100k nice problem to have 9 March 2022 at 10:34AM in ISAs & tax-free savings 6 replies 383 views

norrisg24

Fortunate to have 120k earning not very much and with inflation, it needs to do much better.

Savings accounts about .5% 40k
Cash isa .5% 60k
Premium bonðs 15k
Cash 5k

Was considering moving isa into stocks and shares isa in april, some i n a 1 year , 30k in a 2 year- want it all accessible in 3 years, when i can retire, if i want.
Im ok with keeping some cash say 10k and some premium bonds.

Im not a big risk taker , any ideas to keep this lot above inflation, plus a bit?

eskbanker

norrisg24 said:

want it all accessible in 3 years, when i can retire, if i want

Are you really going to need easy access to the whole £120K in three years time, or just some of it initially and the rest later?

norrisg24 said:

Im not a big risk taker , any ideas to keep this lot above inflation, plus a bit?

Keeping it in cash form is practically guaranteed to lose significant real-terms value to inflation, but if you can lock at least some away for 5-7 years or more then investing in diversified funds is reasonably likely to beat inflation....

tebbins

It's a sensible idea but to really answer that question we'd need a bit more info about your wider financial situation. Age, pension provision, partner/dependants, house paid off etc.?
Premium bonds are generally considered "as good as cash" because NS&I has full Treasury backing so many people count NS&I as "cash" on their balance sheets.
Keeping at least £10k or so is probably sensible.
You can transfer the £60k cash ISA anytime you want to a S&S ISA, you can also add £20k into it before 5th April and then another £20k on 6th April, that would seem to get you close to where you want to be re: cash/S&S ISA split.
Read the forum guide on S&S ISAs (https://www.moneysavingexpert.com/savings/stocks-shares-isas/).and look up the beginner investing articles on monevator.com and Lars Kroijer's investing demystified series (

Albermarle

Depending on your pension and current salary  situation, it can often be a good idea to maximise contributions to a pension during your final years at work . It is more tax efficient than investing via a S& S ISA.

jimjames

norrisg24 said:

Was considering moving isa into stocks and shares isa in april, some i n a 1 year , 30k in a 2 year- want it all accessible in 3 years, when i can retire, if i want.

Why wait until April? Transfers are not related to tax years.

norrisg24

Im 52, got 390k penśion pot plus by age 55  will have built defined benefit pension of 12k (at age 67), own my house.

Why  do i want cash? Maybe 2nd home,?-  just like the freedom of being able to Sack it and sail off whenever i want!

eskbanker

norrisg24 said:

Why  do i want cash? Maybe 2nd home,?-  just like the freedom of being able to Sack it and sail off whenever i want!

That's entirely your prerogative of course, but you should just be aware of the significant cost of buying that flexibility....