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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.

<reposting from Investments topic in the hope of more replies>

OP posts:
rumred · 19/10/2023 16:11

Look at a SIPP. Could supplement your state pension

Original poster
FlorenceBoot · 19/10/2023 16:16

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

Thanks @FLOrenze
Would you recommend this over a stocks & shares ISA?

OP posts:
NotPennysBoat · 19/10/2023 16:49

Mumsnet isn't the place to ask questions like this. If you're on Facebook, go to the Meaningful Money community and ask there.
Generally if you don't need the money for 10yrs +, a S&S ISA and/or SIPP would be a good option, and provide better returns over long term than any cash ISA or savings account. Don't buy land for car parking or dog fields for goodness sake!!

Original poster
FlorenceBoot · 19/10/2023 17:11

Don't buy land for car parking or dog fields for goodness sake!!

That did make me laugh!

OP posts:
TeenDivided · 19/10/2023 17:36

Things like stocks and shares ISAs are only sensible if you are planning on locking the money away for a few years AND you don't expect to want to access money urgently.
Although in the long run shares outperform building societies, they can go down as well as up and you don't want to be forced to sell in a dip.

MaggieFS · 19/10/2023 17:40

You need to clarify your position on pension, and - sorry to say - what if DH dies? Does his pension has decent spousal provision?

FLOrenze · 19/10/2023 19:34

Stocks and shares need to be kept for at least 5 years before they really start to earn. They are volatile and loaded with hidden charges. I would keep it as liquid as possible in case of illness, redundancy or just a desire for a change of life style.

Muddle2000 · 20/10/2023 08:21

With a Sipp and Stocks shares ISA you can tax help Someone here will know

Sinead4ever · 20/10/2023 08:26

I would think well worth putting some in a pension - especially if your employer matches contributions and you get the tax back and as someone said check your NI contributions

Muddle2000 · 20/10/2023 09:09

NSI and YBS and Nationwide all worth opening accounts with just 500 quid as they all seem to offer their best or new accounts to existing clients I think it is because are more focused on savings than the usual banking accounts

YeaGads · 20/10/2023 09:22

Just chuck the max amount in an ISA, I’m a little younger than you but not much. I used to faff about with investing but as people say it’s all about the long term and whilst not ancient it’s not a time to be risky. I remember a time when we lost 20k, we did recoup it but we were decades younger. Plus markets, it was a very different time. Then put the rest in a decent savings account, you can then chuck in your next 20k in to your ISA asap next financial as it’s only six months away. You are allowed to give children 3k per annum tax free so get a LISA for your DD. You are also allowed to use the previous years allowance if you didn’t give them any money so you can give her up to 6k without tax implications.

FLOrenze · 20/10/2023 16:32

You can give any amount to your children. Only if you die in a certain time will inheritance tax be necessary.I gave each of my children £80000 when their grandmother died.

isthewashingdryyet · 20/10/2023 16:36

20k in a cash ISA, and the rest in Premium Bonds . You don’t pay interest tax on either, so very tax efficient , and you get the fun of spending the Big Prize once a month….. til reality hits

FLOrenze · 20/10/2023 17:14

£20000 at 5% in a cash isa gives you £1000 per year. You would have to win £83 per month to do as well. For me , putting the ISA allowance in premium bonds is like spending £80 per month at the bookies or the bingo.

isthewashingdryyet · 20/10/2023 20:14

You can only add 20k to an IsA in any one financial year.

OP asked what each of us would do. I’d put 20 k in an IsA and then the other 30 k in PB’s as the return rate is really good at present, and I then would add another 20 k to a new cash ISA in April next year.

my current PB’s are giving about £100 a month on £30 k, so that is a great return.

And I don’t have to give any of my winnings to the tax man. Win win.

Twiglets1 · 21/10/2023 08:35

I would help my child/children set up a LISA (Lifetime ISA) to start saving for a deposit on a property.

For every 4K they put into the scheme the government tops it up by another 1k.

The rest I would put in a high interest savings account.

Wildhorses2244 · 21/10/2023 08:44

Thinking just about the additional £1k per month.

Are you and DH both in a work pension scheme and if so are you making the maximum possible payments?

If not, it will be worth increasing this to the maximum- work pensions are good tax wise and because your employer contributes too.

Muddle2000 · 25/10/2023 10:10

You can gift 3K pa to anyone I think

MikeRafone · 25/10/2023 10:30

You can gift 3K pa to anyone I think

you can gift any amount to anyone, there is not a limit on gifting money. There is though tax to be paid on some gifts of money depending on various other factors.

Muddle2000 · 26/10/2023 07:52

Yes 3K pa tax free

Muddle2000 · 26/10/2023 08:12

I think it is a bit tricky as apart from ISAs you can only earn £1000 pa interest tax free That is not much with such high interest rates And whilst int rates are high currently in reality all
you usually get is somewhere between 1 and 3% with cash ISA being the worst in some cases
So there is still the dilemma long term paltry int rates but safe or take some risks and get 6 or 7 % via investments (that's the average) This is the problem for everyone Mr Hunt?

HappyHolidai · 26/10/2023 08:19

  1. check state pension forecast and make up any gaps

  2. look at pensions. You get tax relief on pension contributions, some of what you take out is tax-free and because you're over 55 you can take the money any time so not locked up. Lots of wisdom on this topic on the MoneySavingExpert pensions forum.

  3. consider joint financial plans with husband: what of one of you does, future plans, support for children... what do you want to do/achieve? Think how the money you have collectively can help you towards your goals.

hookiewookie29 · 26/10/2023 09:34

Zzizzisnotzeproblem · 19/10/2023 10:52

Buy some parking spaces and rent them out?

My husband has said he would always do this if he could!

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