WWYD: 53 years old, £400,000, no commitments.

[Flobbyblob]

Imagine please you are 53 years old, single, grown up kids, no husband, no house... but £400,000 in the bank.

WWYD?
What kind of life would you make for yourself?
Where would you start?

This is along the lines of the master plan.

although I have thought about every single scenario mentioned in this thread. And some!

Some great ideas.

I know it’s not much money, if I had £1 mill I’d feel more secure and be more adventurous.

it is enough to invest in SIPPS and live in Asia forever.

But not enough to buy a semi detached where I live now.

i have thought about working socks off for seven years. ‘Seven years of sacrifice’ to generate as much capital as I can.

is that a waste of life though, or is your 50s a good time to dedicate to wealth building?

im currently working in a job I kind and get 70k. I could work from anywhere like Devon.

I think I have it made but I need to be careful I do not follow the wrong path,

Does it have to be a sacrifice? How hard do you have to work at your job? Can you do three days?

im planning on working for longer but I have also taken a massive step down in pay and job status and very happy with it

if you think you’ll work for another ten years I’d also think about borrowing a decent amount based on current quite high earnings then downsizing or renting out an dlicof somewhere smaller lafer

now I know your earnjngs i wouldn’t buy a flat for cash - I’d borrow lots and buy a decent place which I could then later sell

(If you’ve got a ten year ish time frame you’ll get more capital growth on a bigger place)

I would buy a house, max value about £250k. Small=good for ongoing bills etc, never have to move. And leaves £150k cash. Then I would get the professional job in a part time capacity as flexibly as possible. Don't know what people do with £150k cash, but put it somewhere safe where it can earn a bit. Maybe 10k in premium bonds to give you a chance of your million!

I'd probably buy a house/base in a beautiful, but rubbish school area, where you will get the best value home for your money.

At your age I'd want to work part time and would be happy with half of a senior professional salary. I'd make sure I had Friday and Monday off so I could go travelling to see the world.

I'd build a life that you don't want to escape from!

What do you mean? If I stay working for ten years then borrow as much to invest big in property and then downsize after? I have thought about this. I could stretch myself and put all into a five bed house and work and live in it for ten years then sell and live off equity. In which case I will have probably accumulated about £650000. So I’ll be 63 with £650000 and not £53 with £400000. Is that a good use of time?

Sorry my post was to Hmmmmaybe

Not sure what you mean?

if you do that you (probably) will have more money at 63 but you will have worked for ten more years.

i worry about standard of living in retirement though for me personally I’m happy to work now when I do t really want to so o be edit then.

but there was a very clear limit to that work and that’s why I’m not in a ugh paying job now. I have friends who will retire will many millions but I couldn’t do what they’re doing now

How much do you like the work you do for £70k?

its a real dilemma

i was having a chat with a friend the other day about what I should do - I could buy a house mortgage free for £500k which would be very pleasant where I am and have £200k. But then what. It won’t last me until I can get my pension. And my pension won’t get me the lifestyle I want - which isn’t even that luxurious a lifestyle

I'd buy a smaller retirement property and either live in it or rent it out. Then invest the rest either across a pension, savings and investments.

And of course have a little treat.

Oh and don’t forget residential property tax free so it’s good investment from a tax point of view

you could also get a buy to let

i have buy to let’s. I find them annoying. But the returns on investment are very strong f

I’d buy a two bedroom apartment in an area where there is lots to do and join things and make friends. I’d spend up to 270k.
Carry on working until I was 60 if I was on 70k and look into the option of either buying extra annual leave or dropping a day.
I am not sure about what to do with any money left over, probably use to bridge the gap between leaving work and state pension starting.

I would buy a modest house and save hard for the next 10 years. Then you can look at part time work.

I would work full time till I’m 60.
£300,000 for a place in the UK, £100,000 a place in Italy, or Greece.

The uK place I would take a mortgage for, about £150,000 on top of the £300,000 ‘deposit’. I would continue to work full time, pay the mortgage off in 10 years. Or £100,000 for 7 years?
Aged 60 I would go down to two day a week, with the view of stopping work completely by 65. That would still give you a decent-ish income (approx 1700/month?).

65 I would downsize, stop working and live abroad, leaving a small maisonette as an Uk base. I’d live on the equity till the pension kicks in at 67.

*i have thought about working socks off for seven years. ‘Seven years of sacrifice’ to generate as much capital as I can.

is that a waste of life though, or is your 50s a good time to dedicate to wealth building*

I am kind of you OP similar age a little bit higher salary and assets. Sold the family home after divorcing a few years ago. I rented for a year whilst I found somewhere to buy. I bought a house I can live in for 5 to 10 years, it’s a new house with small bills but is a good size and really handy for elderly rellies and my work.

The rest is in ISAs and high interest accounts. I am planning to work till I’m 60 FT and I have maxed out my pension this year and last year. I have a few minor health issues which hopefully won’t get any worse.

I like the idea of a year out, but I can’t do that because I’m already in a job that pays well and I would not be able to come back to it. I really enjoy my job but it is full on, and I couldn’t do it PT.

You have it sussed Budda.

it’s quite a conundrum there are so many ways!

im divorced recently and it may be temporary but I am happy with solitude and hard work at the moment.

I worry about getting too isolated though.

I love my job. I wfh and it’s creative and great. I’m very lucky.

I don’t really have a social life and I’m not too worried about it right now.

i never want to date again ever.

it’s not much money and I’d be wise to build on it.

is there still a lot of life to live if you are a healthy 63 year old? I hope so. I might just be happy saving the dollars until then.

Oh are you worried that if you don’t spend it now you’ll miss the best years??

cripes no. Average lifespan uk for a woman is 84 or 85 and many of those years will be good quality. And you want to have money for good care when your health declines

youre still young

Have you worked out what income you want in retirement?

ie not dream life but realistic to achieve the life you want

What kind of place would you like to live in OP? I.e. seaside,countryside, city, liberal, conservative, diverse, well connected, climate etc?

You really are in a good position being able to earn 70k wfh. It means the world is at your feet.

You might not be able to afford central london or front line LA, but you certainly can get a wonderful home someplace and have the money to travel to these places.

@Flobbyblob what you want to watch out for is burying yourself in work, because there’s nothing else demanding your time/input. Ask me how I know this 😂😂😂. That’s why buying now a little project place abroad would break the work, eat, sleep, repeat merry go round. You’d spend your annual leave doing up that place, making friends etc

Cash is losing value against inflation.
Homes hold value well against inflation.
I don't understand why you wouldn't buy a flat to live in if that's what £400k gets (in Devon, really?, that's all £400k gets you, with a £70k salary?)