What to Do With It

[Spydaman]

My wife has inherited some money and needs to know where to put it. We are both recently retired and drawing our pensions which cover our monthly bill and expenses. We want to have the money easily available for holidays and travel so don’t want it tied up in anything risky. She’s used her ISA allowance for this year so that’s out. I’m thinking a normal current account but it’s £100k so expect there is something better.

[xeny]

Premium Bonds? £50K/person allowed.

Perhaps migrate some to one or both of your ISAs come the new tax year?

[Spydaman]

Can She open one in my name for £50k too or am I going to end up paying tax on it?

[xeny]

Spydaman said:

Can She open one in my name for £50k too or am I going to end up paying tax on it?

Pretty certain there's no tax on PBs. https://www.nsandi.com/products/premium-bonds confirms.

[Spydaman]

xeny said:

Spydaman said:

Can She open one in my name for £50k too or am I going to end up paying tax on it?

Pretty certain there's no tax on PBs. https://www.nsandi.com/products/premium-bonds confirms.

I'm not worried about the winnings its more her giving me £50k.

[Abdul Abulbul Amir]

Spydaman said:

I'm not worried about the winnings its more her giving me £50k.

You're married

[trevalvole]

Spydaman said:

My wife has inherited some money and needs to know where to put it. We are both recently retired and drawing our pensions which cover our monthly bill and expenses. We want to have the money easily available for holidays and travel so don’t want it tied up in anything risky. She’s used her ISA allowance for this year so that’s out. I’m thinking a normal current account but it’s £100k so expect there is something better.

If you put £100k in a current account, then you may be over the normal £85k FSCS compensation limit.

Over what period do you expect to spend the £100k? If it is several years plus, then may be put some of it in different buckets e.g. cash, bond and equity funds.

Are you both entitled to a full state pension? If not, then voluntary contributions are probably the best value risk-free investment there is.

[98elise]

Abdul Abulbul Amir said:

Spydaman said:

I'm not worried about the winnings its more her giving me £50k.

You're married

Plus you can give money to whoever you want without any immediate tax implications. The only issue is if the person gifting dies and it comes within inheritance tax rules (not applicable to married couples).

Edited by 98elise on Sunday 30th January 15:09

[Spydaman]

To answer the questions:
- yes we are married
- no we are not drawing our state pension
- yes what's hers is mine and vice versa
- we've both got S+S ISA's
- we will spend the money over the next 10 years
- we want zero risk with nominal growth and instant penalty free access
The Premium Bond suggestion sounds ideal.

[TwigtheWonderkid]

Spydaman said:

To answer the questions:

The Premium Bond suggestion sounds ideal.

With £100K invested, on average you should be winning about £75/month. Obviously, as you spend the money, winnings will reduce. But you could be a big winner (or unlucky and not win as much as expected).

[Armitage.Shanks]

I applaud you for looking to spend it over the next 10 years especially as you both are under state retirement age.

We see too many threads on here about saving money for old age and most ' financial planning models' suggesting it is there for your 70s/80s when in reality the potential uses at the extremes of that age will be limited.

I'm doing all the foreign holidays etc now whilst we're retired and in our 50s.

Whilst I wouldn't be worried about the £85k limit compensation scheme if it was put into a well established high street bank, Premium Bonds is a good call and easy withdrawal access.

[snuffy]

£100k on Red.

[snuffy]

Or maybe black.

[Spydaman]

Or black.

Beat me to it.

Edited by Spydaman on Sunday 30th January 17:35

[theboss]

The £85k FSCS limit is per person so if that were a concern for a cash savings account just open a joint one.

[someday]

Put it on zero, you'll make loads more