35 grand what to do with it?

xylophone

painful to part with any cash for whatever reason.

They'll be wrapping your mortal remains in a shroud of £50 notes...;).

bigfreddiel

welshmoneylover wrote: »

I welcome the Tory benefit cuts.

The days of freeloading off the working poor taxpayers' are over.

absolutely correct - nice one - fj

merlingrey

For £35k
You can get a contract to have your head frozen after you die, with any luck technology will exist in the future to bring you back to life.

Disclaimer: the advice above is speculative

MalcolmSm1th

I would pay off all debts.

At the moment I am expecting the markets to turn Southwards so what I would do is to open a Stocks and Shares ISA, put £11k in there and do nothing with it yet.

Next month do the same for your next ISA.

Then when you are ready to invest in the markets you will have £22 in your ISAs.

I would avoid the Cash ISAs as the interest is pitiful and the whole thing is restrictive.

As for the rest. Buy something for your hobbies and interests and then bank the rest until you know what to do with it. It's better to have the remainder in the funds doing notning (i.e. 1% a year) and being available to you than having nothing available in a few years when you finally decide what to do with the remaining ten or fifteen thousand.

- Malc

grey_gym_sock

MalcolmSm1th wrote: »

I would avoid the Cash ISAs as the interest is pitiful and the whole thing is restrictive.

not as pitiful as the interest on uninvested cash in a S&S ISA.

MalcolmSm1th

grey_gym_sock wrote: »

not as pitiful as the interest on uninvested cash in a S&S ISA.

True. But one can do something with the £22k in a few months' time or even a years' time.

If you imagine the two lots of £5k in a cash ISA sitting for a year earning a low percentage and then moving that lot into shares later on. Is that going to be better, in the long run, than having £22k doing nothing for a year and then having a nice tax free vehicle afterwards?

Having the cash ISA is, in the long term, I would say to a person in their 20s who can afford tosit and wait for a year. Remember, when you fill something into an ISA you can't re-use it nor go back a year.

As I have said, I expect a downturn in the markets soon so I have sold my ISAs and taken my profits. If I still have the funds in cash next month then I won't be putting £5k of my cash into a cash ISA because that means then I will have £5k allowance 'wasted' when it could be earning a lot more when I go back into the markets. Even if I wait five years (and I can't see myself waiting that long) to go in I have 'lost' 1.5% of £5k for five years and I can't see that being anywhere near to what I would get when I fire up the Share ISA again.

If I wanted flexibility and a something like a tax-free one percent return which won't block up my ISA entitlements then I would consider a premium bond holding. Yes, I know it's not perfect for the non-40% tax payee but it offers flexibiity.

Anyway, this is my view and all I am doing is to offer a point of consideration for the Original Poster. As to whether he takes it is up to him but I think that my point is better than some of the other mesages on here.

psychic_teabag

MalcolmSm1th wrote: »

If I still have the funds in cash next month then I won't be putting £5k of my cash into a cash ISA because that means then I will have £5k allowance 'wasted' when it could be earning a lot more when I go back into the markets. Even if I wait five years (and I can't see myself waiting that long) to go in I have 'lost' 1.5% of £5k for five years and I can't see that being anywhere near to what I would get when I fire up the Share ISA again.

You can transfer cash ISA to S&S ISA any time you want. So putting it into a cash ISA now does not "waste" it. It can earn what little interest is going while it's sat as cash, but you can move it to S&S as soon as you're ready to invest.

droopsnoot

welshmoneylover wrote: »

... once you start saving it becomes quite addictive and painful to part with any cash for whatever reason.:o

Not just me then.

grey_gym_sock

for long-term money, i'd agree with the idea of going for S&S ISAs in preference to cash ISAs. i'm just more dubious about attempting to time the point to enter the market. if you're putting it in, put it in.

for short-term money - e.g. plan to use for a house deposit in the next year or so - cash ISAs would be a better idea.