At the end of the year between the jigs and the reels, we should be in a position to have about £329,000

[FinallyFluid]

We don't want high risk returns just slow and steady and reliable, (bit like us } what can we realistically expect please in percentage terms of return, we have never had this much money in our possession before, we have instructed an IFA, but when he starts talking I know I will go snow blind .....

We have a final salary and state which keeps just under the dreaded 40p in the £, DH paid this for so long he is determined to place all investments in my name to keep himself under the radar.

Basically, this money is for holidays and theatre trips and getting DS on the property ladder.

But I don't know what a conservative % return would be, can anyone please help

Bump

2% growth above inflation, over the long term. That is what I would use for projecting future fund value. If you are using financial planning software then I would set growth at 5% and inflation at 3%.

It is not a straight line, some years inflation will be high, like right now, so in real terms your investments may lose money. In other years inflation may be low and your investments may do a lot better, such as getting 7% above inflation growth.

Your IFA should be discussing how much of a cash buffer you need. Having a cash buffer of 2, maybe 3 years of expenditure can mean that you do not need to pull money out of investments when markets are not doing well.

You mention a Final Salary scheme. That is very useful for giving you a base line on income for everyday expenses as the defined benefit scheme gives you a pay out each month of a set amount (often index linked to CPI) for life of the pensioner.

Thank you all

The IFA is like us slow and steady so should be fine.

Yes, the final salary and state will be our day to day, part of the money is inheritance (rather have my mother )as well Defined contribution, we shouldn't need to touch the 25% immediately so will draw that down for holidays etc, and hope the rest behaves itself.

Then if I live long enough my state will kick in in nine years.

Inflation is expected to be a little over 4% per annum in the UK over the next 10 years (this is what "the market" is predicting based on the price of inflation-linked Gilts). If you want "slow and steady" performance and not super high risk, I think a realistic expectation is that you'll make 1% above inflation, so 5% in nominal terms. This would equate to equity risk (i.e., the amount invested in shares) of around 60%. If your IFA is doing a good job, that is what they should recommend. Good luck!

Thank you very much.