Best use for 100k

Nomini

I've managed to save nearly 70k since I started work, and can hopefully save another 10k by the end of November. At that point, it's looking likely that I'll be out of a job, but the pay-out is likely to be just under 20k. All of these figures are a little optimistic, but since 100k is such a round number, let's go with that.

Unemployed, no other assets, rented apartment. What would you all do?

puk999

Will you be expecting to get another job?

Nomini

puk999 wrote: »

Will you be expecting to get another job?

Ultimately yes, but I'm conscious that it could take a while.

On_my_way

I would probably put it in a locked high interest account and prepare to buy a house once you have a stable job.

bowlhead99

On_my_way wrote: »

I would probably put it in a locked high interest account and prepare to buy a house once you have a stable job.

If you had £100k with no other assets and needed to pay rent and didn't have a job, you would lock it away? How would you propose to get to the end of the month, or the month after that?

Nomini

bowlhead99 wrote: »

If you had £100k with no other assets and needed to pay rent and didn't have a job, you would lock it away? How would you propose to get to the end of the month, or the month after that?

I feel reasonably confident I can get minimum wage work within a couple of weeks, which would cover my expenses (around £900/m). Whether or not I should feel so confident is another matter.

mad_rich

Even once you have a stable job, it's worth having 3-6 months worth of outgoings in an easy access savings account.

And if you have any debts you're paying interest on, it makes sense to clear those.

Also anything you require for immediate exceptional spending (holiday, car, investment in your career).

Whatever you have left after that can be parked somewhere where it will earn a bit more interest and be a bit harder to get at. It's difficult if you don't know what you might want to do with it, but it wouldn't hurt to open an ISA and put £15k in there before April. You can add another £15k in the new tax year.

Nomini

mad_rich wrote: »

Even once you have a stable job, it's worth having 3-6 months worth of outgoings in an easy access savings account.

And if you have any debts you're paying interest on, it makes sense to clear those.

Also anything you require for immediate exceptional spending (holiday, car, investment in your career).

Whatever you have left after that can be parked somewhere where it will earn a bit more interest and be a bit harder to get at. It's difficult if you don't know what you might want to do with it, but it wouldn't hurt to open an ISA and put £15k in there before April. You can add another £15k in the new tax year.

Yeah, I've already hit my ISA allowance for this year. :money:

3 months expenses is £2700, no debts, investment in my career will be covered under resettlement from my current employer, I've never owned and never plan to own a car, and holidays will wait until I have a stable job. So I'm not too worried about investing the vast majority of the 100k some way. Probably keep 5k in reserve.

Archi_Bald

Look at the MSE 'savings fountain' for guidance on what to do with some of your cash http://www.moneysavingexpert.com/savings/which-saving-account

Consider a pension

racing_blue

"best use"- I would say depends on what you want from life. It is entirely personal.

Train as a pilot. Start a fast food franchise. Retire to Mali on a safe withdrawal rate of 3%. Buy a property. Cycle to Singapore via the Khyber pass. Get another job and put in in an index tracker. Give it to an orphanage in Tamil Nadu.

Nomini

racing_blue wrote: »

"best use"- I would say depends on what you want from life. It is entirely personal.

Train as a pilot. Start a fast food franchise. Retire to Mali on a safe withdrawal rate of 3%. Buy a property. Cycle to Singapore via the Khyber pass. Get another job and put in in an index tracker. Give it to an orphanage in Tamil Nadu.

You're right. I guess I'm interested in two things, as I personally am not going to give it away, retire, or jump down any maverick adventure paths.

1) What would you do?
2) Suggestions for good yield with no more than medium risk.