Advice needed

System

This discussion was created from comments split from: What to do with £100,000.

Susan1942

I am sorry to crash this forum but I can't remember what I need to do to start a new question.  Currently  I have got £41,000 in a unit linked Phoenix bond.  The amount invented was  £30,000 in 2003 so 12 years.  Initially it fell sharply to just over £22,000 about a year later.  I spoke to my bank manager who advised me to leave it where it was.  It then improved and grew which I was happy with. I took £5000 to help my son with a deposit for a house about 10 years ago.
There was a drop around Covid but I have just had the plan update  and the plan has only increased by £87 since October 22nd 2025.  It seems to me that I would be better cashing it in.  If I put the money in a bank account I surely would see a better return than this.  I am also reading that a stock market is heading for a crash. 
I would appreciate any advice.  Many thanks                                                                                                             

scoobyjones1

Susan1942 said:

I am sorry to crash this forum but I can't remember what I need to do to start a new question.  Currently  I have got £41,000 in a unit linked Phoenix bond.  The amount invented was  £30,000 in 2003 so 12 years.  Initially it fell sharply to just over £22,000 about a year later.  I spoke to my bank manager who advised me to leave it where it was.  It then improved and grew which I was happy with. I took £5000 to help my son with a deposit for a house about 10 years ago.
There was a drop around Covid but I have just had the plan update  and the plan has only increased by £87 since October 22nd 2025.  It seems to me that I would be better cashing it in.  If I put the money in a bank account I surely would see a better return than this.  I am also reading that a stock market is heading for a crash. 
I would appreciate any advice.  Many thanks                                                                                                             

I would put 20k in a cash ISA now, the rest in an easy access savings account. Next year, budget allowing, you should have another 20k allowance for an ISA. If the market dips by then you could use a stocks and shares ISA, just invest in a simple, S&P 500 fund within that ISA, unless you know enough about how to pick stocks.
The fund you are in should've done better for you, IMO.

eskbanker

Susan1942 said:

I am sorry to crash this forum but I can't remember what I need to do to start a new question.

Someone who's started over two hundred threads previously ought not to have too much difficulty with that, in order to avoid taking an existing thread off-topic - the actual 'create new' button presentation will vary according to exactly how you're accessing the forum but using Chrome on Windows, it's above the quick links on the right hand side:

Albermarle

eskbanker said:

Susan1942 said:

I am sorry to crash this forum but I can't remember what I need to do to start a new question.

Someone who's started over two hundred threads previously ought not to have too much difficulty with that, in order to avoid taking an existing thread off-topic - the actual 'create new' button presentation will vary according to exactly how you're accessing the forum but using Chrome on Windows, it's above the quick links on the right hand side:

Same if you use the Edge browser.

Vitor

- What’s the best plan? I’m guessing diversification, but keen to hear any opinions. -

1. New pension plan - Worth doing if you still have earned income to match against, the 20% tax relief is an instant, risk-free return, even if you keep the funds in cash.
2. ISA allowances - Definitely use them, ISAs give long-term, tax-free growth and full flexibility once you stop working.
3. Premium Bonds - Fine for liquidity and peace of mind, but the real return is below inflation, so treat as a safe holding place, not an investment.
Additional ideas:

• Fixed-term or notice savings accounts for short-term needs (rates around 5%).

• Diversified, low-cost investment funds inside an ISA for inflation protection.

• Consider staggering pension and ISA contributions over two tax years to maximise allowances.

• Keep six months’ cash for emergencies before locking up any more in pensions or bonds.

danco

I would be inclined to say that if you currently hold 25000 in Premium Bonds, that shows that you like them. As pointed out, their true return is not brilliant, but the thought of "gambling" on a large payment without a specific risk evidently appeals. And if that is so, and you have so much available, why not go for the maximum and put another 25000 into Premium Bonds.