Help me spend £180000 !

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atush wrote: »

No one usually 'plans' to die early lol. But best to cover all your bases.

bases covered thanks, we are worth a hell of a lot more dead !

Where did I leave that roller-skate, oh it at the top of the stairs

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jamesd wrote: »

I'd invest it. Funds mostly (unit trusts etc.). Unbiased.co.uk and find yourself an IFA that you get on with. Tell them the amount of decrease in capital value that you're willing to accept in a bad year, knowing that it's almost certain to recover in later years, and any capable IFA should be able to put together a combination that can generate 7%+inflation+ a year as a long term average.

Any use for more pension income? And tax relief on repaying the mortgage? Making pension contributions, getting the tax relief, then using the 25% tax free lump sum from the pension can be lucrative.

Pay in say £20,000. 25% tax relief is added bringing it up to £25,000 in the pension. Take 25% tax free lump sum, now you have £6,250 in cash and £18,750 in the pension pot. An IFA or some general guidance here should let you get on average 5-7% income plus inflation growth from the pension part. So your net pension payment of £13,750 gets you £18,750 generating you income, a nice boost. And that's before you even do any investing with the pension money...

You need to be 55 or over to take a pension lump sum like this, and to take income from the rest of the pot via income drawdown.

If you just invested it outside a pension you should be able to get around £9,000 a year in extra income from it and after some years it'd all be in an ISA and paid out tax free. If it isn't already. That's assuming 5% of the capital being available as income , a medium sort of level. If you don't mind draining the capital you can plan for how long you want the extra income and take it at a higher rate, accepting that you'd eventually run out. The skill there is planning for it to run out on the day you die. Or a bit later to give a safety margin...

thanks James, Sorry but i'm a bit thick and haven't got a clue what your going on about !! Don't worry will show to my mate who's a bit of a banker ) he will know and explane it in a way I might understand !!

thanks again