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Original poster

What would you do with £50k if you were me

50 replies

FlorenceBoot · 19/10/2023 10:51

Recently had an inheritance which allowed me to pay off mortgage. I've got £50k left over to invest for growth.

Also £1k per month to invest now free of mortgage payments.

I'm 60, not much in way of pension and no other savings.

Any advice would be much appreciated as I don't think I have enough to interest a financial advisor.

OP posts:

Zzizzisnotzeproblem · 19/10/2023 10:52

Buy some parking spaces and rent them out?

Hoosemover · 19/10/2023 11:06

Fixed term savings accounts- check out MSE website for best deals

Circumferences · 19/10/2023 11:07

Do you have children?
You might consider a certain ££ set aside for the distant future if you ever need to go into a nursing home or need a carer.
A trust fund?

TeenDivided · 19/10/2023 11:09

Check your NI contributions and make up any missing years.

Muddle2000 · 19/10/2023 11:09

I think you do have enough for a IFA given the 2 lots of cash Obviously you do not have a pension which is your main concern (though you will eventually get State pension ) I hope someone else will come along with more constructive advice

Muddle2000 · 19/10/2023 11:11

Could you go back to work in some way Charities often take older people

MikeRafone · 19/10/2023 11:11

Zzizzisnotzeproblem · 19/10/2023 10:52

Buy some parking spaces and rent them out?

There is some land for sale next to a local hospital, its up for sale at £600,000 currently used for another purpose - but im wondering if someone will buy it and do exactly that

anniegun · 19/10/2023 11:12

You should talk to an IFA. Planning ahead, salary and pensions are all part of the mix. They are also likely to get better terms on investments than a retail customer.

MaggieFS · 19/10/2023 11:15

It sounds like you are still earning if you have £1k month now to invest? Do you hope to retire at some point?

When you say not much by way of person, do you have anything?

I think you would be wise to see an
IFA and see what structure they suggest which would give you the best possible regular income for when you wish to retire (if that is what you want to do). You don't have to follow their advice or use their services if you don't like the plan. But in your shoes, it sounds like you want to invest, but potentially in the medium term may want regular access. I think a savings account alone would be too basic.

FallingAutumnLeaf · 19/10/2023 11:16

Id put 10k into an easy access savings account.
Id put 20k into a Stocks and shares ISA - half that tracks the FTSE and half the has worldwide exposure.
Probably the last 20k into premium bonds or a high interest savings account until you have a proper plan.

MikeRafone · 19/10/2023 11:27

I'm 60, not much in way of pension and no other savings.

Any advice would be much appreciated as I don't think I have enough to interest a financial advisor.

You don't say what age you want to retire - so Ill assume you will keep working for another 7 years

If you want to play safe then I would, put the £50k into a NS&I savings bond which are now looking at approximately 5.7% for 3 years - its called a green savings bond, when the bond finishes you'd need to move the money to another savings account or ISA paying a decent amount of Interest. In 3 years you would have £59300.53, a total of £9,300,53 interest.

If you can then at this time find a savings account of cash iSA paying approximately 5% you can invest this 59300,53 for a further 4 years and you'd hypothetically have £72,399,09 having gained a further £13,099 interest

This figure would give you monthly interest (at 5%) of £308.67

The £1000 per month you could also save/ put by some for fabulous holidays and save £500 into a savings account totalling £6000 per year. That would give you £61,048.01 over the 7 years, with £10,048.01 being interest.

That would give you a further £3,123.33 interest yearly - which would equate to £260 per month

Making a total of £568.92 monthly to add to your State Pension, which presently if you have fully paid stamp is due to rise to £820 per four weeks in 2024

You'd still have the £500 per month to play with for holidays etc through the year and save in 7 years enough to give you a nice monthly income - prioviding the interest rate is 5% or above

S72 · 19/10/2023 11:36

Are you currently working? Are you a higher rate tax payer? Are you in good health? When do you plan on retiring? How do you plan on funding your retirement? What plans/dreams do you have for your future? What existing debt do you have? Are there any big things in terms of house maintenance that you may need to do soon, like boiler replacement/roof work etc?

I'd look at having a rainy day pot of at least 10k that you can access (cash, find an account with a high rate). I would look at putting a lump sum in an ISA. You can only save 20k in an ISA each financial year.

I'd look at my employee pension and see if my employer matched contributions and squirrel as much in there as possible to build a pot.

Or, set up a private pension and get the tax relief added for contributions. I would put 1k in the pension each month at least, in addition to a lump sum.

Cannas · 19/10/2023 11:40

Are you a tax payer?
If you don't have much pension that's one obvious solution. Put it in a SIPP. You don't need a FA as they would take a big chunk in fees.
Look at Moneysavingexpert and educate yourself about savings and finance.
An ISA is only worth it if you have enough savings interest to pay tax on or are a HR tax payer. Otherwise there are plenty of savings accounts around that beat ISAs. Put a mixture into fixed and easy access. Lots of companies recommended on MSE.

