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Discuss investments with other users on our Investment forum. For more advice read our tips for saving for your child's future.

lump sum dilemma

5 replies

cushionedwell · 22/04/2022 16:28

i have recently retired and have a lump sum of 90K.
no mortgage. have a buy to let flat no mortgage worth approx 200K
husband still working and has his own pensions stuff.
so with the lump sum so far I gave my husband 20k which he put in a S& S isa
I topped up my S and S Isa to the 20K for last year.
So i still have 50k just sitting in the bank eroding away.
The S and S ISAs have actually gone down in value so although I understand they are risky it's put me off putting in more money. Risk level of 5.
should I open another S and S ISA with a different provider at a lower risk and perhaps put the rest into premium bonds?
My husband is very careless/ generous with money so i'm reluctant to give him more .

OP posts:
Starface · 22/04/2022 18:55

If you have enough ongoing pension income, then what is this money intended for?

Holidays?
House maintenance? New kitchen/getting everything as you want it before old age/ill health? Cash flow to support downsizing?
Paying for something in the future eg kids wedding?

Your goals plus your timeframe will determine what is the best solution for it.

Anything for 5 years or less, just get on with doing those things or put it in premium bonds/low risk investments. Inflation will eat away at this though, and Inflation is high. This is a guaranteed loss in spending power.

Anything for longer than this, or undetermined, I would put in S&S ISAs. I know it's just dropped, but it will come back again. You only realise those losses when you cash out, so as long as you don't need to cash out you should be OK longer term. Hold your nerve! These losses are only on paper so far.

But if you don't need it for anything, if you definitely have enough, then I would seriously ask yourself what you are saving for. There are no pockets in a shroud, we can't take it with us. Seriously consider spending it, have some good holidays, eat some phemonenal meals, buy the cashmere slippers, "make memories". Also consider giving it away to charity or to people you know to whom a bit of money would make a significant difference. That can also be very pleasurable in its own way.

CurlyhairedAssassin · 22/04/2022 19:29

Is the lump sum from your pension? Was there no option to leave it invested?

cushionedwell · 22/04/2022 22:12

oh dear that makes it sound like i'll be dead very soon!! hoping to have another 10 years at least!! but i do appreciate the need to live a fun life while i can!

no it's an nhs pension so a monthly payment and a lump sum

OP posts:
MamaSharkington · 23/04/2022 15:35

Ha, I don't mean that you'll be dead very soon. Although, you never know when I'll health will stop you doing stuff. Sounds like you have plenty of provision, and life is finite, so, yeah, Carpe diem. Because seriously, what else is money for? May your life easy, pleasant, thrilling. Why not? What are you waiting for? Have that fun life!! You earned it!!!

The shift from a saving mindset to a spending mindset is a tricky transition at retirement. Good luck and best wishes!

Mindymomo · 23/04/2022 15:42

You can put £50,000 as the maximum amount in premium bonds. I have this amount and have received back about £800 in a year. I have a Tesco bond paying 2% for money in there for 2 years, but obviously you cannot take this money out in that time.

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