Best investment for OAP after house sale

whitejohn

I'm 66 and selling my house to travel in a motorhome (£45,000).
Should have about £160,000 to invest.
Total pensions are just under £9,000 (mainly state pension) so tax should not be a big problem.
I cannot afford to take high risks.
When I stop travelling I will probably rent a house but may buy an over 55 apartment or similar, so need reasonable access to cash.
Long term investments don't seem a good idea at my age anyhow.

Having looked at the other forums it looks like current accounts are my best option but they seem to be limited to £20,000

ISA accounts don't look as though they are worth the hassle but I could be wrong.

I did think about £30,000 in premium bonds, though not a good investment, a win is my only chance of a life changing experience. (like pulling a young woman before I end up in a Nursing Home!)

Any good ideas please, in view of my age?

Have already discounted renting out my house etc. as I need the cash to buy the motorhome and I have no family to leave it to.

I realise a motorhome is not a brilliant investment but I need a new vehicle anyhow and should get half of it back in a few years time.

xylophone

Long term investments don't seem a good idea at my age anyhow.

You have no relations/friends in their nineties?

However, if you will need the cash to buy a home after you have spent a couple of years working off the wanderlust, then the stockmarket is not the safest place!

I am assuming that at the moment you are not having to pay tax but income on the capital could tip you over.

However see http://www.hmrc.gov.uk/taxon/worked-examples.htm for this tax year and https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293747/Fact_sheet_template_-_10__tax_9.pdf for subsequent years.

You can play the current account game - you could consider Santander 123, 2 TSB Classic plus, three BOS Classic Vantage, a Nationwide Flexdirect etc - this would be more than £20,000 at (gross) interest between 3 and 5%

After that you might look at Ns&I Income Bonds, http://www.nsandi.com/savings

There are supposed to be some Pensioner Bonds available from January next https://www.gov.uk/government/news/budget-2014-support-for-savers-announced

other savings etc? http://www.thisismoney.co.uk/money/saving/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

Incidentally, what will you use for an address?

whitejohn

xylophone wrote: »

You have no relations/friends in their nineties?

However, if you will need the cash to buy a home after you have spent a couple of years working off the wanderlust, then the stockmarket is not the safest place!

I am assuming that at the moment you are not having to pay tax but income on the capital could tip you over.

However see http://www.hmrc.gov.uk/taxon/worked-examples.htm for this tax year and https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293747/Fact_sheet_template_-_10__tax_9.pdf for subsequent years.


You can play the current account game - you could consider Santander 123, 2 TSB Classic plus, three BOS Classic Vantage, a Nationwide Flexdirect etc - this would be more than £20,000 at (gross) interest between 3 and 5%

After that you might look at Ns&I Income Bonds, http://www.nsandi.com/savings

There are supposed to be some Pensioner Bonds available from January next https://www.gov.uk/government/news/budget-2014-support-for-savers-announced

other savings etc? http://www.thisismoney.co.uk/money/saving/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

Incidentally, what will you use for an address?

Thank you so much for taking the time to do such a comprehensive reply. Yes, my interest on savings will tip me in to the tax paying bracket but it looks like my personal allowances in total will go to £15,000 in 2015 so that's brilliant.

I'll open up the current accounts and also try that NS&I one in 2015.

I see that the premium bonds are also going to £40,000 but I don't know if it really increases your chances of winning that much.

Fortunately, I have a good friend with a spare room for if I get lonely or have an accident and no transport, so that will be my permanent address.

Never thought it would all end up like this, my wife left me and old age suddenly kicked in but hey, things could be worse!

At least I don't have negative equity.

ManofLeisure_2

whitejohn wrote: »

I cannot afford to take high .

My concern is that having enjoyed your adventure, you will return to buy a new home, only to find that you have lost touch with the property market.
The yield on savings accounts is dismal, but property prices contine to rise......

However, I do admire your sense of adventure and wish you the best of luck

xylophone

old age

Is 66 that old?

my wife left me

Which must be a truly dispiriting experience but

Fortunately, I have a good friend with a spare room for if I get lonely or have an accident and no transport, so that will be my permanent address.

must be a great comfort.

I hope you'll enjoy the travelling - some family friends bought a motor home to use in their retirement and they seem to have found the freedom to go where they like positively invigorating!

An elderly relation with spare capital bought the full allowance of premium bonds a few months back- makes for thrilling moments when the envelope drops on the mat but alas, three prizes of £25 won't pay for all those trips to the Bahamas.... ( much less a toy person....):)

N1AK

whitejohn wrote: »

Thank you so much for taking the time to do such a comprehensive reply. Yes, my interest on savings will tip me in to the tax paying bracket but it looks like my personal allowances in total will go to £15,000 in 2015 so that's brilliant.

I'll open up the current accounts and also try that NS&I one in 2015.

I see that the premium bonds are also going to £40,000 but I don't know if it really increases your chances of winning that much.

How long do you think it is likely you will travel for? The best thing to do with the money is likely to differ if it's 1-2 years or 4-5 years for example.

I would suggest that you're likely to enjoy retirement overall more if you own your home through most of it rather than renting. The cost difference is pretty vast. If you're only travelling for a couple of years then just protecting your capital is probably fine, but if the time period is longer then you're exposed to the risk of property increasing in value faster than your savings.

xylophone

the time period is longer then you're exposed to the risk of property increasing in value faster than your savings.

I am wondering now whether it would be possible for the OP to buy a well situated one bedroom flat and rent it out?

A good agent could take on the administration and he would have a home to return to once the adventure was over.

Voyager2002

I suggest letting your home (or buying another investment property) and travel in a region like Southeast Asia rather than driving. The income from a UK rental would more than cover hotels, transport and other costs... and you would be amazed how many young women there would find you absolutely adorable!

whitejohn

xylophone wrote: »

I am wondering now whether it would be possible for the OP to buy a well situated one bedroom flat and rent it out?

A good agent could take on the administration and he would have a home to return to once the adventure was over.

Yes that's a brilliant idea! I didn't want to do it with my existing house for many reasons and I wanted to remain free to relocate in case I met someone. I would feel happier if I did own a small retirement flat and it would be simpler to rent too, no garden maintenance and other bits. I can do it up after it's been rented out.
The only problem with flats is ongoing management fees but with careful selection of property type it may not be too bad.

whitejohn

Voyager2002 wrote: »

I suggest letting your home (or buying another investment property) and travel in a region like Southeast Asia rather than driving. The income from a UK rental would more than cover hotels, transport and other costs... and you would be amazed how many young women there would find you absolutely adorable!

Thanks, another brilliant idea!
I'm feeling younger already.

whitejohn

Voyager2002 wrote: »

I suggest letting your home (or buying another investment property) and travel in a region like Southeast Asia rather than driving. The income from a UK rental would more than cover hotels, transport and other costs... and you would be amazed how many young women there would find you absolutely adorable!

You have me seriously thinking about spending all of that money on a motorhome, campsite fees, driving and hassle when I could be relaxing and getting pampered !