Investment following Divorce

Ambergoldleaf

I’m hoping to get some advice following my divorce. I realize that I am very shaken following the trauma of the whole experience and am now making decisions that are important with low confidence and self esteem.  I feel worried by the thought that I’m going to make a mistake. I have an ISA and a Sipp. I have approx 350k to invest or do something with. I’m 52. I am terrified of putting it in a bank and losing it as I know that there is an 85k protection. I am thinking of putting it with the same wealth managers who hold my isa and sipp who have a bank that will offer a 5% approx return. LGT vestry. can anyone advise me? I Currently have a little child maintenance on top of this. I’m setting up a business so not much income yet. Any help would be gratefully received. 3 teenagers still at home and live with me 100% of the time. 

eskbanker

Ambergoldleaf said:

can anyone advise me?

Yes, Independent Financial Advisers will be happy to help:

https://www.moneysavingexpert.com/savings/best-financial-advisers/

Mark_d

5% return isn't great on £350k.  If it was me I'd use a range of investments and aim to achieve a 10% return.  But your situation is different to mine.

What you do with the money depends on you income, your outgoings, your expected needs, the rest of your investment portfolio...

Perhaps your wealth managers are best placed to advise

Albermarle

If you want to safely put the £350k into savings accounts, you have two choices ;
Put it all in a NS&I savings account where it will be guaranteed safe by the Govt.
Or split it across a few different savings providers.
Normally you would get a better interest rate with the second option.
in either case absolutely no need to be terrified.
In the long run keeping such a large amount in cash savings is unlikely to the best solution. However maybe a good idea in the short term until you have a better idea of what you want to do. Especially as savings rates are quite good at the moment.

wjr4

Is it already in an ISA and a pension or is it cash?

Grannydebt

You say you have an ISA and a SIPP. How much are in these?

You don't have to rush to do anything. As one example, you could keep the amount you expect to need before the business gives you an income in an easy access account (e.g. Chase) and then split the rest between the best 1 year fixed rate accounts (see Moneyfactscompare.co.uk.) By doing that you would be standing still, not making money but not losing it through inflation. It would also stop you from dipping into the money for everyday expenses. Use the year to educate yourself on your options and build confidence and self esteem.  Keep visiting this board and watch financial YouTubers. Some are rubbish but 

• Meaningful Money
• Pensioncraft
• Damien Talks Money 

are OK (in my view) 

You owe it to yourself and your teenagers to get to grips with saving and investing. Good luck

LHW99

Why not get your teenagers involved? They could look at the comparison sites (MSE, money supermarket, compare the market...) for good savings rates, and then look up the providers to make sure they are FSCS protected, and see what restrictions there are on the accounts (fixed rate, no withdrawals for 1, 2 etc years / annual interest only / monthly interest paid away...).

Then they could present their "researched best accounts" for you to look at (and check).

It would help them learn about money, and take some of the research off your shoulders.

eskbanker

LHW99 said:

Why not get your teenagers involved? They could look at the comparison sites (MSE, money supermarket, compare the market...) for good savings rates, and then look up the providers to make sure they are FSCS protected, and see what restrictions there are on the accounts (fixed rate, no withdrawals for 1, 2 etc years / annual interest only / monthly interest paid away...).

Then they could present their "researched best accounts" for you to look at (and check).

It would help them learn about money, and take some of the research off your shoulders.

Potentially worthwhile for a smallish chunk of the money, but with £350K on top of existing assets, it still seems likely that professional advice will deliver better solutions than bunging it all into cash deposits?

Bostonerimus1

As you seem nervous about losing this 350k I would put it in NS&I or a few saving accounts for the sort term while things settle down. Divorce is traumatic so give yourself time to adjust to your new circumstances. When things have calmed down then think about what to do.

My first question is what do your current advisors say? You are paying them so use them, how much are you paying them? and how well are they managing your money already? Is the financial firm another hang over from the marriage? Maybe you might change advisors or even think about DIY.

eskbanker

Ambergoldleaf said:

I know that there is an 85k protection.

Just to be clear, up to £1million is protected for up to six months by FSCS for high balances arising from significant life events:

Certain life events could have caused a temporary high balance in your bank account, including:

• [...]
• Divorce or dissolution of their civil partnership.

https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

Ambergoldleaf

wjr4 said:

Is it already in an ISA and a pension or is it cash?

I already have a pension and an ISA. Just over 450k in sipp and 135k in ISA. So this is cash