100k to invest, help!

iwblue

I’m looking for some advice/ideas/thoughts please. I know some finance basics,  however I’ve never had this kind of money to manage, which is really quite a responsibility I’m finding.  I’m concerned i may not have thought of the things i don’t know about. If that makes sense.

I have 100000 to invest/ save available in about 6 weeks time.  I need 45k of it in 28 months time. The other 55k I can wait for 5 years.  I have a pp which I don’t need to use for approx 5 years. I’m 60.  What are my best options, I’m not a massive risk taker as this is pretty much everything I have apart from my state pension.

Pay more into my PP?

Shares ISA.....I’ve no idea about medium risks ISA funds.

My PP is in a medium risk fund,

Legal General Multi-Index 5 Fund Acc

Thanks in advance

Albermarle

iwblue said:

I’m looking for some advice/ideas/thoughts please. I know some finance basics,  however I’ve never had this kind of money to manage, which is really quite a responsibility I’m finding.  I’m concerned i may not have thought of the things i don’t know about. If that makes sense.

I have 100000 to invest/ save available in about 6 weeks time.  I need 45k of it in 28 months time. The other 55k I can wait for 5 years.  I have a pp which I don’t need to use for approx 5 years. I’m 60.  What are my best options, I’m not a massive risk taker as this is pretty much everything I have apart from my state pension.

Pay more into my PP?

Shares ISA.....I’ve no idea about medium risks ISA funds.

My PP is in a medium risk fund,

Legal General Multi-Index 5 Fund Acc

Thanks in advance

Unlike many other posters who ask similar questions, at least you have given some thought to the crucial issue, which is when you may actually need the money. So a good start !

For the £45K it should go into a savings account(s) as 2 years is too short a time frame for investing.
If you are still working and have a normal level of wage you will pay tax on any interest above £1K, so would be best to put £20K into a cash ISA maybe  before the end of the tax year ( tomorrow ) as then the interest from this is not taxable.
Then whether it is in Cash ISA or a noN ISA account, you could have it in a 2 year fixed term/interest rate. Or in a one year fix rate or an easy access account or a mixture. 

For the £55K you say you will need it in 5 years, and you also say you will start withdrawing from your personal pension in 5 years. Is that because that is when you plan to retire? If so presume you will not need it all exactly at that point.
Probably you should add more to your pension ( which is invested ), rather than opening a separate S&S ISA. The pension has tax benefits that the ISA does not.
If you can flesh out the detail a bit more about your job/salary/retirement that would help. 

My PP is in a medium risk fund,Legal General Multi-Index 5 Fund Acc

Pretty standard medium risk low cost investment fund.

boingy

Your age and pension information make this one an easy call I think.

The five year money goes into your pension.
The two year money goes into cash savings accounts with at least some of it in ISAs to save a bit of tax. You could choose 1 or 2 year fixed account if you prefer or just use the best Easy Access. If you choose something with a variable rate make sure you compare the rate with other accounts every month or two and move the money if a significantly better rate is available. If you are a higher rate tax payer or just feel lucky you could put some in Premium Bonds.

pip895

Pension and S&S Isa for the long term stuff.  Mixture of Deposit/Easy access and possibly Premium bonds to avoid any tax liability.
If you are unsure on the investment side in the ISA go for a passive multi asset fund (Vanguard Life Strategy 60% equity accumulation might be one to look at).   The adage that past performance does not predict future success is one to take to heart - particularly when looking at passive investments.