70k - Where to invest / Best S&S ISA?

shads1973

Hi all,

We have 70k surplus cash from a recent house sale and would appreciate some advice on where to put this.

Have looked at all the savings accounts, and while this appear to be the best option, the recent Santander 123 rate cut leads me to like many others, fear this will lead to other banks cutting rates. Obviously nobody knows if these will still remain attractive in an otherwise depressed savers market.

So do we hold out?? (most of the cash is sat in 2 Santander 123 accounts so earning some form of interest)

I have Vanguard LifeStrategy 80% Equity which is performing well and had its maximum paid into. This still present a good option?? (mine is into its 3rd year having been opened based on advice from here)

The Mrs holds no ISA's of any description

Our residential mortgage sits on a historic variable rate of libor + 1%, with the mortgage being interest only so don't see much value there of overpaying??

Startup1985

What is the 70k going to be used for and when? Is it for pension age or is it for paying for the house once you have finished your interest only mortgage?

xylophone

How do you propose repaying the mortgage at term? Is the £70,000 for this purpose or do you have another repayment vehicle in place?

How old are you and your spouse? What is your pension provision?

EdGasket

You can only put £15,240 into an ISA per year. However unless you make huge gains, then an S&S ISA isn't much different to a dealing account apart from property REITS where the ISA gets 20% more dividend.

x-o are about the cheapest at £5.95 a trade for UK shares and no ongoing charges; don't think they do funds though except ETF's of course. Depends what you want to invest in which provider might be best.

shads1973

Well we plan to downsize eventually, obviously with no crystal ball on house prices can only base it on logic today. We have 150k equity in our current house, 70k in another flat. With this surplus cash and savings of a similar amount we'd probably look to sell up everything and purchase a retirement place when the 3 sprogs have flown the nest.

I have a private pension that I put 1k into a month and an annual lump sum through my ltd company. Mrs has no pension in place.

Ultimately I don't forsee any need for the cash until our retirement (i'm 42 and mrs is 39) so some way off yet. So I guess a long term savings strategy?? I was inclined to get the Mrs to look into a pension before any other investment?

badger09

shads1973 wrote: »

Well we plan to downsize eventually, obviously with no crystal ball on house prices can only base it on logic today. We have 150k equity in our current house, 70k in another flat. With this surplus cash and savings of a similar amount we'd probably look to sell up everything and purchase a retirement place when the 3 sprogs have flown the nest.

I have a private pension that I put 1k into a month and an annual lump sum through my ltd company. Mrs has no pension in place.

Ultimately I don't forsee any need for the cash until our retirement (i'm 42 and mrs is 39) so some way off yet. So I guess a long term savings strategy?? I was inclined to get the Mrs to look into a pension before any other investment?

I would start with max pension contribution for Mrs S & S&S ISA for both of you.

In 8 months, you will be able to add £20k to each ISA.

In the meantime, you could play the current account game & open regular savers for each of you:cool: