Selling my house. What should I do with the cash? Any advice gratefully received :-)

happyjedi

Hi all. I would be very grateful if you could give me some advice as to my next steps with regards to my soon to be acquired wealth.

I am about to finish selling my house. I will be left with 120k and no where to live :-)

I am based in London. I am also currently not employed.

Can you suggest what my next steps would be with regards to my savings? I am concerned that just keeping it as cash will not be wise.

I would love to have it generate me a fairly consistent cash flow (medium risk), be reasonably liquid (so that I get access to a significant potion of the principle if needed) and I will still need to put some money aside for living costs while planning my next step (probably a small business of my own hopefully and some modest travel).

Thanks in advance for any advice / direction given. May the force be with you.

HappyJedi

Rafter

Jedi,

You need to split the money between at least 3 institutions so you don't have more than £50k with each one.

Given you want to invest short term, stocks and shares are out.

You might want to consider corporate bonds or a bonds ISA - better returns than cash?

You get a better rate of interest (usually fixed) by locking your money away in a savings bond. Look at the best buy tables on moneyfacts to find the best deal.

The rest is going to need to be in a best buy instant access savings account to cover your living expenses and setting up your own business.

Use the force wisely and don't be tempted by the dark side.

R.

happyjedi

Thanks Rafter for the quick response. Lots of useful info there. I will go and check out Moneyfacts as you suggest.