£50,000 windfall ..... What to do ????

belfastgal

Hi we have £50,000 and want to invest the money , we don't need all of it yet so could invest half of it for up to 5 years . We each have an isa but have not added to it this year ( we each have an easy access with low interest on it ) think it's post office isa.
Any ideas as it's just in my bank and not getting a penny of interest as. Don't know what to do with it.
Many thanks

jimjames

5 years plus - invest it. You say "we", so you could each get £15k into a S&S ISA now. Or use it for pension depending on ages and when you will need it

belfastgal

jimjames wrote: »

5 years plus - invest it. You say "we", so you could each get £15k into a S&S ISA now. Or use it for pension depending on ages and when you will need it

What is the difference between a stocks and shares isa and a cash isa . We both have a cash isa. Our mortgage is already paid off , we are in our 50's. We have one rental house as well as our home we live in which brings us an income. I'd like to put this money somewhere to get a by of interest on it .

DrSyn

With a CASH ISA your money in CASH and is protected up £75000 if it is in a regulated in bank or building society savings account.

In a STOCKS & SHARES ISA your money will be in Bonds or Shares or both. So the value will go up & down. You can therefore get less out than you put in, so your money is at risk. Which is why you should leave it in for the long term, say 10 years or more.

If you do put it into a S & S ISA

(a) make sure you have an emergency cash fund so you do not have to sell them at a loss.

(b) you can go active (you or a manager makes the decisions) or passive (you just track an index, eg FTSE 100)

http://www.moneysavingexpert.com/banking/

http://monevator.com/this-former-hedge-fund-manager-reveals-how-you-can-invest-for-life-in-five-quick-videos/

http://monevator.com/highlights/
(also look the menu, top left hand)

You might think of putting some in a low cost pension.

Remember in either S&S ISA or pension, you will end up with more money if you keep their costs low than if they are high. Costs matter!

colsten

What are your plans for the money?

Before you decide where to put it, you need to know whether and when you want to spend it.

belfastgal

colsten wrote: »

What are your plans for the money?

Before you decide where to put it, you need to know whether and when you want to spend it.

My plans are to spend the money gradually as the years go on . We are quite comfortable at present so I don't see us blowing the money in a year or so... Some money I would like to invest for say 5 years and the rest say 1/2 of it I would like to be able to access it should I want to.
We may do a few things to upgrade our house.
Many thanks