How to grow £10,000

[SwordToFlamethrower]

Hi there,

Had a bit of a wind fall recently and I am not very good with money, always lived hand to mouth my whole life.

What I'd love to do is go on the holiday of a lifetime, such as Italy or South America or India or something (nature lover!) but the sensible side of me is saying WOAH, you need to save it or invest it.

So what do you suggest for me? I have no big purchases to consider. I have no mortgage as I'm in a council house. I'll only ever have a state pension so nothing to pay into anyway.

Thank you!

A private pension doesn't come under UC scrutiny - you can put your whole £10k in and it will be fine.

You won't have access to it if you suddenly need it for next 10 years though (if I've read your age right).

My advice would be to open a SIPP using a platform like ajbell or vanguard.

Decide your risk appetite - higher risk can mean higher returns but also your money could tank too. In your circumstances, I'd go for a tracker that will, overall, gain, in the long term.

From there invest the lot and auto reinvest any returns. You won't get taxed on those as it's all pension.

At the money an average mid-risk sipp is gaining around 5% annually (according to a brief Google and not extensive research). Compounded over 10 years thats about £6.5k extra. Not guaranteed but very possible.

It's not huge but every little helps. That's the time to take a big trip or spruce up the decor, I think.

I think speaking to someone about this is essential. Your bank may offer free advice - I'd check that out.

Good luck, whatever you decide.

Can op open a sipp?

Blow the lot on this and worry about life in 100 days time 😂😂

https://www.pocruises.com/find-a-cruise/J601/J601?_gl=11vf5fbn_upMQ.._gs*MQ..&gclid=Cj0KCQiAr7C6BhDRARIsAOUKifg1xmufM1gY3VgkhmjwLCLnZASpxawZqmYqnioYGXIci1o9avepmCsaAuA-EALw_wcB