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  • FIRST POST
    • capital0ne
    • By capital0ne 7th Jan 18, 3:50 PM
    • 267Posts
    • 133Thanks
    capital0ne
    What would you do with £10k, £20k, £50k, £100k, £500k
    • #1
    • 7th Jan 18, 3:50 PM
    What would you do with £10k, £20k, £50k, £100k, £500k 7th Jan 18 at 3:50 PM
    Question I asked my colleagues at work.

    What would you do with £10k, £20k, £50k, £100k, £500k
    Answers I got were:
    £10k - holiday or new car
    £20k - holiday, new car and maybe do something to their home
    £50k - big family holiday. new cars, help kids
    None could make anything different wuth very large sums of money, but one striking theme was no one mentioned investing or contributing into their pension?
    They dis say saving was waste of time because of low interest rates, but no one seemed to understand the affect of 3% inflation.
    Quite an eye opener, but to be honest to me it wasn't really unexpected.
Page 4
    • greendoor665
    • By greendoor665 12th Jan 18, 2:06 PM
    • 51 Posts
    • 113 Thanks
    greendoor665
    10k, 20k or 50k - most of the money would go into investments, towards a future property purchase. A mix of ISA and unwrapped investments which I'd plan to bed & ISA later on. I might bring forward a few planned future purchases such as new computer, laser eye surgery, a nice tailored suit etc but wouldn't be spending it all. So in the short term it wouldn't really change my life at all but it would help me buy a property when the time comes.

    I plan to move to another area of the country eventually but am staying where I am for work reasons at the moment (good salary & benefits, good training package). Therefore I wouldn't buy a property immediately even though 50k might make that feasible together with my existing savings.

    100k - I'd still invest most of the money but I'd probably treat myself on a couple more things at this point. A newer (but not new) car for example. I'd be in a good position to be able to buy a decent property as soon as I make my planned move.

    500k - At this level, the reasons I am staying in this area become a bit pointless as most of them can be overcome with money, or the time that money brings. I'd probably quit my job and move where I want to right now. I'd be able to buy a property outright and have money left over.

    I would get another job, maybe part-time, and complete my qualification, (as there is a 3 year minimum experience requirement to become qualified and I only have 2 years), but once that is done I would like to do some travelling, and some kind of volunteering or giving back in some way. Maybe I would do this before completing my qualification actually but the temptation might be not to go back...
    • adonis10
    • By adonis10 12th Jan 18, 2:49 PM
    • 1,499 Posts
    • 197 Thanks
    adonis10
    10k - all into my S&S ISA for 2017/18 tax year

    20k - 12k into S&S ISA, 7k into higher interest savings and 1k fun money.

    50k - 12k ISA, 25k AVC into workplace pension, 3k fun money, 4k LISA, 6k savings/premium bonds.

    100k - new car (10k max), extra holiday this year (2k), 10k off student loan, 3k fun money, 30k AVC into pension, 4k LISA, 12k S&S ISA, £9k mortgage overpayment, £20k other investments. Or I would scrap the 30k avc and 20k investments if 50k would help my parents move to where they want to go.

    500k - 100k ish to parents to enable them to move to their final house, £85k investments/paying debt as with 100k, £15k car, holiday and fun money, set 120k aside to use as AVC's up to annual allowance for next 4 years, 20k house improvements, 160k investments.
    Last edited by adonis10; 12-01-2018 at 2:54 PM.
    • figrat
    • By figrat 14th Jan 18, 12:39 PM
    • 7 Posts
    • 4 Thanks
    figrat
    10-50k invest, after upgrading car and wardrobe. 100k+...trust fund for niece and nephew, possibly buy another property.
    • fangoose
    • By fangoose 14th Jan 18, 12:39 PM
    • 18 Posts
    • 10 Thanks
    fangoose
    Put it somwhere safe with reasonable interest rates (!) To ensure my mother's care home fees could be topped up while she needs it to - then if any left I guess by then it would go towards my own fees
    • Marky123
    • By Marky123 14th Jan 18, 1:49 PM
    • 154 Posts
    • 161 Thanks
    Marky123
    May I ask, those saying they would invest 100k. How would you invest it. Even 3 year Fixed Rate Savings arenít that great. Cheers.
    Mark
    • chockydavid1983
    • By chockydavid1983 14th Jan 18, 2:37 PM
    • 529 Posts
    • 316 Thanks
    chockydavid1983
    When people talk about investing, they're generally talking about stocks, bonds, property etc rather than savings accounts.
    • dawyldthing
    • By dawyldthing 14th Jan 18, 2:41 PM
    • 2,731 Posts
    • 2,542 Thanks
    dawyldthing
    £10k - top premium bonds up

