What to do with70,000

AnnieTuk

My husband has just retired at the age of 53, we have a small mortgage with about 7 years to run, should we pay this off? How can we get the best income from our money?

rotate

I would always say pay of my debts including mortgage.
Then if you are risk adverse put the maximum in cash ISAs.
However if you are going to be in a situation were you will not be paying income tax,then look at high interest current accounts and make sure that you recieve interest gross.

mirrorimage0

id say give it all to me but i guess the answer would be no.
(and yes i know this is a serious board but im in a funny mood).......

enjoy some of it. x

Browntrout_2

Hello, I have been reading the Hargreaves Lansdown Investment Times this month, it talks specifically about Income funds.

For example Invesco Perpetual has grown income threefold since 1990 under Neil Woodford. It currently pays 2.7% net.

Since 1/10/1990 the capital has grown from £10,000 to £74,762 or with income re-invested £129,984.

The last five years annual growth -28.6%, +43.2%, +19.7%, + 31.8%, +22.2%

So even if you invested a lump sum and lost 28.6% in the 1st year you got it all back less than 1 year later, however with drip feeding (pound cost averaging) this would have been improved.

Constant income from a deposit is impacted by inflation over the years. However with an Income fund you get capital growth as well.

Without knowing your circumstances I can't comment and I am not an IFA.
If it was me I would pay off the mortgage and open two Maxi ISAs every year with all remaing monies. Spread investments drip-fed into some or all of the following active managed income funds - Invesco Perpetual Income, Psigma Income, Standard Life High Income, Jupiter Income etc all recommended by Hargreaves Lansdown Wealth 150 list.

Wait a minute, 53? Maybe need to invest in some serious hobbies like golf and fishing and football season tickets, and ski lessons!!

do your own research etc

Sarahsaver

£70,000?
Come to mummy...

EdInvestor

AnnieTuk wrote: »

My husband has just retired at the age of 53, we have a small mortgage with about 7 years to run, should we pay this off? How can we get the best income from our money?

Almost certainly this is the way forward if you want a guaranteed return: if your mortgage interest rate is say 7% variable, then that's the equivalent "rate of interest" you will get on the money, and of course there is no tax to pay on it.

Saving it will usually mean a lower rate and the interest will be taxable, while 7% is regarded as a respectable return from shares these days (after charges) so the argument for taking a risk isn't very strong.