Golden Hand Shake.

poolblue27

Hi,

I am about to receive a golden hand shake of around £53,000 i intend to use £19,000 to pay off the balance of my Mortgage and am looking for sensible suggestions on where to invest the balance. I thought of spending the lot on wine, women and song! However, the wife says we should stash it away towards our retirement so a long term, but safe investment would be preffered. All sensible ideas appreciated!

Lokolo

Dump the mrs and spend it on wine women and song.

DiggerUK

Poolblue27,
Only pay off the mortgage if your interest payments are higher than what you can get in a savings A/C. Pay it off when the sums go the other way.

I have a very jaundiced opinion on the benefits if investing in equities and would advise you to stay well clear of investments that go anywhere near the markets. There seems a bigger chance that you will be buying into the lower end of a stagnant market, not an improving market.
For green shoots read dead shoots.

If you are looking more than 5 years hence then consider gold, but do some homework first if you have never considered such an investment. It's to hang on to what you have, not make a profit.

Don't tie anything up in pension plans, who knows what will happen in the future, keep your loot available and close.

NSI Index linked should be looked at if you consider future inflation to be on the cards, after all the QE has to come out somewhere.

Cash ISA's need to be topped up or opened up, don't baulk at 3% rates out there, it's still 3% ahead of inflation.

And if you want to have some fun get some Premium Bonds, who knows, and it is instant access.

Best of fortune.

hansi

Lokolo wrote: »

Dump the mrs and spend it on wine women and song.

and blow the rest:beer:

Reaper

My opinions differ quite a lot from DiggersUK's...

DiggerUK wrote: »

Only pay off the mortgage if your interest payments are higher than what you can get in a savings A/C. Pay it off when the sums go the other way.

I agree

I have a very jaundiced opinion on the benefits if investing in equities and would advise you to stay well clear of investments that go anywhere near the markets. There seems a bigger chance that you will be buying into the lower end of a stagnant market, not an improving market.
For green shoots read dead shoots.

I only half agree. I think the current rise in the markets is jumping the gun and it will sink down again soon but if you are investing for the long term and pick carefully you can do ok. I'd favour investing abroad more than the UK.

If you are looking more than 5 years hence then consider gold, but do some homework first if you have never considered such an investment. It's to hang on to what you have, not make a profit.

I know you are a gold bug Digger but I don't like the stuff. In my opinion it is more risky than the stock market as it depends entirely on sentiment. Give me a company paying dividends in preference any day. I also think it is quite expensive to get into right now.

Don't tie anything up in pension plans, who knows what will happen in the future, keep your loot available and close.

I have recentlly (for about the last 6 months) started chucking money into a pension, though it is a SIPP so I can move it around as I see fit. Starting a long term investment with regular premiums when the market is nice and low seems a good move to me.

NSI Index linked should be looked at if you consider future inflation to be on the cards, after all the QE has to come out somewhere.

I tend to agree but there is no rush. It will be a while before inflation arrives and the rate is currently low.

Cash ISA's need to be topped up or opened up, don't baulk at 3% rates out there, it's still 3% ahead of inflation.

Absolutely.

And if you want to have some fun get some Premium Bonds, who knows, and it is instant access.

I would steer well clear of premium bonds for anything other than a token sum as the average payouts are currently dire.


As you can see opinions differ. In the end you will have to pick the options that make the most sense to you.

McKneff

Lokolo wrote: »

Dump the mrs and spend it on wine women and song.

:rotfl::rotfl:

and sqander the rest.