£20k - What do I do with it?!?!?!

antonybrady

My mother recently died leaving me £19k in her will and I am unsure, especially with interest rates being so low, how I should invest this. I am 63 years of age and do not have any outstanding mortgage or other savings so would ideally like to use this to generate some small extra income to supplement my wage from my part time job at M&S. If this is not practical, any other suggestions or advice would be welcome!

D1zzy

3 x lloyds classic with vantage (free)- will give you 4% on each account month if you keep between £5000 and £7000 in each account - instant access. You need to "cycle" £1000 through each of the accounts each month- but internal transfers betwee the accounts are possible.

Seemore_2

Hi antony,

Alternatively, investing in stocks and shares, ideally tax free through an ISA, offers a better return but is more risky. The annual ISA allowance for over 50's is inceasing to £10,200 wef 6 October.

The UK stock market has risen around 30% in the last six months. Invesco Perpetual income funds are considered good solid funds and offer a monthly income option.

Perhaps a split between savings and stocks & shares could be the way to go?

antonybrady

Thanks for your suggestions. Both very useful.

snarffie

Seemore wrote: »

Hi antony,

Alternatively, investing in stocks and shares, ideally tax free through an ISA, offers a better return but is more risky. The annual ISA allowance for over 50's is inceasing to £10,200 wef 6 October.

The UK stock market has risen around 30% in the last six months. Invesco Perpetual income funds are considered good solid funds and offer a monthly income option.

Perhaps a split between savings and stocks & shares could be the way to go?

One snag with the shares option is that the stock markets have indeed rallied over the last six months. Unfortunately, a rally is often followed by a retrace where the markets drop again. Many commentators (but not all) expect a retrace to come soon. Bear in mind that investing in stock markets (for amateurs, at least) tends to be most productive in the long, rather than short term, so short term fluctuations shouldn't bother you too much as long as you can leave your money invested.

I would suggest a split as well. Maybe 66% cash and 33% in a FTSE tracker of some kind. I'm not a financial adviser, so you should do a decent amount of research before choosing what to do.