How to deal with a big cash windfall

oldvicar

Curi. I wonder if you think you are depressed? It wouldn't be surprising, and it happens to a lot of people. If you have a good GP (s)he could refer you to an expert who can help. In this area it may be best not to rely on NHS services, and paying £100 or £200 per hour for a few sessions could be just what the doctor ordered. I hope you are not offended by the suggestion - just trying to help.

curi

oldvicar wrote: »

Curi. I wonder if you think you are depressed? It wouldn't be surprising, and it happens to a lot of people. If you have a good GP (s)he could refer you to an expert who can help. In this area it may be best not to rely on NHS services, and paying £100 or £200 per hour for a few sessions could be just what the doctor ordered. I hope you are not offended by the suggestion - just trying to help.

Not offended. I have thought about it myself. Consultation etc.
As for GP's when I tried to get anti-depressants for my mum, the GP was resistant, until I (was allowed to) carried on and told her my mum was talking about killing herself. Then she prescribed mild ones, which did no good at all. At that point, because the chemo had not worked, it was all about "quality of life", so I don't know why they didn't give the "happiest pills" if you see what I mean.

So I lost all faith in GP's and NHS Direct doctors who visited over a weekend when it all went downhill incredibly quickly.

Sorry......I'm pouring out some stuff which maybe has nothing to do with the original question, but it's been some time since getting this down in words and getting good replies.

atush

curi wrote: »

I suppose this is another thing. Until that happened, there had never been "history". Plus their neighbour contracted it about a year after my dad going back 15 years. I remember the consultant (when my mum was diagnosed) saying it was not common, but not unknown; radiation from the ground, all susceptible etc. But approaching docs on it for myself?? I appreciate what you say, but I think my experience is to want to stay away and if it happens, let it. I might change my views in time, but right now, I sort of have this "so what?" attitude to life, which frankly, I wouldn't want to try to extend by chemo, if it came to that.

Three pople living in close proximity develop Leukemia w/o family predisposition/ this could in fact be the start (or there are other cases you don't know) of a cluster. There could be external risk factors as a cause such as grown contamination, overhead pwoer lines etc. Was this the house that you lived in when you cared for your mother? If you lived there for a period of time, that may be your risk factor, not genetics. Hard to say with only annecdotal evidence.

I am a bit leary of people telling you to not work, live off the money and donate to charity- all while you don't have an income and your pot will be reducing. Even starting a business in a recession isn't always wise and could soon deplete your funds. I would only take this route if it was something you had considered in the past, and you have a buring desire to do as it is in itself a stressful thing to do. Tread carefully.

opinions4u

atush wrote: »

I am a bit leary of people telling you to not work, live off the money and donate to charity- all while you don't have an income and your pot will be reducing.

It's based on what the OP has posted, an assumption on what a minimum income is and what other individuals would choose to do in the same circumstances.

Remember, there's an individual here who has a £22k pension coming his way soon. If I've read correctly, this is more than enough to live off. I know it would be for me. Question mark over indexing though. That would need addressing.

To bridge the gap to that pension is £15k-£20k a year of capital. So still around £600k left. Half a dozen local charitable projects for modest amounts ... £585k left and a feeling of having made a difference.

That's still a hell of a lot of money to set aside for other things so that life can be proactively lived.

In the same circumstances I wouldn't work. Or I might do something casual that supports a friend's business (if he could afford to pay me) but doesn't require long term commitment. Or I might do something positive in the community / chartiable - but again I wouldn't want long term commitment with that. I'd want to pick and choose what I do, when I do it and when I stop doing it. The world cruise / Great Wall of China / Himalayas / Route 66 or whatever would be my priorities. I'd rather do that lot in my fifties than my seventies.

atush

the pension is 5 years away. Too far away to be giving cash away now. Give it away in 5 years when you are on an income.

Hughesy84

What was your line of work that you was frustrated with?! Perhaps you could set up a small business of your own to spend some of your time on?

Go travelling to everywhere in the world you have ever fancied, whilst your still healthy and young enough to do what you want.

If you’re worried about your income – simply invest it…..£675k should be enough to earn you £50-60k+ a year in the right time of shares, trackers, savings accounts, bonds etc.

ericonabike

At first I was tempted to be flippant when I read this - as in 'who wouldn't want to have a problem like the OP's!' But reading further it seems to reflect my belief that ALL changes can be unsettling - even those that superficially seem to have no downside. I've recently taken early retirement following redundancy - with a considerably reduced income but in the expectation that I can adapt and thrive. But it's still taking a while to adjust to the idea - whether we like it or not we all tend to be defined by 'what we do for a living'. FWIW, OP I'd suggest just taking time out to take stock. Talk to people, go on holiday, defer making long-term plans for a while. There's no rush!

curi

ericonabike wrote: »

At first I was tempted to be flippant when I read this - as in 'who wouldn't want to have a problem like the OP's!' But reading further it seems to reflect my belief that ALL changes can be unsettling - even those that superficially seem to have no downside. I've recently taken early retirement following redundancy - with a considerably reduced income but in the expectation that I can adapt and thrive. But it's still taking a while to adjust to the idea - whether we like it or not we all tend to be defined by 'what we do for a living'. FWIW, OP I'd suggest just taking time out to take stock. Talk to people, go on holiday, defer making long-term plans for a while. There's no rush!

