Help please - what do with my money?

shirtbuttons

I'm taking voluntary redundancy at the end of this month and after paying off all I owe (but not the mortgage) I will have around £50k. As I'm not going to be working for a few months I will need to hold back a couple of £1000 for emergencies.

I currently have an easy ISA with Abbey with around £3600 - I have only put in around £200 this year so am planning to open a Direct ISA with Abbey, transfer in the £3600 and then top it up to the limit for this tax year and then put in £3600 on 6 Apr. I intend to do the same in my husbands name to use his tax savings. I had originally thought that I would be happy to tie up about £30k for 5 years with the remaining £20k reasonably accessable.

Having spoken to an Abbey Adviser she suggested using Bonds or Super ISA but I would then need to invest in the Guarenteed Growth Plan. Stocks and Shares do scare me as I really want to use this money to it's full advantage. I know I will never be a rich person but I will never have this opportunity again to have £50k. Sounds a feeble excuse but I am so busy at the moment I do not have the time to see a IFA and with the 5th Apr looming I feel under pressure to take action soon. Although the money wont be available until around 2 Apr.

I will also have around £12.5k which will need to go to the tax man (but am only be taxed at 22% although I should pay 40%). I have spoken to the tax office and they have said to hold onto the money until my P45 is available. As I'm expecting that to take up to six months (the company I work for is very slow on sorting out P45) I thought of buying some premium bonds just to see if I could win anything.

Having never had any money behind me I really want to make the right decision of what to do. I have been avidly reading this board for the last 4 months but it is all so confusing. Does it sound as if I'm on the right track or does anyone have any better ideas? I'm sort of happy with the Direct ISA but worried about the investment side (the £30k).

Thank you in advance with for any advice you can offer.

Lokolo

Ok well I can't offer you amazing advice however you aren't allowed to open the Direct ISA. You have already put new money in this year so an ISA so you have to continue paying into this one. You can then put it elsewhere via a transfer.

Also, stocks and shares are always going to be risky, talk to your OH and see if he is fine with it. Also, investing means you won't really get a decent return until 5+ years, so if you are only wanting to put the money in shorterm this isn't the way to go.

Hope others can suggest other things too

jem16

Lokolo wrote: »

Ok well I can't offer you amazing advice however you aren't allowed to open the Direct ISA. You have already put new money in this year so an ISA so you have to continue paying into this one. You can then put it elsewhere via a transfer.

That's not correct. The OP has an Easy ISA with Abbey and will be able to transfer this to the Direct ISA and then top it up as suggested.

18 Transferring in

18.1 If you have an existing cash Mini ISA, you can transfer all of it to a existing Super ISA (issue 1), Direct ISA (issue 1), Easy ISA or Postal ISA or you can transfer to a Super ISA (issue 2), Direct ISA (issue 2) or Easy ISA.

jem16

shirtbuttons wrote: »

Having spoken to an Abbey Adviser she suggested using Bonds or Super ISA but I would then need to invest in the Guarenteed Growth Plan. Stocks and Shares do scare me as I really want to use this money to it's full advantage. I know I will never be a rich person but I will never have this opportunity again to have £50k. Sounds a feeble excuse but I am so busy at the moment I do not have the time to see a IFA and with the 5th Apr looming I feel under pressure to take action soon. Although the money wont be available until around 2 Apr.

The Super ISA is not worth having as the investment part of it is rubbish. Don't put it there.

You are planning to do the right thing with the Direct ISA first and foremost. The rest would probably be best putting into a high interest account for 6 months until you get everything sorted out and seeing what may happen on the job front.

After that you could see an IFA for advice if you were happy to tie up some for at least 5 years. Whatever you do don't take your advice from a bank as they cannot portfolio plan and your money will end up being put in one single fund. Their products are tied to one company and are usually more expensive as well.

Lokolo

jem16 wrote: »

That's not correct. The OP has an Easy ISA with Abbey and will be able to transfer this to the Direct ISA and then top it up as suggested.

18 Transferring in

18.1 If you have an existing cash Mini ISA, you can transfer all of it to a existing Super ISA (issue 1), Direct ISA (issue 1), Easy ISA or Postal ISA or you can transfer to a Super ISA (issue 2), Direct ISA (issue 2) or Easy ISA.

No, the rules are you can only contribute to one ISA each tax year. I didn't say she wasn't able to transfer it after. She has already contributed to one ISA, she can't then contribute new money to another ISA in 1 tax year.

jem16

Lokolo wrote: »

No, the rules are you can only contribute to one ISA each tax year. I didn't say she wasn't able to transfer it after. She has already contributed to one ISA, she can't then contribute new money to another ISA in 1 tax year.

Sorry you are incorrect.

Try reading the ISA FAQs - transferring current years subscriptions.

http://forums.moneysavingexpert.com/showpost.html?p=1405182&postcount=16

Lokolo

jem16 wrote: »

Sorry you are incorrect.

Try reading the ISA FAQs - transferring current years subscriptions.

http://forums.moneysavingexpert.com/showpost.html?p=1405182&postcount=16

Ooo Thanks, got told differently

shirtbuttons

Jem

Thank you for your advice - had a bit of a panic for a while over the Direct ISA as I had sent my OH out to sort out his easy ISA (with Abbey) to their Direct ISA. Abbey didn't give him any account details as they send it off - hope this wont delay getting in the extra money as soon as it arrives.

I sort of knew it was daft going to Abbey for advice as they would be pushing their own products.

Can you suggest any high interets accounts where I can put the £30k without a penalty if I want to put it somewhere else after the suggested six months?

Thanks again

jem16

Kaupthing Edge are paying 6.5% for instant access.

Or Halifax Fixed Rate Web Saver are paying 6.5% for 6 months if you don't mind tying it up for that period.