100k what to do with it

100k what to do with it

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Discussion

petemurphy

Original Poster:

10,108 posts

182 months

Monday 21st January 2019
quotequote all
well almost..

i have 85-90k which is just sat in lloyds account at the mo.

whats the best thing to do with it in your opinion ( bar a 911 )

70k is mine and 15k is technically for my daughter although its sat in the same account at the mo.

we have no debt or mortgage. whilst we have no immediate plans to move we are constantly looking at houses and if the right one came up would want to buy it so the money cant be tied up for too long.

i'm rubbish with money so needs to be easy as does sorting out any tax etc incurred.

are financial advisors worth seeing or do they just sell you commission based stuff?

nothing too risky as it was inheritance so dont want it to disappear on bitcoin.

any advice appreciated thanks

PositronicRay

26,957 posts

182 months

Monday 21st January 2019
quotequote all
petemurphy said:
well almost..

i have 85-90k which is just sat in lloyds account at the mo.

whats the best thing to do with it in your opinion ( bar a 911 )

70k is mine and 15k is technically for my daughter although its sat in the same account at the mo.

we have no debt or mortgage. whilst we have no immediate plans to move we are constantly looking at houses and if the right one came up would want to buy it so the money cant be tied up for too long.

i'm rubbish with money so needs to be easy as does sorting out any tax etc incurred.

are financial advisors worth seeing or do they just sell you commission based stuff?

nothing too risky as it was inheritance so dont want it to disappear on bitcoin.

any advice appreciated thanks
In a similar position my IFA was pretty useless. I ended up with premium bonds, a little thrill once a month and quick to access when we found the right house.

petemurphy

Original Poster:

10,108 posts

182 months

Monday 21st January 2019
quotequote all
PositronicRay said:
In a similar position my IFA was pretty useless. I ended up with premium bonds, a little thrill once a month and quick to access when we found the right house.
that was actually my original thought for it! means no messing with tax, its safe and you never know you may win! although someone will no doubt point out the odds arent great!

any alternatives?

Tabs

941 posts

271 months

Monday 21st January 2019
quotequote all
Santander 123 accounts. One in your name, one in wife's, and a joint.
3x Nationwide direct accounts, same names as above.
Set up direct debits as a merry-go-round.
£60-70 interest per month.
Rest of cash in premium bonds.
All runs by itself.

Zoon

6,654 posts

120 months

Monday 21st January 2019
quotequote all
Buy a calculator, 85k isn't 100k wink

Premium bonds aren't a bad shout if you need quick access, but there are better options for your daughters 15k.
Nationwide are paying 2.5% on children's accounts which is better than the theoretical interest rate on premium bonds assuming you have average luck.

petemurphy

Original Poster:

10,108 posts

182 months

Monday 21st January 2019
quotequote all
Zoon said:
Buy a calculator, 85k isn't 100k wink

Premium bonds aren't a bad shout if you need quick access, but there are better options for your daughters 15k.
Nationwide are paying 2.5% on children's accounts which is better than the theoretical interest rate on premium bonds assuming you have average luck.
can i put the whole lot in childrens accounts?! or can they just access it at 18?

Derek Chevalier

3,942 posts

172 months

Monday 21st January 2019
quotequote all
petemurphy said:
are financial advisors worth seeing or do they just sell you commission based stuff?
It's not clear from what you have said what you're expecting an adviser to add.

Zoon

6,654 posts

120 months

Monday 21st January 2019
quotequote all
petemurphy said:
Zoon said:
Buy a calculator, 85k isn't 100k wink

Premium bonds aren't a bad shout if you need quick access, but there are better options for your daughters 15k.
Nationwide are paying 2.5% on children's accounts which is better than the theoretical interest rate on premium bonds assuming you have average luck.
can i put the whole lot in childrens accounts?! or can they just access it at 18?
Nationwide have limited this to 5k a year now on childrens accounts.
If your daughter does not need the money until she's older Coventry Building Society are paying 3.6% on Childrens ISAs but again limited to £4260 per tax year.

AndrewEH1

4,917 posts

152 months

Monday 21st January 2019
quotequote all
Tabs said:
Santander 123 accounts. One in your name, one in wife's, and a joint.
3x Nationwide direct accounts, same names as above.
Set up direct debits as a merry-go-round.
£60-70 interest per month.
Rest of cash in premium bonds.
All runs by itself.
You paying tax on the interest? *assuming you're a higher rate tax payer

Edited by AndrewEH1 on Monday 21st January 16:01

Tabs

941 posts

271 months

Monday 21st January 2019
quotequote all
Yep. Have a house we rent out, so lump all income together and give everything to my accountant. Retired now, and giving everything to him allows me to sleep at night with no worries.

