Options for the next few years

vaultsman

Hi,

Myself (aged 59) and my two fellow-shareholders are on the verge of selling our business, which we bought in an MBO 8 years ago - hopefully completing next week. A happy position to be in, I know!

The consideration will be an initial sum of £425k + £100k over 3 years, paid in monthly instalments i.e. approx £141k each initially then 36 x £925/month. CGT, after fees and Entrepreneurs Allowance, will be approx £15k payable after the end of this tax year. I'll carry on working for the new owners on a self-employed basis for 12 months at £3k/month, after which I'm assuming I won't be in paid employment again and will use some of the cash to see me through to 65. I'm budgeting for about £18-20k p.a.

My occupational money-purchase pension pot is less than £100k due to my previous employers - God bless 'em - contriving a collapse in the final salary fund in 2000, although the Pension Protection Fund will cough up a percentage.

So...I'm playing around with various savings scenarios to maximise the cash left at State Pension Age...without having the appetite to take too much of a risk with it!

I have a couple of cash ISA's (but haven't yet used this year's allowance), a term deposit with Clydesdale, and a regular saver with N&P at the moment.

Apologies for the long post - any comments/suggestions would be appreciated.

Cheers,

bigadaj

Low risk would translate as keeping mainly or wholly in cash, though stock markets and equity income funds are providing better interest/ yields currently.

Longer term deposits will give higher returns so arguments for splitting into different fixed rate maturing accounts as you can get over four per cent on these .