Best Investment options for higher amounts?

a18041967

Later in the year I’m likely to have in excess of £100k savings along with £1k per month and would be interested in knowing what my bests options would be to invest this money.

As a bit of background I have used £100k of my end salary pensions 25% tax free allowance to fund the purchase of a new house whilst my existing house sells almost like a bridging loan. When I sell the old house the mortgage I have taken to purchase new house will be paid off and I’ll have £100k and will have an additional £1k per month.

Things I’m considering now is an ISA but that’s limited to £20k and will be used, also the £85k financial security aspects. 

I’m a 57 year old single with no finical commitments, and literally this month I moved into the 40% tax bracket I increased my pension contributions to as much as I can to mitigate the tax rise.

What can I expect in terms of income and tax penalties, the last month has been a bit of an eye opener as I’ve had £80k sitting in my Chase (4.1% interest) account whilst waiting to complete my house purchase and been earning £274 interest a month, luckily one payment last financial year and another this financial year.

El_Torro

Investing in sensible options (for example global trackers and multi asset funds) makes sense, even with £100k or more. 

As you say you can only put £20k a year into an ISA. It's a start though. One option would be to put more into your pension, either with your workplace pension or separately. If you have a workplace pension you can always put a big percentage of your monthly salary into the pension and use your £100k for living expenses. 

If you're planning to save (as opposed to invest) most / all of this money then you will need to continue taking the hit on the tax on interest. Premium Bond winnings are tax free, and pretty attractive for a 40% tax payer. Some people aren't fans of the erratic prizes though. 

If you want to invest then doing it outside of an ISA or pension is possible. You will be liable for taxes on your gains though (doesn't mean it's not worth doing). 

Albermarle

Many posters on here filled up ( or are filling up) their pensions, and living off savings ( or partly) for their last few years at work.
This is especially beneficial if you are getting 40% tax relief.

jimjames

If you've not used your ISA allowance this year then getting £20k into cash ISA now will preserve that allowance for you, then decide on long term plans.