I have £100k in my savings account :)

ruinen

Grumpygit wrote: »

However, you sound pretty switched on in terms of not wasting money (unlike a lot of us) so don't feel guilty about treating yourself - you can always save some more.....but just get out there an live and take a chance

If you feel guilty with spending then treat it as experiments. Try things and see if they work to improve your life. If they don't work quit them and try something else or go back to saving more. For example 'give' yourself an extra £100/week for a few weeks, maybe spend it going out for dinners with good friends (or whatever you want). See how it goes.

gterr

From the OP's first post we learn that financial security is a big issue for him/her, and has underpinned the very reason for saving in the first place (childhood experiences etc.). Also, that money as 'secure' savings had allowed the OP to dare to do things that would, for him/her, have been unthinkable otherwise (leaving a well-paid job, for instance).


In most similar circumstances I guess we would be urging the poster to place a very substantial amount of that 100k into equities, either in a S&S Isa, or a SIPP, or both. But we are all different and are products of our past experiences. If, by recommending equities the OP would lose that precious sense of security then perhaps we need to suggest other solutions, or a compromise. Equities are not risk free, after all.


How about: Continue saving, start a pension (e.g SIPP), place part of that 100k into a S&S Isa using this year's and subsequent years' allowances, BUT leave enough in cash to preserve that cosy sense of security. For the cash element look at bank accounts such as Santander 123 that can offer 3% interest. And remind the OP that savings as cash lose their value as a result of inflation. That sense of security will evaporate if inflation eats away at the value of the cash as the years go by.

Gromitt

I bought a new car that broke down after 6 months, so I wouldn't cancel roadside assistance simply because it's a new car and comes with a warranty. I've not known any warranty claim they come tow you off a motorway, drop your car off at a garage and take you home (or pay for overnight accomodation). Although it could become a good incentive for manufacturers to offer.

bigadaj

Gromitt wrote: »

I bought a new car that broke down after 6 months, so I wouldn't cancel roadside assistance simply because it's a new car and comes with a warranty. I've not known any warranty claim they come tow you off a motorway, drop your car off at a garage and take you home (or pay for overnight accomodation). Although it could become a good incentive for manufacturers to offer.

Pretty much all new cars come with breakdown recovery anyway, it's obviously a cheap option for the manufacturer given the low percentage that are likely to be affected.

This all hasn't really helped the OP and is a debate for the motoring forum where it has been done to death hundreds of times.

I think the fundamental issue is whether the OP seems himself buying a house anytime soon, if so stay in cash, if not then put a chunk at least into equities.

innovate

OP, how will you finance your needs once you are no longer working?

I am with those who asked about / suggested a substantial part of the money into a pension / S&S ISA / SIPP. Way more important than the merits of buying a new car if you are happy with your existing one.

savingmummy

breakwater wrote: »

Hello,
So far the past 5 years, I have been working extremely hard and saving most my income and now I have finally reached the £100k mark!!
I was just what would be best to do with the money.

:j Well done! That's amazing.


Whatever you decide to do enjoy your hard earned savings!

Mickygg

I would work the money harder by looking at stocks and shares, property and ISAs. Drip feed an isa every year using your annual allowance.At the same time also enjoy some of your hard earned money.


I know I'm too much of a Scrooge and constantly think about the cost of stuff, therefore usually not buying much (other than a house!!). But that's me and I don't think I'll ever change, but it's not much fun so I urge you to keep saving and invest whilst spend and enjoy life.

MrBeans

Mickygg wrote: »

I would work the money harder by looking at stocks and shares, property and ISAs. Drip feed an isa every year using your annual allowance.At the same time also enjoy some of your hard earned money.

I'd agree with those who suggest an ISA. You can put £1250 a month into an ISA (£15,000 a year). This would be long term savings and invested in stocks and shares.

The easiest way to start might be to invest in an index tracker such as the Legal & General All Share index tracker. That way you are spreading your money across every UK share - much less risky than buying just one or two companies' shares.

The Hargreaves Lansdown website gives a good intro and is easy to use: it would take you about 15 minutes to open an ISA and set up a DD to chip £1250 into the ISA each month.

Archi_Bald

MrBeans wrote: »

I'd agree with those who suggest an ISA. You can put £1250 a month into an ISA (£15,000 a year).

You can put a full £15K into an ISA come July 1, and £11,880 right now. YYou can spread (drip-feed) your investments, but no need to if you don't want to

MrBeans wrote: »

The Hargreaves Lansdown website gives a good intro and is easy to use: it would take you about 15 minutes to open an ISA and set up a DD to chip £1250 into the ISA each month.

true but you would NOT start by signing up to an ISA on some website. Your would first determine what you want to invest in, and then look for the cheapest platform.

It's a bit like: if you want the best jeans, you don't got into any old shop and see what jeans they have. You first decide what jeans you want, and then you find the best price for them. Of course, if you don't know what the best jeans are, you might want to start in the shops - - - but you can rest assured, all the best shops will have all the best jeans, and at least one of them will beat the best price.

In terms of investments - yes, HL will have a pretty complete range of investments, but so do many other places. Most of them are a lot cheaper than HL. Their websites and CS might be a little less complete than HL but this may not matter because you may not need any service etc with your investment. Like: you want to buy XYZ jeans and you can get them for £50 in a shop that has no fitting service and won't tell you about the next greatest pair of jeans, or you can get it for £100 complete with personal fitting service and constant updates about new jeans, whether you need them or not. HL basically fits in the latter category. I'll leave it to you to figure out what this sort of difference can do to your investments on much larger sums, and over many years.

JohnRo

If I was looking for trackers L&G wouldn't be my first choice.

What is it they offer over rivals that justifies the inflated OCF anyway?