£1,000,000 investment

Zero_Sum

Im now a bit confused.
OP is bemoaning about inflation being around 3% (even though 4 posters have said its not that high). But has cash in NSI at 0.9% as doesnt want (very unlikely) risk of bank going bust or cant be bothered to split up into smaller sums to eliminate bust bank risk. You're not stuck at 1% in NSI, its entirely you're choice as theres plenty of better risk free options.

Zero_Sum

ffacoffipawb wrote: »

How cheery, lol.

Don't join The Samaritans.

TBF, I was was just suggesting he just enjoy himself & stop worrying over a relative/non material amounts. It is a fact of life, old people die eventually & no point in hoarding large sums in old age. Life is for living after all.

darkidoe

Finally a Premium Bond jackpot winner! First time I heard of one if true.

I suggest getting some professional advice as well. Paying for an IFA would more than pay for itself, as you duly noted, you have lost 'thousands of pounds' through inflation.

quirkydeptless

Possibly a good case for Hargreaves Lansdown active savings

https://www.hl.co.uk/investment-services/active-savings

Here under one Umbrella account you could split it across various accounts so that you are covered by FSCS 85K.

e.g. you could have 85K in each of

Coventry Building Society 1.25% Easy Access
United Trust Bank 1.40% 3 month
Aldermore Bank 1.85% 1 year
Paragon Bank 1.80% 1 year
Shawbrook Bank 1.65% 1 year
Charter Savings Bank 2.25% 2 years
ICICI Bank 2.40% 3 years
Close Brothers Savings 2.55% 5 years


As each matures, you can re-save at the new rates available.



That would give you 680K FSCS covered at a smidge over 1.89%

You could also dip your toe into investments with 20K in a Stocks and Shares ISA, keep 50K in Premuim bonds, so thats 750K covered and 3/4 of your very nice to have problem solved :money:

investa

When you win the Premium Bond jackpot, you are offered a free financial advice consultation but I chose not to take it as I had my own ideas, buying a more expensive house was one of them. I also liked the idea of an annuity but when I looked at what was on offer (index linked) I was shocked at how low it was.

Thank you for all the advice that's been offered, it's very useful and given me things to think about.

Shedman

Don't forget to take account of the tax on interest...that'll reduce the 2.5% to around 2% (assuming the interest on £1m doesn't take you out of basic rate tax).

Investing is really the only way to outrun inflation but can understand your concerns about the likelihood of an imminent downturn in the stock market (but none of us have crystal balls). Good luck and do enjoy your windfall.

Ken68

Investa.....you need to rattle to death every board of this forum, accumulate even more wealth. No need to waste money and also check if you are eligible for a bus pass.

Zero_Sum

Shedman wrote: »

Don't forget to take account of the tax on interest...that'll reduce the 2.5% to around 2% (assuming the interest on £1m doesn't take you out of basic rate tax).

Investing is really the only way to outrun inflation but can understand your concerns about the likelihood of an imminent downturn in the stock market (but none of us have crystal balls). Good luck and do enjoy your windfall.

Depends. If married, transfer half to wife then on 2.5% will earn £12,500 each which is your personal allowance. So if have no other income then wont be any tax.

investa

***.hl.co.uk/investment-services/active-savings
Thanks quirkyd. this could be my solution

BTW: you don't get a bus pass until you are 66.

ColdIron

investa wrote: »

BTW: you don't get a bus pass until you are 66.

You can at 60 if you live in London