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Original poster

£500k in the bank

62 replies

LandSeal · 10/05/2021 17:31

What would you do with £500k?

Late 30s, no mortgage, no kids, no loans.

I think it's stupid to leave the money sitting in a low interest account but DH, whose money it is, is reluctant to do anything with it. He won't speak to a financial adviser and seems to think investing is as risky as putting it all on a three-legged horse at the grand national. I could cry! I've convinced him to buy some premium bonds but that's about it!

So I'm wondering what others would do with the money in our situation.

OP posts:
murbblurb · 10/05/2021 17:34

Not in one bank, unprotected over £85k.

Inflation will destroy it - there are no savings accounts paying anywhere near real inflation and that has been the case for a decade.

With that much you could buy a rental property - but I wouldn't recommend that now. High risk of providing free housing for years. I'm afraid some of it does need to go into the stock market - you should have been using your ISA allowances.

VanCleefArpels · 10/05/2021 17:36

He’s being ridiculous. For no other reason than if the bank were to go bust only the first £80k is protected by the government. Any financial adviser can guide him to a very low risk investment strategy if that’s what he’s comfortable with. There’s all sorts of options other than investment, buying property to let being the most obvious one

EvilPea · 10/05/2021 17:37

Sorry op this isn’t helpful.
But what an absolutely lovely “problem” to have.

(That’s not sarcasm, your very lucky)

pitterpatterrain · 10/05/2021 17:40

At a start for both of you: Pension (max contrib) / LISA / ISA

Hmmm, rental property but tbh I am skeptical these days that it is worth it for ad hoc landlords

DawnAnn · 10/05/2021 17:47

Maybe put the maximum limit of 50k each in premium bonds?

HermioneWeasley · 10/05/2021 17:51

He absolutely does need to see a financial adviser with that amount of money. The fact he’s not protected if the bank goes under is also giving me palpitations!

Original poster
LandSeal · 10/05/2021 17:54

I agree he's being ridiculous... I could honestly cry at his lack of engagement. I have at least managed to persuade him to share it between banks and he does have some of it in a cash ISA. I used my allowance last year too.

This year I've opened my own S&S Isa but I have bugger all money of my own to put in it and he's not keen to risk his!

He's also not keen on being a landlord. He does have a small property associated with his business premises that he doesn't do anything with either!

@EvilPea We are so lucky I know! It's definitely up there with first world problems! I grew up in an area where life-long benefits was the norm and having my current £25k salary would be seen as the life of riley, so it all feels a bit alien to me!

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Original poster
LandSeal · 10/05/2021 17:56

Sorry, yes, I got him to max out premium bonds for us both a few months ago

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IEat · 10/05/2021 18:16

I have £24.32
Hey ho

IEat · 10/05/2021 18:17

Seriously I’d look at investing so I could make the max on interest

Onceuponatime1818 · 10/05/2021 18:20

I would by a lovey holiday home near a beautiful
Beach

Original poster
LandSeal · 10/05/2021 18:36

IEat I actually feel like a massive twat even posting this to be honest Blush It's honestly not a 'problem' I ever thought I'd have and I'm really not comfortable with the whole money thing!

Much of the issue is that DH is beyond miserable in his job. He earns quite a lot and feels massively trapped by it. If I had that much in the bank, I'd have bought that beach house and retired by now Grin

I'm trying to persuade him that we could have some sort of middle ground, where his money could work for him and he wouldn't need to be stuck in his job! Actually, I don't think he needs to be stuck in a job he hates, money or not, but our outlooks differ somewhat!

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EvilPea · 10/05/2021 18:54

I think you make a good point about it being alien.
(Sorry I’m going off on a tangent)
If your not financially educated it’s very very difficult to know what to do with it. I have small savings, nothing like your husbands by any stretch. And it’s hard to know what to do with it to make it work.
Getting impartial, honest advice is hard.

Onceuponatime1818 · 10/05/2021 19:13

Also isn’t it your money as well as you are married?

Hollywhiskey · 10/05/2021 19:21

He is right that he shouldn't invest in anything that he doesn't understand.
Are your finances joint or is it his money? Even if it's joint, he still gets an equal say in what you do with it, even if you think (and I agree with you) that his investment strategy is a bad idea.
I think seeing a financial adviser together is a good idea, but if he's not open to that (why not? Does he not want to pay? Is he not interested? Does he think he knows better?) I would look at money saving expert website, preferably with him. Anyone on here can give you any advice and it can be expert or it can be rubbish but Martin Lewis is a good person to trust to start with and hopefully your husband may start to get on board with you.

AlwaysLatte · 10/05/2021 19:43

Following, we stupidly have a very similar amount sitting in one almost interest-less bank account. We have investments for our children with St James Place and they're doing very well though.

redcandlelight · 10/05/2021 19:53

he's right he shouldn't see a financial advisor - he should see 2.

nannynick · 10/05/2021 19:54

Persuading him probably won't work. You need him to realise that keeping it as cash means it drops in value.

Does he listen to podcasts, audiobooks?
Does he watch YouTube videos?
If so, then can you direct him towards information which he can consume in the way he likes to consume information?

Having the money makes him feel secure but how much does he really need for that security blanket? If he had £50k would he sleep at night? £100?

Getting him to put some in Premium Bonds is a start, it may not get any return but it might.

Can you show him that a 40% equity/60% bond fund gets some return? Could you put £500 in and see what happens. Start small.

LittleBearPad · 10/05/2021 19:55

Heavens if he’s miserable at work this money could be a game changer!

It needs to work for him. Is he scared of it?

BernadetteRostankowskiWolowitz · 10/05/2021 19:58

Leaving it in the bank is doing fuck all so he could at least use it to make life more enjoyable now!

Cant he retrain or look for a new job knowing that his salary is pretty much covered for the next 10 years?

Original poster
LandSeal · 10/05/2021 20:01

It's definitely his money. The majority is inheritance and savings from before we met. We have separate finances and no children. I would just like him to make the most of it but wouldn't presume to tell him what to do with it.

@Hollywhiskey Of course you're right that anyone can say anything here. I suppose I'm just pondering options and looking for different ideas.

I'm not sure why he won't see an advisor. Perhaps an element of knowing better, which is infuriating (his parents are similar - FIL thinks that financial advisors should all be millionaires playing the stock market if they knew what they were talking about Hmm) and perhaps there's an element of not being interested. But... he's constantly worried about money, and that if he loses his income, we'd be screwed (I certainly don't agree!) He has a very weird and unrealistic view IMO

OP posts:
xela21 · 10/05/2021 20:02

What is his job?

Original poster
LandSeal · 10/05/2021 20:05

@nannynick Even the 500k doesn't give him the security... it's crazy! I tell him almost every day that his money is going down in value (he'll probably divorce me for nagging soon Grin) I do try to point him towards information and I've just got myself an investment ISA so hopefully he can see something happening there.

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Original poster
LandSeal · 10/05/2021 20:08

@LittleBearPad - this is how I feel... he's so unhappy with his life while having the means to do (almost) anything he wants to change it! It's mad!

@BernadetteRostankowskiWolowitz - we have much bigger hurdles re retraining or doing something more enjoyable. He feel like he has no options/ skills/ motivation. It's really hard to watch!

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InFiveMins · 10/05/2021 20:09

Even if it's inheritance or saved before you came along, why is it seen as his money? You're married so it should be shared. I'd ask for half of it so you can invest your half.