100k planning advice

atush

6 months outgoings in cash, fill 2 S&S isas, Pension top ups for both of you.

This will cover short and medium to long term requirements

beancounter1968

Thank you to everyone for the very useful suggestions. The share sale represents my chunk of a business which I am moving away from. My exit from the business is something I have wanted to get to for years and this exit triggers the share disposal as per our shareholders agreement. I am getting fair value for the shares and I am mindful of the CGT position. However my exit is more important to me.

The pensions note: the term always given to me was frozen. Unfortunately that company went bust and the scheme has been taken over by the governemnt. I do get regular correspondence from them but it's still having the various assets/liabilities portions assessed before I get my value- I think the governemnt guarantee 90/95% of the original value whatever that turns out to be.

xylophone

the term always given to me was frozen.

Even if in the PPF, the pension is not frozen see http://www.pensionprotectionfund.org.uk/Pages/Compensation.aspx

"If You Have Yet to Retire
When you reach your scheme's normal retirement age, we will pay you compensation based on the 90 per cent level subject to a cap, as described above.

Until you reach normal retirement age and your compensation is put in payment, your compensation entitlement will rise in line with inflation each year, subject to a cap. See our FAQ about revaluation of compensation while you are a deferred member.

From 30 April 2013, you may be able to take your compensation at a later age than your normal retirement age. If you defer taking your compensation, it will receive an actuarial adjustment to reflect the period it is postponed.

Once compensation is being paid, then payments relating to pensionable service from 5 April 1997 will rise in line with inflation each year, subject to a maximum of 2.5 per cent. Payments relating to service before that date will not increase."

beancounter1968

Hi

Thanks to everyone for reading.

By way of update, my various transactions have now been completed. Total proceeds have amounted to 180K. £30k of this isn't mine as it relates to CGT which I think doesn't have to be paid until January 2017 (can anyone confirm this please?) I am looking for the best place to put the CGT until such time it has to be paid.
This leaves me with £150K. I paid the remaining £15k on the house today so I now have £135k to sort. I started a new ISA and I will transfer tomorrow. Someone mentioned the Santander 123 account. I wasn't clear if I could open this with the maximum but then it mentiones paying in 500 a month. Would I still have to do this if the account started at the limit? One thing I haven't mentioned is that I am pretty risk averse. Thanks once again for reading.

Eco_Miser

Santander 123: You can open this with the maximum (or at least pay in £20k as soon as the account is functional). You must pay in £500 each month, but you can withdraw it immediately (or even withdraw first and pay it back in immediately). Don't forget to set up the DDs and meet any other conditions.

You could also look at the other current accounts paying higher interest on lower balances.