Possible £20k lump sum - what do I do???

Newbie2saving

Hi all,

I am in a situation which I wasn't prepared for, the sudden loss of my husband. I have been offered a pension by a company he worked for a long time ago and I have posted a query in the pensions forum.

I have asked the pension provider the questions I was asked by ffacoffipawb.

Now if I do take the lump sum (£20k, plus £2k contributions returned) I was wondering if you have any advice on what I should do with it? I am only 32, have a young baby, no debts, no need for an emergency fund, hence this money would be purely for saving / investing.

Thank you so much for any advice in advance.

CaroleM_3

Hi Newbie,

I dont know the answer to your question, I'm not really an expert with the savings, I just muddle through.

My only thoughts were have you looked at the Savings article
http://www.moneysavingexpert.com/savings/savings-accounts-best-interest
there are fixed rate accounts that run for a year or two at a good interest rate, but you cant get the money out.

xxx

debbie42

Sorry to hear of your loss.

It would be difficult to answer your query without knowing more information. Things such as what do you intend to do with it/when would you want it/risk factors etc.

You might want to invest it for the long term, or save it, and have you used your ISA allowance for this year yet?

It might be an idea to post the question with a more meaningful title, as you might get a better response from more people then.

Newbie2saving

debbie42 wrote: »

Sorry to hear of your loss.

It would be difficult to answer your query without knowing more information. Things such as what do you intend to do with it/when would you want it/risk factors etc.

You might want to invest it for the long term, or save it, and have you used your ISA allowance for this year yet?

It might be an idea to post the question with a more meaningful title, as you might get a better response from more people then.

Ok will do, thank you, understand your point. I had a 'risk assessment done with HSBC premier about 2yrs ago and I fell into the medium to low risk category, it isn't money I can afford to loose, but could risk tying it up for 10years or so...

Thanks again.

debbie42

If you're looking longer term, then it's worth looking at investments, as opposed to savings. The general advice on here is to avoid "tied advisors", i.e. the sort you get at building societies/banks, as they have a limited product range and are more likely to be sales people than financial advisors. It might be worth your while to see an independent financial advisor.

There is a web site that lists registered IFAs, but I can't remember the link. Hopefully someone else will help?

edit: I think it was this one http://www.unbiased.co.uk

Newbie2saving

Thanks, I think this is a good idea as I need a full overview of my finances as my husband used to look after everything on our behalf. Will check out the website you suggested...

debbie42

Let us know how you get on. There are some people on here who are very clued up and helpful when it comes to giving feedback on investments.

Newbie2saving

Will do, a full review is in need, won't be anytime too soon as I am still sorting through probate etc. Thank you Debbie for the responses.

debbie42

I just sent you a private message.