AndrewEH1

4,917 posts

152 months

Monday 21st January 2019
quotequote all
Tabs said:
Yep. Have a house we rent out, so lump all income together and give everything to my accountant. Retired now, and giving everything to him allows me to sleep at night with no worries.
The dreaded Self Assessment!

Your plan does look quite good though

mackay45

832 posts

170 months

Monday 21st January 2019
quotequote all
Tabs said:
Santander 123 accounts. One in your name, one in wife's, and a joint.
3x Nationwide direct accounts, same names as above.
Set up direct debits as a merry-go-round.
£60-70 interest per month.
Rest of cash in premium bonds.
All runs by itself.
Surely with Santander fees you'd be better off just sticking the money in the Marcus 1.5% savings account instead?

Virgin and 1 other (can't remember who) have a 1.45% cash ISA on offer. Marcus account or Premium bonds for the rest.

Not sure about the £15k kid stuff but options above sound good, could stick c.£5k in now and again in a few months time after 6 April and that's £10k of the £15k sorted.

bunn89

62 posts

90 months

Tuesday 22nd January 2019
quotequote all
I'd look at investing with some established Property Developers. For 100k you would be able to achieve around 6%-10% PA

Make your money work harder than being sat in a bank

R33FAL

530 posts

167 months

Tuesday 22nd January 2019
quotequote all
bunn89 said:
I'd look at investing with some established Property Developers. For 100k you would be able to achieve around 6%-10% PA

Make your money work harder than being sat in a bank
Are these listed or private developers?

Btlguru

54 posts

62 months

Tuesday 22nd January 2019
quotequote all
bunn89 said:
I'd look at investing with some established Property Developers. For 100k you would be able to achieve around 6%-10% PA

Make your money work harder than being sat in a bank
With much more risk.

The OP said they couldn’t afford to tie up money for a long time.

selmahoose

5,637 posts

110 months

Tuesday 22nd January 2019
quotequote all
Do I sense some Caterham love? wink

petemurphy

Original Poster:

10,108 posts

182 months

Tuesday 22nd January 2019
quotequote all
so just having a quick look..

does this make sense:

15k in cash isa
5k in stocks and shares isa
40k in marcus
4,260 in junior isa
3,000 in kids online account ( eg hsbc pay 3% )
rest in premium bonds

only problem with marcus is i'd have to do a tax return? which i hate with a passion. is it worth the effort?

then put 20k of marcus into a new isa in april?

are isa's the best place to put it up to your allowance before considering other options? ie should i always try and use that first?

again should i try and use kids isa's where possible? only downside being it locks the money away ( which at least keeps me off the classified section..)

can i open more than one kids account - eg hsbc on eat 3% for 3k and 3k in tsb at 3.15% etc?

thanks



mackay45

832 posts

170 months

Tuesday 22nd January 2019
quotequote all
That plan looks pretty sensible to me.

On the tax return point, you won't need to do one as confirmed here:

https://www.gov.uk/apply-tax-free-interest-on-savi...

Worth noting you can put your £20k ISA into one account if you want to (could do £20k cash ISA) - unless you do want to have both types for whatever reason. Confirmed here:

https://www.gov.uk/individual-savings-accounts/how...



Edited by mackay45 on Tuesday 22 January 17:00

petemurphy

Original Poster:

10,108 posts

182 months

Tuesday 22nd January 2019
quotequote all
mackay45 said:
That plan looks pretty sensible to me.

On the tax return point, you won't need to do one as confirmed here:

https://www.gov.uk/apply-tax-free-interest-on-savi...

Worth noting you can put your £20k ISA into one account if you want to (could do £20k cash ISA) - unless you do want to have both types for whatever reason. Confirmed here:

https://www.gov.uk/individual-savings-accounts/how...



Edited by mackay45 on Tuesday 22 January 17:00
hmm ok thats cool as the main thing putting me off doing anything with the cash is having to fill in returns.

hw do they know how much interest you are getting to adjust your tax code?

thanks

Nano2nd

3,426 posts

255 months

Tuesday 22nd January 2019
quotequote all
petemurphy said:
hw do they know how much interest you are getting to adjust your tax code?
the banks/building societies tell them