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Retirement - what to do with 500,000 cash...
Comments
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Reported for inappropriate imagery in my head0
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Retired 1st July 2021.
This is not investment advice.
Your money may go "down and up and down and up and down and up and down ... down and up and down and up and down and up and down ... I got all tricked up and came up to this thing, lookin' so fire hot, a twenty out of ten..."0 -
Over a 20 year investment horizon, it would not be sensible to keep the money in premium bonds. If you do that, inflation will eat into the value of your pot each year.
Over a 20 year period, inflation poses a greater risk to capital than the fluctuations of the stock market.
I would keep an amount adequate to meet my needs for the next few years in cash or premium bonds. I would invest the rest of it into a diversified stocks & shares portfolio.
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steampowered said:Over a 20 year investment horizon, it would not be sensible to keep the money in premium bonds. If you do that, inflation will eat into the value of your pot each year.
Over a 20 year period, inflation poses a greater risk to capital than the fluctuations of the stock market.
I would keep an amount adequate to meet my needs for the next few years in cash or premium bonds. I would invest the rest of it into a diversified stocks & shares portfolio.
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Audaxer said:steampowered said:Over a 20 year investment horizon, it would not be sensible to keep the money in premium bonds. If you do that, inflation will eat into the value of your pot each year.
Over a 20 year period, inflation poses a greater risk to capital than the fluctuations of the stock market.
I would keep an amount adequate to meet my needs for the next few years in cash or premium bonds. I would invest the rest of it into a diversified stocks & shares portfolio."Real knowledge is to know the extent of one's ignorance" - Confucius1 -
kinger101 said:Audaxer said:steampowered said:Over a 20 year investment horizon, it would not be sensible to keep the money in premium bonds. If you do that, inflation will eat into the value of your pot each year.
Over a 20 year period, inflation poses a greater risk to capital than the fluctuations of the stock market.
I would keep an amount adequate to meet my needs for the next few years in cash or premium bonds. I would invest the rest of it into a diversified stocks & shares portfolio.
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Audaxer said:The OP plans for the £500k over a 20 year period is to spend it on holidays, hobbies and treats as he is in the comfortable position of already having adequate pension income to meet his regular spending needs. In these circumstances, I would think he should keep about half that amount in cash savings to spend over the next 10 years, with the rest invested as he doesn't need access to until the following 10 years.0
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You would be best advised in spending a very small proportion on an independent financial adviser!
With interest rates at all time lows, there is no magic wand. The first thing I would be doing is spreading the cash over numerous banks, just in case one were to go bust!
You probably want to think about IHT planning too.0 -
burner03 said:Reported for inappropriate imagery in my head0
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I find it mad when people say the government taking my money when I'm older and need a care home.
It's like saying, why buy a house now when the government will pay my rent if I don 't have it.
When/If I need a care home, I'll be happy to pay for it like all people should be.4
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