what to do with my savings...!?

heydee

Hi All,

I recently posted asking if anyone can advise on a good financial advisor, but all I got back were replies saying I'd be better off getting free advice on here....so here goes!

I'm actually interested in hearing generic advice for someone who has been fortunate and found himself in a position of having some easily accessible money & no debt; having cashed in my property at the top of the market; and having cleared all my cc and student debt.

The main problem obviously being that interest rates are so low and inflation is creeping up - I'm concerned that with my money placed where it is, it is actually decreasing in value...and I need to do something with it.

My situation:

1) I have been investing in a S&S ISA for 5 years and despite the recent dip, it has matured nicely (hedged across lots of funds and countries) - approx £30k. Since this is all tax free, I am happy to keep here long term.

2) I sold property in April and have £50k from that. In the bank.

3) I bought £7k of Gold in Nov07, with increase in value and exchange rate fluctuations, it's worth about £12k today.

4) I have about another £30k cash sitting in the bank from bonuses over the last few years.

5) I have £5k of Premium Bonds

So, essentially I have about £80k in the bank as cash and am wondering what to do with it to ensure it doesn't lose real value. I might actually profit take on some of the Gold as I can't see it making me much more on the initial investment.

Does anyone have any advice? The one thing I can say is that I will likely be keen to buy a new property when I sense the market might have bottomed (yes, no crystal ball...) or if I think I can pick up a bargain. The missus and I are keen to buy together. SO, I don't want to tie up the capital too much or for too long. I suspect we'll buy in about a year or so.

Any tips on bonds to invest in?

I don't currently invest in a pension...so might begin that process in tandem with the movement of this cash.

Thanks in advance for any advice...

opinions4u

heydee wrote: »

I recently posted asking if anyone can advise on a good financial advisor, but all I got back were replies saying I'd be better off getting free advice on here....so here goes!

You will get opinions. Some good. Some bad. You don't know the reputations of those posting. Getting solid, independent and professional advice is usually well worth the effort.

I'm actually interested in hearing generic advice for someone who has been fortunate and found himself in a position of having some easily accessible money & no debt; having cashed in my property at the top of the market; and having cleared all my cc and student debt.

Lucky so and so!

The main problem obviously being that interest rates are so low and inflation is creeping up - I'm concerned that with my money placed where it is, it is actually decreasing in value...and I need to do something with it.

Rates are low but the indications are that inflation is falling like a stone.

1) I have been investing in a S&S ISA for 5 years and despite the recent dip, it has matured nicely (hedged across lots of funds and countries) - approx £30k. Since this is all tax free, I am happy to keep here long term.

Fingers crossed markets are currently low and will recover as the world economy finds its feet again.

2) I sold property in April and have £50k from that. In the bank.

If you intend to keep it in the bank, be prepared to chase rate and move it around.

3) I bought £7k of Gold in Nov07, with increase in value and exchange rate fluctuations, it's worth about £12k today.

I hope you keep it safe! Cashing in on gains can be a good thing, but don't forget capital gains tax.

4) I have about another £30k cash sitting in the bank from bonuses over the last few years.

As point (2). You can still get over 4% if you fix for a year.

5) I have £5k of Premium Bonds

Very rarely are these a good form of saving. My view is the prize pot is low and you could do better elsewhere.

Does anyone have any advice?

There are opinions. I wouldn't class anything said on here as advice!

The one thing I can say is that I will likely be keen to buy a new property when I sense the market might have bottomed (yes, no crystal ball...) or if I think I can pick up a bargain. The missus and I are keen to buy together. SO, I don't want to tie up the capital too much or for too long. I suspect we'll buy in about a year or so.

Any tips on bonds to invest in?

https://www.moneysupermarket.com/savings is a good place to locate the best available rates.

I don't currently invest in a pension...so might begin that process in tandem with the movement of this cash.

Perhaps, but it may be better to know exactly how much the property you intend to buy is first before putting funds out of reach in a pension.