Frostyfred wrote: If I invest more of the cash or bonds now then it'll need to be in a General Investment Account. Less tax friendly, but do you recommend that?
Well, you and Mrs F could both invest into a General Investment Account (that is, a non-ISA'ed account). Note, you can both individually earn/receive up to £2k in dividends each per annum without tax. So, £100k at 4% could give £4k in an income based fund - split 2 ways, keeps you "just" on the £2k individual limit |(so, do the maths to ensure you stay below). Of course, you might potentially invest in a non or low dividend paying fund with a view to growth and then could use your individual capital gains tax allowances at a later date (if you were to get lucky in your choice of investment).
Some brokers will then "transfer" your shares in the GIA into an ISA account for a nominal (low) cost (e.g interactive investor) when the next tax year comes around.
The downsides being that taxation might change and the £2k allowance is scrapped or reduced (it was briefly £5k per year per person)....and the usual risk that the investment does not perform well and your pot is reduced.
Frostyfred wrote:
I've checked my state pension again and it says I'm due the full lot
Excellent ..and Mrs F's too?
edit: You might wish to ask on the Brokers Board as to whether your particular trading platform/broker does a bed & ISA service. You also need to be aware of risk of a broker "going under" - perhaps not from a loss of assets point of view but the very real risk that your funds are frozen whilst assets are transferred to a new broker (search "SVS Securities" & "monabri").
edit 2: see bOf77 comments about "R.E.I.T.s" in a GIA...I'd say, chose something else because of the potential tax implications.