£100k to spend on holidays

waterside1

I'm early retired, have drawdown pension, savings and investments, and mortgage free. What I don't have is enough income to take as many holidays as I want.
However I've just had a windfall of £100k which I want to use for holidays for the next 20 years (after that I will be too old for them!). I dont want to invest and use the income, I want to spend the capital as well.
I have some ideas but not sure which makes most financial sense:
1) put in bonds or equities of some sort and spend interest and some capital each year. Over 20 years this may give me £5-6k per year to spend on holidays
2) buy a holiday home and rent out providing some income, and also cheaper holidays. This would mean several downsizes over the years to release capital.
3)Buy several weeks timeshare. I could then sell when I’m older but I don’t really want the asset.
4) Join and pay the cash into a holiday club(s), although I worry about these type of companies

Any more sensible ideas?

Any

Build a mini house in your garden and join home sharing websites:-)

Did you never particularly like a place where you would like to go every year?
I would definitely buy abroad mysel, but I would not downgrade to release capital.. Just rent it out to cover bills and for income. But that is the way I am.

Any

What kind of holidays do you like? And how much do you think you would need annualy?

100/20 already is 5k per year...

andy_vip

Ok, the question isn't how to spend £100k on holidays, it's how to invest £100k to provide an income for 20 years.

This is a good start. It suggests personal financial advice from an advisor which I would also recommend, we know nothing of your personal circumstances.

IronWolf

I would go with bonds, preferrably a fund with shorter term ones so the capital value doesnt fluctuate too much.

greenface

Is it just you ? Plan ahead and thats alot of holidays a year. Depending how you like and want holidays . Your retired so no rush back or have to go when the crowd goes . Return to a few places youve been before and see if you could trike a deal with a owner . Or become a owner yourself maybe with likeminded people you know (not timeshare just people or family. Are you looking foreign / europe/Asia america ?? lots of questions hows your health

billchecker1

I know this goes against what most people will say however you might not want to rule out equities.

Some companies (Vodafone springs to mind) are offering a great yield at the moment and even some potential for some growth.

May be worth placing a small percentage in to diversify and potentially earn a higher return.

Goldiegirl

I wouldn't want anything like holiday homes or timeshares, because I'd be spending it all on cruises.

I'd invest, and draw down the money as required.

Also, as there's no guarantees in life, I'd spend more of it at the start of my retirement, while I'm still young enough and well enough, on a world cruise or a few legs of a world cruise.

bigadaj

Statistically if you invested the money in a range of equities you would generate returns of inflation plus say 4%, so typically 7% at the moment. Treating this as a drawdown pot would allow you to take out £4k per year for holidays with capital protected from inflation, or you cold eat into the pot slowly as well. Depends how and when you want to spend the ones, this method would also be volatile, so potentially up 10% or more one year and potentially dropping the next.

Thrugelmir

I'd spend it all on one single around the world trip. Far more cost effective than wasting money on flights for separate holidays.

jackyann

I wouldn't buy timeshares or holiday club things. Anyone I've met seems to find them more bother than they are worth after a few years.
I'd also be wary of a holiday home, unless there is a place you love so much (and maybe your family would want to come along as well) that you would want to spend a huge amount of time there. In the current climate the money you can make versus the problems that may arise seems to make it not a very good investment.

I would consider one or two major holidays whilst you are still young enough to enjoy them and not worry about insurance.