Tried asking a friend, thought would now ask the audience

LannieDuck

What's your plan for retirement income? Do you have reasonable pensions? If not, I would pop over to the savings board and enquire as to the best way to invest it for a return in later life.

Alternatively, you could use it to start university funds for your two children?

I know neither of those are particularly exciting, but they could have a big impact on your lives in 10-20 years.

Counting_Pennies_2

I think you are in a fantastic position to save it.


It sounds to me you like a risk free lifestyle, so any investments that have a risk associated to them might not be the most comfortable route to take. Forgive me if I interpret it wrongly.


If you did want to step into slightly risky territory, you could put it towards a buy to let mortgage and put tenants in and effectively have them pay off another mortgage for you, with a view to 25 years time having a pot of cash. This does involve hard work and an element of risk, and choosing the right place.


If this does not appeal you could look on this site for the best investments that are about and try to get the best return for the money while it sits in a virtual pot.


I do have to say though that reading through your post makes me want to say, have a bit of a WOW with the money. It does not need to be expensive. You could ask someone to look after the kids and go to a Spa together for the day. You could book a nice family holiday for a few months time so you have a nice thing to look forward to through these bleak months ahead. You could book up a fancy restaurant, try that Michelin Star place you have always driven past and wondered who goes in there. Something that is a little frivolous and make you feel that you have benefitted from it, a bonus is after all something extra.


Then the rest you could sit on for early retirement, holidays when the kids are older or paying for tuition or private school fees if the state sector does not live up to expectation.

burnoutbabe

I used mine to just provide a cushion. If redundancy happens again, I have no issues. If I decide to jack in my job at any time and take a year off, I can. I put a lump sum in my pension so I can retire earlier. All things make me happy, knowing I am free with my job choices and don't have to put up with things I am not happy with.

duchy

As you don't sound like the sort of people who think spending a lot on holidays is worthwhile I too would say hold off on the Disney thing until the kids are older . If you go now the little one simply won't remember plus there will be lots of things they are too short to ride on.

I can understand wanting to "do" something with it rather than see it ebb away with smaller things so maybe with interests rates so low lock it away in premium bonds until you have something concrete you want to do with it.

Hermia

Put the money away until you think of something you really want to spend it on. As your kids get older they will start developing passions and you will be glad to have some cash to spend on something they love.

toffifee

Don't spend it. Children get a lot more expensive as they grow up IME.

We were in the fortunate position about 20 years ago to both be earning good money. We had a few nice weekends away and splashed out of a couple of holidays in California but the rest was saved and we enjoyed watching the total grow. Now we've got children (12 and 9) who have music lessons, swimming lessons, school trips etc.. We needed a bigger house and everything costs more with 4 to pay for (we now holiday in Butlins, slightly less glamorous), so we're really glad we have our savings to fall back on. At the moment we're spending more every month than we earn and the savings are slowly dwindling away, but in about 5 years we'll have paid off the mortgage and will start building them up again.
I think I would have had quite a few sleepless nights over the last few years without my nest egg to fall back on should I not be able to work.

PuzzledDave

Thanks for all the responses so far

With no debts, very low mortgage, an existing cash reserve and income insurance we don't really fear unemployment. Since our day to day needs are so modest our pre-windfall reserves would last us nearly two years without any state benefits at all. We already save a bit each month for the kids university.

In terms of pension, the other half is fully up to date with state pension contribs and I have invested heavily into my private (DC) pensions, dumping even all of the windfall into won't make a very significant %age increase on the whole.

Someone mentioned TV/Computer -- we don't watch TV, we threw it out years ago. Computers are our passion and they are already as up to date as our needs be, the kids watch recorded DVD's and youtube (under supervision ofc !) and the like. Our last splashing out in late 2012 gave the kids a touchscreen for a computer and they watch whatever they want using this (exdept live TV ofc !).

We could just sit on it in savings - but that is really what we have done since we first moved in together back in 2001, we both feel like it's long past time we did something spectacular with it... we just don't know what !

liuhutOz

some nice jewellery that can be passed down? I recently treated myself to a nice watch with the intention of being able to leave it in my will!
I think that I would also save it until the kids are a bit older and then take them travelling, We did that when I was 10 and I have amazing memories.

Don't let it burn a hole in your pocket :-)

justme111

You are in this good position because you have a modest life style but precisely because of modest lifestyle you do not know what to do with money .
I would say put it towards your passions.
Children - sandcastle relaxed holiday where they would be able to try this that and the other. My daugter remember things from when she was 2 and those memories can be very vivid and long-lasting , I remember being treated with a nice dress and photosession when I was 3 , its nice .
You like money and computers - why not to look into stocks etc and use it one day your starting capital.
You like money and security - indeed btl may be an option for you.

FBaby

You say that if you were not to be in employment you could last two years with the money. Isn't that a good reason to keep it? You say that you could possibly be out of a job in two months surely that indicates that you should be using this money for a what if situation. Depending on where you live and work experience you might feel confident about getting another job but I know a few people who thought that having never struggled to gain employment in the past still looking for work a year on. Their main issue that there are few jobs in their field but can't get anyone to give them a lower entry job in another field let alone a better paid one. I would definitely hang on to the money until you are back in a secure permanent position