@40K to save, invest or whatever.

Tooglebut456

Hi everyone, I am about to receive @40k as a payment from my mother's estate and I am wondering what to do with the money. I left a post just after she died on whether to buy the house or not and I think I've made the right decision in deciding against it - so what's the best thing to do with the cash?
I found an old file re- advice from Ian W. which says "Hi Tooglebut,
Sorry it didn't work out re your mum's house, shame but you do have to think of your own financial future.
Re the cash - read Martin's articles on Savings [investment = risk, so savings first, I would have thought]. Basically if you haven't used your tax free ISA cash allowance start one [1 each if married]. You can put £3k [£6k if married] per tax year into cash isa's. Then check out from the links for best buy internet savings accounts put the rest in 1 or 2 of them.
If you are prepared to take some risk with stock market investments you can also do that through isa's and the returns are tax free. They allow a further £4k per tax year to be invested in share based ones but read the articles for more details.
The stock market and shares are doing very well atm but do remember they carry a risk though and should only be considered as medium term investments [5+yrs min].
If you're not happy with more risk, stick to cash savings and get as much into isa's as quickly as you are legally allowed to do.
BoL."

That was around 6 months ago and thanks very much Ian W. for it, it still seems sound advice to me - or has anything really changed since then? I know I am being a bit over cautious but I'd be grateful if anyone could add anything else - thanks in advance TB456

Scully's_Girl

It depends on your attitude to risk. My first suggestion is to go with a Cash ISA, as Martin says. If you are married, that is £6000 saved already. It is a very small part of the full amount, with the benefits of quick withdrawal if necessary (I suggest you dont consider withdrawing), tax exempt growth, all in an account which most likely gives a competitive rate. This can be a good buffer for you. If you do, now is the best time to maximise interest, since the ISA year just started last month, you'll have almost a full years growth. Don't make the mistake that some do by waiting till April 4 next year.
If you are willing to take on an eansy bit more risk, you can open a shares ISA for £14,000 for both you & your spouse. You can check on the site for different ones that might work for you.
In order to assist with the rest, we'll probably benefit from an SOA from you. You have just inherited a tidy sum, but we do not know what your personal situation is. Do you have current debt? A mortgage? Credit Cards?
Once you put some more info about your own situation, we'll be able to better advise you on how you can use the money most efficiently.

Tooglebut456

Hi Scully's Girl - Thank you for your advice, I will certainly fill up my ISA options including the shares ISA option if possible (I already pay around £50 a month into The Greater European Trust through St. James Place which I'm sure you must have heard of. What’s an SOA? - any way for info' I'm single, I own my house outright and I don't have any debts apart from a cc one which I may pay off or switch to another 0% deal at the end of the term. Anyway thanks again for your help and hope to hear from you if you have any further advice