What to do ?

eskbanker

Shylock_249 said:

Heytheremrblue said:

Honestly I don't have a clue I suppose I will need to have some ‘proper’ paid for advice at some point..... 

You might find that your high street bank will give you some free wealth advice?

High street banks are unlikely to be relevant here - their employees are essentially salespeople for their own products, so in OP's position, it would be far more appropriate to engage with one or more independent financial advisers (IFA) in order to determine a suitable approach to financial planning.

Shylock_249 said:

My experience with every financial adviser is that they are more concerned with improving their wealth and NOT mine!  They ALWAYS want me and the wife to name/nominate (NOT sure of the term) them as advisors for our existing (150k+) stocks and shares ISAs.  I'm NOT sure but I think they would receive 0.5% a year, ie £750 and that's before they look at our cash savings.

Obviously any financial advisor is in business to earn a living, but there is no obligation to sign up for ongoing management services for those who choose not to and simply engage for one-off transactional support.

Shylock_249 said:
About 10 years ago one advisor got quite shirty when I declined to put my money in stocks and shares and said I was doing the wrong thing.  I asked him if he had 870k in the bank and when he said no, I said then is it NOT for consideration that I've done something right?

With all due respect that's a ridiculous way of assessing the professional recommendations of someone qualified to perform such services - do you really believe that only those with more assets than you would be qualified to deliver advice?  It's undoubtedly true that investing isn't for everyone, depending on circumstances, objectives, etc, but the instinctive perception that S&S are risky and cash savings aren't doesn't withstand much scrutiny in most scenarios....

Heytheremrblue

Thanks all for your replies will read and digest later with a reply.

Heytheremrblue

Thanks again for your advice. I’ve been having a think and have decided I would like to earn interest on the money which I would take monthly but using well known High Street Banks, NS&I etc. which would be a nice monthly bonus  I could then save, spend or whatever but not drawing down on the lump sum.

So how to go about that ? 

Would the easiest option be just sticking it all in British Savings Bonds for a year then re assess ?

Hunt down the best deals from the High Street Banks and put 85k in each for a year then re assess ?

If I open the accounts as joint accounts with my wife am I protected for more than 85k which would make finding decent deals easier I suppose if I can deposit more per bank.

How would the tax on the monthly savings be paid ? Do the High Street Banks take it at source or would I need to pay it yearly ?

Middle_of_the_Road

Heytheremrblue said:

 ? Do the High Street Banks take it at source or would I need to pay it yearly ?

Savings rates being better than they've been for a long time could return you a decent return in the short term. As others have said, look into pension contributions and possibly ISA savings.

Banks no longer deduct tax on savings interest. It's down to you to keep records of all income for tax purposes. Banks do though send the tax office all your interest details and tax you accordingly.

Edit to add-
170k protected for joint accounts.

Heytheremrblue

Middle_of_the_Road said:

Heytheremrblue said:

 ? Do the High Street Banks take it at source or would I need to pay it yearly ?

Savings rates being better than they've been for a long time could return you a decent return in the short term. As others have said, look into pension contributions and possibly ISA savings.

Banks no longer deduct tax on savings interest. It's down to you to keep records of all income for tax purposes. Banks do though send the tax office all your interest details and tax you accordingly.

Thanks not interested in Pension contributions and don't really understand ISA's would they give me a monthly interest payment ?

Middle_of_the_Road

They're  just savings accounts and can be easy access or fixed term. No tax will be paid on any money in an ISA. Maximum 20K Annual deposit.

Monthly interest ISA (easy access)

https://moneyfactscompare.co.uk/isa/easy-access-cash-isas/

Edit-
Pensions have been mentioned because any money you put in is topped up by the government. In effect, using round numbers, every 4000 you put in the gov't adds £1000. You can contribute up to your total earned income each year. 

https://www.hl.co.uk/pensions/tax-relief

Heytheremrblue

 said:

They're  just savings accounts and can be easy access or fixed term. No tax will be paid on any money in an ISA. Maximum 20K Annual deposit.

Monthly interest ISA (easy access)

Ahh right I see that's the problem with the ISA then I suppose I could open one for myself and my wife and deposit 40k this year with say the nationwide at 4.25% and then 170k in say the Coops fixed term 1 year at 4.53% and the rest in another Bank with a similar account then another 40k in ISA's next year ?

kimwp

Putting money in your pension would likely mean the government/taxman adding 25% to it depending on your other circumstances (mainly depending on if you were earning over the tax threshold when you withdrew the money).
How much you can put in depends on what you are earning. 
Worth sharing those details to consider whether an extra 25% is possible. You don't need to put the money in stocks, they can be in cash in a pension.

Heytheremrblue

I earn about 40k a year and the Wife around 50k but I want this money to give me a monthly payment wherever it is.