Hi Help please, what next? ...

annaccordion

Hi I'm new here and would appreciate some input from the 'knowlegeable' on here.

Hopefully...

You'll notice that I have been busy...

Here's the tester though... I'm out of ideas and could do with some advice, assistance and/or inspiration:

I'm contentedly allocated in S&S, good bit in an ISA and good bit in cash in my dealing account, to take advantage of any short term correction.

I'm going 'cash' in the ISA this tax year, see below.

Maxed:
Sant 123
Club LLoyds + Reg Svr
TSB Enhance & Classic Plus
Newcy Big HS + Newcy Big HS ISA
Nat Wide RS
LLoyds & BoS Vantage x 10 (was 11, converted one to 2nd Club)
FDirect RS
c £8k 'float' instant access
FTAOD Halifax £5 rewards
SIPP (only c£2880 PA max contribution, see below)
Small interest in BTL and dont want more.
2 FTBs about to mature c£100k

Not employed, not receiving benefits.
No mortgage & own house - but we may want to move in the near term.
3 years until pension - BR tax payer until then.
Partner who works, but we have separate finances.

I have other assets. I have listed the ones that people might suggest getting, and avoids frustrating people with 'already done that...' replies.


So, the dilemma:
Any better ideas than stay with Lloyds Vantage for the 1.5%?
And what to do with the £100k?

Help much appreciated.

Vortigern

3 years until pension - BR tax payer until then.

If your pension will push you into HR tax, defer it.

No mention of Premium Bonds - I don't like them but they may suit you as a near cash holding.

annaccordion

No, I am not. And I'd appeciate the comment being removed, to avoid taking the thread in an unhelpful direction.

What would be the point of deferring?

Hadn't considered PBs.

bigadaj

annaccordion wrote: »

No, I am not. And I'd appeciate the comment being removed, to avoid taking the thread in an unhelpful direction.

What would be the point of deferring?

Hadn't considered PBs.

Don't be so sensitive about comments, correct anything wrong and move on.

The point of deferring pension is to avoid being taxed at higher rate. Which is presumably what you mean in your first post, but also deferring state pension currently gives you a 10% + return, however this is due to reduce in 2016 so you may miss out on this and the return will approximately halve.

Little value in many areas of saving and investing currently, if you are open to risk then you could look at eis or similar investments as the tax benefits can be favourable, they are high risk though.

annaccordion

I dont particularly want to get hung up on a deferred pension discussion. But as I'm not employed, unless there are some dramatic changes in the rules, or the economy, deferring my pension won't avoid HRT whenever I do take it.

I intend to look at that calculation near the time in the light of prevailing interest rates, tax banding, health etc. In the mean time I shovel assets into tax free wrappers as allowed.

bigadaj

Deferred pension even under the new rules may make sense as that's over 5% effective return without tax.

You can contribute into a pension up to £2880 and get the tax relief added on, which might be a good deal.

Otherwise if you're maxing the accounts noted and your isa allowances then there not too much. There's the government proposed pensioner bonds which might be another possibility, and as stated PBS are tax free which gives you a better net return if you pay higher rate tax.

Vortigern

annaccordion wrote: »

I'd appeciate the comment being removed, to avoid taking the thread in an unhelpful direction.

Removed as requested. My apologies for jumping to the wrong conclusion. Welcome to the forum.

ManofLeisure_2

I would also suggest Premium Bonds. Never been in favour of them in the past, but at this moment in time am using them as a holding centre whilst deciding on a new property etc. I've held max amount for a year now and made 2% - a little better than average. Hoping for a big prize next month .

kidmugsy

With up to 10% of your wealth buy gold sovereigns if you have somewhere safe to store them e.g. a safety deposit. No income tax (obviously), no VAT, no CGT, and insurance against many sorts of financial catastrophe.

Also, consider diversifying e.g. abroad. Big place, abroad. Swiss government bonds?

Another option that wouldn't occupy ISA space: index-linked gilts. Choose one where virtually all the return comes as inflationary uplift, and very little as interest. The uplift is free of tax, and the tiny interest payment will attract only a tiny income tax bill.

annaccordion

Thanks for the replies so far. I don't appear to have missed an obvious alternative. I noticed that YBS had still got a 1.49% account - but I only noticed that doing the DD for the LLoys Vantage 1.5% - so wasn't gonna contribute much to a solution. Further, on enquiry, they tell me that will drop to 1.25% in July, too.

soulsaver

I'll get in first - new Tesco account pays 3% on £3k & you can have 2 off. £750 monthly funding to avoid £5 charge - clubpoints & the like if you interested..

That should get a bit of that float earning, and offset a bit of the loss on Vantagelike acs.