Best way to save more than £50k

So I have started researching what to do in a few months time, my situation is as follows, Apologies but some of these points should come under other threads but I am looking at general advice to make sure I am going down the correct road.

My wife will receive some inheritance from overseas in about 2 months time, around £50k and we are planning on putting it towards a holiday house (in the future) but will wait for the pound to recover (hopefully) after Brexit so we need to invest it for now

The mortgage will be paid off in 3 months (8 years early) and we have no other debt. I pay the maximum in to my workplace pension and we are in a good position for retirement (planning in 5 years) at age 62.

My wife and I already have savings accounts at 5% per year via HSBC and as a high rate tax payer I am only allowed £500 interest per year.

So here are my questions, if we put the savings in my wifes name, She earn £1000 interest per year (as she does not work) - is that correct ?

We are looking at 32 day notice accounts is that my best option? as when the pound recovers against the euro we will then change the pounds for euros.

At the same time, the money which was allocated each month for the mortgage needs to be re-invested around £1500 per month in to another account,

I have looked at investing an additional £1000 per month in SIPPS for additional pension savings and also to get the tax breaks.

I am planning on seeing a financial manager for additional advice but thought I would post here first.

Thanks in advance

Comments

  • eskbanker
    eskbanker Posts: 30,411
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    as a high rate tax payer I am only allowed £500 interest per year.
    You're allowed as much interest as you like but yes, you'd be taxed on any above £500, unless sheltered in ISAs - do you use ISAs?
    So here are my questions, if we put the savings in my wifes name, She earn £1000 interest per year (as she does not work) - is that correct ?
    She can possibly earn significantly more in interest without paying income tax if her other income is low, as there are other concessions that may apply, such as the starting savings rate that's applicable to up to £5,000, or indeed her personal allowance.


    The key question is really at what point do you anticipate needing access to the lump sum and also the ongoing monthly surpluses? If you're likely to need the money within, say, 5-7 years, then keeping it in cash savings form is probably best, but if longer then investing may come into play - SIPP contributions for each of you would seem to make sense but other forms of investing would be worth considering if it's the long term you have in mind.

    https://www.moneysavingexpert.com/savings/which-saving-account/ and https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/ give plenty of options, including regular savers, which might be suitable for the monthly surplus.
  • Audaxer
    Audaxer Posts: 3,506
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    I have looked at investing an additional £1000 per month in SIPPS for additional pension savings and also to get the tax breaks.

    I am planning on seeing a financial manager for additional advice but thought I would post here first.
    If you're thinking of investing £1,000 per month into a SIPP that's fine, but you should do more research on here and sites like Monevator to learn about investing. Paying for financial advice would be very costly in relation to the relatively small amount you are investing, so it would be better to consider DIY investing with SIPPs and S&S ISAs before thinking about paying for advice. In particular I would look at low cost globally diversified multi asset funds - good examples of these discussed on here a lot are Vanguard LifeStrategy funds, HSBC Global Strategy funds and L&G Multi Index funds.
  • WeB
    WeB Posts: 71 Forumite
    We are looking at 32 day notice accounts is that my best option? as when the pound recovers against the euro we will then change the pounds for euros.
    I fear that the recovery of the GBP is going to take far longer than what you seem to be expecting.


    The most likely option now is a hard Brexit, which would see the GBP remain low for over a decade in my opinion. A softer type of Brexit would bring some medium term relief, but I still don't expect the GBP to climb above 1.15 in such a scenario. In the unlikely event that there is no Brexit at all, the GBP could well jump to >1.2 overnight and recover to its pre-2016 highs of 1.44 within a year.
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