Saving/Investing proceeds of house sale?

TobyB_2

Hi

An "old chestnut" I know ... but wondered about a 2014 "update"?

Lucky enough to be selling the house - hope to realise around £250k. I have an uncertain job/geographical future for at least the next year - perhaps two - so not going to buy again until things more settled.

I realise "savings" accounts are loosing money to inflation, but there's not much risk either. I have some moderate investments in funds as well as conventional savings, so not completely risk adverse ... but my experience of things like "All Shares Tracker" or FTSE 100 has been much better than dips into "Global Resources" or "Developing Economies" ... so wouldn't go too far off "middle-of-the-road" ideas, with much. Not keen on trying to pick (or manage) individual shares, and silver, bit-coins, etc. a step too far for me probably. Never been convinced by premium bonds either ... and looking at the calculator here, clearly no way of getting close to inflation ...

Thinking I should put this away predominantly in 3-5 pots (not sure how important the FSCS £85k limit is in the current climate?), probably some "secure", and some a more speculative? I have already used my ISA allowance, so that's not an option. Not keen on tying up this capital for 3-5 years, so a lot of Fixed Rate accounts aren't appealing.

Any thoughts on how much, or percentage splits, into what and where I should think about saving/investing this for the next year or two?

Cheers

Toby

Archi_Bald

Sounds you are not in the right place for investments since your horizon is less than 5-7 years. So you are essentially stuck with cash, which you can distribute across various interest paying current accounts, as well as savings account which will pay pittance but help you to protect your money from complete inflationary erosion.

Ignoring the £85K FSCS protection could be a massive mistake, especially since it costs nothing not to ignore it.

bigadaj

Easy option is all into ns and I, but low interst rates

Splitting it into three of four accounts would be better but a bit more work for nota. Lot more reward, and the usual suspects of current accounts only works for up to about £85k.

In the OPs situation I might be tempted to put a small portion into stock market investments, though there is risk. Maybe look at global tracker funds or potentially equity income as whilst the capital can go up or down the yield on such funds is often 5-6% which is better than any savings accounts and mitigates some of the risk to capital.