# Where to save or invest?



## stealthwolf (Sep 24, 2008)

We've known our first house was not our forever house but we've now set a deadline that we will move out in five years' time. We could both put away around £1000 a month total. Over five years, that would be £60k. 

So where's the best place to put the money?
Shove it in an ISA?
Savings account?
Somewhere else?

EDIT: I should add that I have an ISA that I'm putting in £250/month which is meant to encourage me to save and have some money set aside for emergency use.


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## DimitriUK (Jan 18, 2017)

Why the deadline? What is going to happen if you move in 4 or 6 years?
There is no best place as "best" means different things to different people.

ISA is a generic term it does not say anything about the actual investment.

Fixed interest ISAs pay a lower interest rate than a fixed interest savings account, keep this in mind when doing comparisons.


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## stealthwolf (Sep 24, 2008)

DimitriUK said:


> Why the deadline? What is going to happen if you move in 4 or 6 years?


Nothing but it's the target or aim. If it happens sooner or later, not a massive deal.



DimitriUK said:


> ISA is a generic term it does not say anything about the actual investment.


It's a stocks & shares ISA with medium risk investments.


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## DimitriUK (Jan 18, 2017)

for stocks use the calculator below and see what losses you are comfortable of bearing,
as volatility use 20%

https://www.optionstrategist.com/calculators/probability


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## nbray67 (Mar 22, 2012)

Why not over pay on the mortgage or look to an offset mortgage?

We pay nil interest on our mortgage as it's offset against savings, we also over pay on it and the term has reduced dramatically as the payments we currently make come straight off the capital.

No other savings based product comes near this in comparison as the interest saved on the mortgage is way higher than any interest based savings account.


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## DimitriUK (Jan 18, 2017)

nbray67 said:


> Why not over pay on the mortgage or look to an offset mortgage?


That is the best advice by miles if you have a mortgage.


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## garage_dweller (Apr 10, 2018)

> We could both put away around £1000 a month total. Over five years, that would be £60k.


Is that not £120k if you're both putting away £1000 a month. We have money invested in a couple of stocks & shares isas and some in premium bonds. Fundsmith has done well despite a very rocky past few months for the stock market, hargreaves lansdown multi manager less so and asia and emerging markets hasn't made a penny. Premium bonds has done well and it's risk free.

So if you're saving for a house you want very litle risk so I'd be sticking a large proportion of your saving into that every month.


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## stealthwolf (Sep 24, 2008)

nbray67 said:


> Why not over pay on the mortgage or look to an offset mortgage?


Currently in fixed rate deal for another few years. Plus the plan was to use the money for a deposit/SDLT/solicitors fees so I'd need to be able to access it.



garage_dweller said:


> Is that not £120k if you're both putting away £1000 a month.


No that would be £1000 each, not £1000 total (ie £500 each).



garage_dweller said:


> We have money invested in a couple of stocks & shares isas and some in premium bonds. Fundsmith has done well despite a very rocky past few months for the stock market, hargreaves lansdown multi manager less so and asia and emerging markets hasn't made a penny. Premium bonds has done well and it's risk free.
> 
> So if you're saving for a house you want very litle risk so I'd be sticking a large proportion of your saving into that every month.


Thanks. I'll read more into premium bonds.


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## ffrs1444 (Jun 7, 2008)

Get a Cheap House rent it out sell when you Retire Pays for it self.


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## stealthwolf (Sep 24, 2008)

ffrs1444 said:


> Get a Cheap House rent it out sell when you Retire Pays for it self.


We're thinking about doing that with our current house.


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## nbray67 (Mar 22, 2012)

stealthwolf said:


> We're thinking about doing that with our current house.


Bricks and mortar are sound investments and have a great rtn if you can rent it out.

We bought a newish build nearly 2yrs ago with sitting tenants who pay £575 per mth on a fixed 2yr contract. We are actually meeting them tomorrow to discuss another 2yr contract but at £600mth.

We, fortunately, or unfortunately, came into some inheritance 3yrs ago, so bought the rented property outright. We aim to keep it for a min 10yrs to rtn an income of circa £70k plus it's worth in 10yrs time, hopefully at a min £120k without a loss in value but hopefully, some profit in it. Like the offset mortgage we have, no savings plan can get anywhere near this income rtn.

If you're coy enough, costly expenditure you incur can be offset against your rented property. A good tax person is a worthy investment once a year.


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