money to saving

madmags69 · 19 January 2018 at 12:21AM

Good ~Evening everyone

I have just been sent, a letter from severn trent, which is asking my to make up my mind whether I want good interest to take a lump sum or a smaller lump sum and a monthly payment or just a monthly payment. The amount I have to having is 17 thousand pounds. and I am 62 and not working because of arthritis in my spine. So taking the monthly payment worries my that I might not live long enough to get the right amount. So I am thinking of saving a lump sum. I would like your help in were
to invest it, with good interest.

Thank you for reading this and a your help with this matter.

Maggie T

Eco_Miser · 19 January 2018 at 4:49AM

Is this a pension from your former employer? Sometimes the monthly payment is much more than you could hope to get by investing the lump sum, other times it isn't.

For savings, see http://www.moneysavingexpert.com/savings/savings-accounts-best-interest . Keep some in a high paying current account for use in the short term, and lock some up in fixed rate accounts.

Or would you consider investing some to get a better return, at the risk you could lose some?

IanSt · 19 January 2018 at 11:22AM

madmags69 wrote: »

So I am thinking of saving a lump sum. I would like your help in were to invest it, with good interest.

If you have definitely decided that taking the lump sum is the best choice for you then you next have to decide whether you wish to invest the money, put the money into savings, or some combination of both.

If you're happy to continuously keep checking on where the best savings rates are and what you need to do, then by judicially opening various accounts and regular savers then the interest rates you'll currently get might just about keep up if inflation is a bit lower than the current inflation rate of 3%.

But if you're not happy to do that then you could end up in a savings account where you're definitely losing a small percentage of your money every year because your money is not keeping up with inflation.

Because of the inflation issues above many people invest their money. However investing has its own set of risks and should only be contemplated by someone who does not need access to their money for at least 5 years and preferably 10 as your investments are always at risk of falls if the market you're investing in declines.

So how would you react if you saw your investments fall? If you thought you'd immediately sell everything before you lost everything, then investing really is not for you.

Zanderman · 19 January 2018 at 12:03PM

madmags69 wrote: »

I have just been sent, a letter from severn trent, which is asking my to make up my mind whether I want good interest to take a lump sum or a smaller lump sum and a monthly payment or just a monthly payment. The amount I have to having is 17 thousand pounds. and I am 62 and not working because of arthritis in my spine. So taking the monthly payment worries my that I might not live long enough to get the right amount. So I am thinking of saving a lump sum. I would like your help in were
to invest it, with good interest.
Maggie T

It might be worth asking this question over on the Pensions, Annuities & Retirement Planning (see link below) section of the forum, as you might get some opinions on best way forward re lump sum v annuity there:

http://forums.moneysavingexpert.com/forumdisplay.php?f=19

money to saving

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