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lump sum - what options

1964meb

1964meb

pfm Member
Hi Folks

I have a lump sum of above £50k to 'invest / save'. I am 59. I will be working part time. I am Healthy.

What should I do with it? - ideas please (not hi-fi / sports car / holiday related please!)

Thanks in advance

M
 
1964meb said:
Hi Folks

I have a lump sum of above £50k to 'invest / save'. I am 59. I will be working part time. I am Healthy.

What should I do with it? - ideas please (not hi-fi / sports car / holiday related please!)

Thanks in advance

M
Click to expand...


send it to me.......
 
Depends when you next need to see it again and your appetite for risk. Easy option is stick it in cash ISA’s (use partners allowance too?) / fixed term deposit at circa 6%.

If I had a spare 50K I’d buy technology shares and forget about them for 10 years but that’s possibly not the right answer for you or many others.
 
Spend a good few hundred on a recommended local IFA to give you info.
Your situation, mortgage, expenditure, kids, university fees, your existing pension arrangements etc etc etc and your expectations from what you want out of life all have too much of a bearing to give an answer here.
 
If you have a mortgage it might be worth paying off.

£20k in an ISA. There are many savings accounts that offer good returns too but you need to be careful if you do not want the returns to be taxable.

If you do that, there will be little left of £50k or "above" unless the "above" is another £50k.

Also, given your age, what is your State Pension forecast? If you are deficient, or might be, in entitlement you can buy extra years to max it out. Does not need to be done immediately but something to keep tabs on.
 
Thanks so far folks (Esp Seeker_uk)

I have no recent (in the last 25 years) missing years for state pension (currently available to me in 8 years (when I'm 67)). No kids, a mortgage that is disappearing slowly. We use our ISA to save 10% (max allowed with our mortgage) of our mortgage to pay off each year.

Thanks Cav - knowing about the taxable from a savings account is good to know

Are BONDs a good idea ????

M
 
If you have a SIPP you could put approximately say £30k into it (if you currently earn enough) and get an immediate 20-40% boost through tax relief . An extra 20% will immediately be added boosting it to £37,500 and the further 20% (to make 40%) will need to be claimed. As you're over 55 you can start accessing this whenever you like, although drip feeding the money out is advisable to minimise tax ( the first 25% is free) but the money should continue to grow whilst invested, Vanguard Pensions are your friend.

Also Cash ISAs paying 5% for a 12 or 24 month period are a good shout too as has been mentioned.
 
With that kind of sum, the most sensible thing is to spend 2-3% of it on getting proper device from an independent qualified financial adviser. It could repay that small percentage many times over.
 
1964meb said:
Thanks so far folks (Esp Seeker_uk)

I have no recent (in the last 25 years) missing years for state pension (currently available to me in 8 years (when I'm 67)). No kids, a mortgage that is disappearing slowly. We use our ISA to save 10% (max allowed with our mortgage) of our mortgage to pay off each year.

Thanks Cav - knowing about the taxable from a savings account is good to know

Are BONDs a good idea ????

M
Click to expand...
They are taxable.
You are allowed to earn a total of £1000 interest a year tax free. Any interest over that will incur income tax.
50K at 6% will earn £3000, of which £2000 will be taxable.
 
My boring approach? Pay off any debts in descending order of interest, split the rest between pension contributions and spreading across different things, such as ISA and instant access savings (assuming you want to keep the usual six months of salary on hand for emergencies?). Don't invest in anything wacky or risky :).
 
I recently invested about 16K in four barrels of single malt whiskey of varying ages and size, recent returns have been in the order of 8% per annum and the nice thing is it is considered to be a wasting asset due to the small amount of evaporation from the barrel known as 'the angels share' so any profit when you sell the barrel on is not subject to capital gains tax.
 
Bob McC said:
They are taxable.
You are allowed to earn a total of £1000 interest a year tax free. Any interest over that will incur income tax.
50K at 6% will earn £3000, of which £2000 will be taxable.
Click to expand...

Not taxable if in an ISA. Each person can put 20k into an ISA each tax year
 
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