£100k to spend on holidays

atush

No timeshares, no holiday home, no clubs.

as said with 0% interest/growth that would be 20 x 5K holidays. you could have both a fully paid up cruise and a weekend city break for that.

Invest it, and you'd be talking really nice holidays 2x per year.

infj

Wow - 100K to spend on hols - I'd think it was Christmas.
I woudn't go for timeshares etc either - why tie yourself to something with that financial freedom?
I'd put 65K in the best 5 year fix you can find.
Then 10K in Zopa for 5 years too.
Then divide the remaining into 5K approx each and put in the appropriate 4,3 year etc fix.
Then you have 5K coming out each year for the hols whilst the remaining amounts are earning interest.
Then in 5 years work it all out again and start again.
Any left after 20 years is a bonus

I think shares are too risky for what you want - what do you do if they tank just as you want to spend 5 weeks in Australia?
I hope you have a fantastic time.

kidmugsy

Start from the holiday side. Say you wanted a big hol downunder. You should aim for a month or more in NZ in their summer, a month or more in the Autumn in Adelaide and the South Australian wine regions ... outback, Melbourne, Sydney ... ending up with a spell in Queensland in "The Dry", being sure to see the reef. Such a jaunt is incompatible with drawing a steady £5k - £6k per annum.

On the other hand if your basic requirement is a fortnight in the sun in January or February each year, Madeira fits the bill nicely. But then might you want to visit Venice and Florence in May ...?

I don't see how the question can be answered without your telling us what sort of hols you want.

Perelandra

You could always buy a cabin on a cruise ship and live there full-time?

atush

pretty sure an apartment on the World of residensea costs more than 100K

Saw it docked in Liverpool in July when taking the ferry home.

N1AK

waterside1 wrote: »

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?

Why buy a holiday home specifically rather than any other type of property unless you intended to use it as well?

Remember that you need to earn some return on the money to manage the equivalent of £5k a year in today's money. By the 20th year you'll likely need £8k to get the same holiday £5k gets today.

You're talking about 20 years so I'd be tempted to put a decent proportion into stocks. Yes it could lose value but the worst (plausible) case is that you would need to take more moderate holidays and given the time window the odds you'll come off ahead are good.

waterside1

Thanks to everyone for the replies.
Interesting to read as the posts continued how nobody suggested buying a holiday home, and no one supported time share or holiday clubs. If we purchased a holiday home it would be for our own use, plus some rental income. No one really came up with any suggestions other than bonds or equities. I was expecting a few "off the wall" suggestions for holiday home lease backs etc.
There were plenty of suggestions of where we might go for the holiday, interesting and thanks - but that wasn't really the question.
My post was really about the best way to make use of the 100k to include having the option to spend it, rather than retain any capital, and use it just for holidays. Yes one year it might be Austraila and spend 10k and the next year something cheaper.
Our health (touch wood) is good, so a 20 year plan seems realistic at the moment.
Finally, Andy_Vip's point about getting financial advice is interesting. Without being rude about advisors, all of my other finances are handled, very adequately, by an advisor. BUT for him the concept of actually SPENDING all the capital is totally outside his comfort zone. Its like I'm suggesting something criminal! So the £100k is for us to put in a pot, away from the advisor, and spend it!

doughnutmachine

tbh, I think spending capital for the sake of it is foolish.

you could invest this 100k and get 4k a year in dividends (rising with inflation). then spend this 4k on holidays....

dzug1

Only option 1 makes any real sense

2 has some merit - but there is no guarantee of rental income or of being able to sell when you want

3 - have you ever tried SELLING a timeshare? They can be difficult to give away

4 - even worse. Most holiday 'clubs' are verging on scams

atush

I actually rent Timshare apartments sometimes. For less for a week, than an owner has to pay in yearly fees/using fee for one week. It is a no brainer, don't touch.

The reaso we didn't say to do anything other than equities is that is the best advice to get a return above the one you'd get for cash. Wont stop you spending the capital, and it is your money so don't let an advisor bully you. But he can still possibly get you a better deal.'


For a start, i'd put 2x the annual S&S allowance on an isa for you both this into equity funds.