Thanks. Possibly it's the change that's caused a downside.
Some have asked what the job was I was so frustrated with....it was IT, where a nine to five still means work at weekends and in the early hours. I was no stranger to hard work and that overtime has contributed I'm sure to my standing now. But looking at it all, I wondered where my weekends were going, versus 'can I stop this now' and perhaps do something different? Maybe that's why others are resigning or going down with stress.

Also, whoever said £675k can earn £50k?? Let me know the details(!), because I can only get about £20k at the mo (low risk person).
Still, it covers outgoings, but I'm aware the cash value would sink over time. I calculated that to keep the cash value at £675k when I'm 80 (in today's value at 5% inflation year on year), I'd have to work until I'm 70. Can't see much point in that. If the cash value is £100k at 80 (in today's money), I'd take that right now.

It's bothering to read of families who work and have a mortgage, who claim they go without food, so their kids can eat. I suppose I should count my blessings.

atush

You don't need to keep up the equity value til age 80 if you have no dependants or loved ones such as god children, cousins, nieces etc. Basically anyone you are related to, or have emotional and relationship ties to and want to leave them an estate.

What you do need to do is know you have enough to live on. For now, and for the longer term incl price rises and inflation. Which means not depleting your pot in the early days when you can still need and want a bit of employment.

My worry was (not is as the more I read of your responses the less worried I am) you would listen to the "have not care not" brigade telling you to spend spend spend, open a business, and give away to charity- now- before you know what is what?????? The 50K guy hasn't a clue. yes you could earn loads one year, but you could lose the next on some things incl equities but Bonds which are darling now could fall.

I based my income view on 600K giving you 3% a year ie 18K- very conservative but there are tax and inflation implications. With the 75K to spend on things you need and want (33%- 25K) and (67%-50K) on specualtive investments such as equities. but you could use that 50K for a business and charity giving- doesn't matter much except that it make You happy and comfortable in your choice.

What matters is risking a small amt (ie the 50K) on growth. Personal or capital, or both.

I am in fact, a very equity biased person. I would never have 600K and not have some in equities. I would not- in fact I would probably have half in equities. You can't really be in cash these days if you want to beat inflation. But I am cautious for you, as I know this will never come your way again. And I feel as although I am near your age, you need time for reflection and some fun, but feel you are far too young to retire.

I have been investing for a while now, and I have been thru the tech boom/bust (lost some won some did OK- at the same time I was carpet bagging building societies with my spare cash- did well). 9/11- lost some initially but recovered that and made more by buying when all were selling when markets opened). As a side note I had 2 ab fab holidays at a very low price due to no one wanting to fly, and as I ws in DC on 9/11 and had to fly home after I was and am not afraid.

Then there was the crash in 2008. Lost some, won some. Could have done better but then and this year the initial crashes happened when I was in France w/o internet so could not buy/sell. But remained invested so those who panicked lost out but I didn't.

In between the prev crashes and the 2008 one I sold shares and bought gold. No one was ramping then. I just thought, people are lemmings, running after property and other inflated equities. I am just a bit of a contrarian.

Now another crash. I gained on the gold and cash reserves from selling during the boom. And sold half my gold at plus 100% profit. I have bought a few shares recently incl pharmas (which I had lacked in my portfolio).


You need to be a bit cautious now, before your 22K pension comes in. I was lucky in reading things, not panicing, not selling when others were. But you don't need to invest here and there (some of my own buying was based on inheritance) right now. You can remain invested now even at 3% and relax and have a think. And if you want to do something or another like open a business, or take half your pot and learn to be an investor- do so. But educate yourself first. dont run before you can walk, and don't jump until you know how far the other side is.

What I did do after my own smaller inheritance was, had a GREAT holiday with my OH and 3 boys. And I bought a few antiques. Not hugely expensive ones, but ones that are still worth at or more than what I paid for them if not a huge amt more. More importantly that holiday my kids still talk about (and the 2 after), and those family heirlooms/everyday furniture are now hotly debated over who gets what when I loose my mortal coil ;-0

Take care. Be prudent. Take time.

curi

Gosh. All I've ever done is stick stuff in building societies and buy shares in a work scheme (and never, ever sold any), until they were worth around £40,000 in 2008 and then watched as they dwindled to £1,400 today. Yep, I worked for one of those rotten banks so serves me right....(although bonuses were very hard to come by in IT believe me). I'm a bit rubbish at shares as you can see. I even thought about buying the bank shares at 12p a few years back and was advised that as staff, it was in a period where we couldn't deal. The advice was wrong as I was in no position to know anything about the company's fortunes. They are 24p now and have been up to 45p. I saw a lot of people expect a roller coaster of buy low, sell high, which happened once and then all downhill. I think a lot of amateurs became Gordon Gekkos for a few weeks and got burned badly. Not for me! I'm too sensible (apart from never selling those shares).