What to do with £50k

[DtPeabodysLoosePants]

If you were 80 and had a lump sum of £50k from a house sale what would you do with it?

I wouldn't be fussed about interest. I would be happy to be able to do more then just survive from one pension to the next.

A financial advisor for 50k? Sounds a little over the top, it's hardly a huge sum is it? She can just use it for topping up her living expenses, things she enjoys and maybe treating herself and her family to meals out etc. A cleaner might be a nice treat

I suspect they've got their eyes on a bigger inheritance

What does she enjoy doing?

If she only has enough to get by at the moment then I would spend the money on increasing my enjoyment of life, a cruise, a holiday, visiting relatives etc.

I wouldn't worry about leaving any to chuldren/grandchildren.

I can well believe that OP, my siblings and their spouses feel very entitled to my mother's pension and PIP money and house. So many vultures. Hope you can protect her money.

I would use it to live life comfortably with a few little luxuries that the pension alone couldn't provide.

There's every chance she may live 10 or more years, so spread over that time it's not a massive fortune. But it could make life significantly more enjoyable than "just being able to pay the bills"

Thanks for all the replies. Two family members have told her she can't really afford to live there and have said the advice of the financial advisor she saw to see if she could afford it is not enough. Apparently she should get a second opinion even though it's just basic maths income is equal to expenditure but she'd have £50K in the bank v income is equal to expenditure, nothing in the bank, and owes £100k on an interest free mortgage(don't ask, missold many years ago by dodgy financial advisor who tweaked numbers to get them the deal). It's a no-brainier to me as I see her worrying on a daily basis about money. She'd be debt and worry free and I think she deserves that at her age. She's worried all her life about money. Now is her time to be free of that.

I can’t quite understand the bit about this extra mortgage.

But with income equal to expenses and being in good health at 80 with 50k in the bank, I’d use the money for fun stuff like theatre outings or holidays.

I’m afraid I’d keep most of it in case I needed care.

Keep it and use it on living a comfortable life. The split between 4 isn’t a long term life changing amount of money. Tough shit on the inheritance for the gc - sorry!

A family holiday for sure.

I'd keep it in the bank for a rainy day. My mums nursing home fees are £1,000 a week, she's basically got a years worth of nursing home fees there if it's needed.

Just double-check the charges on the retirement flat - they can add up a lot e.g monthly service charge etc. Is that what family members mean by not being able to afford it?

Or do they want her to stay in the “family home” and not sell it?

All figures have been double checked and rechecked and age can afford it. The maintenance covers windows, roof, gardening, cleaning of communal areas, lift maintenance, video entry phone. The estate agent is finding out about window cleaners to see if that's covered.

Mum and dad moved around a lot so it's not the family home as such. It was only me who ever lived there and that was part time as was at uni. I didn't even have a bedroom-I used to kip on the sofa. Dad died a few years back so she's on her own. She's always worrying what she'd do if anything needed doing with the house, the garden is too much for her really although she keeps it nice and pays a gardener for the bigger jobs, the driveway is very uneven and she's had s few nasty falls, there's steps up at the front and the back so it's s worry about her bring there once she gets older and potentially frail.

The new place has ramps to the front, flat at the back, walk in shower, video phone security, beautiful communal maintained gardens, more room to manoeuvre with a zimmer frame if needed (she's had one three times for falls and it's tight in her current house). It's a much better set up for her and she'd have money to enjoy her life for once. I'd be sad to see her sell but on balance this is going to be much better for her.

put 10k in savings and split 40k between my kids OR take the entire family on a luxury holiday to enjoy each others time (if everyone got on and this was viable)

Is the £100k equity release? Is there a charge on the house?

The 100k is an interest free mortgage so she'd pay that off when she moves and be mortgage free.

Even with the mortgage

The cost of a decent care home....

If there’s nothing she particularly wants, I’d put the bulk aside for that. Maybe find a balance, some in an ISA, fixed rate bond, some instant access.

She wouldn't have a mortgage. She'd pay it off with the equity in her current house and pay cash for the new place. She'd be debt free.

I'd put 20K of the money into an ISA of some sort, e.g. gov. bonds, and the rest into a high yield cash account like Marcus.

It sounds like the move will be positive for her quality of life on many fronts.

Sorry OP, that should have said “even with the mortgage paid off”!

I had to investigate care homes for my dad. He thought he knew the costs but.....no.

Agree with PP - £20K in ISA & £30K in easy access savings. It would be very easy for her to spend £5K pa to make life more enjoyable whether it's nice food or going out travelling/to the theatre, etc. £50K will probably last less than 10 yrs and she may well live beyond that.

I’d get stressed managing a house on my own and I’m half her age.

The flat sounds ideal. I guess the people who don’t want her to sell and thinking that the house gives them a larger inheritance.

She should sell up, get the flat and stop worrying about money. The £50k is a nice cushion.

Do double check that there are no large annual increases in service / maintenance fees though.

Sounds like the sale of the house and buying the retirement flat would be a sensible move for her. How is she going to pay off the 100K mortgage if she doesn’t? I would advise her to put as much as she is allowed in easily accessible and the rest in high interest savings account and use it to make her life better or for care when she needs it.

Something like one in four people need long term care, if that happens the the £50k will go very fast.