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.

@Sweetchocolatecandy her husband died leaving money for her.
Sometimes it pays to read OP's posts even if you don't read the whole thread.

@Sweetchocolatecandy

You stated that you have had savings accounts, premium bonds, ISAs etc and have saved all of your life so I’m wondering why you suddenly need advice now? And if you did surely with that sum of money you could afford a financial advisor?

Sounds more like a bragging post

Having savings and investments doesn't actually mean you know how best to make them work for you.

It was only when I went to an IFA with what I had and what I wanted to achieve e.g. early retirement did they get rejigged in order to make that happen.

[quote spicedappledonuts]@Sweetchocolatecandy her husband died leaving money for her.
Sometimes it pays to read OP's posts even if you don't read the whole thread.[/quote]
Erm I don’t mean to embarrass you but did you bother to read her original post? She has saved into ISA’s, premium bonds and saving policies every month so my question was why does she suddenly need financial advice now (from an Internet forum)? Her husband dying and leaving her money is irrelevant- she is clearly money-savvy and good at saving so it comes across (to me) as more of a bragging post.

@Stuffin then with half a million pounds I’m sure she could afford to pay a financial advisor.

I'm the same as you op, a bit here and a bit there and it can be a bit of a shock when you add it up. I mean, mine is debt and not savings but there you go id love to be in your position but i never will til i stop wasting money!

@Sweetchocolatecandy because circumstances change, financial rules & regulations change etc.

I consider myself to be financially savvy & have saved since I was 16 using various tools, but when I got married and had my first child, I wanted to make sure I was making the most of my savings & gearing my family in the right direction for the future.

You may view it as bragging. I view it as someone who has been through a significant life event which makes you reassess everything.

And now I've read the thread properly and seen about your husband, what I've said about i would love to be in your position is tone deaf too, and whatever else anyone has called you.

Sorry for your loss

@Sweetchocolatecandy it is more mature to behave like @Feelslikealot.

Well done OP. What you’ve done is inspirational. We do need to talk a lot more about finances for women, and success stories help.

Yes many people will never be able to do this. But many would be able to if they made the conscious choice to forego some current consumption in favour of saving. I think for many people the problem is we’re not taught about compound interest and investing at school, so the ability to make a conscious informed choice isn’t really there.

There’s a happy medium I guess between spend and save for those who do have spare discretionary income. As others have said, FIRE websites are useful to get the principles. Time is your friend in this, as is making the most of tax exemptions (ISAs and pensions). I’ll advise my kids to save hard in their 20s in pensions and ISAs if they can, hopefully to buy them more choices later as for the OP. It’s not possible for many people but for many others it is if they get organised. I think setting up a direct debit into a savings vehicle/s when pay comes in is the best way, means you aren’t having to make a choice each month to save, you’re doing it by default. Yes this is impossible for many, but it is also possible for many. That, and find out the financial implications of marriage before getting married. It’s ludicrous that our education system is silent on this in my view.

I don't know what you do with a large sum of money - as interest rates don't keep up with inflation.
Premium bonds for 50K.
Perhaps some other National Saving Bond - though I don't think there are many at the moment .
Keep adding to the isas.
I think I might just keep it in differing bank accounts. Maybe I'm a pessimist but share prices are up and down due to covid etc. Making them less safe an investment.
An IFA will advise.

Congrats ! Ignore the negative nellies .

Join the meaningful money community on fb and Financial independence UK - very helpful groups !

@GreatPotato well done! That is a remarkable achievement. Wish I’d done that now. I’m 49 and could’ve done the same but didn’t mainly due to overpaying the mortgage (paid off) and paying ridiculous amounts of childcare for my 2 kids. I also went part time for 10 years. I probably could have saved 10% though.
Good advice for anyone young on here!

@GreatPotato I wonder what saving 20% in 17.5 years would achieve???

So much envy.. she’s asked for advice on the money board ffs. I’m curious as to what amount the people who seem offended by the question deem “appropriate” to post about is.

There's a big difference between knowing how to save and how to invest. My post was about having too much money in cash savings.

So sorry to hear of your loss OP, I can't even begin to imagine the pain of losing your husband and I hope that you are coping okay.

I agree that saving money is a completely different skill to knowing how to make that money work best for you. I'd suggest going to someplace like the ukfinancialadvice sub on Reddit to ask for advice and do plenty research yourself, then go to an independent financial advisor for some professional advice. It can be difficult to find good financial advice so the better armed with knowledge you are before meeting an advisor the better you can evaluate their advice.