Where to invest £65000

diddydi

We have just received a cheque for a maturing endowment policy for £65000 which we will need to to pay off our mortgage in 3 years and then to live on as we are in our 60's. Where would the best place to invest this? We have put £3000 each in a mini cash Isa.Any advice would be much appreciated.

zincoxide

I have a pocket that pays out in fluff every week! You could spin it and have a jumper each year from the interest!!

Seriously - although MSE is generally good for advice, for this amount of money I'd look to get an IFA (Independant Financial Advisor), get them to give you a couple of options and then post them on here to be scrutinised by fellow MSE'rs before signing up for anything.

dunstonh

Invest or save? how much do you need in 3 years. How much will be for later, what are you looking to achieve with the money not required in 3 years? what is your tax position now and in the future? what is your risk profile? what are you existing savings and investments? what is your income provision for retirement? how is that split between you? is pension credit likely? what is your IQ (sorry that last one was a bit sarcastic although not aimed at you. Its a new rule (from Nov 07) that financial advisers have when giving investment advice. If the person isnt very clever we have to dumb down the advice. Doesnt really impact on bank advisers though as their products are mostly sold on that basis anyway).

diddydi

dunstonh wrote: »

Invest or save? how much do you need in 3 years. How much will be for later, what are you looking to achieve with the money not required in 3 years? what is your tax position now and in the future? what is your risk profile? what are you existing savings and investments? what is your income provision for retirement? how is that split between you? is pension credit likely? what is your IQ (sorry that last one was a bit sarcastic although not aimed at you. Its a new rule (from Nov 07) that financial advisers have when giving investment advice. If the person isnt very clever we have to dumb down the advice. Doesnt really impact on bank advisers though as their products are mostly sold on that basis anyway).

Thanks
Hopefully the remainder of our policies will clear the mortgage. We are on highest rate of tax, my husband has a pension of about £30000 per annum and works part time at about £20000 per annum. I have a draw down annuity and earn about £15000 per annum. We are,albeit in our 60's, pretty clued up so our IQ is not in question. I appreciate you were not be subjective. I guess that I was really asking where would be the best place to invest the money short term to achieve the best return

EdInvestor

The best risk free return is likely to be achieved by using the matured endowment money to pay off part of the mortgage.It may be wise to surrender the others and clear the rest of it as well.

Post some info about the others if you want a view

provider
guaranteed sum assured
declared bonuses
surrender value
monthly premium
maturity date
maturity forecasts
interest payable on mortgage

Endowments are obsolete products which incur high charges and taxes.An ISA is a much better way to invest.

Have you used your investment ISA allowances (4k a year on top of 3k in cash)?

dweeby

zincoxide wrote: »

Seriously - although MSE is generally good for advice, for this amount of money I'd look to get an IFA (Independant Financial Advisor), get them to give you a couple of options and then post them on here to be scrutinised by fellow MSE'rs before signing up for anything.

Good advice.

If it isn't in a high interest account at the moment, put it into one asap. The highest paying instant access savings accounts (eg ICICI) pay 6.41% gross, or ~£270/month net for £65k - and you can access it instantly.

Jonbvn

Have you considered index linked saving certificates from NS&I? You & your OH could put up to 60k into them (15k each into 3 & 5 year certs). Since these certs are completely tax-free, they beat any savings account hands-down, given that you are higer rate tax-payers. The remaining 5k can be put into your cash ISA's (limit of 3k each).

IMHO, 3 years is too short a period to consider investing in stocks and shares.

HTH.