how to invest redundancy?

ukoberon

Hi, Well after 16 years with 1 company I was made redundant in November. Good news is that I have landed a new Job which I start in the New Year.

I ended up with a significant redundancy payment and severance etc so after paying off the car ( which I really want to do so that i dont have that worry if things go wrong again) Im left with around £20k to save/Invest.

With everything thats gone on the last year Im totally perplexed :eek: as to the best investment options. Would welcome any thoughts and experience you have all had.

I am hopefull that the new job will work out and but dont want to count my chickens just yet so may need to access the funds during the year.

Any thoughts?

gozomark

how much of the funds might yo need to access during the year, and how much could you lock away for say 5 years plus ?

ukoberon

well if the new job goes as planned (probationary period etc ) then i wont need to access at all. However i expect that i would be looking to access the money in 2010 in any event.

gozomark

in that case you shouldn't invest any (eg in shares), but only save - have you used this years ISA allowance

ukoberon

No i havent used any ISA allowances - (never had the money tod do so til now). From what i read though there is a max that i can put in an isa and that still leaves asignificant amount to save.

Farway

ukoberon wrote: »

No i havent used any ISA allowances - (never had the money tod do so til now). From what i read though there is a max that i can put in an isa and that still leaves asignificant amount to save.

Are you married? Pass 3,600 to spouse to save in a cash ISA in her name

That has removed 7,200 from your pot, new ISA year starts April 5th, that takes care of another 7,200, so only need around 5k in instant access [just in case] highest interest savings account you can find

ukoberon

Farway wrote: »

Are you married? Pass 3,600 to spouse to save in a cash ISA in her name

That has removed 7,200 from your pot, new ISA year starts April 5th, that takes care of another 7,200, so only need around 5k in instant access [just in case] highest interest savings account you can find

Thanks Farway - will look to do this i think. (so long as the other half doesnt run off with the cash :rotfl:i should be fine!!)

gozomark

You'll be quids in on lower living costs if she does, so win-win either way

dunstonh

You shouldnt do any investing until you know that you are stable in the employment. Stick with savings for now.