Investment & Investing

I've had some similar conversations recently (not my money), but limited appetite for wealth management help given the cost involved. Would be interesting to know if they are happy with the scale of admin involved to keep it as efficient as possible?

In case its helpful, these were the broad topics we discussed. Med-low risk options are probably:

• cash interest accounts
  
• premium bonds
  
• government bonds
  
• stocks and shares
  
• pension
  
  

I would probably be doing some fag-packet calculations on what returns you would get with a mix of the above, with a bit of tax thrown in. Wealth managers may have access to some savings products that you don't, but I'd be surprised if there was a big difference.

Tax efficiency will be important but this may make things administratively more complicated. Some things to consider:

• if you are comfortable putting £50k of PB in your daughters name then you could have a bigger chunk of the cash interest-bearing accounts in her name and utilise her larger savings allowance/20% tax rate rather than your 40% rate
  
• Assume you are happy with the way the return works on PB's (not linear/guaranteed)
  
• If you go for any equities you probably want the majority in the ISA to keep unpredictable gains tax free, bearing in mind your CGT allowance. This means the more predictable savings income is taxable - likely easier to manage subject to base rate changes
  
• Pick low coupon govt bonds to maximise the CGT-free benefit
  
• Consider using your pension allowances and taking it back as your lump sum later [may not work with your timeframe]