Need help with investing/saving £100,000

jem16

My husband died 3 years ago and his pension scheme paid put a lump sum plus an annual pension. Mainly because of this and the fact that I'm still in full-time employment, this pushes me into the higher rate tax bracket, mostly through the interest I'm making on my savings.

I have maximised my cash ISA, bought £20,000 of premium bonds ( the maximum at the time) and purchased one National Savings Certificate. This leaves about £135,000. I'd like to leave about £35,000 in an easy access account in case I need it as my two sons are still at university.

However I think I'm now at a stage where I would like to look at doing something with the £100,000 which would help reduce my tax liability and still allow for some growth.

I have to add that I would not be comfortable with any risky options. I am going to be 50 this year and within 5 years my sons will both be finished university and hopefully self-sufficient. This may allow me to look at early retirement when I'm 55 but at the moment my sons are dependent on my income.

Can anyone give me any pointers?

dunstonh

I have to add that I would not be comfortable with any risky options.

What do you mean by risky? It is not an on or off situation. Its a sliding scale. Most of the options to reduce your tax liability would involve looking at areas that include risk of some sort. This can be minimal risk, such as investments including gilts, fixed interest, commercial property through to the higher risk areas.

cheerfulcat

Hi, jem,

The thing about risk is that it is there even in seemingly safe assets - cash is far less safe than most people think, for example, because of the effects of inflation. And you need to take *some* investment risk if you wish to get a better return than cash.

Do you contribute to a pension?

jem16

OK I should think I mean minimal risk, or at the very most low risk.

jem16

cheerfulcat wrote:

Hi, jem,

The thing about risk is that it is there even in seemingly safe assets - cash is far less safe than most people think, for example, because of the effects of inflation. And you need to take *some* investment risk if you wish to get a better return than cash.

Do you contribute to a pension?

Yes I'm currently contributing to my teacher's superannuation scheme including buying back years. At the moment I'm paying the maximum 15% allowed.

jem16

No more pointers anyone?

Can anyone recommend a good IFA in the Glasgow area?

montycat_2

Hi Jem,
I lost my husband 6 months ago and I have placed a large sum in a Norwich Union Portfolio Bond -5 years .My initial investment is guaranteed .
I also have 2 savings accounts which pay interest and one ISA .
I don't work full time though so my income is minimal .
I used the bulk of my money to pay off my mortgage .
I went to 1 Building Society -2 High street Banks and ,an IFA .
The building society came up with a good plan and ,my IFA agreed .
Just take your time and weigh up all the options .

EdInvestor

montycat wrote:

Hi Jem,
I lost my husband 6 months ago and I have placed a large sum in a Norwich Union Portfolio Bond -5 years .My initial investment is guaranteed .

What is the money actually invested in?

Judging by what she says above it will probably be too risky for the OP.

However if it isn't, she should read this thread on much cheaper alternatives to insurance bonds, which are unfortunately - but predictably - very popular with both bank and building society salesmen and advisors, because they have very high charges.

jem16

montycat wrote:

Hi Jem,
I lost my husband 6 months ago and I have placed a large sum in a Norwich Union Portfolio Bond -5 years .My initial investment is guaranteed .
I also have 2 savings accounts which pay interest and one ISA .
I don't work full time though so my income is minimal .
I used the bulk of my money to pay off my mortgage .
I went to 1 Building Society -2 High street Banks and ,an IFA .
The building society came up with a good plan and ,my IFA agreed .
Just take your time and weigh up all the options .

Thanks. I shall certainly take my time. At the moment I don't need an income from the money.

jem16

EdInvestor wrote:

What is the money actually invested in?

Judging by what she says above it will probably be too risky for the OP.

However if it isn't, she should read this thread on much cheaper alternatives to insurance bonds, which are unfortunately - but predictably - very popular with both bank and building society salesmen and advisors, because they have very high charges.

I had been looking at this thread although I'm not sure I understand all of it yet.

dunstonh

The NU portfolio bond is a very good bond wrapper and offers hundreds of fund links. The guaranteed option is with profits. The current version of the fund though is not the same as the one offered 5 years ago.

Its one of the very few with profits funds that offers good potential but has real guarantees and no MVR. Last one I did is running at just over 10.5%p.a. growth on capital and has 5%pa. withdrawn (paid monthly) on top of that. I'm pre-empting Ed saying with profits are rubbish there because this is one of the few execeptions.

The building society came up with a good plan and ,my IFA agreed .

In all my years, I have never known them offer something on the investment side that was better. On the deposit backed side, then yes, they can offer good savings accounts and fixed term savings accounts but if the investment was that good, the IFA could have placed it himself.

However if it isn't, she should read this thread on much cheaper alternatives to insurance bonds, which are unfortunately - but predictably - very popular with both bank and building society salesmen and advisors, because they have very high charges.

Ed keeps repeating this and he is completely wrong. If you read my response in the thread you will see I totally destroy Eds comments.