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Savings/Investment advice appreciated

Hello all,

I'm looking for some advice on savings and wondered if someone out there could help. After many years of debt I've finally cleared it all (except mortgage) and am now in the position where I have a £10,000 cash sum and approximately £1000 per month to save with. I've done a little research but to be honest the choices available can be overwhelming :) But my thought process at the moment is as follows:

Use the £10,000 cash sum for long term investment (I don't plan to access to it) and in addition add 40% of the £1000pm each month to this account/fund.

Then increase my mortgage payments each month by using another 40% of the £1000pm. My mortgage is £125,000 and is fixed at the moment at

4.6% and I'm allowed to pay £500pm extra each month.

The final 20% of the spare cash would be placed into a instant access account to build up a small contingency fund for everyday life things.

Does this seem like a sensible plan or does anyone else have any ideas that would be more beneficial? Also, the mortgage and the instant access is reasonably straightforward options but does anybody have any opinions as to the best place to put the £10,000 (plus the 40% each month) for long term investment? I'm a little risk adverse and probably would not consider any large risk.

Finally, if it would be best to speak with an IFA, are there any tips for finding and choosing one?

Thanks for reading this and I welcome any discussion points you may have.

Caveman

Reply to
Caveman
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Congratulations - that's a magnificent achievement !

Work through this - TMF is the best personal finance site in the UK, the forums are a huge source of information.

Previous similar posts here -

A flexible CAM mortgage seems the obvious thing if you can get out of your current mortgage. You will have to make the decision whether you're disciplined enough to pay it off given your previous debt problems. Personally, given the way you've handled it, I'd say you were.

hth

Daytona

Reply to
Daytona

Thanks Daytona, that's very helpful.

I was just about to say I didn't have debt problems but I guess any debt is a problem :) But yes, I am more disciplined than I used to be!

Thanks again. Caveman

Reply to
Caveman

The best bit of advice I had ever was to pay my mortgage off. A mortgage may not seem like a debt but its just like having a credit card bill an overdraft etc etc. The peace of mind in having paid you mortage off or at least reduced it is fantastic.

Reply to
preasure

I agree, it's particularly pertinent advice for the current environment where, even if the op wanted to invest, equities and property are yielding less than base rates representing poor value for money.

Daytona

Reply to
Daytona

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