£100k savings- WWYD?

[allthegearnoidea12]

I am nearing 100k of savings, all sat in my current account. This is not a stealth brag!

Clearly I need to hold some back for a faint day. And we need a new car, c£15k allocated to that. But otherwise WWYD with it?

If you just want to 'set and forget' it, then I would talk to a financial advisor about investing it in some stocks that pay dividends, ETF's, ISA's, and/or precious metals.
Diversity is key with this type of investing, don't put all your eggs into one basket... or into one stock.

If you want a more hands-on project, maybe buy a house at auction, do it up and resell it.

Both have their own risk to reward ratios to consider.

Start moving it to tax sheltered accounts. Give it a purpose... some is probably Emergency Fund. Some is New Car Fund. Think about upcoming expenses.
What is the rest for... give it a task - it may be for pre-retirement so you can reduce amount of work in your later years. It may be for retirement - in which case putting it in to Pension/SIPP may be a good idea.

Keeping it in a savings account means that interest is taxable. You may not be getting much interest but you may start getting more than your personal savings allowance. So moving it to ISA is something to look at. Stocks & Shares ISA for long term money so it is invested and grows. Podcast: How to choose a multi-asset fund Short term money (such as emergency fund) could be kept in an instant access savings account.

Personally I’d be looking for a property project, but if that’s not your thing I think you can put up to £60k in premium bonds.

The top amount is 50k.
Definitely one to choose if money is just sat in a bank account.
I've money in premium bonds and win at least 10 months out of 12.

1- 3-6 months worth of an emergency fund
2- allocate your car fund
3- max out ISA and pension allowances, ensure invested in low fee broad based index funds
4- any leftover, a GIA until you get to the next tax year.

Open an ISA,wait until the stock market drops a bit then buy a good investment trust.(Both inside and outside ISA)

*then buy a good investment trust
*
Could you explain this a little more please? What is a 'good' investment trust?

To start with I’d put the maximum In premium bonds.

Surely Premium bonds are the worst thing to do right now with rising inflation??

15 to 20k on crypto, £50k on Porsche 911 997 Turbo (bound to be worth £100k in 10 years time what with electrification, the rest split between ISA's and shares. Don't put all your eggs in one basket, this option could free up varying amounts at different times.

I definitely wouldn’t put much in premium bonds - low return that won’t even match inflation.

Never know your luck. I still wouldn't say interest rates on savings are that good compared to what you might win with premium bonds.
The good thing is if you decide you need the funds back you can draw your investment out and get the money paid into your bank account straight away so not locked in for any amount of time.

Best advice on the thread. Your emergency fund should be in an easy access savings account (check MSE for best rates) or premium bonds if you like- don’t leave it in your current account.

depending on job security 3-6 months worth of basic living bills food etc
secondly your new car fund (15K) and emergency boiler breaks type of thing (3K)
thirdly a small amount into holiday presents fun money say 5k -10k
fourthly options, check your pension, have you any missing years in national insurance? do you have a mortgage can you still afford it if interest rise?
you do not pay any tax on interest upto £1000 per year so a CASH ISA is not worth it for most people , a 100K at 1.5% would be £1500 so tax on £500, it would be better to top up pension a stock and shares ISA put 20k in it set aside another 20K to add next April, then drip feed into bonds or something like wealthify or Hargreaves lansdown, trade 212 etc
What do you want would you like access form 50/55 to enable part time wind down to retirement do you want a gap year when you retire to travel the world
I would strongly advise against saving anything in your childrens names as if you desparately needed the money ill health redundancy you can't access money it is of no benefit for your children to have money at 18 having been in poverty for last 6 years of it, Also if it is in their names it is almost impossible to stop access at 18, if your name you can drip feed it into driving lessons university or save it until you want to help them say on housing ladder. I am not an advcate of premium bonds some lucky person might win big but it is on average underperforming a saving account at 1.5% which there are several around
you can't do everything with 100K but you can do stuff to make life better long term

Have you got a mortgage?

Do you have a mortgage or any debt?

apart from the car, do you have nothing else you need to spend on?

do you have a pension?

do you have 3-6 months living expenses put away?

Premium bonds on average have been seen to be equivalent to about 1.4%, it was on moneysavingexpert I think so similar to some instant access accounts at the moment

www.moneysavingexpert.com/savings/premium-bonds/

probably worth a gamble if you were putting it into instant access account

Which is well below inflation, both options are losing strategies.

second vote for @Medee ’s advice. Keep a chunk for emergency fund and near term outlays somewhere readily accessible, but the rest should be invested somewhere with the potential to at least keep pace with inflation

Pay of any debt like mortgage, put aside £20k - £30k for car and emergencies, spend the rest on something nice as inflation is rising.

Pay the gas bill

I would buy gold with it to try and protect the losses caused by inflation.

I forgot to add to pay off expensive debt first, (ie credit cards or loans) but I wouldn’t prioritise mortgage overpayment unless you’re coming up to a deal expiry, and reducing your LTV would help access better deals OR psychologically it makes a big difference to you. But objectively, mortgages have recently been very cheap and are lower than inflation, so better try to beat inflation and get better returns by investing.

Really depends on your individual situation - more info needed.

Do you have a mortgage / any debts?
Do you have kids? Any private education fees to pay or on the horizon?
Will you need any cash quickly over the next 5 yrs apart from new car?
Are you working? How much do you earn? When do you plan on retiring?
Do you know anything about investing? Is that something you'd like to do? Have you thought about buying gold? ( doesn't make much profit but is fairly inflation proof and prob better store of wealth than a current account)
Are you due a holiday?
Any big tax bills to pay?
Now is the time to plan properly - £100K sounds like an awful lot of money, but it doesn't go far and it's easy to just spend it on silly things that won't last.

I currently have about £160K in my current account, but have school fees + university accommodation fees for my kids which are going to take huge chunk of this over next 5 years, also will need new car sometime in next three years and may need to draw down for summer hols and ski-ing hols over the next couple of years. So basically that money is already spent. So, you might want to just keep it there...

I also have about £50K in a Forex/commodity trading account.

I also have about £100K in another account, all of which is going to have to be paid to HMRC over the next 12 months..

I am telling you all this stuff just to illustrate that I have over a quarter of a million £ that I can't even use to buy a coffee with. Still living pay-cheque to pay-cheque!

I agree with this - In 3500BC an ounce of gold could buy a well-made toga, belt and sandals. In 16th Century Shakespeare said an ounce of gold could "buy a man a well-tailored suit". An ounce of gold in 2022 can still buy you a very nice suit. So really that ounce of gold has lost none of its value. Compare that to £1!!!