#27 How to invest a lump-sum: ISA vs SIPP vs work pension?

The Money Spot™ - UK Personal Finance

#27 Nik asks: Hi Heather, just discovered your podcast and blog. Really inspiring. Could I ask a question? I have about £10k to invest and I’m considering three options. I’d really appreciate your help in deciding what to do. 1. Add to my passive investment portfolio which is spread across equities and bonds. It’s down about 8% since Feb. I’m not planning to access this for 7 to 10 years. I could put it in now as a lump sum or drip feed 2.5k every week for the next month. I see the advantage as cheaper units and likely long term growth. The disadvantage obviously is that the market could drop significantly again. I know it’s dangerous to try to time the market. 2. Invest in my SIPP which has similar funds but will lock my money in for the next 12 years. As a higher rate tax-payer I know there are significant benefits. 3. Buy added Civil Service defined benefit Alpha pension. A 10k lump sump would buy approximately £1k self added pension or £900 self and dependent pension. The defined benefit looks attractive but again the money would likely be locked in until I turn 67. Any advice would be hugely appreciated. Many thanks Nik M Related resource: https://www.katsonga.com/wealthblog/should-my-bonus-go-into-my-isa-personal-pension-or-work-pension Ask me a question: https://www.katsonga.com/coach.html Choose a book: https://www.katsonga.com/mybooks.html B. School: for money-wise, wealth-bound kids: https://bit.ly/3gnX2AA Support the podcast: In $: https://www.buymeacoffee.com/TheMoneySpot In £: https://www.patreon.com/TheMoneySpot Your way: https://www.paypal.me/katsonga