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Original poster

What would you do with 50k?

11 replies

wwydwith50k · 02/05/2022 21:41

It is sitting in a current account at the moment, and has been for a couple of years. What would you advise me to do with it?

(I already have the full Premium Bond allowance, so can't use it to buy Premium Bonds).

I have no mortgage, no pension and no job, but do own more than one property and live on rental income. I'd ideally like more disposable income, though.

I can't buy any more property as I can't get a mortgage due to having no 'proper' income.

Bright ideas, please!

OP posts:

BrutusMcDogface · 02/05/2022 21:42

🤔

HollowTalk · 02/05/2022 21:43

I would invested in stocks and shares ISA.

Original poster

wwydwith50k · 02/05/2022 21:46

HollowTalk · 02/05/2022 21:43

I would invested in stocks and shares ISA.

This is the kind of thing I was hoping to hear. I know absolutely sod all about these - I've only ever dealt with property and have never even had an ordinary ISA...

OP posts:

HollowTalk · 02/05/2022 23:13

Vanguard is a company that a lot of people recommend. This is the stocks and shares ISA but you can only save £20K pa that way. They do have other products though so perhaps look at their website. Others on here can give better advice!

FourExcellentQuestions · 02/05/2022 23:25

How old are you? If under 40 you should consider opening a stocks and shares Lisa allowance as the government gives you a £1000 top up if you save £4000. You can't take the money out until retirement age though.

Threetulips · 02/05/2022 23:27

Then why not get a job? Even part time m, something you enjoy?

LampLighter414 · 02/05/2022 23:27

Yeah stocks and shares ISA 20k per year over the next 3 tax years.

Or could consider stocks and shares lifetime ISA if you qualify (have to be under 50 years old I think). Only 4k per year though which will get topped up by the gov to 5k year. You won't be able to access it until 60 though without suffering penalties. You could put 16k per year into regular stocks and share ISA to hopefully grow in the meantime though and move over 4k per year

Chaoslatte · 02/05/2022 23:29

See a financial advisor who will be able to give you proper advice based on your goals, risk tolerance etc.

BarbaraofSeville · 03/05/2022 06:48

If you live on rental income, have built up £50k in your current account, and would like more disposable income, part of the answer would be to just spend more of the money that is building up in your current account?

A lot depends on your age and the value of your property portfolio but it sounds like you need to diversify. Currently, you have property and £100k in 'cash' but no stocks and shares. You probably need to put some (around £50-80k from the cash/PBs) into either a pension or S&S ISA.

You might find Meaningful Money helpful. There's some videos to help you decide between a pension and an ISA

https://www.youtube.com/c/MeaningfulMoneyUK/videos

And a lot of other information on the main website. Spend a few hours reading/listening/watching and you'll probably find that you almost certainly don't need to pay an IFA to tell you that you need either a pension or an ISA for money you don't need in the next 2/3 years and you need to just gradually take from the pot over time to supplement your income. Need to watch the allowances though, you can 'only' put £20k pa into an ISA and pension contributions are limited to around £3000, your income or £40k depending on circumstances and I don't know how this works when your income is from rents, rather than an employed job. But that doesn't stop you buying a tracker fund outside an ISA or pension, but it may be subject to capital gains tax.

If your portfolio is very unbalanced, eg the property is worth a lot more than the £100k, might selling a property or two and moving the money to investments be something to think about?

Of course, you could decide that, if you have more money/assets than you need to fund the rest of your life, and you're not worried about leaving an inheritence, then it's not a huge issue what you actually do.

Chatwin · 03/05/2022 10:09

£20K stocks & shares ISA
£20K charitable investments
£10K fun stuff

Original poster

wwydwith50k · 03/05/2022 12:14

Thank you - just reading now. Food for thought. The stocks and shares ISA keeps coming up, so I'm going to investigate that one. Thank you for the Meaningful Money suggestion, @BarbaraofSeville !

For those who asked, I'm 50 and have a lovely and very fulfilling life after many years as a SAHM. I do some voluntary work, which I enjoy.

DC are 19 and 21. I would plan to make them joint owners of some of the property portfolio in due course, but not yet!

OP posts:

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