Help!! What should I do with my redundancy money

Sarah1970

Hi All

I have just opted for voluntary redundancy with work and will have lump sum of £31K and shares to the value of around £10K, and I need all your expert help as to what to do with it!!.

I have never had, nor will probably ever have this kind of money again. I don't own my own house, we currently rent and don't really want to save it because money burns massive holes in my pockets and i will spend it (or should I say waste it!)

So my question is, what would you advise I do with it? Any ideas?

I did think about leasing a pub in our area, but everyone is advising against it, and although i am not frightened of hard work and long hours, I really can only see making net profits of around £20K per year (based on the small pub that we were going for!)

Another idea is property developing - is it a good idea in todays climate?

I am not after a 'get rich quick' scheme, all I want is to be able to invest my 40K somewhere and get a decent return of around 30-40K per year. I know I'm probably asking the impossible but if anyone has any realistic ideas I would be grateful

Regards
Sarah

Birdy12

Sarah1970 wrote: »

Hi All

I am not after a 'get rich quick' scheme, all I want is to be able to invest my 40K somewhere and get a decent return of around 30-40K per year. I know I'm probably asking the impossible but if anyone has any realistic ideas I would be grateful

I'm no expert on savings, Sarah, so can't help you, I'm afraid. But, are you sure you've written this correctly? You want to invest £40k and see a yearly return of £30-£40k?

If you find such a scheme, could you pass me the details?..:D

mr_fishbulb

Sarah1970 wrote: »

I don't own my own house, we currently rent

Do you want your own house?

Sarah1970

I would love my own house, however I will not get a mortgage due to past bad debts and don't forget I will be redundant so no job - hence the reason for trying to find an idea where I can invest my 40K and get an income out of it.

Looks like its the pub then - invest £15K to get net profits of £20-£25K

BenL

You might get a remotely decent mortgage rate with that deposit on a house if you went down that route.

Do you have other savings and/or retirement provisions? Did the employer making you redundant protect your pension scheme?

I'd buy a new motorhome and have fun going places or do some travelling to far flung places.

ses6jwg

All IMO:

1) If you believe the company is a strong one, keep the shares re-invest the dividends. If not, sell the shares and re-invest into S&S ISA or a pension fund if you dont already have one.

2) £3,600 into 2 year fixed rate cash isa straight away. 15k into another 1 or 2 year fixed-rate with no withdrawals.

3) 5-10k in an easy access savings account paying around 3%.

You say you are crap at saving, but you are in control. Make the change, and start to save.

Or buy your house.

Sarah1970

ses6jwg wrote: »

All IMO:

1) If you believe the company is a strong one, keep the shares re-invest the dividends. If not, sell the shares and re-invest into S&S ISA or a pension fund if you dont already have one.

2) £3,600 into 2 year fixed rate cash isa straight away. 15k into another 1 or 2 year fixed-rate with no withdrawals.

3) 5-10k in an easy access savings account paying around 3%.

You say you are crap at saving, but you are in control. Make the change, and start to save.

Or buy your house.

If I could save it I would, but I need to generate an income out of it (somehow lol)

Lokolo

Sarah1970 wrote: »

Looks like its the pub then - invest £15K to get net profits of £20-£25K

Is there anyway you can know this for sure?
i.e. have you seen the pubs accounts?

tiff

Why do you need an income out of it, can you not get another job?

Sarah1970

Lokolo wrote: »

Is there anyway you can know this for sure?
i.e. have you seen the pubs accounts?

No, I don't know for sure, this is the figure the brewery gave to me if it is traded well (going on past books), the trade has deteriorated over the past few years due to bad management and landlords, which i am aware of due to being a local customer. I have done my research and the ex locals would come back if we had the pub and the beer was kept well , however there are still no guarantees, it is a huge risk, but it seems the only option at the moment

bryanb

You won't make a living selling beer to locals, no matter how well the beer is kept.