Advice please £100,000

ossie48

I have £100,000 to invest.

Current situation is that ive retired early with a decent pension, mortgage is paid off and no debts. I am due to receive a further deferred pension from a previous employee in 10 years time.

My wife is working part time, is also due to receive a deferred pension (12 years time) so pensions arent an issue.

We are currently buying £200 worth of shares a month through her employer at a 20% discount and have an indicative portfolio of £11,000. They are also matching £600 worth a year.

I have £20,000 in a santander 123 account for holidays / emergencies and I have a 2 year fixed Santander ISA at 2.3% with a balance of £5800 in it. Also have £1000 in premium bonds.

I would like the £100,00 to supplement our monthly income, just in case my wife is made redundant and /or so that she also has the option of taking redundancy if offered.

Any suggestions would be appreciated, Im open to a bit of risk,within reason. I dont need urgent access to the money, other than the interest but thats not super urgent at the moment.

Am I best getting independent financial advice or are there some basics i could do with a share of the money ie up the ISA to £15K, my wife take out an ISA, or open another 123 account (joint?)

xylophone

You and your wife could each contribute up to £15,000 to an ISA in this tax year.

Interest on cash ISA is not up to much, but you could consider OEICS/investment trusts paying monthly income.

If you wanted to keep the rest in cash, you can consider sole and joint accounts in TSB Classic plus etc ( Up to six between you) - that's £12000 @ 5% gross,
one sole each and one joint in Nationwide Flex direct (£7,500 @ 5% gross for a year), a joint Santander 123 Account and a sole 123 account for your wife, £40,000 @3% gross, a couple of RBS Classic Vantage etc...

Archi_Bald

xylophone wrote: »

a couple of RBS Classic Vantage etc...

You mean BOS Classic Vantages (RBS is a different bank, and they don't do interest paying current accounts)

Also can have 2 Tesco current accounts with 3% AER, £3,000 each - so another £12,000 between two people

ossie48

Thanks. So multiple accounts and a shed load of work will gain me between 2.3 and 5%.

Anywhere I could lump the lot and achieve 4 or 5 %, mid to long term with not too much of a risk?

colsten

ossie48 wrote: »

Thanks. So multiple accounts and a shed load of work will gain me between 2.3 and 5%.

Depends on your definition of shed load of work - I have loads of these current accounts and I didn't think they mean a shed load of work.

ossie48 wrote: »

Anywhere I could lump the lot and achieve 4 or 5 %, mid to long term with not too much of a risk?

Again, depends on your definition of 'not too much of a risk". Historically, you can achieve well over 4% with various investments over a couple of decades but of course nobody will give you a guarantee that this will continue.

Messa

I have had a substantial amount invested in peer to peer lending ( I use both Ratesetter and Zopa) and have averaged around 4.2% in the last 15 months lending to monthly and 3 yearly lenders. Have never needed the quick return facility but I like the fact it is there for emergencies.

I wouldn't suggest your full amount in P2P but it is worthy of consideration.

dunstonh

Any suggestions would be appreciated, Im open to a bit of risk,within reason.

When you are talking about income, there is no risk free option. if you use savings accounts, then you suffer shortfall risk and inflation risk (which could eventually cause the money to run out). If you use investments, you reduce shortfall risk and inflation risk but introduce investment risk.

xylophone

BOS Classic Vantages

Yes - slip on the keyboard!

jamesd

For funds the sort of thing that comes to my mind first is something like Invesco Perpetual Income or Invesco Perpetual Monthly Income Plus. Both pay monthly, they differ in the proportion of shares that they hold. The income is paid tax free if you hold within a S&S ISA.

The risk with most funds comes from the normal ups and downs of markets. If you were forced to sell during a downturn you'd lose money. Sell during an upturn and you'd make money. A drop of perhaps 20% in a bad year could be expected from the two funds I've mentioned. A UK stock market tracker fund would be expected to drop by 20% a few times a decade and by 40-50% once or twice a decade based on past behaviour. In between the gains cause an overall trend that is upwards.

Totton

High dividend payers have been strongly sought after and may be at a premium to where they would normally trade. I'd opt for a mix of those bank accounts paying up to 5% (Nationwide FlexDirect up to £2,500) etc. and some Investment Trusts such as Temple Bar, City of London and Law Debenture etc. Lots of managers are currently talking about a market downturn but things haven't been so hot this year to date, remember that the markets are on current high points.

ossie48

Typical of life, Ive gone from being an expert on 30 years of borrowing to next to clueless on saving.

Thanks all for the advice.