£2000 to save/invest then £100-£200 per month

[sbarclay62]

Morning all,

I've just come into some cash and for the first time in my life i've no debt and have no urge to waste it (which is exactly what would've happened pre covid). I've never had any savings so its all quite alien to me.

Whats the best/easiest/safest solution for some long term saving? My plan would be put the £2000 into an account then top it up each month. If its a quiet month spending wise i could put £200 in (i.e Jan and Feb when there's not much socialising), a normal month £100 in and if its a busy month (xmas or going on holiday) then may skip it and put nothing in.

I guess the best returns would be a pension but that means i couldn't access it for emergencies or what have you. ISA interest rates seem ridiculously low, buying individual shares seems quite risky. So thinking a stocks and shares ISA or bonds. Any opinions on these two? Any other thoughts?

Blitzed all the money I earnt during my teens and twenties (and had a blast so no regrets) but now starting to be more sensible with regards to money and saving

[sbarclay62]

duckson said:

With a long term (5+ years view, preferably higher) something like the Vanguard Lifestrategy is or can be low risk, low fees and will likely return more than a savings account.
Also consider the Intelligent Money thread (sticky at top) as they do similar products and provide other financial help for no cost.

Zero risk you are looking at premium bonds or the usual savings accounts, 0.5% I guess for instant access.

Comacchio said:

I've recently started a stocks & shares ISA with Vanguard investing an initial £500 plus a regular investment of £250 pcm into:

https://www.vanguardinvestor.co.uk/investments/van...

My intention is to keep this going for 25 years at which point I'll be 55 with hopefully my mortgage paid off - I'll then start to draw down from the S&S ISA to bridge the gap between 55 and 68 (Likely this will go up to 70 by the time i reach state pension age - my DB pension is linked to state pension age but can be accessed earlier at a 5% per year reduction) as I'd like to retire early. I've also got a S&S LISA (With AJ Bell) that I contribute £150 pcm into, with the intention to access this at age 60.

If you're hoping to leave the money for a long period of time (10-20 years) doing something similar might work out. Worth noting that if you do need to access it in an emergency you're at the mercy of the markets - could be down by a large margin if you're unlucky.

I've seen Vanguard mentioned lots on the finance and investment forums etc. Checked them out and being drawn towards LifeStrategy® 60% Equity Fund. Could maybe play it safe and opt for the 40% fund but i'm young enough (thirties) and do enjoy a wee gamble it has to be said.

Mr Pointy said:

A S&S ISA is a great idea but if you also need to be thinking about pensions as well; maybe split the money every month. Set up a DD so you don't have to make the transfer every month & in the months you have a bit extra top up the contributions manually. Look into Lifetime ISAs as well if buying a house might be a factor in the future.

Pension is surprisingly ok. Had a decent career before this that had good matched pension contributions. Still paying into one just now aswell.

Comacchio said:

Lots don't class a mortgage as a debt. I class myself as in debt if I have money on my CC or a personal loan.

I'm in that boat. A home is a need so not really classing that as debt to be honest. The mortgage is pretty cheap and it will be cleared off well before retirement so happy with that. When I said debt-free i meant from "wants" i.e storecards, credit cards, car finance, loans etc.


Thanks everyone for your replies.