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  • FIRST POST
    • redmalc
    • By redmalc 14th Oct 16, 6:28 AM
    • 1,165Posts
    • 440Thanks
    redmalc
    No idea what to do
    • #1
    • 14th Oct 16, 6:28 AM
    No idea what to do 14th Oct 16 at 6:28 AM
    I never thought I would have this problem,no mortgage,no debts,still working earning a nice salary aged 61.
    Two pension pots with 280k and putting in £1400 a month.
    S&S ISA,s with 200k
    Cash Isas 145K
    House value 380k
    Various shares and NS&I savings 50K
    I have an IFA and recently took profit, sitting with 100k in cash in the ISA,s
    The issue is the 145K cash ISA,s mature in November and I just don't know what to do with it,I also don't think the IFA does.
    Rental Property?
    Any help guys
Page 1
    • joujou
    • By joujou 14th Oct 16, 7:32 AM
    • 124 Posts
    • 78 Thanks
    joujou
    • #2
    • 14th Oct 16, 7:32 AM
    • #2
    • 14th Oct 16, 7:32 AM
    Retire? Do you want to continue working?
    • bowlhead99
    • By bowlhead99 14th Oct 16, 7:42 AM
    • 5,101 Posts
    • 9,006 Thanks
    bowlhead99
    • #3
    • 14th Oct 16, 7:42 AM
    • #3
    • 14th Oct 16, 7:42 AM
    It seems a bit extreme to say you have been investing in a portfolio of S&S ISAs and decided to sell out of them for cash because you weren't sure what fund to invest in next, so what you are now going to do at age 61 is suddenly start a property rental business.

    Have you ever been a landlord? do you have an edge on the other casual landlords in the sector by being able to do all your own maintenance and renovations and letting agent work, even though you already have a full-time job, together with enough capital to invest in a large number of diversified properties to avoid having all the eggs of your new business in one basket? Would you not mind the fact that a rental property incurs tax on the income (without full deduction of your expenses if you are a high rate taxpayer), capital gains tax on sale, the new extra stamp duty on second properties and all the other anti-landlord measures introduced in recent years - whereas investments via your ISA are free of CGT and free of tax on dividend income, interest income and property income fund distributions?

    You mention putting £1400 a month into pension. That's a little under £17k a year - so presuming you earn more than that there is scope to move some of your redundant cash from ISA to pension, without breaching your annual £40k allowance (and if your salary is higher than £40k you may be able to carry forward previous years' unused allowance).

    If your IFA doesn't know what to do with your £100k S&S ISA cash and your pending £145k cash ISA cash, which together is almost a quarter of a million quid and well over half your total shares/funds/NS&I/cash portfolio... perhaps it is because you haven't articulated your goals very well. You certainly haven't told us what you want, other than you have assets and don't know what do to with them.

    It is perfectly valid to have some cash, even at low rates- you don't need to spend it all. As presumably you would want to be able to buy more shares and funds if everything crashed tomorrow. But if you haven't been able to explain your goals to us or to your IFA, you probably need to define what it is that you want out of life, before you ask how you should spend or invest your money to get there.

    It might be that you have achieved all you want to achieve - the house you want, no debt or mortgage, sufficient pension to get you through retirement at your forecast level of spending, secure job to see you out til state pension age, nest egg for the kids etc. You say you never expected to be in this position, so maybe it was your end goal and it has been reached, so you need new goals.

    The best investment you can make might be to improve your quality of life by working fewer hours or, depending on health, going on a world cruise or a hike up Kilimanjaro. These would cost cash but probably improve your life more than starting a landlord business, IMHO.
    • $nake eye$
    • By $nake eye$ 14th Oct 16, 7:47 AM
    • 349 Posts
    • 144 Thanks
    $nake eye$
    • #4
    • 14th Oct 16, 7:47 AM
    • #4
    • 14th Oct 16, 7:47 AM
    Seems like a pretty good problem to have! Congrats!
    • Bravepants
    • By Bravepants 14th Oct 16, 9:06 AM
    • 68 Posts
    • 51 Thanks
    Bravepants
    • #5
    • 14th Oct 16, 9:06 AM
    • #5
    • 14th Oct 16, 9:06 AM
    Yes, nice problem! It depends what sort of life you want!




    I certainly have no intention of working beyond 60. If you want to continue working and stressing about the property you own then go ahead. But if I was in your position I would seek to gain as much income from my stash as possible and go and explore what else life has to offer. You seem to have spent your whole life working and now it's time to do something for yourself maybe?


