Advice required on end of cash ISA deal needed

adam_l

Hello
 I am a 60-year old man, not an expert in financial matters. I have a medium risk appetite and hope to retire in my mid 60s. Although my kids will be at university at that point so so it's unlikely that I will be able to. Ha!.

 I would really appreciate advice  on what to do with a cash ISA where the current "deal "ends at the end of the month.
I have around 40k in a Vanguard Lifestrategy 40% fund  ISA, and 50k in Kent Reliance cash ISA that earns 1.54%. The KR  "deal" period ends at the end of the month and I would like some opinions on what best to do...

Should I:

1. Leave the Kent Reliance money where it is. It will move it into a new ISA wrapper in June -  although I do not yet know what terms are on offer.

2. Move  the  KR 50k  into the Vanguard lifestrategy fund. Could be risky and the current circumstances?  The charts show that the 40% lifestrategy fund is more or less in the same place as it was this time last year. (I have been told that now is a good time to invest in funds as prices are relatively depressed... Even a low risk fund like Vanguard Lifestrategy 40%.)

3. Look for the best deal cash ISA at the moment?

4. Look for a another fund? (I'm not an expert and and I don't want to have to monitor it. I just need a fund that will provide steady growth)

5. Something else entirely?

I am not risk averse,  however because of my age and the fact that I want to retire within the next 10 years I don't want to take massive risks with my money.


Any thoughts on what best to do do particularly given current circumstances will be really appreciated :-) 


Thanks! 

masonic

You haven't mentioned whether any of this money will be needed as part of your retirement income, or if you other provisions for your living costs in retirement. A low risk fund like VLS40 could be used as a 5 year investment vehicle, but it would be sensible to withdraw the money into a cash buffer in the years ahead of when you'd want to spend it. If you are a higher rate taxpayer, then it may be worth continuing with cash ISAs, otherwise you could achieve a better rate in the normal savings market.

Albermarle

Move  the  KR 50k  into the Vanguard lifestrategy fund. Could be risky and the current circumstances?

To a large extent I would discount 'current circumstances' from your decision, as next year there will be different ' current circumstances' which maybe better or worse ( hopefully not).

If you want to stick with a savings account does it need to be a cash ISA ? Non Isa accounts pay a bit more interest.

If you are a 20% taxpayer you can earn up to £1000 interest tax free anyway ( £500 if you are a higher rate taxpayer ) 

Look for a another fund? (I'm not an expert and and I don't want to have to monitor it. I just need a fund that will provide steady growth)

No investment can guarantee steady growth, or any growth for that matter. In that context if you are OK with VLS40 , then it probably fits your needs for the limited info supplied ( no mention of pension situation )

adam_l

Ok many thanks for your response.

I do have a sipp as well, and hope to make  40K per year contributions for the next few years.  So the ISA is extra rather than my main retirement income. 

I do take your point about the steady growth - I chose the vanguard funds because it seems to be recommended for non-expert investors like me. 

I look at the non ISA options for cash... 

Thanks again

adam_l

Thanks to both respondents. Sounds like I need to look at non ISA savings accounts. 

Albermarle

https://moneyfacts.co.uk/savings-accounts/