60K to invest looking for a return

ashm0407

Hi I am looking to invest 60k that I have recently inherited. I currently have other savings in a general savings account to cover an emergency and I already own my own home. I would like to get some kind of return whilst also being able to access the money fairly easy if needed any suggestions?

Linton

What length of time? You say you want to access it fairly easily - all of it? You have a potential need for £60K cash? How old are you - near retirement, just starting adult life or somewhere in the middle. Do you have money in a pension? Roughly how large are your "other savings"? Enough for say 6 months living expenses to cover almost any conceivable emergency?

The answer to these questions will lead us to suggest cash savings or longer term investments.

xylophone

Do you mean "invest" or "save"?

If save, you might wish to use the current account merry-go-round?

ashm0407

not really sure of length of time as its unexpected inheritance I just don't want it sat in a bank account when it could potentially be earning some interest etc. I don't want to be able to access all of it just perhaps a small amount. I am 60 and have just retired I don't have money in a pension no, and other savings are enough for 6 months living expenses

ashm0407

im not sure as to invest or save just looking for the best option that will give a return on the money but with no risk

AlanP_2

It sounds like you have no "earned income" from employment so the pension route is limited for you.

You could at least pay £2880 into a Personal Pension which HMRC will then gross up to £3600 - i.e. 25% uplift.

25% of this can then be withdrawn tax free with the other 75% subject to tax (if applicable given your overall income) and can literally be taken out almost straightaway.

This is available to all non-earners up to the age of 75, so could do it now and again post April 2016.

If you have a partner /spouse in the same situation then repeat for them.

Other than that an amount in interest paying current accounts (3-5%) as suggested along with regular Savers maybe (5-6%).

For longer term growth stock market investments are certainly worth looking at.

Lots of information on here re the 2880/3600 pension option, best current and regular saver options and on S&S investments for you to browse through.

Don't rush you have a bit of time but at least get the cash into the current accounts and start earning something decent on it while you consider your options.

EDIT - No Risk does not exist I am afraid. Even cash savings can be eroded by inflation.

Linton

Being retired I assume you want the income for the long term. Cash savings are risky in the long term because of inflation and because, as you have found, interest rates can vary considerably. Over the long term the value of the returns from a fixed amount of cash will fall.

If you wish to maximise your income £60K is enough to start a share fund investment from which you could fairly safely withdraw with little risk of running out of money around 3.5-4% annually with some hope of an increase with inflation. The value of the investment will rise and fall over time, though the income should remain much more constant.

Bearing in mind your retirement was presumably planned without knowledge of this inheritance it is icing on an already baked cake. So there would be no risk to your original retirement plans.

Another option I guess is to put it into as good a bank account as you can, take out the money you need, and accept at some point the pot could be exhausted.

AndyT678

ashm0407 wrote: »

just looking for the best option that will give a return on the money but with no risk

No such thing exists.

There are things that have risks that you've heard of and think you understand and you have therefore probably decided you should avoid such as stocks and shares. These have capital risk.

Or...

There are things that have risks that you are either unaware of or don't understand and therefore think of as safe such as bank accounts. There's no capital risk but these are more likely to have inflation risk and shortfall risk.

You pays your money and you takes your risk.