What to do ith £100K

Greg1010

colsten wrote: »

I suppose you are referring to the Santander 123 current account? If so, the terms couldn't be simpler and tons and tons of people here use it with no problem at all. But fair enough, you might want to stick to your principles. There are other banks that offer interest paying current accounts but I reckon they will all appear to have painful terms (even though they don't). I would say that these current accounts are definitely less 'pain' than P2P lending.

Yes, sorry the 123, got muddled up with their credit card promotion that I saw runnin a while back.

They could be a potential candidate I guess if it turns out to be decent high(ish) option, principles need to be dropped at cetain times in life.

A quick glance at the terms of having 2 direct debits and £500 into 3 different accounts each month could be difficult month in month out also made me a bit pessimistic about the idea, still probably doable though.

colsten

Greg1010 wrote: »

A quick glance at the terms of having 2 direct debits and £500 into 3 different accounts each month could be difficult month in month out also made me a bit pessimistic about the idea, still probably doable though.

Very easy to do with reciprocal SOs with a non-Santander current account (in/out same day), and the DDs can be "custom-made" by setting up a couple of Tesco savings accounts which pull in £1 from the 123s once a year. There are lots of threads on here talking about interest paying current accounts.

Greg1010

colsten wrote: »

Very easy to do with reciprocal SOs with a non-Santander current account (in/out same day), and the DDs can be "custom-made" by setting up a couple of Tesco savings accounts which pull in £1 from the 123s once a year. There are lots of threads on here talking about interest paying current accounts.

Ahh, thanks for highlighting those easy gaps for me

badger09

As you are homeowners, you can easily move some of your existing household Direct Debits (Council Tax, Gas, Electricity, Phone, Broadband) etc to each of the 3 new Santander accounts and probably earn enough cashback to cover the monthly £2 account fee

Ryan_Futuristics

colsten wrote: »

Not sure why it's worst case max 5% loss on equities and on P2P. You need to explain this further.

Absolute worst case, we have a repeat of the 1920s market crash, and the stocks & shares lose 90% of their value

But as they're only 20% of the portfolio, you've lost 18% ... You'll hopefully still get your returns from the other assets, so perhaps knock 5% off that: 13% loss, but the alternatives funds may have made big profits shorting the market, and at your next rebalance you're going to be buying equities at the best point in almost a century

Then again if we did have another crash like that, chances are you'd only get your money out the bank with a shotgun

TheTracker

Ryan_Futuristics wrote: »

If I was cautious, I'd be thinking:
50% cash (earning whatever measly rates it can)
10% P2P lending (earning 6-10%)
20% stocks & shares funds (7-10%)
20% absolute return funds (4-8%)

If? .......

Ryan_Futuristics

TheTracker wrote: »

If? .......

There's something indecent about you, Travis. The way you slouch about. You think we don't notice you with your hands in your pockets. The way you just sit there, looking at everyone. You three have become a danger to the moral of the whole house

robatwork

Warm the lavatory seat for me. I'll be ready in three minutes.

atush

Greg1010 wrote: »

Hi All, thanks for the replies so far.

The T's and C's for the 3,2,1 seem a pain and having banked with them before we have vowed never to let our money pass through them again.

Ryan's splitting idea seems a good route to investigate, I guess wanting it to all be in one place whilst having it make the most of itself isn't something that really exists this day in age....?

We are homeowners and mortgage free so the finding a place to live isn't an issue. Linked to this factor is the not having pensions as a high worry/desire to pay into for the immediate future at least.

Any more advice or suggestions greatly appreciated.

as mtg free homeowners you should really have a pension. Why dont you want one?

Do either of your employers have one they put money into? the 40% taxpayer would certainly benefit from a PP if the employer doesn't. AS this would mean 100 into a pension would only cost them 60? No brainer really.

So, pension, S&S isas, current accts for cash, and unwrapped investments for the rest.