Best way to invest 20k?
Discussion
Z064life said:
Hi All,
What's the best way to invest 20k? It seems like isas don't offer rates above inflation. I have a repayment mortgage, perhaps dumping the money into that would be good (lower repayments).
If it helps, I am 33, work full time.
At 33 you may want to consider a Stocks & Shares ISA, rather than a cash one (which as you say, are paying terrible returns).What's the best way to invest 20k? It seems like isas don't offer rates above inflation. I have a repayment mortgage, perhaps dumping the money into that would be good (lower repayments).
If it helps, I am 33, work full time.
Equally a pension/SIPP investment may be worth considering as you would then get all your income tax back on this. (so £20k invested becomes £25k virtually overnight and if you paid the higher rate of tax on this you can claim this back from HMRC on top of this).
Alternatively paying off a chunk of your mortgage is never a bad thing.
So there are some options, just shout if you would like to know more about them!
nickfrog said:
Grabbing HMRCs rare generosity would be my choice so I would invest in a long term SIPP at "medium" risk levels. If you're happy to never see your money until you're 55 or 57 or whatever, of course.
If you're a 40% tax payer and thinking long term, then a SIPP is a no brainer. Swern1 said:
What’s your objective ?
Best way to achieve ... ?
This.....Best way to achieve ... ?
You need to set a target...X K in N years,
Assume a realistic annual gain of around 7% then work out what you need to invest each Month when added to your 20K. to reach your goal.
If you don't set a target, you aren't going to reach it.
With regard as to where to invest depends on the term of the investment, 5 11, 15, the longer the term the more aggressive you can be.early on.
If you just want a quick "blip" then look for fund that will benefit from a US China trade deal, mostly priced in but should be good for a few percent once it happens (which it will)
Depends if you need the £20k back anytime soon. If not, then bung it in a mixture of Index trackers in an ISA for useful easy growth, or pension for the really long term. Safest useful option could be to repay a portion of the mortgage, no risk to capital but reduced benefit due to low interest rates.
All depends on your risk attitude and time you can do without the cash.
All depends on your risk attitude and time you can do without the cash.
What do you want do with it? Are you saving for anything, or is it just cash in the bank doing nothing? Higher rate taxpayer? Already got a pension?
S+S ISA is a good start if you need access to the money within a few days/week.
Pension takes advantage of tax allowances if you dont need it until retirement.
Paying off the mortgage is not the worst if you don't like risk. Better than cash ISA.
S+S ISA is a good start if you need access to the money within a few days/week.
Pension takes advantage of tax allowances if you dont need it until retirement.
Paying off the mortgage is not the worst if you don't like risk. Better than cash ISA.
nickfrog said:
Grabbing HMRCs rare generosity would be my choice so I would invest in a long term SIPP at "medium" risk levels. If you're happy to never see your money until you're 55 or 57 or whatever, of course.
Agree with this, and contribute to my own. But do you trust we will have our hands on the funds at 57 in 15 years time or greater?I'm 40 now and expecting the goal posts to move a few years. And unlike the French, suspect we will roll over and let them screw us over.
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