Where to park an inheritance

Gurberly

Hiya

I’m looking for a couple of suggestions on the best places to put some cash (approx. £250k) for the short term i.e. roughly 8-18 months or so.

The money is coming by way of an inheritance and I’m looking to park it with relatively easy access prior to either spending some, or investing chunks of it for the longer term over that period.

Couple of details

• 60k mortgage (variable rate/ lifetime tracker @ 0.99% above Barclays base rate = currently 1.49%)
  
• Both my wife and I are basic rate tax payers
• We have no children
• No other debts

We already have a full set of TSB current accounts and also a couple of NationWide accounts and a Lloyds Club account set up with the usual web of standing orders and I don’t really want to add to the complexity with having many more small accounts. I’m also running out of direct debits to apply to them (where that is an account requirement).

:beer:

G

somethingcorporate

You'll need to split it up to keep it safe as the FSA limit is dropping from £85k to £75k.

Santander should take care of 60k of it - one each and a joint that will offer you 3% interest (and cashback on various bills).

It is a bit more effort but still offers good bang for your buck.

The rest I am not really sure - NS&I savings offer government backed protection so is safe but offers you a (relatively) poor return.

xylophone

For simplicity http://www.nsandi.com/income-bonds
You could park the lot there.
The income is paid monthly and gross so you'd need to declare to HMRC.

markoptions

Hi

Take heed of the 75k limit (previous posts)

1) Distribute your money into non related banking accounts (ie you retain your 75k limit per account)
2) Pay all your debts off
3) Wait till October the 1st 2015 before investing if you wish to allocate some capital
4) Retain 1/3 of your capital in cash. This has zero risk
5) Look at buying gold in the next 14 months (Hedges equities (share investments)
6) Look and some equity exposure in S&P 100 or FTSE 100 shares with good dividend paying shares. Buy value and dips only
7) Look at investment trusts in biotechs and ETF's on indices for long/ short positions

Never rush to make decisions as opportunities always there. Do ur own research
2)

markoptions

Before you do anything decide on what you wish to achieve short meduim and long term in terms of money

kidmugsy

One can reliably annoy people here by pointing out that you and your wife can each hold £50k in premium bonds.


P.S. keep an eye on pension reforms: you may soon find that pensions become a more attractive location for long term investments by basic rate tax payers.

TheTracker

markoptions wrote: »

Hi

Take heed of the 75k limit (previous posts)

1) Distribute your money into non related banking accounts (ie you retain your 75k limit per account)
2) Pay all your debts off
3) Wait till October the 1st 2015 before investing if you wish to allocate some capital
4) Retain 1/3 of your capital in cash. This has zero risk
5) Look at buying gold in the next 14 months (Hedges equities (share investments)
6) Look and some equity exposure in S&P 100 or FTSE 100 shares with good dividend paying shares. Buy value and dips only
7) Look at investment trusts in biotechs and ETF's on indices for long/ short positions

Never rush to make decisions as opportunities always there. Do ur own research
2)

Pretty awful guidance for what to do with a big lump of cash for 8-18 months. That'll take some beating.

Gurberly

Many thanks to all those that have posted. Various points have been taken on board!

I do stress, this is about parking the cash for best return and minimal risk in the short term whilst taking the time to make some level headed decisions about what we want to do.

Question though... what is happening in October 2015???

markoptions wrote: »

3) Wait till October the 1st 2015 before investing if you wish to allocate some capital

G

markoptions

TheTracker wrote: »

Pretty awful guidance for what to do with a big lump of cash for 8-18 months. That'll take some beating.

A unintelligent remark as your opinion rather than supported by valid reasons

Linton

markoptions wrote: »

A unintelligent remark as your opinion rather than supported by valid reasons

Advising someone who to needs to withdraw a large amount of money in 8-18months time to put most of it into gold/shares is awful guidance as there is about a 50% chance that there will be less, possibly significantly less, there when he needs it.

What did happen on the 1st October?

george4064

Just FYI, you can setup small monthly charitable donations which qualify as direct debits.