Retirement - what to do with 500,000 cash...

EdGasketTheSecond

6022tivo said:

I find it mad when people say the government taking my money when I'm older and need a care home.

What should make you mad is the government taking your and your family's cash savings and making them worthless through zero interest rates and currency debasement so the gov. can inflate away the debt they have created.

VXman

DiggerUK said:

VXman, you don't say how old you are, no need to be specific..._

57, 11 months and 15 days.

VXman

6022tivo said:

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. 

500K would not last very long in a good care home. Where would you stop, live your life with no holidays, running a 20 year old Ford Fiesta, shopping at Lidl etc, etc so that you can be sure to have money for later life care....and then die crossing the road when you’re 45. 

DiggerUK

VXman said:

DiggerUK said:

VXman, you don't say how old you are, no need to be specific..._

57, 11 months and 15 days.

Digger Mansions is, rounded off, in a comparable position to VXmansions, albeit +10 years.  Mrs.D still does some part time, I'm in the garden on the beer. 

Out retirement strategy was sorted a longtime ago, we moved all retirement savings in to gold, decided that we would take smaller lump sums in favour of larger LGPS pensions and to hit the bucket list whilst young and fit to travel. 
The obstacle we overcame was actually realising that this was it, we were in retirement mode. It's not traumatic, but like you we thought it through. Then we stopped overthinking, result? peace and karma.....mmmmmmh.

As advice goes I'd say max out the pension payment over the lump sum, your income stream going forward will have little chance to improve. 

Max out a combination of PB's and cash savings accounts. 

If you want to take the risk with SIPP investing and the lure of 'free money' remember the legends surrounding tales of 'free money'

Consider gold with funds you won't need to touch for 5/10 years and dripfeed in when prices fall back from current all time highs. Stop buying when you see 10 years ahead.

Most importantly, open a nice bottle, sit in the sun, open a world atlas and start sticking pins in to mark out the bucket list. Best of fortune..._

eskbanker

VXman said:

6022tivo said:

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. 

500K would not last very long in a good care home. Where would you stop, live your life with no holidays, running a 20 year old Ford Fiesta, shopping at Lidl etc, etc so that you can be sure to have money for later life care....and then die crossing the road when you’re 45. 

Strawman argument - the objection is to people deliberately trying to run down their assets specifically with a view to avoiding responsibility to pay for later life care and putting that burden onto the state instead.  Portraying self-funding as the government nicking your money is frankly bizarre, and, as pointed out earlier, even putting aside the moral argument, why would you choose to put yourself in the hands of your local authority?

Linton

VXman said:

6022tivo said:

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. 

500K would not last very long in a good care home. Where would you stop, live your life with no holidays, running a 20 year old Ford Fiesta, shopping at Lidl etc, etc so that you can be sure to have money for later life care....and then die crossing the road when you’re 45. 

£500K would cover far beyond your life expectancy in a very good care home.  Moreover the £500K would only be needed for part of the costs as you would also have most of your State Pension and other pensions/income plus Attendance Allowance available.
According to the ONS data less than 3% of the population who reach adulthood die before they reach 45.  
PS you  are more likely to reach 100 than die by 45

DireEmblem

I would buy up one of those homes in Italy for £1, and spend some money to do it up and make it a holiday home for the winter.  Actually two of them, so you can give the other one away.  the person you give one away to, can look after your holiday home for the other 9 months of the year.

ratechaser

DireEmblem said:

I would buy up one of those homes in Italy for £1, and spend some money to do it up and make it a holiday home for the winter.  Actually two of them, so you can give the other one away.  the person you give one away to, can look after your holiday home for the other 9 months of the year.

Do share... homes in Italy for £1?

I could use a retirement project. Anything going in the Tuscany/Umbria area?

Apodemus

DiggerUK said:
...we moved all retirement savings in to gold...

...your income stream going forward will have little chance to improve...

Of course, some people might suggest that these two statements are related!

DireEmblem

ratechaser said:

DireEmblem said:

I would buy up one of those homes in Italy for £1, and spend some money to do it up and make it a holiday home for the winter.  Actually two of them, so you can give the other one away.  the person you give one away to, can look after your holiday home for the other 9 months of the year.

Do share... homes in Italy for £1?

I could use a retirement project. Anything going in the Tuscany/Umbria area?

https://www.independent.co.uk/life-style/italy-village-coronavirus-covid-19-free-one-euro-homes-houses-cinquefrondi-a9562301.html

There's some catches - you have to do them up and make them habitable, but that's the point of it to help repopulate the area.