What should I do with all my spare cash?

Q I am 47, have no mortgage, an NHS pension, I have a range of investments, Peps and Isas worth around £50,000 and endowments which will mature over the next 10 years. I am in the happy position of having £75,000 (currently with Egg and HBSC saving accounts) "spare".

I don't anticipate having to call on it in the near future and my financial plan is to wind down work over next 10 to 20 years and have as much money as possible. My dependents are all taken care of and I have made a Will. What should I do with the £75,000?

SH

A A tricky question since you appear to have most of the investment bases covered. Historically shares should provide the best return over a 10 to 20 year period. However you already have considerable exposure to the stock market via the Peps, Isas, and endowment policies. I would retain a fair amount in cash - as an emergency rainy day fund in case you suddenly need money and to finance Isas in the years ahead.

I would also consider investing some in index-linked gilts as a protection against inflation and to balance your portfolio. You might also look at national savings certificates, which give tax-free returns and can be good value, particularly for high rate taxpayers. Finally there may also be scope for increasing your pension savings when the new personal pension regime comes into effect from April next year.