Wheret would you invest if you have £100.000 sitting in the bank?

Albermarle

Imvrasos said:

Albermarle said:

Most people on this forum would normally never have such a large sum of money just sitting in the bank. It would be being put to good use already. 
So along with all the other missing details, why is it there/where did it come from ?

Where OP's monies came from is none of our business. While I agree £100k is beyond the average savings and investment pot, this is a savings forum and is bound to attract people with significant liquidity to save and invest; sums discussed exceed OP's amount quite often.

The more info supplied, the more likely the OP will get a better answer/more informed comments. Anyway if they do not want to give certain info, it is entirely up to them.

Millyonare

The UK tax system is rapidly turning hostile to medium and big sums of prudent cash savings. Personal investing and saving are now being actively discouraged by the UK state. Tax on wealth is rising (sharply). Tax-free and tax-lite are shrinking (a lot). We've entered a whole new pseudo-communist era of ultra tax. Savings may even become subject to an unexpected windfall wealth tax,  or means-tested state-pension cuts, in the not-so-distant future. Think very carefully, before sticking away that £100k. For me, I'd be looking to pay off debt first, pension second.

Not advice. Dyor, etc.

Nebulous2

Millyonare said:

The UK tax system is rapidly turning hostile to medium and big sums of prudent cash savings. Personal investing and saving are now being actively discouraged by the UK state. Tax on wealth is rising (sharply). Tax-free and tax-lite are shrinking (a lot). We've entered a whole new pseudo-communist era of ultra tax. Savings may even become subject to an unexpected windfall wealth tax,  or means-tested state-pension cuts, in the not-so-distant future. Think very carefully, before sticking away that £100k. For me, I'd be looking to pay off debt first, pension second.

Not advice. Dyor, etc.

This is a bit different from the -great country why is everyone talking it down stuff, isn't it? 

Assuming two of them, between now and early April 2023 they could tuck £80k in ISAs if they haven't used their allowance this year, in addition to your suggestion of putting some in a pension. 

Those relatively generous tax breaks are a long way from your description. 

jimjames

Millyonare said:

The UK tax system is rapidly turning hostile to medium and big sums of prudent cash savings. Personal investing and saving are now being actively discouraged by the UK state. 

I disagree. The annual allowance for ISAs is very generous and means people who have invested well can have over £1 million invested inside a tax free wrapper that pays no income tax or capital gains. Even at a modest 3% dividend income that would mean £30k annually with no tax to pay on that money. That seems completely the opposite to hostility to personal investing. 

Sg28

I wouldnt touch btl, why buy something risky and illiquid which requires ongoing monitoring and work and managment for a yield less than you can get on a fixed term saver

Sg28

I have a similar amount which over the next few years the majority will pay off my mortgage. 

50k premium bonds (not the best return but a bit of fun + no tax!)
35k wifes santander esaver 2.75% (no tax!)
30k zopa rolling notice account 2.8% 

10k s&s isa

Its all constantly under review as new better rates become available.

Where you put yours will depend entirely on circumstances.  

Albermarle

jimjames said:

Millyonare said:

The UK tax system is rapidly turning hostile to medium and big sums of prudent cash savings. Personal investing and saving are now being actively discouraged by the UK state. 

I disagree. The annual allowance for ISAs is very generous and means people who have invested well can have over £1 million invested inside a tax free wrapper that pays no income tax or capital gains. Even at a modest 3% dividend income that would mean £30k annually with no tax to pay on that money. That seems completely the opposite to hostility to personal investing. 

You are right, people in most other countries can only dream of being able to shelter £20kpa every year from tax, for investments or savings.