What to do with 30K?

gsh5112

Hi
Newbie to the world of having money to invest so would appreciate any advice from the forum.
I'm 60, have paid off the mortgage, get a pension of approx 20k pa and have recently had 2 x ISA's mature giving me 30K to invest?
I have been advised to; put it in a SIPP (but I assume I would pay tax on any withdrawal?) My partner (same age, still working, no pension) has a cash SIPP with HL so assume they would be as good as any? OR ... put it in a multi-asset investment funds such as Vanguard Lifestrategy? OR ... S&S ISA's? OR ... just put in it a fixed term savings account getting 1.4ish%
I don't mind a medium risk or locking it away for 3-5 years (considering my age I would like to spend it whilst physically able....lol). For the kids? they can have the house.
Thanks

coachman12

Hi gsh. You seem to have a comfortable retirement ahead off you, and don't forget your state pension will come along in 6 or 7 years. I'd spend it on something for yourself and partner after a lifetime of working and paying off a mortgage. 
Why not put it in one of the best fixed term account up to the date when your partner retires, then it will be ready to give you both a few "holidays of a lifetime" or that conservatory for your house or something that will be equally as useful whilst also being indulgent. I wish you a very happy retirement. Till then, just sit back and wait till the usual  MSE  suspects' posts start rolling in advising you to invest in things you've never even heard of like Costa Rican bonds or biotech shares or other depositories that will lack any celebration of your 60 years of achievement. All the best.

grumiofoundation

coachman12 said:

Hi gsh. You seem to have a comfortable retirement ahead off you, and don't forget your state pension will come along in 6 or 7 years. I'd spend it on something for yourself and partner after a lifetime of working and paying off a mortgage. 
Why not put it in one of the best fixed term account up to the date when your partner retires, then it will be ready to give you both a few "holidays of a lifetime" or that conservatory for your house or something that will be equally as useful whilst also being indulgent. I wish you a very happy retirement. Till then, just sit back and wait till the usual  MSE  suspects' posts start rolling in advising you to invest in things you've never even heard of like Costa Rican bonds or biotech shares or other depositories that will lack any celebration of your 60 years of achievement. All the best.

What on earth are you talking about? My mother always said if you have nothing useful to say, say nothing.  

grumiofoundation

gsh5112 said:

Hi
Newbie to the world of having money to invest so would appreciate any advice from the forum.
I'm 60, have paid off the mortgage, get a pension of approx 20k pa and have recently had 2 x ISA's mature giving me 30K to invest?
I have been advised to; put it in a SIPP (but I assume I would pay tax on any withdrawal?) My partner (same age, still working, no pension) has a cash SIPP with HL so assume they would be as good as any? OR ... put it in a multi-asset investment funds such as Vanguard Lifestrategy? OR ... S&S ISA's? OR ... just put in it a fixed term savings account getting 1.4ish%
I don't mind a medium risk or locking it away for 3-5 years (considering my age I would like to spend it whilst physically able....lol). For the kids? they can have the house.
Thanks

You get tax relief on paying into pension - (assuming you are 20% tax payer still working) your 30000* becomes 37500.  When withdrawing 25% of this will be tax free, you pay tax on the remaining 75% at 20% (since you already have 20k pension plus state). 

*Assuming within annual contribution limits.

xylophone

put it in a SIPP 

Do you have relevant earnings sufficient to cover a contribution of £30,000?

DiggerUK

gsh5112, don't seem to have any magic words for you, you don't seem to need them. Digger Mansions is a wee bit older than you, but is also mortgage free  and pensioned.
You're in a comfortable position, time to start hitting the bucket list. Our list is inactive for now due to lockdown with trips 'adjourned' We also decided to hit the list whilst fit, active and alive.

We put all our retirement savings in to gold, but if you don't want to wait ten years to be sure of doing the right thing just drop it all in Premium Bonds. Best of fortune..._

Albermarle

and have recently had 2 x ISA's mature giving me 30K to invest?

What exactly do you mean by 'mature' Were they cash ISA's with fixed terms ?

Anyway maybe you could think through the following sequence:

Do you just want to spend it ( as suggested above ) YES/NO or MAYBE some of it 

If you do not spend it do you prefer to keep it 100% safe in a savings account earning 1% ( easy access) to 1.7% ( 5 year fix ) YES/NO

If you do not spend it would you prefer to take a risk to invest it for potential better returns YES/NO

If YES the time scale should be absolute minimum 5 years and preferably > 10 years 

What risk level am I am happy to take - low- medium - high ( the shorter the time scale the lower the risk investment should be )

What tax wrapper would be best to hold this investment in ? Probably a SIPP if you are still in employment ( so to get tax relief)Probably a Stocks and shares ISA if not.

One further option is to copy what your wife does IF you are in employment with sufficient relevant earnings. 

Another option is to mix all three: Spend+ Save + Invest  different proportions.

gsh5112

Thanks to everyone.
Seems its time to start kicking back and enjoying.

Sailtheworld

I'd keep saving and, even without earnings, would put some in a SIPP. Tick some things off the bucket list by all means but that's going to be limited if your partner is still working.

dunroving

gsh5112 said:

Hi
Newbie to the world of having money to invest so would appreciate any advice from the forum.
I'm 60, have paid off the mortgage, get a pension of approx 20k pa and have recently had 2 x ISA's mature giving me 30K to invest?
I have been advised to; put it in a SIPP (but I assume I would pay tax on any withdrawal?) My partner (same age, still working, no pension) has a cash SIPP with HL so assume they would be as good as any? OR ... put it in a multi-asset investment funds such as Vanguard Lifestrategy? OR ... S&S ISA's? OR ... just put in it a fixed term savings account getting 1.4ish%
I don't mind a medium risk or locking it away for 3-5 years (considering my age I would like to spend it whilst physically able....lol). For the kids? they can have the house.
Thanks

You don't say what your cash cushion is. If you haven't got much "savings" (maybe the 2 ISAs you refer to were your savings?), you should consider keeping at least some of it in cash as an emergency fund. I'm 63, at a similar life stage, and my premium bonds are the investment I enjoy more than any. The monthly check of my premium bond app brightens my day, even if I don't win that month. And I can withdraw as much as I want at any time, if I decide to take a holiday or buy a new bicycle.

If you are intent on "investing" some or all of it, then something like the Lifestrategy funds are a straightforward, low-fee way to invest. With a 3-5 year time frame, maybe one of the more conservative mixes - the 40% is what I have as a big chunk of my SIPP and ISA holdings.