Legal case winnings

egd29_

Had something awful happen to me which has related in a legal case which I have just settled. I am unsure how to invest my money? After fees I’m looking at approx £60K. I know I can put £20K in an ISA but unsure what to do with the rest? I don’t know a lot about investing! Would appreciate any help! Thank you 

Mark_d

Supposing you don't need access to the money for at least 5 years, then I would recommend a stocks & shares ISA.  Some providers invest your money in a fund based on your attitude to risk, ethical investments etc.  Being invested in a fund lowers your risk through diversification.  It also means that you don't need knowledge about investing.

What would you do with the other £40k?  Assuming you're already contributing huge amounts to you pension and still taking home an ample wage each month, then I would keep the £40k in my Kroo current account and use it to treat myself to new experiences - weekends away to interesting destinations.

egd29_

Mark_d said:

Supposing you don't need access to the money for at least 5 years, then I would recommend a stocks & shares ISA.  Some providers invest your money in a fund based on your attitude to risk, ethical investments etc.  Being invested in a fund lowers your risk through diversification.  It also means that you don't need knowledge about investing.

What would you do with the other £40k?  Assuming you're already contributing huge amounts to you pension and still taking home an ample wage each month, then I would keep the £40k in my Kroo current account and use it to treat myself to new experiences - weekends away to interesting destinations.

Would likely need to access in less than 5 years time as hoping to get married and move house by then. Yes, I do contribute highly towards my pension for my age and also have a good annual salary. Thought that it may also be useful if I have maternity leave if we do have children - thanks for your advice 

n15h

The general consensus is to hold an investment for at least 5 years (and longer) to help smooth out falls/rises with the investment (although no guarantee of a smooth ride, as seen with the recent volatility in the markets from US tariffs).

If you're wanting access in less than 5 years as you have plans, you may want to consider savings accounts instead to avoid the risk of any loss, such as 1-5 year fixed rate savings, limited access and/or easy access. Make sure to use your ISA allowances where possible. Premium bonds are also another option to look at.

Also think about an emergency fund (if you haven't already got one).

Albermarle

As said for money that will be needed within 5 years, it is better to save it rather than invest it.

If you are not that familiar with savings account here is the MSE guide.

Savings | MoneySavingExpert

Do not be put off saving with a provider you have never heard of. Smaller banks/savings providers tend to have better rates than High St banks. 
As long at they are mentioned in the MSE guides, or here, Compare Savings, ISAs, Mortgages & More
then they are covered up to £85K.
Do not be tempted by anything advertised on Facebook etc offering special rates etc 

saajan_12

Nothing special about the 20k in an ISA being in Stocks & Shares or the 40k not in an ISA being interest bearing. The question is really what your timeframe and risk profile is. Non ISA investments and ISA interest bearing accounts are both just as doable. 

Eyeful

Savings are Low Risk
1. Any money needed within 5 years should be in either
(a) NS&I savings account or Premium Bonds. You are loaning the UK government your money, so it is 100% protected.
(b) Bank or Building society savings account, protected by the FSCS up to £85k.

2.The FSCS protection up to £85K only applies to Banks, Building Societies & Credit Unions that are on their list:

https://www.fscs.org.uk/check/check-your-money-is-protected/

3. For best rates look here:

https://moneyfactscompare.co.uk/savings-accounts/
https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

4. Use tax shelters where possible (a) Pensions (b) Cash ISA's.

5. Investing means putting your money at risk (as in stocks & shares).
Can be high risk, only think of doing this if you will not touch it for at least 5 years (the longer the better). 
If you ever do want to invest, come back here & ask before you go a head & invest.