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Original poster

Bugger me, I seem to have accumulated half a million

266 replies

GreatPotato · 23/09/2021 11:07

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.

OP posts:
Cah03 · 23/09/2021 11:46

I don't think you've been awful at all, you've been saving for 35 years and managed to avoid lifestyle inflation which is admirable and inspiring. There are going to be people that can't relate to your post, but having been mindful of your finances isn't something to be ashamed of. Some independent financial advice is called for, the Internet is best avoided for this!

StoatMilk · 23/09/2021 11:50

@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.

’tinkly laugh’

What an unpleasant comment Hmm

comfortablyfrumpy · 23/09/2021 11:56

Get a financial adviser. It will cost you but best have professional advice.

futureghost · 23/09/2021 12:04

@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.

This
futureghost · 23/09/2021 12:05

[quote lollipoprainbow]@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. [/quote]
And this!

Djifunrsn · 23/09/2021 12:07

I would think the bank would be an ok place? As long as you don't put too much with each individual bank in case of collapse.

OchreBlue · 23/09/2021 12:08

Well done, you should've done an AMA on this. Sorry I have no advice but as someone who's always saved but has virtually no savings I'm in awe of this. How do your savings not end up getting spent? I save about 20% of my earnings into a LISA towards a house deposit, but obviously that will be gone if I manage to buy a house, I also ended up having to dip into it when I was on maternity leave so it's very low. Then I also save about 10% of my income towards holidays, Christmas and birthdays, but again this is used up each year. What is your system? Is that 10% separate to other savings that you do use? Can you give us an approximate idea of what you save each month and don't use at all? For me 10% of my salary is about £100 so it's going to take me a while to reach half a million!

Viviennemary · 23/09/2021 12:10

Buy a better house. Not necessary at this moment. Best place for a large surplus amount. IMHO.

Mothersister · 23/09/2021 12:10

I’m sure the people who lost their jobs over Covid, those who will be battered by the NI increase and those who struggle to feed their children will be thrilled to hear your tone deaf self congratulatory news.

Sadly your empathy skills are not so evident.

Desmondo2021 · 23/09/2021 12:10

Out of interest what sort of ballpark figure did you think you might have? It's quite concerning that you could be so clueless as to be wildly out in your calculations

SirChenjins · 23/09/2021 12:15

Dip into your savings and pay for proper financial advice rather than post on a chat forum?

I’m delighted for you, but really - if you’ve managed to save £500 a month for 35 years after all your other outgoings then you’re in a more fortunate position than a huge amount of the population (who aren’t spendthrifts and wastrels). This is akin to ‘I pay for my children’s school fees by prioritising my spending and not buying a new car every 2 years’.

FFSFFSFFS · 23/09/2021 12:16

How old are you and when do you want to retire?

grapewine · 23/09/2021 12:17

It must be nice not having had to dip into savings to be able to live to the point that you didn't know how much you have.

Snoopsnoggysnog · 23/09/2021 12:17

@Viviennemary

Buy a better house. Not necessary at this moment. Best place for a large surplus amount. IMHO.
And sink thousands of pounds into stamp duty…?
Jng1 · 23/09/2021 12:18

Well done OP - enjoy your financial security and enjoy the people trying to bring you down. I sort of know what you mean, it's easy to end up saving in different 'pots' and not realising how they all add up.

With regards to what to do next, either get some advice or begin to educate yourself with regard to financial management (if you're sufficiently interested and competent!)

I've had a couple of disappointing experiences with IFAs and self-manage my savings and investments. Check out the forums at Moneysavingexpert and also the monevator website.

Things to think about:

  • bank and building society savings accounts are nearly all paying rates less than inflation, so you should be careful of keeping all your savings in those
  • even if your pension is good, you may be able to contribute extra and benefit from the government tax top ups
  • For a pot of this size most people would probably invest some of it stocks and shares, even if it was a low cost tracker.

Do be very careful in your discussions with IFAs if you go down that route - some will offer to manage your money (often putting it in very basic investments) but charge you thousands of pounds a year, with no guaranteed returns.

Jng1 · 23/09/2021 12:20

I meant ignore the people trying to bring you down, not enjoy!

OwlInATowl · 23/09/2021 12:21

This sounds really familiar to me. Have you posted about it before op? I recognise your writing style

I inherited 700k two years ago. I upgraded my house. I helped my eldest buy her first flat. We invested in stocks and shares and we have a float in savings. Plus we have a slightly better lifestyle than we did previously. And that's it. Just normal stuff really.

theressomethingaboutmarie · 23/09/2021 12:21

Amazing! Well done OP, you've inspired me to get saving a bit more!

LowlandLucky · 23/09/2021 12:26

Well done GreatPotato I retired in my 40s and life is fantastic so i would say take your retirement because life is very very short. Travel if that's your thing, even once a month for a mid week break. It is fun researching the place you are visiting and of course even better when you are there. Use your money for charity too, i never give cash but i do collect for the shoe box appeal, i buy for the local children's Christmas appeal and for the school uniform appeal. I also sponsor a child and it brings me so much pleasure to recieve her letters every month. Do whatever brings you joyFlowers

daisychain01 · 23/09/2021 12:26

There's a current thread running where a MNer is sick with worry how they'll manage when they lose the £80:a week.

What have you achieved by announcing your bank balance? Bemused....

Stuffin · 23/09/2021 12:26

Well done OP. I would get some IFA and think about what you want to do.

For me I am looking at retiring early 50s and saving and investing has enabled me to almost be in a position to do that.

Plumtree391 · 23/09/2021 12:26

Where did the op say she was earning £18k?

I don't see anything 'ignorant' about her posts, quite the contrary.

Well done, GreatPotato! That's marvellous. It sounds as though you've been quite sensible without scrimping.

I've no advice but make sure you enjoy some of it because you can't take it with you.

daisychain01 · 23/09/2021 12:30

@AuntieJoyce

To be fair OP did put this on the money board. Not every post has to be about tax credits.
The problem is that it comes up on Active, so it's "in yer face".

In face, it appeared above the "what will I do when we lose the £80:a month?" thread.

It does come across as harsh and 'in a bubble'.

Weirdlynormal · 23/09/2021 12:32

If you've been saving cash OP I think some advice a while ago might have been useful. You need to get some real assets going or the £500k will halve it's spending power in fairly short order

CPI (inflation) has been 15.56% in the last % years. Your money is slowly eroding.

You need some good advice.

LastGirlSanding · 23/09/2021 12:33

This IS on the money matters board but it’s pretty tone deaf if you take a little scroll through many of the other thread titles on this board. People are struggling just to get by, let alone save anything, let alone being in the most fortunate position to have been able to put away 10% of income for three decades on better interest rates etc. AND with a mortgage paid off.

While it’s good you are happy, also going on about having half a million you apparently saved with barely a thought of it is kind of galling for many people. I think a little bit of consideration for the really hard times so many people are suffering right now and the huge anxiety many have right now as winter approaches and overstretched people are about to find they can stretch no further would not have gone amiss.