I have £30k in cash savings. Should I consider investing? I want a better return but what if I need the money in the short term?

09 September 2021

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Question by Wendy

Dear Boring Money. I’m 75 and have £30k in cash savings - I inherited the money but haven’t touched it for years and don’t need it for anything in particular. Should I consider investing? I want to get a better return but worry about locking it away and needing it in the next few years.


Answered by Matt Angell

Hi there,

You have a number of options to consider when investing.

In general, for any form of investing, we would consider a minimum term of 5 years but that's not to say you would lock the money away for that period.

From your comment that you "don't need the money for anything in particular" it is more than likely that you have a capacity for loss to invest this sum of money going forward and I would certainly suggest that you look firstly at the options available for stocks and shares ISA's which could possibly give you more of a return than sat on cash currently and not mean your money is locked away for months and years.

Of course you also have other options that are provided by the government such as premium bonds which are safe and secure and immediately accessible but you do need to also been mindful of inflation when investing in this type of investment as you really want your money to keep up with inflation so it maintains its real value.

You have two options of investing your money held on cash.

Option 1: Do it yourself
There are a number of options available out there from the likes of Vanguard, Aviva, Nutmeg to name a few and they will also help you identify your appetite for risk too with a short questionnaire when you go through the process. Be mindful of costs when looking at the providers available as that can really have a drag on any performance you receive.

Option 2: Seek expert advice
This will provide you with a recommendation on where best to place the money and advise you on which funds to use to achieve your given objectives. A lot more in-depth and basically the adviser will do everything for you. This option will also incur a cost which can vary from each adviser but selecting an adviser from the many top quality ones available within boring money will give you the peace of mind that you will get someone well qualified that has already been vetted by the boring money team

I hope this helps and please feel free to ask any other questions as we are all here to help.

Thanks

Matt

Answered by

Matt Angell

Founder & Financial Planner

I am the founder of Creative Lifestyle Planning, an independent financial planning firm that works with many families across the UK. Matt specialises in helping families to answer those all important questions they have on their mind and helping many clients gain a clearer, simply understanding of when and how to they can retire.