250K, what to do with it ?

macman

gazpacho_uk wrote: »

sound advice ..... I could use the time between now to set up the safe options, see where the house sale/purchase goes (if it does with Christmas looming) and then look at riskier investmemts when the new tax year begins

No, to get the full benefit of your annual ISA allowance you need to make that investment before 6/4/13. You can then invest the 2014/15 ISA allowance the next day as well.
Given the capital available, putting an additional 5K+ each into a share ISA is not a huge risk. If you stick to cash savings only then you are never going to keep up with current inflation.

Archi_Bald

macman wrote: »

Given the capital available, putting an additional 5K+ each into a share ISA is not a huge risk.

Given that the OP didn't know about S&S ISAs until earlier today, it is a gigantic risk for them to put £10K into "a share ISA", as you call it.

Until they understand investment basics, they should absolutely stay clear of any S&S ISA. I agree with you that they should make every effort to utilise their full ISA allowance this financial year, and in subsequent years. That is why I suggested they put their money into interest-earning accounts for now, and start educating themselves about investments and S&S ISAs. It should be perfectly possible to get this done before the next tax year starts.

The last thing the OP should do, IMHO, is to rush into buying shares or funds, or to take any advice about S&S ISAs from any bank. Depending on the available capital, it may also make no sense at all to buy any individual shares. Much more likely that the OP would be a lot better advised with funds, and probably specifically tracker funds. But they need to decide this for themselves, based on having a thorough understanding about investing.

OP, here's a list of suggested reading: https://forums.moneysavingexpert.com/discussion/4752194

gazpacho_uk

macman wrote: »

No, to get the full benefit of your annual ISA allowance you need to make that investment before 6/4/13. You can then invest the 2014/15 ISA allowance the next day as well.
Given the capital available, putting an additional 5K+ each into a share ISA is not a huge risk. If you stick to cash savings only then you are never going to keep up with current inflation.

thanks, I am going to split the full allowance between cash and S&S ISAs.

gazpacho_uk

Archi_Bald wrote: »

Given that the OP didn't know about S&S ISAs until earlier today, it is a gigantic risk for them to put £10K into "a share ISA", as you call it.

Until they understand investment basics, they should absolutely stay clear of any S&S ISA. I agree with you that they should make every effort to utilise their full ISA allowance this financial year, and in subsequent years. That is why I suggested they put their money into interest-earning accounts for now, and start educating themselves about investments and S&S ISAs. It should be perfectly possible to get this done before the next tax year starts.

The last thing the OP should do, IMHO, is to rush into buying shares or funds, or to take any advice about S&S ISAs from any bank. Depending on the available capital, it may also make no sense at all to buy any individual shares. Much more likely that the OP would be a lot better advised with funds, and probably specifically tracker funds. But they need to decide this for themselves, based on having a thorough understanding about investing.

OP, here's a list of suggested reading: https://forums.moneysavingexpert.com/discussion/4752194

thanks for the link ! I discovered yesterday that a close friend "dabbles" in S&S and he has suggested a cpl of options. I am prepared to risk an element of the money with the prospect of better gains and understand that it is a risk

gazpacho_uk

Going to spend today closly looking at the Santander 123 options. Not going for five accounts for now. Just ging to do 2 each for myself and my wife and 1 joint acc, then maybe at a later date the additional two accounts may be an option. I need to understand how the 123 account best works and how I can get the best from the account. Three accounts with 20K in each, figure out how to move the £500 between the accounts and to ensure the DDs I set up for each account qualify for the 3%

innovate

You are not allowed more than 2 123 accounts per person, and jointly held accounts count as 1 per person. So the max between 2 people is 4.

gazpacho_uk

innovate wrote: »

You are not allowed more than 2 123 accounts per person, and jointly held accounts count as 1 per person. So the max between 2 people is 4.

I think someone said there was a way round that, but I am going to stick with just the single accounts for my wife and I and a joint one.

I have another post where I wanted to ask some 123 account specific questions, and it looks like I mght have got things a little bit wrong as I was thinking I could transfer the £500 between each 123 account to qualify, but the money must come from an external source. Best bet now would be to transfer £1500 into all three 123 accounts on the same day and then back to main non santander account the day after

https://forums.moneysavingexpert.com/discussion/comment/63727769#Comment_63727769

atush

I agree with Mac and Jim, do consider using S&S isas. And do think about waiting to pay off mtg until rate rises as 2.5% isn't too bad.

You can always pay it off later as soon as any rises are announced.

How are your pensions looking? Could they use a boost?

gazpacho_uk

atush wrote: »

I agree with Mac and Jim, do consider using S&S isas. And do think about waiting to pay off mtg until rate rises as 2.5% isn't too bad.

You can always pay it off later as soon as any rises are announced.

How are your pensions looking? Could they use a boost?

thanks for your reply.
on the mortgage front, we will be buying a new house using £130,000ish from my "pot" along with £150,00 from our current property when it sells. we want to be mortgage free, so paying the mortgage is important to us, even if its not quite the best economical decision.

Pensions are good (one is a police pension) we also have around 60K coming to us in 2017 in the form of an endowment

talexuser

gazpacho_uk wrote: »

Best bet now would be to transfer £1500 into all three 123 accounts on the same day and then back to main non santander account the day after

Just send 500 to account 1 and back out on day 1, the same 500 to account 2 and back out next day, and the same 500 to account 3 and back the day after that. That is what I do, and top up the DDs when they are paid to always have 20k in each account. That other £1000 could be earning interest elsewhere!