Investement advice

richlatham

I'm taking redundancy at the end of the year and will be getting a lump sum of £80k (including pension), followed by another £30k in the New year.

I need to buy a car and am taking a few months off, planning to work again in April at the earliest.

Would appreciate any advice on where to put the money - I need some to be fairly accessible but could tie some up for a period of time.

(I know the question is really open ended but would be very interested in people's opinions.)

kidmugsy

Check whether you're going to have to pay higher rate tax on any of it, and avoid by making suitable contribution to a new pension.

Fill Cash ISA, and use interest-bearing current accounts.

Does "for a period of time" mean one year or ten?

dunstonh

Probably best to avoid using investments until you return to work. Stick with savings instead.

jamesd

Please say more about what you mean by "getting a lump sum of £80k (including pension)". Does it mean that you're taking a lump sum from a pension pot, that some of the lump sum redundancy money is being paid into a pension or something else?

If you're taking a lump sum from a pension please say more about the type of pension, particularly whether it's defined benefit like final salary and the amount of income given up and lump sum paid.

Initially the best option appears to be easy access savings accounts until your future is less uncertain. But if you're actually planning to retire and only work a little it might be useful to do more retirement-related planning now and that could involve investing more of the money.

It would also be useful to know how much £110,000 is compared to your normal spending. For me it's enough to live on for more than ten years and if it's anything like that long for you then some investing could well make sense, at least to the point of using your S&S ISA allowance this year.