Advice for investing 140K please.

annie42

A relative has 140k to invest. He needs easy access to some so he’s thinking of putting 50k in premium bonds, 20k in a cash isa and holding 10k in a savings account. What are the best options for the remaining 60k please? 

dunstonh

Insufficient information for anyone to answer that question.    Your comments also suggest he is not looking to invest but save but without knowing the objectives we can't say.

Albermarle

You need to post a lot more detail as the answer will be different for different people/situations.
Age
Married
Employed
Debts/Mortgage 
Pension provision
etc 

Also be aware that advising relatives on finance matters is fraught with potential problems, especially if it is not something you know much about.

Brie

It's one of those annoiying things as it's more than a lot of us ever have at one time and it's not enough for an IFA to be wanting to advise on.  

My first and untrained thoughts would be to pay off any debts, possibly including the mortgage, and zapping a portion into a pension pot somewhere.  But that all depends on a lot of things as Albermarle has pointed out.  

annie42

Thanks for your replies. I’m not advising him. He has asked me to ask the question on his behalf. He’s 76, married, semi retired (self employed) has no private pension just his state pension. No mortgage. Ideally he’d like to generate some income from the 60k but assumes it wouldn’t be a great deal. He has no existing investments. Hope I’ve provided enough info. 

Bigwheels1111

At that age I think I would be looking at 5 year fixed rate bonds.
Paid annually 4.42% secure trust as interest can be paid away.
81k would be good as add interest of £3580.20 and that keeps the total under FSCS 85k limit.
https://moneyfactscompare.co.uk/savings-accounts/5-year-fixed-rate-bonds/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate

Premium bonds why ?.  Win some, maybe who knows.
He wants income, right.
Total income before tax can be £18,570
Take off state pension.              £11,973

Leaves                                       £ 6,697 of tax free interest.

So get the best rates possible as No tax will be paid.
110,000 5 year fixed rates
  20,000 no real need as no tax to pay
  10,000 easy access account for emergency.

Dazed_and_C0nfused

Bigwheels1111 said:

At that age I think I would be looking at 5 year fixed rate bonds.
Paid annually 4.42% secure trust as interest can be paid away.
81k would be good as add interest of £3580.20 and that keeps the total under FSCS 85k limit.
https://moneyfactscompare.co.uk/savings-accounts/5-year-fixed-rate-bonds/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate

Premium bonds why ?.  Win some, maybe who knows.
He wants income, right.
Total income before tax can be £18,570
Take off state pension.              £11,973

Leaves                                       £ 6,697 of tax free interest.

So get the best rates possible as No tax will be paid.
110,000 5 year fixed rates
  20,000 no real need as no tax to pay
  10,000 easy access account for emergency.

You have omitted any self employment income from that calculation.

He’s 76, married, semi retired (self employed) has no private pension just his state pension.

Bigwheels1111

Dazed_and_C0nfused said:

Bigwheels1111 said:

At that age I think I would be looking at 5 year fixed rate bonds.
Paid annually 4.42% secure trust as interest can be paid away.
81k would be good as add interest of £3580.20 and that keeps the total under FSCS 85k limit.
https://moneyfactscompare.co.uk/savings-accounts/5-year-fixed-rate-bonds/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate

Premium bonds why ?.  Win some, maybe who knows.
He wants income, right.
Total income before tax can be £18,570
Take off state pension.              £11,973

Leaves                                       £ 6,697 of tax free interest.

So get the best rates possible as No tax will be paid.
110,000 5 year fixed rates
  20,000 no real need as no tax to pay
  10,000 easy access account for emergency.

You have omitted any self employment income from that calculation.

He’s 76, married, semi retired (self employed) has no private pension just his state pension.

Missed that, DOH.

annie42

Many thanks for the suggestions. Will pass them on. Re his self employment income he has just retired from working full time and is unsure what his income will be from part time work. 

Albermarle

Brie said:

It's one of those annoiying things as it's more than a lot of us ever have at one time and it's not enough for an IFA to be wanting to advise on.  

My first and untrained thoughts would be to pay off any debts, possibly including the mortgage, and zapping a portion into a pension pot somewhere.  But that all depends on a lot of things as Albermarle has pointed out.  

£140K would be attractive enough for most IFA's to be interested in, if it was mainly invested/pension. Whereas it seems the OP is mainly just interested in savings accounts, so not IFA territory anyway.