What to do with c£1k/month
Discussion
I was in a similar position a while back
Opened a LISA - free government money but locked away until you're 60. Mine is invested in various funds and has returned just under 6.5% so far.
Stocks and Shares ISA - 9% return so far and it's been invested in fairly run of the mill funds, Lindsell Train GE etc.
Overpayed the mortgage - you're already doing that.
In theory, I shouldn't need any of the above money until retirement age so the long term benefits should outweigh any short-term market jitters.
Opened a LISA - free government money but locked away until you're 60. Mine is invested in various funds and has returned just under 6.5% so far.
Stocks and Shares ISA - 9% return so far and it's been invested in fairly run of the mill funds, Lindsell Train GE etc.
Overpayed the mortgage - you're already doing that.
In theory, I shouldn't need any of the above money until retirement age so the long term benefits should outweigh any short-term market jitters.
Bit more than normal talk of recession this week. If the analysts are correct and a recession is coming then you are in a winning position with your £1k/month. Ignore premium bonds and paying off low interest rate debt (mortgage) and get it in a low-cost S&S ISA. And once it's in leave it alone - don't s
t the pan if it falls - you're starting off from scratch so have little to lose and lots to gain.
Just my 2p. I'm not a FA
t the pan if it falls - you're starting off from scratch so have little to lose and lots to gain.Just my 2p. I'm not a FA
Dave. said:
Just upped my pension to 16% + 8% from work....
Rest is going into Markus, and transfer to a S&S ISA every few months once I've built up a bit of a slush....
Cheers again for the input.
Sounds a lovely position to be in at your age. But never forget you can always upgrade your 4 cars to 4 better ones Rest is going into Markus, and transfer to a S&S ISA every few months once I've built up a bit of a slush....
Cheers again for the input.
Dave. said:
Current thinking after all the replies here is as much as I can comfortably into my pension, and anything leftover into a low to medium risk ISA.
At your age, I would *personally* be far less worried about "low-to-medium risk". You & the missus already have 100k of totally safe* Premium Bonds. (but susceptible to losing out to inflation ;-)
Clearly only you can decide your risk profile, & the fact you have eschewed kids tells me you are not one to throw money away (!), but given you are (I guess?) talking about 10-30 year investments, I'd be drip-feeding (look up "pound cost averaging') into a higher risk portfolio.
Either way, it sounds like you are well sorted, well done!
Edited by mikeiow on Wednesday 21st August 14:29
Dave. said:
Cheers Phooey, that did cross my mind yesterday when looking at the history of the FTSE and Dow Jones graphs.
Think I'll hold off a couple of months and see if it does drop, then I'll be on it like a tramp on chips.
If you're thinking of a S&S ISA then definitely chat with IM (JulianPH & co - see the sticky) to determine your requirements - both now and when you hit retirement age or earlier re: FIRE - and to present you with a range of options inc. retirement planning (deaccumulation period).Think I'll hold off a couple of months and see if it does drop, then I'll be on it like a tramp on chips.
With regards to recession speak, we need to distinguish between a technical recession (2 qtrs of negative GDP growth) and a prolonged one that could lead to a depression.
That said, I would hold fire for a lot longer than a couple of months if there is a drop (don't want to be too early).
With £1k a month, you'll be drip-feeding into whatever investment asset that you ultimately choose, therefore market price is not as important as if you had a significant lump sum - especially for the long-term (10 years+).
Edited by putonghua73 on Wednesday 21st August 17:11
putonghua73 said:
If you're thinking of a S&S ISA then definitely chat with IM (JulianPH & co - see the sticky) to determine your requirements - both now and when you hit retirement age or earlier re: FIRE - and to present you with a range of options inc. retirement planning (deaccumulation period).
Thanks for the recommendation putonghua73, we are happy to help all PHers in this way and there is no requirement or obligation to become a client at any point.Phooey said:
Bit more than normal talk of recession this week. If the analysts are correct and a recession is coming then you are in a winning position with your £1k/month. Ignore premium bonds and paying off low interest rate debt (mortgage) and get it in a low-cost S&S ISA. And once it's in leave it alone - don't st the pan if it falls - you're starting off from scratch so have little to lose and lots to gain.
Just my 2p. I'm not a FA
There’s also the precedent that a global recession will trigger a return to money printing to stop the thousands of zombie corporates from folding so we could be in for another round of rampant asset inflation etc. t the pan if it falls - you're starting off from scratch so have little to lose and lots to gain.Just my 2p. I'm not a FA
princeperch said:
I'd recommend having a kid - you can have a right laugh with them and they also are more than happy to soak up any excess liquidity you might have.
I recommend having two. They make you laugh, until you remember their nursery fees are 2.4k a month. Because you get a sibling discount after all. Then you cry. a lot.For now, yes.
I'm going to be putting some in a different fund in the near future, so may ditch one or two of the other ones, or just leave them with the initial £500 in and concentrate on others.
ETA - I'm thinking of something along the lines of having one of the funds as a short term (year or two), a mid term (5 to 10) and a long term (20+).
Whether or not that happens is yet to be seen.
I'm going to be putting some in a different fund in the near future, so may ditch one or two of the other ones, or just leave them with the initial £500 in and concentrate on others.
ETA - I'm thinking of something along the lines of having one of the funds as a short term (year or two), a mid term (5 to 10) and a long term (20+).
Whether or not that happens is yet to be seen.
Edited by Dave. on Tuesday 24th September 11:25
What doesn't compute with me is when people say they have a £1000 spare each month but an 100K mortgage. It's a no brainer, overpay the mortgage by £1000 because until this is paid, you don't have "spare" money. Sorry, just don't get it. I'll probably never understand other peoples logic.
chibbard said:
What doesn't compute with me is when people say they have a £1000 spare each month but an 100K mortgage. It's a no brainer, overpay the mortgage by £1000 because until this is paid, you don't have "spare" money. Sorry, just don't get it. I'll probably never understand other peoples logic.
Because up to a certain percent over will be free. Anything more will incur costs. OP has already stated he is overpaying what he can.chibbard said:
What doesn't compute with me is when people say they have a £1000 spare each month but an 100K mortgage. It's a no brainer, overpay the mortgage by £1000 because until this is paid, you don't have "spare" money. Sorry, just don't get it. I'll probably never understand other peoples logic.
Exactly this! 
I think people just like to think they have money that they don't. Having a £100K mortgage and £60K 'savings' feels good I guess.
I wonder what their advice would be to someone with no savings and a £40K mortgage who was thinking of remortgaging for an extra £60K just to pop it all in an ISA? Same situation entirely.
Till the borrowings are gone you don't have savings. You just have more borrowings than you should.
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