Wealth Check: 'I've got a fiancée, house and an Isa. What's next?'

Christopher Mckibbin is a recent graduate working in London. He has just bought his first home with his fiancée, and is starting to think about wedding plans.

Christopher Mckibbin is a recent graduate working in London. He has just bought his first home with his fiancée, and is starting to think about wedding plans.

Mr McKibbin, who works in sales support at an outsourcing company, has little debt other than his student loan and his mortgage, which he took out with his fiancée last autumn. He saves into an Isa and into his workplace share-save scheme, putting away almost £200 a month.

However, he does not have a pension plan, and wants to know more about shares; he also wants to set aside cash for the wedding. We put his case to Ben Yearsley at Hargreaves Lansdown, Phillipa Gee at Torquil Clark and Chris Green at Momentum Financial Services.

CHRISTOPHER MCKIBBIN, 23, SALES SUPPORT STAFF

Education: Nottingham University, BA Law

Debt: £8,500 in student loans, interest-free graduate overdraft of £1250

Salary: £21,000 a year

Savings: (monthly) £120 into an Isa (C&G) and £75 into workplace share-save

Property: home owned with fiancée, share of mortgage £410 a month (5-year fixed rate with Abbey at 3.99 per cent)

Pension: none

Outgoings: £77.60 travel; other £150-200 monthly

DEBTS

Mr McKibbin has his priorities right, says Ben Yearsley. "He is saving regularly and his debts are under control. The high level of student loan is a worry, but £8,500 seems to be the average figure these days." But his graduate overdraft could have a sting in the tail. He should find out when the interest-free credit runs out as the rate could shoot up. Usually graduate loans run for three years after leaving college. Ms Gee recommends building up a cash reserve to pay it off. Mr McKibbin will need to budget for student loan repayments.

MORTGAGE

He was lucky to buy his home when mortgage rates were low. Our panel agrees that his five-year fixed rate looks good value. But Ms Gee cautions that he and his fiancée should allow for higher repayments when the fixed rate ends, in case rates continue to rise.

PENSION

Mr McKibbin can pay up to £3,675 a year into a stakeholder pension. Mr Green calculates that if he contributes £200 a month, this will be topped up with tax relief of £56.41 a month. Mr McKibbin should, Mr Green says, watch where his pension is invested. But at his age he can be more aggressive with risk. Although pension investments are inflexible, Ms Gee says it is still worth starting early. Mr McKibbin should join his employer's scheme if his employer makes a contribution.

SAVINGS AND INVESTMENTS

Mr McKibbin's Isa and share-save savings scheme get the thumbs up from our panel. He should keep a close eye on interest rates on the cash Isa, Mr Green suggests, as deals do fluctuate. Intelligent Finance, for example, has a rate of 4.6 per cent through the internet. Mr Yearsley says he could consider a stocks and shares ISA, as he is not using that tax break. Even without a lump sum to invest, Mr McKibbin could start an investment Isa with as little as £20 a month.

WEDDING

The average wedding now costs about £20,000. Although Mr McKibbin and his fiancée have not yet set a date, it makes sense to start saving. Ms Gee suggests a cash Isa for wedding savings, as it does not tie up the funds.