How best to invest 50k

jrb4434

Just to start off with Ive no financial experience or background...

Early next year I will be faced with compulsory medically retirement. I will draw a monthly pension and I intend to seek further employment elsewhere as I'm only in mi early 40s.

As part of the package I will receive a tax free lump sum, 50k of which I hope to invest, long term and in the most profitable way possible.....

What advice would you give as I've not a clue....?!

xylophone

Do you mean invest or save?

Your "medical" pension is enough to support your usual standard of living?

jrb4434

The pension falls very slightly below what I earn now but I fully intend to continue to work and have no doubts even in a low paid job the wage + pension will be greater than I earn now.

I don't just want to save the cash, I'd like to make it work for me. I'm happy that this be a long term plan and although I'm not adverse to a little risk I'd like to play safe (ish) .

teddysmum

Assuming you intend to work, so won't be on benefits, you could invest the money in your own house, as the mortgage will probably be cheaper than rent.

TheShape

Probably a good idea to post some extra details.

Are you married, have a partner, children, a mortgage?

If you have a morgage, how much outstanding at what rate?

Any other debts?

Any other savings?

xylophone

You might consider a stocks and shares ISA - assuming that you have not used your allowance for this year, you could subscribe the full £15,000.

It appears that although you are being medically retired, your life expectancy is not affected?

If so, then (despite the title), this article may be of interest.

http://monevator.com/how-to-invest-for-children/

macman

'In the most profitable way' suggests that you are prepared to risk your capital, and therefore the stock market is likely to produce the best returns and growth for a long term investment. Be it through an ISA, or another route.

jrb4434

The lump sum is more than that mentioned but I also intend to cleare all debt, take a holiday etc.... The 50k is what I've placed aside to invest.

I rent at the moment and for the time being will continue to. I do have young kids so this is partly for them to enjoy in the future as and when they've enough common sense to use it wisely!

My retirement date is 2/2/17 so I had considered 15k into an ISA then another 15k in the new financial year and 20k into a Santander 123 account.

As I say, I'm no expert in these matters and I'm greteful for all the advice I can get.

Ifts

jrb4434 wrote: »

My retirement date is 2/2/17 so I had considered 15k into an ISA then another 15k in the new financial year

Just so you are aware in the new financial year (2017/18) the ISA allowance will go up to £20K.

jrb4434

That's good to know....

But is this a good way to go?

Alice_Holt

1) Emergency Fund / Car Replacement Fund held in high-interest current accounts / regular savings accounts.
2) Pension which you can access from the age of 55. Drip feed money into a S & S fund staring with small amounts then increase contributions as international markets drop (post Trump trade tariffs). If you don't need the pension you could nominate your children as beneficiaries and pass it on to them.
3) Junior ISa for your children.
4) Use some of it for treats / experiences / holidays or you and your children that you wouldn't ordinarily consider.