Just sold a house, not bought another, what to do with money

jsvaughan

Hi,

Looking for some advice/ideas. I've just sold a house which I owned outright and although I was hoping to buy another, I haven't found anything I like. I'm going to rent for at least 6 months, possibly longer, and I was wondering what the best thing is to do with the money in the meantime. I could afford to take a small risk with the money (if after 6 months it was worth no more then that wouldn't be terrible, but if it was say <80% of its current value that would be pretty bad). I would prefer not to lock the money away at all, ideally.

Any thoughts gratefully received.

J

MiserlyMartin

Lloyds Vantage x 3.
ISA's Cash and S&S.
and the remainder in the best paying instant access account you can find - around 3%.

Its really tough times for savers and the !!!!less people who mortgaged up to the hilt are all laughing at us for paying the price for their greed. The government and those clueless idiots on the MPC are letting it happen. They probably all have BTLs.

malik999

Women & Drink

opinions4u

Lloyds Vantage 4% on the first £7k, need to slip £1k a month through it.
Halifax ISA 2.8% on the next £5,100.
Nat West eSaver 2.89%.
The AA 2.80%.

I wouldn't put 6 month money in to any sort of market linked stocks and shares investment. Asking for trouble (although I suppose you could put £5,100 or £10,200 in to a stocks and shares ISA for the hell of it and see what happens, but that's your call!).

psychic_teabag

opinions4u wrote: »

Lloyds Vantage 4% on the first £7k, need to slip £1k a month through it.
Halifax ISA 2.8% on the next £5,100.

You get 3% on the ISA if you open a halifax reward current account and add it to the chain of accounts the £1k passes through.

getmore4less

If you are happy to take a bit of risk the S&S ISa is an ok idea if not being used allready.

Monthly savers fed from an instant access might be worth the effort.

If a fare amount 30k of premium bonds might just come up lucky and beat inflation or get very lucky

Whats your tax status?

With the £50k compensation limit needs to spread out a bit.

Have you considered longer term options continue saving and take out a mortgage when you buy.
Say you took some 1-2 year rates you could get an offset mortgage and offset as they mature.

Review the retirement plan along with the next purchase might be some options that you have not though of.

jsvaughan

Thanks for all the replies.

The savings rates are pretty depressing aren't they. We have cash isas already but will have a look at s+s isas (although I read there is only a tax saving if you are a higher rate payer, which i am not). The lloyds vantage account doesn't seem worth it for 7k with the hassle of paying in and out every month (~£40 better than the same in an ordinary savings account over 6m). Ive got 250k to deal with so I guess most of it is just going to end up in a savings account (or spent on women and drink of course)

sabretoothtigger

You are not likely to lose 20% with just a normal stockmarket tracker, most would do ftse 100 but I think asia pacific is best invested in companies like samsung
http://www.morningstar.co.uk/uk/snapshot/snapshot.aspx?id=F0GBR04CQ8


Martin on the right mentions this :

New inflation beating savings (6.9% at today's rate)
Urgent! Earn interest at inflation + 50% BUT you must lock up cash for 5 yrs

If you might rent for a while it could be fine and take a fixed rate mortgage if needing to buy earlier, that way you profit on the difference in inflation



Also mentioned elsewhere, sounded quite good

JamesU wrote: »

Barclays is launching a 10 year inflation linked bond which looks interesting at first glance. Annual change in RPI is added annually to the coupon (inflation), with a minimum 3% annual guarantee (if deflation). Tradeable in £1K+ amounts in ISA/SIPP, but note possible 1% bid/offer spread.

IC appraisal and details here, worth reading:

http://www.investorschronicle.co.uk/Tips/Buy/MiniTips/article/20100929/d9e6cc9a-cbb2-11df-95d8-00144f2af8e8/Barclays-bond-to-beat-inflation.jsp

and Barclay's literature here:

http://www.fixedincomeinvestor.co.uk/sdoc/3487-1.pdf


JamesU

opinions4u

psychic_teabag wrote: »

You get 3% on the ISA if you open a halifax reward current account and add it to the chain of accounts the £1k passes through.

Funny you should point that out.

Linky to thread on Halifax ISA I started 3 weeks ago ...