Advice needed! What is the best way tolook after my money?

charlotte73

I have recently inherited £35k and I am stumped. I think I should have an ISA but that only takes care of £3k! I never thought I would be in this position and I really want some sound advice. I think I should put £20k into long term savings/investments but really don't know where to start! Please help......

Aegis

With that much, it might be a good idea to visit an IFA and get the whole lot sorted out by a professional.

Personally I'd be looking to put £3k into a cash ISA, £4k into a stocks and shares ISA in at least 4 managed funds (the more risky ones of the bunch that I'd pick to ensure that the capital growth is tax-free in the long run), then about £10k into a good savings account and the other £18k into a nice varied investment portfolio.

However, your financial needs will be different to mine, so it's very important to get the opinion of someone who knows your situation.

rathernot

I think important questions would be, as above any existing debts to pay, and what do you call "Long Term" (to some people this can mean 10 years, to some 1 year etc.)?

Jake'sGran

I too would use the full ISA allowance for this year. Some would put it all in a stockmarket ISA but like many others I put £3000 in a cash ISA and the rest in an equity ISA. At the moment I am researching which one to use this year. There are some good one year fixed rate bonds around at the moment. Maybe you could put £5k in one of those. If you don't like any risk you could put it all in a good instant access savings account - one that does not lend to people with no collateral but you would need to do some homework to find out which these are. We are in turbulent times right now with savings and investments and I don't know how we can work out which are the solid, reliable banks.

Secret_Wookie_2

Bradford & Bingley have just launched a 6.40% AER Internet top of best buy table if you just want to keep things simple for the money not going into a cash Isa each year.

charlotte73

Thanks to all who advised me. I have set up a cash ISA and am still deciding what savings accuont would be best for the rest!

Pobby

Charlotte,we are in a similar position.The nice thing is,every year you can take the 3k out of your savings and put that into an ISA.we have been doing this a few years now and still have a long way to go in using up the money into ISAs.If you are risk adverse I think you can invest in maxi ISAs that are very low risk.The experts here will be able to tell you.

robp

Aegis advice is similar to mine so I won't repeat.

However, do you have a mortgage?

If so it might be worth making some overpayments.....check the Egg Mortgage calculator to see what it could save you!

Jonbvn

After the ISA, have a look at NS&I Index Linked Savings Certificates, which are completely tax-free. Assuming you are a tax-payer, they beat the majority of saving accounts. They are also 100% guaranteed by the Treasury.