£100k to spend on holidays

Goldiegirl

doughnutmachine wrote: »

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....

The OP seems to have made suitable arrangements for his day to day living, so it would seem he's been sensible throughout his life.

But now he had had a windfall, he has the time to go on holiday and the good health to do some travelling.

He's got the chance to realise some of his dreams

There comes a point in life where holding on to all your capital is more foolish than spending it.

We are only here once, and life is to be lived.

Why wait three years to earn dividends that will cover a trip to Australia, when he can do it now if he wants. Who knows what will happen in three years, he if he waits that long there might be reasons why he can't travel.

However, I expect the people that won't spend capital, won't spend the dividends either. I mentioned this on another thread only yesterday. Some people save obsessively for retirement, living like paupers, and when retirement comes the saving habit is so ingrained, they are unable to spend any money in retirement either, and live even more frugally.

kidmugsy

You could just buy yourselves a fixed-term index-linked annuity each and that's your problem solved. Or do that with, say, £80k and put the other £20k into premium bonds so that they can be used to level out the peaks and troughs of expenditure.

atush

Why wait three years to earn dividends that will cover a trip to Australia, when he can do it now if he wants. Who knows what will happen in three years, he if he waits that long there might be reasons why he can't travel.

Please, no one has said that.

When we say to invest, we NEVER said to invest 100% of it. We were talking anywhere from 50% or so. Maybe 75%. Would still leave 3-5 years of fab holidays in cash while waiting for income to come online from the other.

Don't be quite so literal.

And who says they only have 20 years of holidays coming? they might be able to take round the world cruises for 30 years or more. They might be able to white water raft, and bungee jump for at least 10.

The point of investing, is to make sure that both income and interest can last more than the 20 years, just in case. Esp as traveling while older can mean bringing a carer with, so costs more.

jabba42

Off topic but I really do not like holidays, I take them once or twice a year and after 3 days I am looking forward to getting home with all my gadgets, comforts etc.

I have 3 small children, so that may have something to do with it

Dimey

Personally I'd not buy a holiday home as I wouldn't want the worry and time spent on maintaining a second home. You'd have all the legal expenses and maintenance responsibilities you have on your current home on another you'll have to fly to reach. Not much of a holiday.

I'd also avoid time share as that's too close to scam country for me. And I like to go somewhere new for holidays.

I'd invest some of the money in 3 or 5yr savings bonds and £30k in premium bonds for easy access. I'm risk averse so would avoid shares.

I'd also bear in mind that as I age after say 80, I won't want to travel so much so I'd plan the big 3month / 6 month /12 month long haul trips early on.

I went round the world on a 12 month low budget trip for £20k. If you want more comfort then you could double that estimate.

atush

jabba42 wrote: »

Off topic but I really do not like holidays, I take them once or twice a year and after 3 days I am looking forward to getting home with all my gadgets, comforts etc.

I have 3 small children, so that may have something to do with it

It is the children, and I bring many of my gadgets with me lol.

Once they could all pull their rolling cases life got easier. Once they pack for themselves, and the eldest can drive in foreign countries, it gets even easier lol.