My wife and I have £50,000 each. How should we invest this money?

08 February 2022

Question by bruce

My wife and I have £50,000 each to invest. The plan is to use our max 21/22 ISA before the deadline then the same for next year allowance. We are both retired and drawing a final salary pension. We have taken some advice from Nationwide but they only use Aegeon UK. What other places would you suggest?


Answered by Adam Holt

Hello Bruce,

It sounds like you have a very sensible and tax efficient plan in place. Converting the money over into tax free Stocks and Shares ISAs over several years definitely makes sense to me.

There are two important things to note from my end here. Firstly your money need to be hosted by a platform/administrator and secondly they also need to be invested into some sort of investment solution. I know that Aegon can act as both, they have their own platform and act as a fund manager with a restricted number of funds.

You mention that Nationwide are restricted to only using Aegon, is this just for the platform or also for the investment solution?


I can’t comment on the investment solution as I don’t know what has been proposed by Nationwide but with interest rates so low I would like to think that over the long term your money should do better being invested in the market than being sat in cash. One thing you could do is to speak to an Independent Financial Advisor, that way the advice you are given is not restricted to one platform and not restricted to one investment solution.

For my clients for example I would look at different platforms, to find one that meets their needs at the lowest cost. Then the investment solution would be tailored around their objectives, time frame desired risk level, ethical preferences, active/passive views. Most likely using a variety of fund managers all being specialists in their specific fields.

I hope that helps.
Adam

Answered by

Adam Holt

Independent Financial Adviser

I’m an Independent Financial Adviser who splits time between my office in London and working from home in Kent.