Lump Sum To Save

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Knapper
Knapper Posts: 76 Forumite
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in Savings & investments
Hi Folks


Need some pointers please. Have approx. £40k from taking pension lump sum which I would like to put somewhere reasonably safe and where it will earn a reasonable amount of interest.


I've previously dabbled with shares but in the AIM markets and got burned badly. Now realise that's just an uber corrupt cesspit where FCA consistently turns a blind eye to fraudulent CEOs and pump and dump crews.


Savings accounts at the moment will only return about 2% which just seems abysmal. Those which offer 5% only do so for tiny amounts of cash so are not suitable unless I'm going to try opening loads and loads of them and split the £40k up.


What is reasonably available to me?


Anyone think it's worth putting some of it in Platinum given its price has really dived this year ?


What kind of return might I be able to achieve from investing in stable FTSE companies rather than AIM and would that be risky given the prospect of a No Deal BrExit?


For clarity, I don't need this £40k any time soon so would be happy to leave it somewhere 5 years or more.


Cheers in advance for any pointers
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  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    Premium Bonds: if you don't win a big prize I'm sure you'll find someone else to blame.
    Free the dunston one next time too.
  • System
    System Posts: 178,102 Community Admin
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    The AIM market is intended for sophisticated and experienced investors, which seems to rule you out on two counts. The price of platinum has fallen as sales of diesel cars have fallen so are you expecting demand for diesel cars to increase? Forget about the AIM market and platinum, and consider something sensible such as F&C Investment Trust in a S&S ISA: https://www.bmogam.com/fandc-investment-trust/
  • jimjames
    jimjames Posts: 17,662 Forumite
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    Knapper wrote: »
    Hi Folks
    Need some pointers please. Have approx. £40k from taking pension lump sum which I would like to put somewhere reasonably safe and where it will earn a reasonable amount of interest
    Knapper wrote: »
    Anyone think it's worth putting some of it in Platinum given its price has really dived this year ?

    These two statements are so contradictory!

    But a fund investing in a balanced worldwide portfolio of shares would avoid the risk associated with AIM or just UK shares. F&C as mentioned or Vanguard Lifestrategy funds depending on your risk level.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • xylophone
    xylophone Posts: 44,562 Forumite
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    You could split the cash between cash and investments.

    Have you used your ISA Allowance for this year?

    https://monevator.com/using-vanguard-lifestrategy-funds-life/

    https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa

    If you have never had a Nationwide Flexdirect, then consider opening one - if you have a spouse in the same situation then sole for the spouse as well and a joint.

    You could each open the associated monthly saver.

    You could open a TSB Classic Plus - spouse too, and a joint account.

    Metro Bank offers 2.25% for eighteen months which might suit for the balance.
  • DrSyn
    DrSyn Posts: 889 Forumite
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    You write that you want to put it in something reasonably save then later mention Platinum, which is commodities and so is not low risk.

    Also putting money into AIM shares, was a very risky way to go into shares.


    If you don't what the low rates on savings accounts then it means you have to take some risk with your money. The VLS fund that others have suggested, basically follows the approach advocated below. All you would need to do would be pick the share/bond split you are comfortable with and pay them your money.

    http://www.kroijer.com/
  • poppy10_2
    poppy10_2 Posts: 6,575 Forumite
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    Just stick your money in a Lifestrategy fund
    poppy10
  • tacpot12
    tacpot12 Posts: 8,028 Forumite
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    How long can you afford to tie up your money?
    Do you want an income from the investment, or do you want it to grow so that you can withdrawn all the capital plus interest at some later stage?
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • Knapper
    Knapper Posts: 76 Forumite
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    Many thanks for the suggestions thus far all
  • Knapper
    Knapper Posts: 76 Forumite
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    tacpot12 wrote: »
    How long can you afford to tie up your money?


    As stated in the OP. Happy to leave there for 5 years at least.

    tacpot12 wrote: »
    Do you want an income from the investment, or do you want it to grow so that you can withdrawn all the capital plus interest at some later stage?



    The latter, capital and hopefully plenty of interest
  • Knapper
    Knapper Posts: 76 Forumite
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    xylophone wrote: »
    If you have never had a Nationwide Flexdirect, then consider opening one - if you have a spouse in the same situation then sole for the spouse as well and a joint.

    You could each open the associated monthly saver.

    You could open a TSB Classic Plus - spouse too, and a joint account.

    Metro Bank offers 2.25% for eighteen months which might suit for the balance.



    Thanks for the response Xylo.


    The Nationwide FlexDirect is a max of £2500


    So even if wife & I both open one and possible a 3rd as a joint account that's still only £7,500 of the £40,000 I have to invest.


    TSB is max £1,500.


    I guess I could just go around just about every bank and building society opening up these 5%AER accounts but there would be a lot don't you think?


    Still, I am musing on the idea . . . !
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