Widowed and need to maximise income from insurance

usefulinfo

Hi everyone,
My husband died a few months ago and having gone through probate I now have £100,000 from his life insurance to help me through.

I am in my fifties and currently have no external employment (I cared for him full time). I work part time on our business and claim WTC, which is £53 per week. I also receive bereavement benefit which is around £74 per week. Both of these are finite, probably ending together next spring. I will be looking for other part time work.

My outgoings are low - no mortgage, debts, loans of any kind. I need to maximise the income from the life insurance. I have read this forum and have taken some steps:
I have opened a Santander 123 account in which to put £20,000.
I will keep £10,000 in a deposit acc for emergencies - boiler, car etc.
I plan to put £15000 in a NISA but would appreciate input on stocks and shares over cash. I know nothing about investing. I also have £3000 in an ISA with Smile, but am not certain how to transfer this, or where to.
I am also considering the Vanquis five year fixed rate bond, since I am unlikely to need the money all at once. I can keep a certain amount back to subsidise me, and this will be replaced by the accrued interest.

I am not currently a tax payer, since my incomings are so low. I would welcome thoughts on the above, and any suggestions for other ways to get the best from the money. Should I see an IFA?

Many thanks for your time; it's hard to think clearly right now, but I need to get it right so I can have a little peace of mind.

ChopperST

Sorry for your loss.

With such a sum of money I would initially get as much as it into as many of the high interest current accounts that are on offer;

Santander
Nationwide
TSB
Lloyds
Tescos

Perhaps the maximum £40k in premium bonds as well (unlikely to win big but the money is 100% safe)

And in view of your lack of knowledge on all things fiscal see an IFA who will work out your risk profile, timescales required for the money etc. who will be better placed to advise you on where to put the cash.

See http://www.unbiased.co.uk/ or ask friends and family who they would recommend?

usefulinfo

I've had a look at that site but I am concerned that fees would eat into any returns. I know nothing about premium bonds. I'll read up on them. Any other suggestions? Most of the money can be tied up long terms. Should I be thinking about a pension?

PeacefulWaters

usefulinfo wrote: »

I've had a look at that site but I am concerned that fees would eat into any returns. I know nothing about premium bonds. I'll read up on them. Any other suggestions? Most of the money can be tied up long terms. Should I be thinking about a pension?

Getting the right investment mix inside the right tax wrapper will cover any fees.

See an IFA.

kidmugsy

My condolences to you.

usefulinfo wrote: »

Should I be thinking about a pension?

You certainly should. You are allowed to contribute a gross sum of £3600 p.a., or more if you earn more than that from your job. (The way it works is that you pay a "net" sum to the pension company who claim back money from the taxman to add to your 'pension pot'. So if you want to contribute £3600 gross you actually pay 0.8 x £3600 = £2880, and they claim the other £720 from the taxman. It doesn't matter if you pay no income tax, the £720 is still handed over.)

Then you can take your pension at age 55 or older.

However, this advice is made as if you were in employment: I hope somebody else more knowledgeable will warn us if the position is different for you, who works for your own business.