What to do with current £40k savings plus £1000 a month

masonic

JT1000 wrote: »

Risk appetite would be medium, I wouldn't want to get into anything high risk.

The other key question when considering investing is are you prepared to lock the money away for 10+ years? Over shorter timeframes you may find you'd have done better in cash.

P2P lending is another option, besides equities/shares, that would be worth considering for a smallish proportion (5-10%) of your money.

jimjames

jennifernil wrote: »

Excellent suggestions and pretty much what we are doing.

Gave up on ISAs 3 years back.

If interest rates ever recover, with the now much higher ISA limits, you could have it all back in ISAs within a couple of years.

I agree cash ISAs are pointless, S&S ISAs are still a very good option for reducing tax short and long term.

Personally I think it's unlikely interest rates will rise significantly in the next 5 years at least. Anyone who wants to put money aside long term or for income should be looking at other options.

Sam_J12

I would strongly recommend investing in stocks and shares, preferably through an ISA. It seems like you won't need the money in the near future and a diversified S&S portfolio will give you the best long term return with little (long term) risk.

JT1000

I'm going to look more into the S&S ISA, maybe be start with a £5000 lump sum along with monthly payments.

The rest of the money will be distributed across the high interest current accounts.

Is closing the 2 current ISA's a fairly easy task? Both are instant access. And when opening multiple current accounts like say 3 club Lloyd accounts is it advisable to open them together or over some time or maybe it doesn't matter either way.

Thanks

YorkshireBoy

JT1000 wrote: »

Is closing the 2 current ISA's a fairly easy task?

Yes.

And when opening multiple current accounts like say 3 club Lloyd accounts is it advisable to open them together or over some time or maybe it doesn't matter either way.

Well you already have one Lloyds account (which you'll presumably upgrade to Club?), and if you 'share the load' then the impact (albeit small) of opening several current accounts will be reduced. If you've no short term need for major credit, ie a re-mortgage, then just get them opened as quickly as possible. I'd suggest leaving a couple of days between sole applications at the same bank, ie BoS if you go that way.


Just to give you something else to think about, if you (any of you) have any old unused current accounts then you may be able to pick up some incentives along the way for switching into Halifax and Nationwide...somewhere in the order of up to £600 might be available. That's the equivalent of a years worth of interest after tax in a 3% AER account on £25K...for doing basically not a lot!

JT1000

YorkshireBoy wrote: »

If you've no short term need for major credit, ie a re-mortgage, then just get them opened as quickly as possible.

I plan to remortgage in 6 months.

jimjames

You may want to transfer some of the cash ISAs to S&S ISAs to preserve allowance. If you're not using it all this year then that may not be an issue.

Bear in mind a S&S ISA is just a wrapper so you need to choose which investments to put inside it to suit your risk profile.

JT1000

jimjames wrote: »

Bear in mind a S&S ISA is just a wrapper so you need to choose which investments to put inside it to suit your risk profile.

Yes this is what I'm looking into at the moment. Can you recommend any sites to help me get going. Thanks

colsten

http://monevator.com/category/investing/passive-investing-investing/

Thrugelmir

JT1000 wrote: »

I pay into a company pension.

And your wife?

Will your Company pension provide you with the level of income you desire?

When are you hoping to retire?