    Here are some ideas of my own:

    1. Learn to sail and eventually buy a small boat.


    2. Buy a motorhome and go travelling (even just for a year) you would see new things and find out how other people live - you might discover a new calling! :-)


    3. Self-improvement - learn to program a computer, learn a musical instrument


    4. Take a (another?) degree


    5. Write a novel


    6. Learn to paint


    Man, if I had loads of cash and the chance for some free time, I would NOT be working anymore or even consider becoming a land-lord. It's just not worth the stress these days.


    I hope you find what you are looking for.


    Kind regards,
    Paul
    Last edited by Bravepants; 14-10-2016 at 9:11 AM.
    • AJ1980
    • By AJ1980 14th Oct 16, 9:14 AM
    • 6 Posts
    • 2 Thanks
    AJ1980
    • #6
    • 14th Oct 16, 9:14 AM
    • #6
    • 14th Oct 16, 9:14 AM
    Same as above... Great situation! My take would be that things can change quickly at that age...
    Along the lines of working more... is this a passion of yours? Think how you would feel aged 65 if your health / physical abilities were negatively affected, would there be anything you'd wished you'd done / seen outside of work in the event that you couldnt easily do it anymore?
    • Motormad
    • By Motormad 14th Oct 16, 10:58 AM
    • 54 Posts
    • 16 Thanks
    Motormad
    • #7
    • 14th Oct 16, 10:58 AM
    • #7
    • 14th Oct 16, 10:58 AM
    OP,have you ever heard of inheritance tax,if not you need to consider it soon.
    • redmalc
    • By redmalc 14th Oct 16, 11:05 AM
    • 1,165 Posts
    • 440 Thanks
    redmalc
    • #8
    • 14th Oct 16, 11:05 AM
    • #8
    • 14th Oct 16, 11:05 AM
    Guys
    I like your comments and the majority are correct.the whole scenario is something that as crept up on me and now i am panicking,i think thats the correct terminology.
    Bowelhead you are correct,i do not know what i want to do at this moment in time.
    I will definitely retire in the next three years,also your thought on the markets dipping and then one last investment may be my goal.
    I admit its a nice position to be in,i think inflation will kick of big time shortly and the whole plan may change with rising interest rates,who knows,well Carney has not got a clue
    • ArmyDilllo
    • By ArmyDilllo 14th Oct 16, 11:06 AM
    • 76 Posts
    • 168 Thanks
    ArmyDilllo
    • #9
    • 14th Oct 16, 11:06 AM
    • #9
    • 14th Oct 16, 11:06 AM
    I would keep the funds in your cash ISAs in their wrappers but transfer them (to keep the tax-free status), if you're unable to leave them where they are.
    Personally I only have a year's emergency fund in cash.
    Everything else I have in ISAs is in S&S ISA's.
    I have found these to be much more profitable.
    However the market's high so this could be a bad time to invest in it (who knows?).
    Rental property is piquing my interest at the moment
    It's that same old thing of 'bricks and mortar'.

    { 8-]
    Last edited by ArmyDilllo; 14-10-2016 at 11:18 AM.
    Save 20k in 2016 #143: achieved £23,762.38 of £20,000 target
    Retired 17:30, Friday 30Sep16 (aged 56).
    • ArmyDilllo
    • By ArmyDilllo 14th Oct 16, 11:16 AM
    • 76 Posts
    • 168 Thanks
    ArmyDilllo
    I will definitely retire in the next three years,also your thought on the markets dipping and then one last investment may be my goal.
    Originally posted by redmalc
    In which case, remember that that nice Mr Hammond will give you 25% instantly on your legitimite pension contributions, so I would venture that now would be the best time to max those out for your remaining years of work.

    I recently retired (end of September).
    I'm planning a move South and West in five to ten years.
    I want to spend more time learning (French, maybe another language), photography.
    I would also like a boat to use on The Thames and around the Med'.
    I'm comfortable on boats but never owned my own so I plan to take a Skipper's Licence before I'm ready to do it.
    You will find that your time is filled up almost by default when you do it.
    You can put time into all those jobs around the house you cut corners on before.
    You will have more time for family and friends, travel, etc.
    Everyone I know, that has retired, says they never realised they'd be so busy.

    When I announced my intention to retire early, all my friends said the same thing every time, "You'll be bored. What on earth will you do with your time?"
    I could never figure out why they hadn't thought about their own retirement.
    So kudos to you for starting to plan for it.

    { 8-]
    Save 20k in 2016 #143: achieved £23,762.38 of £20,000 target
    Retired 17:30, Friday 30Sep16 (aged 56).
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