Best ‘safe’ way to invest £90k?

[James6112]

Hi

Coming into an inheritance & have £90k to invest.
My wife in a non-tax payer , gave up work, a couple of old pensions @55, £12k so no tax
I’m higher rate tax payer
No real need for instant access, just want it to keep up with inflation really.
I mess about with bitcoin & use HL separately!
No sips. It may just clear by the 6th April..
No debts with interest to pay.

What’s the best way to go please?
SIP/Premium bonds split between us/Decent bank interest rate?

Keen not to pay any tax, keep up with inflation, not to gamble it..

[Oilchange]

20k in an ISA?

[James6112]

Oilchange said:

20k in an ISA?

I was thinking that for starters, will probably miss the 23/24 cut off, but might make it. Then another after the 6th April?

[Oilchange]

You have about 4 days I believe. Takes about half an hour to set up an ISA, I did one about 2 weeks ago.

And, the cherry on the cake is that you can put 20k today and then another 20k in 4 days time. Bonus!

[alscar]

Assuming you miss this tax years cut off for ISA’s then £40k combined ( you and wife separately ) for next year.
Then £30k in PB’s.
Then £10k in fixed rate bond for 12 months.
The rest to spend and enjoy.
Or depending on when you receive 458’s or something else fun might be around that level so if you can persuade your wife ?!

[av185]

Both you and your better half can put £20k each into an isa before 5.4.24 and £20k each next tax year.

So thats £80k taken care of.

[bitchstewie]

There probably isn't a safe way to keep up with inflation.

If you want "safe" as in "guaranteed return of capital when you want it" you want savings and savings don't tend to keep up with inflation.

[Gargamel]

Can get 4.5% on a Natwest Deposit account right now

[Mr Pointy]

James6112 said:

I was thinking that for starters, will probably miss the 23/24 cut off, but might make it. Then another after the 6th April?

Move £20k out of your emergency fund to make the cut off? Your wife has a £20k allowance as well

[James6112]

Mr Pointy said:

James6112 said:

I was thinking that for starters, will probably miss the 23/24 cut off, but might make it. Then another after the 6th April?

Move £20k out of your emergency fund to make the cut off? Your wife has a £20k allowance as well

Good idea thanks, looks like the funds will land on the 5th!

[RSTurboPaul]

Gold Britannias?

[Mr Pointy]

Mr Pointy said:

James6112 said:

I was thinking that for starters, will probably miss the 23/24 cut off, but might make it. Then another after the 6th April?

Move £20k out of your emergency fund to make the cut off? Your wife has a £20k allowance as well

You could get £80k into two ISAs over the next two weeks.

[okgo]

James6112 said:

Good idea thanks, looks like the funds will land on the 5th!

Surely it’ll clear quicker than that? What is the money held in?

Could you use an overdraft facility? A day or two interest on that still better than missing the deadline I’d have thought.

[Simpo Two]

Oilchange said:

You have about 4 days I believe. Takes about half an hour to set up an ISA, I did one about 2 weeks ago.

And, the cherry on the cake is that you can put 20k today and then another 20k in 4 days time. Bonus!

Four days? The ISA deadline is the 5th April 2024.

[chip*]

Nothing to prevent you opening an ISA account now, and chuck in say £100 to fully test your account/debit card.
If the cash hits your account on the 5th, you know you can simply pay in £19,900, and then £20k next day.

[James6112]

okgo said:

James6112 said:

Good idea thanks, looks like the funds will land on the 5th!

Surely it’ll clear quicker than that? What is the money held in?

Could you use an overdraft facility? A day or two interest on that still better than missing the deadline I’d have thought.

Sale completes on the 4th
Executor (sister in law) now says will transfer the funds on the 5th
It’s ok though, could use 23/24 allowance if necessary from other savings.
Or just buy premium bonds & SIP 24/25

[dimots]

James6112 said:

Hi

Coming into an inheritance & have £90k to invest.
My wife in a non-tax payer , gave up work, a couple of old pensions @55, £12k so no tax
I’m higher rate tax payer
No real need for instant access, just want it to keep up with inflation really.
I mess about with bitcoin & use HL separately!
No sips. It may just clear by the 6th April..
No debts with interest to pay.

What’s the best way to go please?
SIP/Premium bonds split between us/Decent bank interest rate?

Keen not to pay any tax, keep up with inflation, not to gamble it..

Bitcoin.

[Oilchange]

Simpo Two said:

Oilchange said:

You have about 4 days I believe. Takes about half an hour to set up an ISA, I did one about 2 weeks ago.

And, the cherry on the cake is that you can put 20k today and then another 20k in 4 days time. Bonus!

Four days? The ISA deadline is the 5th April 2024.

Sorry, thought the 1st

[C69]

James6112 said:

My wife in a non-tax payer , gave up work, a couple of old pensions @55, £12k so no tax

I would consider setting up a small SIPP for your wife if she's under 75 (not sure if the "@55" refers to her age now).

Under current rules, non-taxpayers can pay in up to £2,880 per tax year and get 20% tax relief (even though no income tax has been paid). Consequently, the government automatically tops up the contribution by £720, giving a gross annual total of £3,600.

Obviously you'd need to think about the underlying investments in the SIPP, to ensure that they fit your risk appetite.

[greengreenwood7]

C69 said:

I would consider setting up a small SIPP for your wife if she's under 75 (not sure if the "@55" refers to her age now).

Under current rules, non-taxpayers can pay in up to £2,880 per tax year and get 20% tax relief (even though no income tax has been paid). Consequently, the government automatically tops up the contribution by £720, giving a gross annual total of £3,600.

Obviously you'd need to think about the underlying investments in the SIPP, to ensure that they fit your risk appetite.

exactly what i was going to write :-)
worth adding before the 5th and then again soon as funds clear after the 6th, and can keep topping that up annually....

all have different tolerances for risk, but could decide to be aggressive with that portion as it clearly would make up a v.small proportion of existing wifes pension....