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.

Buy another pension! I did this and the growth far outstripped bank interest.

Well, the op was pleasantly surprised, hadn't realised how it had accumulated. I can certainly understand that, I rarely know how much money I have

But are you constantly moving your money around to make sure it gets the best rates and doesn't go over 80K? I manage my money for the best rates and move it around and believe me, you need to be keeping tight monitoring on how much you have where.

I just don't believe it.

@DarlingFell

Well done, OP!

However, I really hope you have enjoyed your life while you have been saving your money. Whilst I am a firm believer in having savings and being sensible with finances and cutting one's cloth accordingly, I do also think that life is short and we are a long time dead, so all those saying, 'we saved everything, we didn't have any holidays', I can't help but think that's a bit sad, squirreling all of your cash away but merely 'existing'. I believe there should be a middle ground.

Agreed, as the saying goes there are no pockets in a shroud. My dad spent hundreds of thousands (or the equivalent) before I was born, enjoyed himself and had a high old time. I think he would have preferred to have had an easier life in his 60s and 70s (the money was long gone by then and he had no pension so had to keep working well past 65), but as he once told me, he never expected to live that long, so why save?

I've saved about £100k in the last 15 years. Nowhere near the amount the OP has accumulated but I have been raising 2 children as a single parent in that time, and I've also paid off a mortgage. I probably could have saved 'better' (for various reasons my money is in bank accounts rather than ISAs so I receive next to no interest) but how much money does anyone really need? I've not exactly frittered money away but we've not been overly frugal either.

I'm very grateful for the fact that I have enough money to replace anything that breaks without worrying about the cost, and never have to check to see if I can afford X or Y before payday. I fully appreciate a lot of people will never been in that position and I do count myself lucky and try not to take my position too much for granted.

@TrueGrit54

RiotAtTheRodeo if you haven’t used your ISA allowance then I would start there. This is a tax free savings account. You can put up to £20k each year in a cash ISA (low risk) or an investment ISA (stocks and shares). I think you can get going with £100. Read up on it. Tax free is a gift, an incentive to save. Please seriously consider the investment ISA, yes more risk but also more return. Hope that helps.

Thank you so much for your reply. That is very helpful. I will start reading up on investment ISAs

@QueenoftheKarens

Congratulations?

Mass poverty going on and your like "oh there's half a million." Like it's normal? Smugness doesn't suit you.

Speak to a financial advisor though, you could of done that without mentioning how much money you have.

And bitterness doesn't suit you.

Talk to an independent financial advisor, they are worth their weight. A friend recommended a guy to us and he has managed our money to pay out enough for a reasonable monthly income, saved us loads in tax and invested in schemes at medium to low risk and we are seeing growth on these.

Yeah. The title's not great, especially when the algorithm puts it in trending, above the £80 post.

But it's a fair question to ask. Maybe mnhq would change the title for you if you ask, OP?

@futureghost

Well, the op was pleasantly surprised, hadn't realised how it had accumulated. I can certainly understand that, I rarely know how much money I have

But are you constantly moving your money around to make sure it gets the best rates and doesn't go over 80K? I manage my money for the best rates and move it around and believe me, you need to be keeping tight monitoring on how much you have where.

I just don't believe it.

I wouldn't call the op a liar.

She knew she had money, just not exactly how much.

That's a fabulous amount of money - you definitely need an IFA. I hope you enjoy investing it or spending it, whatever suits you. Well done!

@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.

If you're looking for a home for £500k I can send you my bank details

What a great position to be in.
If it were me, with a decent pension in place, I would retire immediately. Enjoy it while you're fit & healthy, OP.

I think the title is particularly insensitive when people are worrying how to feed themselves when they lose the UC uplift on other threads

Personally I wouldn't want to get to 50 and not have travelled a bit. Other than that, I think you clearly need to take some financial advice about how to invest your money. And perhaps think next time before you write such an insensitive thread title.

@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

THIS

Well done OP, that's great. I think you've done brilliantly and been very sensible over the years.

However, I do have some empathy with the posters saying it's tone deaf and smug. I've never had savings and don't have a pot to piss in, but I have 3 amazing children and 1 on the way, a small but lovely home and a partner who loves me with heaps to look forward to together in the future.

My SIL on the other hand, is the complete opposite to me. She's scrimped and saved over the years and never had nice holidays, decent shoes or ate out. Consequently she's sitting on a big fat bank balance. She's also miserable as sin, in the same office job that she's been doing for nearly 20 years, no children, nothing to look forward to except retirement and in a relationship which appears dead in the water to the outside world. She's incredibly smug about her money too.

RiotAtTheRodeo fantastic, excited for you. Martin Lewis’s website (money saving expert) is good, gets you tuned in to all things money. I have no financial background, my maths at school was weak but I now have a good pot in ISAs. Anyone can do it. If you don’t understand something ask questions. Lots of free advice out there. You don’t have to commit to anything or give your name.

Such a weird, showing-off thread. You must realise there are many people on here who don't have a hope of ever saving that much and some who are, in fact, living in poverty.

If you're genuinely surprised to learn of your own vast wealth and haven't been keeping an eye on it, you should be talking to a financial adviser.

Yes, a good IFA is what you need.

500k invested in a portfolio with wealth management companies such as Hargreaves Lansdown or Brewin Dolphin for example would yield 3% pa. More if you go for an higher risk profile.

It’s a lot less hassle than investing in property.

How come it's 'showing off' to share that you have a good bit of money, but not 'showing off' to say you don't have enough to live on? We have people at both ends of the financial spectrum posting on here but it isn't a competition, both are valid.

Double standards.

@babouchette

Such a weird, showing-off thread. You must realise there are many people on here who don't have a hope of ever saving that much and some who are, in fact, living in poverty.

If you're genuinely surprised to learn of your own vast wealth and haven't been keeping an eye on it, you should be talking to a financial adviser.

It’s more than weird not to realise that there are people like the OP who are not living in poverty and are perfectly entitled to ask for advice here.

Is it really the case that no-one can ask for help with money for fear of annoying those less fortunate?

@futureghost

I actually don't believe that anyone who has been that financially astute for 35 years, and has moved money around for the best deals and to make sure she stays within the £80k per institution (which is considerable work as you have to know which banks are owned by which) could have done all that and still failed to realise how much money they have. The sort of person who does all that knows exactly how much money they have and where it is. You have to keep track of it as you are moving it around, especially as it accumulates in value.

This is the fscs and it’s £85k per banking license but only affects cash deposits, not investments held with a bank as they are held in trust.

But truthfully there is 0 benefit in keeping large sums of money in low yield savings accounts as inflation erodes the buying power of the money held, so it’s a loss looser to keeping anything except for instant access cash in a typical savings account xx

Well done OP. We hear far too many stories on mumsnet about people who have mismanaged their finances so very good to know of anyone who has done the opposite. Ignore all those who are trying to belittle you for it - says way more about them then you.

@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 is ridiculous! Thoroughly bitter and unpleasant comment.

OP has done really well with saving. She has a question about money that she has posted in the Money forum.

Seriously stop being jealous of others bad fortune and get a grip!

For that amount you should speak to a good wealth manager who will assess your risk profile, life circumstances and future plans and devise an investment profile you are comfortable with. Always maximise ISA amounts.

If I was back in Ireland I'd talk to this guy - eddiehobbs.com/

In the UK my first port of call would be Rob Guy - www.linkedin.com/in/robert-guy-38126512/

I worked with him at John Charcol - honest, ethical, knowledge, personable and just...nice.