Investing a lump sum

Doodly

Hi, I am selling my house and buying a flat and will have £100,000 to safely invest to bring in an income. Where is the best place to put it please

p00hsticks

More info needed really - are you prepared to lock away the capital with no access ? And if so for how long ?

The words 'safely' and 'Invest' don't necessarily go together - you can put your money in a savings account, where your capital is protected (but potentially losing worth to inflation over time) or you can invest in the market (funds, trackers etc) but as you will be warned, 'the value of investments can go down as well as up' - so if you needed to release your capital quickly it may be at a loss.  

Will you be reliant on receiving the same regular income every month from this money ? And how much are you hoping to get ? 

ColdIron

Define 'best', What might be best for someone may be a bad choice for you and vice versa

What is the 'best' food or even 'best' hairstyle?

You need to provide more information regarding your circumstances and objectives

jaypers

Some good questions already asked but from Day 1 you need to put it into the best Easy Access account you can find. 5% is about right that will pay you about £13.69 per day in interest. In fact, you’ll need a couple of accounts……don’t put more that £85k into any single institution. You can then plan what to do next. If investing, would recommend some kind of drip feed type approach unless there’s an obvious good buy out there. Also recommend a combination of Investments, Fixed Cash plus Easy Access cash depending on your needs. 

Beddie

"Safely" means savings accounts, not investments. Although investments will likely give a higher return over the longer term.

Use moneyfacts to find the best rates: https://moneyfactscompare.co.uk/savings-accounts/

Some or all could be put away fixed for up to 5 years, some pay monthly too, it's all on that website using the filters.
Keep enough for emergencies in easy access, should you need it.

And use your ISA allowance each year, obviously.

p00hsticks

Beddie said:

And use your ISA allowance each year, obviously.

Although as the OP hasn't said what (if any) other income and savings they have, it's not necessarily 'obvious' that they need to be sheltering the money in an ISA if they can get a better interest rate outside.....

dunstonh

Doodly said:

Hi, I am selling my house and buying a flat and will have £100,000 to safely invest to bring in an income. Where is the best place to put it please

There is no safe option to bring in an income.  Every option has risks.  Cash savings at one end will secure your capital for a period but as you are drawing the interest, the real terms value of the capital will decline along with the interest value. If this is for the long term, sooner or later, you will need to start eating your capital to make up for it.

Investment risk reduces the risk of shortfall risk and inflation risk but introduces volatility.

Then you have tax wrappers to consider.  Any of these could be in play or be unsuitable depending on your circumstances.  There isn't enough to go on.

nottsphil

 (Removed by Forum Team)

The OP's sole income could be just the state pension for all we know, and may not even be a full one. Even if it is, interest from £100,000 wouldn't be taxed, so it's not at all obvious that an ISA would be needed this year.
 I think an apology would be appropriate.

Eyeful

There is ALWAYS risk associated with money. Its just the size and type of risk that changes.

Example 1. That nice "safe" savings account. There is the risk that inflation is going to greatly reduce the buying power of your savings with time. Remember the high 27% inflation in the UK in 1973/74 or hyperinflation in 1922/23 Germany.

Example 2. With investing there are no guarantees. You may get back less than you put in.
Remember UK 1973/74 stock market crash or the 1922/23 stock market crash. 

Define what you mean by "safe" & the size of income you hope for.

Albermarle

Eyeful said:

There is ALWAYS risk associated with money. Its just the size and type of risk that changes.

Example 1. That nice "safe" savings account. There is the risk that inflation is going to greatly reduce the buying power of your savings with time. Remember the high 27% inflation in the UK in 1973/74 or hyperinflation in 1922/23 Germany.

Example 2. With investing there are no guarantees. You may get back less than you put in.
Remember UK 1973/74 stock market crash or the 1922/23 stock market crash. 

Define what you mean by "safe" & the size of income you hope for.

What you say is of course correct.
However worth pointing out that at the current time, a safe savings account is paying a higher interest rate than inflation, and probably this will continue for some time. So for a relatively cautious person, putting £100K in a fixed term savings account ( 3 or 5 years maybe) at around 4.6% when the short/medium  term outlook for inflation is lower than that, would not be the worst financial decision.
However in the longer term, investing it would normally expect a better return, but not guaranteed of course.
A mix of savings and investments could be a good compromise.