Tryingtokeepcalmandcarryon · 19/10/2023 11:49

What was your original plan to fund your retirement? Were you going to be able to live off just the income of your state pension, and remain in your current house?

Think it all depends on what you want to do and how much your bills will be in retirement- sell up, downsize, stay where you are etc. A previous poster has provided a brilliant summary of how much you could have saved in total incl interest by the time you retire if you put in savings accounts at low risk but is £1300 a month enough for you to live on? If so this might be the most sensible option :)

Or, if your employer has a decent pension scheme you could put a big chunk in monthly via salary sacrifice and see how much you could build in a pension pot in 7 years, plus you would have the 50k saved gaining interest.

FLOrenze · 19/10/2023 12:17

Do not give money to a financial advisor for such a small sum. Any fees or investment charges eat away at your capital.

if you have not already done so put £20,000 into a cash ISA. Nat West, YBS, Leeds, Skipton, Ford Money all have excellent rates.

Thee are several regular Saver Account for you to invest between 250 and £500 monthly. Skipton have loyalty one for 7.5%

I would open up 2. Instant access account for £4000 each. For emergencies, luxuries and next years ISA. Ford money and YBS both are offering good rates.

the rest of the capital I would divide between 1, 2 and 3 year fixed rate accounts so that you have money maturing every year.

Original poster

FlorenceBoot · 19/10/2023 12:37

Muddle2000 · 19/10/2023 11:11

Could you go back to work in some way Charities often take older people

😂

I work 30 hours a week (not for a charity).

OP posts:

BarbaraofSeville · 19/10/2023 12:58

What's your mortgage rate? I wouldn't be paying off the mortgage until you move onto current higher rates. Save in the meantime and pay off when you come to the end of your fix if you have one.

If you're working, pensions are good for the tax relief for any money you don't need in the next few years.

Otherwise some decent interest paying savings accounts and it would be worth listening to the meaningful money podcast and studying the financial flow chart that the last series was based on.

Muddle2000 · 19/10/2023 14:20

I would def open something with NS They were offering fantastic rates for 5 years but for existing customers The thing is you can safely invest larger amount as govt backed However you will paying tax on the interest after 1000quid so cash and stocks and shares ISA the best as tax free But careful with opening and closing them or transferring them Personally rather than falling about with these accounts
I would rather get an IFA to sort it

Original poster

FlorenceBoot · 19/10/2023 15:42

Thanks for replies.

What's your mortgage rate?

As I said in my OP, I paid it off. There was 10 years left on it. Its released £1k pm to invest/save.

OP posts:

TheFlis · 19/10/2023 15:47

I’ve just opened an NS&I account, they’re offering 6.3% if you leave it invested for a year.

Original poster

FlorenceBoot · 19/10/2023 15:47

What was your original plan to fund your retirement?

My husband. He's still plan A but I want to make this money work for us.

Thinking of opening a LISA for DD (19) who is at university. Any recommendations would be appreciated.

OP posts:

DidntHaveTheLatin · 19/10/2023 15:48

FLOrenze · 19/10/2023 12:17

Do not give money to a financial advisor for such a small sum. Any fees or investment charges eat away at your capital.

if you have not already done so put £20,000 into a cash ISA. Nat West, YBS, Leeds, Skipton, Ford Money all have excellent rates.

Thee are several regular Saver Account for you to invest between 250 and £500 monthly. Skipton have loyalty one for 7.5%

I would open up 2. Instant access account for £4000 each. For emergencies, luxuries and next years ISA. Ford money and YBS both are offering good rates.

the rest of the capital I would divide between 1, 2 and 3 year fixed rate accounts so that you have money maturing every year.

Really? Not even for an initial consultation? We have less than that to invest (albeit it's currently in a 5.6% account) but I thought it'd be worth whatever a consultation with a local IFA costs for some pension advice for my husband and general advice about what to do.

wildwestpioneer · 19/10/2023 16:02

Premium bonds then I'd buy a few acres of land and set it up to be a freedom field for dogs. There's a few round us and they are always fully booked. About £10 an hour, 7 days a week. We calculates that during the summer months you'd get about £120 a day and winter £90 a day. You'd need to spend about 10k on setting it up (fences etc) and a bit of maintenance each month, repairs, grass cutting etc, but it would still yield you a decent enough income to see you through retirement and even retire early.

Original poster

FlorenceBoot · 19/10/2023 16:03

TheFlis · 19/10/2023 15:47

I’ve just opened an NS&I account, they’re offering 6.3% if you leave it invested for a year.

I'm googling but can't find that one @TheFlis

OP posts:

Original poster

FlorenceBoot · 19/10/2023 16:04

TeenDivided · 19/10/2023 11:09

Check your NI contributions and make up any missing years.

Thanks for the reminder @TeenDivided

OP posts:

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