    £20k - top premium bonds up

    £50k - top premium bonds up, with a bit for a holiday

    £100k - top premium bonds up and set the rest aside for retiring early (would do same with £500k but would mean I could retire several years earlier still)
    My targets to end 2018:
    1) To get down to 11 stone then treat to a safari. At start 17 stone 7 lbs *55lbs lost* *36lbs to go*
    Started SW16st13lbs tues11/7/17 - 28 weeks in -47lbs
    -> target 12 stone 6lbs by 11/7/18 -> 16lbs to go
    2) to find new challenges
    • capital0ne
    • By capital0ne 14th Jan 18, 4:00 PM
    • 267 Posts
    • 133 Thanks
    capital0ne
    WhooooHooo! MSE Just tweeted my thread!
    • Martinslovechild
    • By Martinslovechild 14th Jan 18, 4:11 PM
    • 1,524 Posts
    • 1,578 Thanks
    Martinslovechild
    10k - Top up my 2017/18 ISA.

    20k - Park the cash until April, then fully subscribe to my 2018/19 ISA.

    50k - Invest the cash in a non-ISA investment account. Move the investments into my ISA over forthcoming tax years to shelter them from potential CGT.

    100k - Invest the cash in a non-ISA investment account. Move the investments into my ISA over forthcoming tax years to shelter them from potential CGT.

    500k - Invest the cash in a non-ISA investment account. Keep £15K back for a nice holiday and a new CD player.
    Last edited by Martinslovechild; 14-01-2018 at 4:14 PM.
    Mortgage Feb 2001 - £129,000
    Mortgage July 2007 - £0
    Original Mortgage Termination Date - Nov 2018
    Mortgage Interest saved - £63790.60
    ISA Profit since Jan 1st 2015 - 58.49% (updated 10 Jan 2018)
    Save £12K in 2018 - £0/£20K (updated 10 Jan 2018)
    • dawyldthing
    • By dawyldthing 14th Jan 18, 4:33 PM
    • 2,731 Posts
    • 2,542 Thanks
    dawyldthing
    WhooooHooo! MSE Just tweeted my thread!
    Originally posted by capital0ne
    It's on their Facebook page too
    My targets to end 2018:
    1) To get down to 11 stone then treat to a safari. At start 17 stone 7 lbs *55lbs lost* *36lbs to go*
    Started SW16st13lbs tues11/7/17 - 28 weeks in -47lbs
    -> target 12 stone 6lbs by 11/7/18 -> 16lbs to go
    2) to find new challenges
    • CommitedToChange
    • By CommitedToChange 14th Jan 18, 4:42 PM
    • 1,222 Posts
    • 3,853 Thanks
    CommitedToChange
    10k - 2k on really nice holiday and a city break, 8k into savings

    20k - 2k on really nice holiday and a city break, 4k on newish car 14k into LISA & ISA savings

    50k - 2k on really nice holiday and a city break, 4k on newish car, 34k into savings, LISA, ISA and pension

    100k - 2k on holiday, 4k on newish car, pay off mortgage - rest into savings

    500k- holiday for family (parents and brothers + wives + kids) then car, motgage and savings.
    Attempting to buy a house
  • jamesd
    First for me would be investing in not having an income tax bill any more, a particularly interesting thought for those not close to the pension access age of 55. How? By buying venture capital trusts. VCTs are a form of collective investment that comes with 30% initial tax relief, capped at the tax due in the year of purchase, which has to be repaid if you sell within five years. So you can invest, hold for five years then start to recycle the same money. When you have enough accumulated to cover your tax bills you can go tax free. There are many to choose from, with varying risk levels, from outrageously speculative to roughly comparable with the main UK stock market. Most gains tend to come via tax exempt dividends (no dividend allowance used) and they are exempt from capital gains tax. Pensions are great but if you're 25 today you can recycle at least five times to get 150% tax relief, not just 20% or 40%. Plus the tax exempt dividends and capital gains.

    I see no point in paying off a mortgage when even a lowish risk P2P lending mixture can pay 7% and 10% or more is available, both after allowing for bad debt and with many P2P options now available in an ISA. I have about ten times my interest only mortgage in investments and could pay it off easily if I wanted, but it would make me worse off financially, so I don't.

    £100,000 is enough to live without means tested benefits in much of the UK at the moment: either £7,000 a year with the mixture from earlier or £10,000 with more ups and downs. This probably won't be true for more than a few years but it works today.

