What to do with £20k redundancy payment

Philip624

My wife will receive £20k redundancy payment in March 2010. We would like to invest this money for a few years at least until we decide what to do with it, ideally we would like to extend our house but we are in no rush to do so.

What are our various options for investing this money? We dont want to take any high risks and I assume it would be best to invest £7200 in an ISA under each of our names leaving £12800 to invest rather than investing the whole £20k.

Grateful for any views.

McKneff

just curious, how can you know that she is being made redundant in 18 months time? Normal redundancy is 'off the premises now, a week, month or 3 months notice'

I wouldnt think about it too much about how to invest, isa rules can change
dramatically,

Philip624

she is taking voluntary redundancy with an agreed leaving date of March 2010

Farway

Philip624 wrote: »

My wife will receive £20k redundancy payment in March 2010. We would like to invest this money for a few years at least until we decide what to do with it, ideally we would like to extend our house but we are in no rush to do so.

What are our various options for investing this money? We dont want to take any high risks and I assume it would be best to invest £7200 in an ISA under each of our names leaving £12800 to invest rather than investing the whole £20k.

Grateful for any views.

If you do not want high risks then investing is not a good home for your money, just look at todays markets

Far better IMO to stick it in high interest savings account until you need it for your extension

Etccarmageddon

I'd put it in a cash ISA and/or Index Linked Saving Certs with National Savings. right now the way things are I'd go for the national savings option as your money is safer there than in a bank or building society.