what would you do with £45'000?

strapiombante

Hi guys, Searched all over the site and finding lots of great advice but am very nervous of making incorrect decisions.
I have recently come into some cash and after paying off credit card and bills I am left with approximately £45'0000.
Now I understand that I should be getting as much of this into an ISA (£5100) asap, and then repeating the process in April so that I will have £10200 in the account. I think the halifax is looking promising for this.
I have also been advised that I should open a Lloyds vantage account as it has a fairly high interest rate up to £7500.

Should I look at s&s isa's (I have looked but am getting pretty confused) and what should I do with the rest of my savings?
I would prefer low risk options.

Sorry for such a long post, but all help is greatfully appreciated.:)

Thrugelmir

Do you have adequate pension provision?

strapiombante

Thanks for the quick reply. The money I have aquired is from an insurance payout due to ill health. Without sounding too down I am 30 now and unlikely to reach a pensionable age.

psychic_teabag

strapiombante wrote: »

I have also been advised that I should open a Lloyds vantage account as it has a fairly high interest rate up to £7500.

Up to £7000 in one account, but you're allowed up to 3 accounts, so you can get 4% on up to £21,000.

Thrugelmir

strapiombante wrote: »

Thanks for the quick reply. The money I have aquired is from an insurance payout due to ill health. Without sounding too down I am 30 now and unlikely to reach a pensionable age.

Sorry to hear that.

Fixed interest stocks such as Corporate bonds would give you an income. Held through an ISA the income is paid gross. So better than cash. If you don't need the income immediately could be reinvested in the mean time. This would allow you to utilise the full ISA allowance.

strapiombante

Thats great guys. plenty of food for thought. I didn't realise I could have 3 lloyds vantage accounts. I've been looking into corporate bonds. Have also found out that a friend of a friend is an IFA so will have a chat with him.

Loughton_Monkey

strapiombante wrote: »

Thats great guys. plenty of food for thought. I didn't realise I could have 3 lloyds vantage accounts. I've been looking into corporate bonds. Have also found out that a friend of a friend is an IFA so will have a chat with him.

Corporate bonds are best avoided if interest rates are going up. Capital values of bonds goes down with interest rate rises.

Your 'problem' [which we all face] is that staying in ''cash' (i.e. safe) havens means that the true value of your money is eroding. That's why a proportion in 'investments' is worth considering. But you need to understand the volatility and risks.

If you end up totally in 'cash' then all you can do is max out your cash ISA every year, go for a few fixed rate longer terms, and do all the 'churning' you can through Vantage/Reward/Regular savings accounts.

Danni-R

Dont forget whilst all this is going on and you're planning not to have more than I think £35k in any one bank in case it goes down the pan!

Hughesy84

If you have lots of spare time - could you not actively trade shares?? Do your research & then trade them from home?

Or if you have no responsibilities - then 'smash it' - go out there and have a good time whilst you can. Hope your future is brighter than you expect mate.

steveho

If you are investment savvy, have a go yourself, but only invest an amount you can afford to lose. Otherwise, avoid the banks advisers, I used to be one and quit very quickly when I realised the quality of advice came second to bonuses... Have a chat with a IFA, but do your research on which one, there is a wide variety in quality.

strapiombante

Thanks once again guys, it's brilliant that people are offering free advice to strangers.
Do you have any examples of good books I could study to learn the basics of trading shares? I had a look in waterstones today but there was so many to chose from.(lots with the cheesiest titles).
could you recommend any of the virtual trading websites? there seems to be quite a few.