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

EdGasketTheSecond

Apodemus said:

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!

So why is that funny? Sound logic. Of course with zero or negative interest on savings there will be little or no income stream. That is one of the reasons why gold is attractive to preserve your wealth when real returns (vs inflation) are negative.

chucknorris

VXman said:

So say you had a regular pension income of around 36K (for a married couple) to pay the bills (no mortgage) run a car, put food on the table etc. and then an additional 500K for holidays, hobbies, treats.

Assuming 20 years of good health and being active what would you do with the 500K?

In your situation I would invest £300k into stocks and shares, £40k of it into a SS ISA immediately, and switch £40k (or whatever the max is at the time) annually into your SS ISA's. About £100k of it will provide tax free dividend income outside the ISA because of the £2k tax free dividend allowance. And £100k in premium bonds (prizes are tax free), when you gross up the interest they pay about the same as fixed rate savings bonds (we are doing this right now), just for a bit of fun really at the start of each month, when the prizes are drawn, but with the anticipation that over time it will not perform too far from traditional savings. I would also place about £20k in instant savings for annual spending, and the remaining £80k in fixed rate savings bonds, ready to move £20k per annum into instant access savings for subsequent annual spending.

Aylesbury_Duck

EdGasketTheSecond said:

I'd blow it all on fast cars and women

and waste the rest?