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So, a 5k investment and £400 in return. I'm happy with that.
Is pretty much how I view and treat National Bonds. Yes I've won money on them, but not enough for me to consider it a good investment, or even as a means of saving really for that matter, it's just about the tax benefits for me.
Workplace pension with Aviva, stocks and shares ISA with AJ Bell and a SIPP with Vanguard.
Supportact said: [my style is] probably more an accumulation of limitations and bad habits than a 'style'.
I did - I've recently removed and put into those accounts to protect from a dip. I'm about to move house, so I'll be needing the cash I still drip feed into the isa though.
Supportact said: [my style is] probably more an accumulation of limitations and bad habits than a 'style'.
The chunky prizes of £5k and above are 10% of the pot, and the £500 and £1k prizes are another 10%, so even if you completely discount those as unobtainium the small prizes are 80%. That would bring the return down to 3.5% which is roughly what I see over a year. That's tax free and you get a free shot at the big ones.
https://www.nsandi.com/get-to-know-us/monthly-prize-allocation
Supportact said: [my style is] probably more an accumulation of limitations and bad habits than a 'style'.
https://www.moneysavingexpert.com/savings/premium-bonds/
But I wouldn’t use PremBonds as my *only* investments pot.
Supportact said: [my style is] probably more an accumulation of limitations and bad habits than a 'style'.
I get wins most months but the most I ever got for a single bond was £1000 - which was nice.
You got any money left to save after that? buy some bricks and mortar..ie a property by either paying off your mortgage early or buying another one.
If you've got a couple of children, and you intend on living at least 7 years, and you have loads of lolly lying about, you could always put 20K into their ISAs every year - that'd be a good way of avoiding their inheritance tax / building up a house deposit / etc.
For me, the best risk-free way to store money, in order, would be - assuming you were a very high earner:
1) 60K salary sacrifice into pension (or more if two earners) - the 60K comes off gross income, so it only "costs" 33K from net per year assuming you were a high tax payer - and the employer would have to contribute a portion of that anyway. (though you'd suffer the "taper" if you earned too much, whereby the tax break would fade out and that 33K cost would rise back up to 60K).
2) 40K into own and spouse's ISA (saving 3333 a month at 5.5% would provide income of £1000 per month after 5 years, which is the same as a single person's state pension, and would have grown 29K and be worth 229K)
3) 4K into each child's LISA (the government contributes an additional 1K for every 4K, so after 5 years at 3%, a total investment of 20K would be worth 27K) - if you had 2 children that would cost 8K
4) 16K into each child's normal ISA (probably stocks and shares if they're young) - for 2 children that would cost 32K
So far that would cost you the equivalent of 113K-140K a year from net income, or 9,400 - 11,600 a month . Then:
5) Anything else into 6% rate building societies
6) Use Premium Bonds to store cash while you're deciding what to do with it.
That's if you don't fancy investing "actively" with houses, stock market, etc.
Supportact said: [my style is] probably more an accumulation of limitations and bad habits than a 'style'.