Currrently I have runway in a savings account with Lloyds, which earns basically no interest at 0.2%. Should I invest it instead?
Inflation in the UK is high at around 9%, so if my understanding is correct this means my runway is decreasing in purchasing power by 9% a year, which would be £900 per year for £10,000 of runway.
I have a Vanguard Target Retirement investment fund, following advice in I Will Teach You To Be Rich, which I put money into each month. Would it be sensible to put all my runway in here? It seems this might be risky, especially given that the value of the fund can go up and down, and the point of runway is to provide security.
I’m aware of online savings accounts such as Marcus which have slightly higher interest of 1.3%. Currently I kept my runway in Lloyds to make it easier to transfer money in / out of it from my current account.
[Question] Should I invest my runway?
Currrently I have runway in a savings account with Lloyds, which earns basically no interest at 0.2%. Should I invest it instead?
Inflation in the UK is high at around 9%, so if my understanding is correct this means my runway is decreasing in purchasing power by 9% a year, which would be £900 per year for £10,000 of runway.
I have a Vanguard Target Retirement investment fund, following advice in I Will Teach You To Be Rich, which I put money into each month. Would it be sensible to put all my runway in here? It seems this might be risky, especially given that the value of the fund can go up and down, and the point of runway is to provide security.
I’m aware of online savings accounts such as Marcus which have slightly higher interest of 1.3%. Currently I kept my runway in Lloyds to make it easier to transfer money in / out of it from my current account.
For context, I live in the UK.