Bugger me, I seem to have accumulated half a million

[GreatPotato]

I've always had a decent job in my world, but not by MN standards and been a saver (not enough to make me a higher rate taxpayer).

I put aside some cash every month in a cash ISA, premium bonds and paid into savings policies etc. with the idea that I am saving for a rainy day and my eventual retirement. Haven't really paid much attention to how it was accumulating, for which I realise I need a slapped wrist.

Recently some savings policies have matured and I've been the beneficiary of a life policy. Tallying it all up for the first time in years it's all just a few pounds short of half a million!

Now, obviously the bank is not the right place for it, but how in earth do I go about finding a home for it?

I actually have fairly decent pension provision through employer schemes, but I'm thinking this cash gives me the option to retire early without reducing the annual pension amount. I.e. I can wait until retirement age to draw the pensions, even if I'm not working .

Mortgage is paid off.

For me a real case of look after the pennies and the pounds look after themselves. I've never felt that I was scrimping, just being sensible. There's nothing material that I want and don't have.

For me a real case of look after the pennies and the pounds look after themselves. I've never felt that I was scrimping, just being sensible how utterly ignorant, a person on £18k a year won’t be able to amass 500k- seriously well done but get over yourself

That is absolutely brilliant.

Im moderately clueless about finances so when I needed a particular bit of advice (income protection vs critical illness vs nothing in my case) I asked around among my more obviously organised friends for a financial adviser recommendation.

@OnlyFoolsnMothers

For me a real case of look after the pennies and the pounds look after themselves. I've never felt that I was scrimping, just being sensible how utterly ignorant, a person on £18k a year won’t be able to amass 500k- seriously well done but get over yourself

I'm sorry that's what you've taken from my post and obviously it's all relative, but that is how it's happened.

Well done Great Potato. I’m not an expert but a few things stand out to me - what age are you? As you pointed out, this money would perhaps allow you finish up work early and travel or take up new hobbies. Do you have children that need help with education or housing costs? Does your home need any major renovation work done? It’s a great position to be in. Please share some tips with us! 🙌🏻

The first point is that unless they are in NS and I accounts they are only protected up to the first £80k ISH per Banking group, so you need to split them across multiple accounts, checking that they're in different groups.

I'd have a look at some "FIRE" blogs and sites - financial independence, retire early. They usually recommend low cost tracker funds. And obviously keep as much as possible into ISAs

@OnlyFoolsnMothers

For me a real case of look after the pennies and the pounds look after themselves. I've never felt that I was scrimping, just being sensible how utterly ignorant, a person on £18k a year won’t be able to amass 500k- seriously well done but get over yourself

Maybe the OP wouldn't mind telling us roughly what she was saving a month.

I sincerely mean good news for you. I will never and have never been in that position which also means I don't have the means to even save a little, the knowledge or capacity to teach my children through example either so hoping websites etc can help with that. but if it was as straightforward as you say then well done you.

Yes, no single institution has more than £80k, mostly because I've always shopped around for a new ISA each year.

Talk to an independent financial advisor - may suggest a SIPP - we’ve done that and although we have decent job pensions our SIPP has taken us to another level. We’ve retired at 55 / no mortgage - I get so mad when people say we are lucky - no we’ve worked hard for this and so have you - enjoy xx

I would love to wake up one day and realise I had accidentally saved half a million.

But then I would go and spend it, which is also why it will never happen to me. So no advice obviously, but well done OP!

Basically 10% of my income from the day I started work in a Saturday job (35 years ago, so it's taken a while) and then introduced extra savings standing orders each time I was promoted. When I got a pay rise I didn't think, new car or better clothes, I thought new saving scheme. Which obviously won't be for everyone, but I never wanted those things.

How much of it is in ISAs?

Sorry OP, but the title of your thread is utterly tone deaf when there are posts on this board about people who are quite literally hungry due to poverty, and who will fall off a cliff when they reach pension age.

There is nothing wrong with seeking advice on this board for investment strategies for a sum of £500K. But honestly, I can practically hear the tinkly laugh as you've described how you have amassed a sum larger than what some people will earn over the course of their entire working lives, on top of your generous pension.

I'd second the recommendation to look at some financial independence blogs, fire. Perhaps the monevator and the escape artist may be a start. There are plenty American blogs as well.

In terms of where to keep it. Look at making sure you are maxing your tax free ISA allowance and also pensions allowances especially if you are getting close to 57.

It sounds to me that you are quite savvy and could manage your money yourself, so if I were you, I'd have a look at some of the above blogs before paying a financial advisor for anything.

£500 a month at 5% for 35 years would be £568,000

Beauty of compound interest.

Whilst most on this board probably don't fritter £100 a week, that's all it would take.

Well don't on managing to save that much.
You should take financial advice and get it put where it can give you the best pension pot would be my advice.

Done not don't, obviously 🙄

When you saved that money the interest rate was good. I remember in 2000 you could put your money away for 5 years with an interest rate of 6%.

Now the interest rate is pathetic and you get barely anything back

@cheeseismydownfall

Sorry OP, but the title of your thread is utterly tone deaf when there are posts on this board about people who are quite literally hungry due to poverty, and who will fall off a cliff when they reach pension age.

There is nothing wrong with seeking advice on this board for investment strategies for a sum of £500K. But honestly, I can practically hear the tinkly laugh as you've described how you have amassed a sum larger than what some people will earn over the course of their entire working lives, on top of your generous pension.

Different to people talking about million pound houses, fancy cars, private school, foreign holidays? Of course not everyone here is in the same position, but I'm not sure why this is any worse than the others. And yes, I'm pleasantly surprised. Why is that awful?

Well done op. Self employed here so no company pension (recently retired). Like you we saved instead of going on holidays. We use our ISA allowance every year and SIPPs (we use AJ Bell).

If you save every year for 35 years it really does add up, what is it Einstein said about compound interest? I am shocked at how few of my oldest friends have no savings. My oldest friend has earned almost triple my earnings (ironically she is a researcher for a big City firm so should be financially astute) and has never saved despite me urging her to.

@GreatPotato

Yes, no single institution has more than £80k, mostly because I've always shopped around for a new ISA each year.

You need to check which institutions are connected. Where they’re in the same group, you don’t get the protection for the separate sums.

And well done. You’ve done well.

Ignore the posters who will try and drag you down.

That's great saving. I'm impressed.
i spent up to 40 raising my son alone and it was a huge battle not getting into debt just staying steady.
Now I'm busy saving every penny for retirement I have 10 years, it's hard.

To be fair OP did put this on the money board. Not every post has to be about tax credits.

@cheeseismydownfall completely agree the 'oops I seem to have acquired half a million pounds' sentiment is wholly inappropriate when people are terrified of the energy increase and tax and food increases about to happen, myself included.