Ndubuisi 'Andy' Egwim explains why the order of your investments matters. He uses a 56-year-old GP as an example and warns that pensions and stock-market investments are wrong for money you need within 1-2 years, like house deposits or school fees.
The point is that the order matters. The sequence matters. You have to think about these things. The same investment in the wrong wrapper at the wrong time can quietly cost you a lot of money, thousands of pounds. Okay, so basically enough. If you've made this mistake, I don't want you to feel bad. There are other tax years coming. You can learn it. This is the part that many doctors miss. That GP was 56 years. So when people say, well, pensions are locked away for years, yes, that's true. But in her case, The money wasn't being locked away for 30 years because basically she was already eligible to draw it. She was already at an age when pension access was available, basically because it's 55 now. So your SIP is basically can access it at 55. And of course it's changing in the future from 2027, it will be 2028, it will be 57. If she was younger, that would be totally different. If you are 32 and you need the money in the next couple of years, the SIP may be completely inappropriate. In fact, you shouldn't be investing money you need in the next couple of years. saving for a house deposit, school fees, an emergency fund, maternity leave, relocation, or anything you might need soon, a SIP may not be the right place because basically it's pension. In fact, if you need the money in the next 1 to 2 years, that money should probably not be invested in the stock market at all.
