investments and pensions

    Not sure if above is poss?
  • JohnRo
    JohnRo Posts: 2,887 Forumite
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    Is this £1000pm surplus to all other financial requirement now and in the future?

    You'd have to be spectacularly unlucky or reckless not to hit your £100K in 10 years target, with a regular £1Kpm contribution.

    What about attitude to risk, have you considered the psychological effects of potentially huge falls in valuation, or protracted negative periods that test your resolve?
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • Paul_DNAP
    Paul_DNAP Posts: 751 Forumite
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    henryandmay wrote: »
    If you had £1000 pm to invest, where would you invest it and why?


    I would probably bump it into my pension pots. I'd up my AVCs to my current work pension and up the direct debit into my personal pension (which was set up from my old work). I'd probably adjust the extra contributions about in a ratio of about 30:70 as I've been thinking about making that older plan a bit better funded to reduce the exposure should one of my other pots go the Maxwell way.
    (Although I could be wrong, I often am.)
  • Terry_Towelling
    Terry_Towelling Posts: 2,279 Forumite
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    I don’t think anyone else has yet, so let me be the first to congratulate you for wiping your debts (mortgage excepted – still haven’t said how much you’re repaying per month; none of my business I suppose). I’ve read your other thread too, so congratulations for seemingly living quite frugally. What with tax, NI, mortgage, 5% pension contributions, council tax etc etc you are doing well to come out with £1000 pm to spare.

    I think you should look behind the simple question of what to do with your cash. Your longer term objectives to retire at 55 are easily achieved if you continue to live frugally and as long as life treats you well. BUT Are you guaranteed to keep paid employment for the next 20 years? Will you get fed up of living so frugally? Are you married/single/living with? – your alias suggests a relationship. If so, don’t forget to protect them against things like having to sell the house to pay for your long-term care if you ever need it. Even more personally, what about kids? – do you have any or will you have any? All these things (plus more) will affect your overall strategy.

    I stopped working when I was 49 with savings around 50% of what you will have at that age and no prospect of any income (except Carers Allowance) until a reduced final-salary pension kicked in last year. What saved me was that I had done exactly as you have and cleared my debts (including the mortgage) by age 42. Regardless of how affordable a mortgage might seem, it might not always be that way and paying it off is like having a very heavy weight taken off.

    Anyway the point of all this drivel is to say that anyone capable of living as cheaply as you can should have no difficulty retiring at 55 with your workplace pension and 20 years of accumulating £1K per month plus returns, so you may as well stop worrying and just shove most of it in simple easy access/notice/fixed rate accounts that pay the best interest rates. Why would you need any more than that? – especially if you don’t have any kids to leave it to - and, yes, I do know that inflation will reduce the value of cash over time.

    Doubtless no one else will agree with me because there are other ways to achieve higher returns if you want to work at it a bit more.
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