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What should I do with my redundancy money?

Last post Fri, Feb 15 2008, 11:21 AM by BB. 1 replies.
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  •  Fri, Feb 15 2008, 11:21 AM

    Re: What should I do with my redundancy money?

    If you could get £3000 into a cash ISA before this tax year ends you can put £3600 in as soon as new tax year starts. That's £6600 tax free! Maybe put the rest into internet based high interest account, or even fixed rate bonds depending on when you are likely to need the cash. BB
    • Post Points: 5
  •  Fri, Feb 15 2008, 9:28 AM

    What should I do with my redundancy money?

    Hi

    I need some advice and was wondering if there was anybody out there that could help please?

    I am going to be made redundant at the beginning of April. This coinsides with my maternity leave as my second child is due on the 16th of April.

    I am expecting to be paid a lump sum in the region of £20k, made up of redundancy payments, up front maternity pay, bonus payments and the proceeds of selling my shares (matching shares, buy 1 get 1 free).

    We are going to take a mortgage break for 6 months from July to cover up to the beginning of next year when I am planning on returning to work and my husbands salary will keep us going during this period.

    My question is, what should I do with the rest of the money? A small portion of it is earmarked to cover us until the mortgage break kicks in and naturally we want to spend some on a few jobs around the house, paying off our summer holiday and no doubt a few bits for our children but I want to invest the rest wisely.

    As it will be the new tax year what implications does that have? Is it better off in one account or split out?

    Any advice would be gratefully received.

    Thanks in advance

    • Post Points: 20