    With £500,000 people in most of the country could afford to retire. The UK initial safe withdrawal rate for a 40 year retirement is 5.5%, usually increasing wth inflation, if the Guyton-Klinger drawdown rules are used. A safe withdrawal rate is one that wouldn't have failed to pay the specified income for the specified number of years if retirement had started even in the worst starting year in the last century or so, which was 1936. With £500,000 that's £27,500 a year and after a while all of it will become tax free as you use your ISA allowance as well as the personal savings allowance and starting rate for savings and investment interest. State pension on top, eventually, and knowing that can let you take more or retire earlier.

    Personal pensions are an excellent deal if close to age 55. At basic rate pay in, have 25% added to give basic rate relief then at or after 55 you can take out 25% as a tax free lump sum (for other investments... ) and leave the rest for actual retirement. £100,000 in, £125,000 with tax relief, take out £31,250 tax free for reinvesting inside ISAs and leave the remaining £93,750 for later.
    • fatrab
    • By fatrab 15th Jan 18, 12:41 PM
    • 163 Posts
    • 305 Thanks
    fatrab
    If I had those sums of money VS if I had those sums of money to blow:


    £10k - Pay off credit card & loan, keep £2000 spare VS by my wife a new car
    £20k - Pay off my car Hire Purchase VS build a 2 car garage in the back garden
    £50k - Pay off all non-mortgage debt & put balance to mortgage VS buy a small holiday home with rental income opportunity
    £100k - Pay off mortgage and semi-retire VS invest in property
    £500k - Walk out of work immediately, go home, put feet up, have a cuppa and decide where I'm flying off to first.....
    LBM Dec 2017 - Wannabe debt free by Dec 2022 - Wannalose 3st in the process - 10lbs lost so far
    10 x £2 coins (#32) - 9/12 NSD in January
    • chockydavid1983
    • By chockydavid1983 15th Jan 18, 12:58 PM
    • 529 Posts
    • 316 Thanks
    chockydavid1983
    500k - Invest the cash in a non-ISA investment account. Keep £15K back for a nice holiday and a new CD player.
    Originally posted by Martinslovechild
    Surely you wouldn't need £500k before you'd consider a new CD player? ;-)
    • talexuser
    • By talexuser 15th Jan 18, 3:20 PM
    • 2,345 Posts
    • 1,818 Thanks
    talexuser
    Surely you wouldn't need £500k before you'd consider a new CD player? ;-)
    Originally posted by chockydavid1983
    https://www.burmester.de/en/home-audio/reference-line/069-cd-player.html

    starting at £36000
    • justme111
    • By justme111 15th Jan 18, 3:49 PM
    • 2,906 Posts
    • 2,804 Thanks
    justme111
    If I had those sums of money VS if I had those sums of money to blow:


    £10k - Pay off credit card & loan, keep £2000 spare VS by my wife a new car
    £20k - Pay off my car Hire Purchase VS build a 2 car garage in the back garden
    £50k - Pay off all non-mortgage debt & put balance to mortgage VS buy a small holiday home with rental income opportunity
    £100k - Pay off mortgage and semi-retire VS invest in property
    £500k - Walk out of work immediately, go home, put feet up, have a cuppa and decide where I'm flying off to first.....
    Originally posted by fatrab
    the very point is that it is for you to decide whether you had that money "to blow".
    • jimjames
    • By jimjames 15th Jan 18, 5:36 PM
    • 12,347 Posts
    • 10,928 Thanks
    jimjames
    May I ask, those saying they would invest 100k. How would you invest it. Even 3 year Fixed Rate Savings arenít that great. Cheers.
    Originally posted by Marky123
    Investing isn't using savings accounts, it would be putting the money into share based stock market funds or directly into shares that should rise above inflation over the long term but can fluctuate in value over the short term.

    You can read more here www.monevator.com
    Remember the saying: if it looks too good to be true it almost certainly is.
    • fatrab
    • By fatrab 15th Jan 18, 7:43 PM
    • 163 Posts
    • 305 Thanks
    fatrab
    the very point is that it is for you to decide whether you had that money "to blow".
    Originally posted by justme111
    Then I would go with my first choices. I'd rather be debt free than throw those sums of money away.


    £100k+ I'd like to think some sort of investment/return possibility would be an option but below that I'd concentrate on my poor historical debts.
    LBM Dec 2017 - Wannabe debt free by Dec 2022 - Wannalose 3st in the process - 10lbs lost so far
    10 x £2 coins (#32) - 9/12 NSD in January
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