How should I invest my redundancy money?

julesjackson

I am being made redundant in September and will recieve a reasonable amount of money as part of the process. I have a good investment portfolio, including ISAs and an OEIC, but am nervious about simply increasing them due to the financial guarantees if the economy fails.

Any advice on how to invest my redundancy money will be greatfully recieved.

DrSyn

1. This depends on your age,health,amount of savings you have, attitude to risk, amount of redundancy and what you think is going to happen in the future. So its like asking "how long is a bit of string"!.

2. While you decide I would put most of it in a reasonable interest paying instant access account. You can find these on this site and at www.thisismoney.co.uk.

For example (a) ING (b) Sainsbury's easy access saver

3. How about (a) NS&I index linked certificates (b) Some in one or two year fixed rate bonds (c) drip feed funds monthly into an share via an Investment Trust Savings scheme. Many of the major IT's run them.

kidmugsy

If any of your redundancy pay is exposed to 40% tax, it might be wise to contribute that part to a pension. You'd still have to decide what investment to buy within that wrapper.

atush

Will you be looking for work? Or wil you be retiring early? Have you found a job yet?

You may need a portion of this to live on while you look for work. So don't lock too much of it up until you find stable employment.