How to invest money from lump sum from work at retirement and sale of property

Laineyrose

I have £20,000 lump sum after working 29 years in the NHS. I have sold my second home and have £60,000 from this.  My financial advisor has suggested investment in Aviva, but his advice is going to cost me over £1,000.  Any ideas how I can make savings from the money without having to pay over a £1,000 for advice.

xylophone

Do you want to save the money or invest it or both?

https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

You might consider investing £20,000 in a stocks and shares ISA after doing some research?
A start
https://monevator.com/passive-fund-of-funds-the-rivals/
https://monevator.com/find-the-best-online-broker/

Gary1984

Invest it in L&G instead. That will be £1000 please.

More seriously putting it all into a single company is a very bad idea. Particularly Aviva where the consensus appears to be that they have consistently underperformed. 

We probably need more information about your circumstances to give any meaningful suggestions. Do you want a regular income from this money or is it just a bonus fund for big ticket items like cars and holiday? Are you happy to take out capital or do you just want to take the interest/dividends? What's your risk appetite? Have you got the full state pension? 

Put it in NS&I until you decide what to do.

EDIT: An IFA suggesting an £80k investment in a single company is such odd advice I was wondering if they meant instead to buy an annuity from Aviva? 

csgohan4

Laineyrose said:

I have £20,000 lump sum after working 29 years in the NHS. I have sold my second home and have £60,000 from this.  My financial advisor has suggested investment in Aviva, but his advice is going to cost me over £1,000.  Any ideas how I can make savings from the money without having to pay over a £1,000 for advice.

change your IFA, charging 1.67%/ 1K for a particular fund is daylight robbery

bigadaj

Gary1984 said:

Invest it in L&G instead. That will be £1000 please.

More seriously putting it all into a single company is a very bad idea. Particularly Aviva where the consensus appears to be that they have consistently underperformed. 

We probably need more information about your circumstances to give any meaningful suggestions. Do you want a regular income from this money or is it just a bonus fund for big ticket items like cars and holiday? Are you happy to take out capital or do you just want to take the interest/dividends? What's your risk appetite? Have you got the full state pension? 

Put it in NS&I until you decide what to do.

EDIT: An IFA suggesting an £80k investment in a single company is such odd advice I was wondering if they meant instead to buy an annuity from Aviva? 

It's fairly obvious that the IFA was recommending an investment into Aviva platform or potentially one of their funds, I am pretty certain the advise was not for a large single company investment. 

Albermarle

It's fairly obvious that the IFA was recommending an investment into Aviva platform or potentially one of their funds, I am pretty certain the advise was not for a large single company investment. 

Yes that was what I assumed as well .

To the OP , suggest you need to get better informed yourself about investing and make sure you are clear about the difference between saving ( safe with low returns ) and investing ( riskier but with potentially higher long term returns) 

https://www.moneysavingexpert.com/savings/

https://www.moneysavingexpert.com/savings/investment-beginners/

AnotherJoe

Gary1984 said:

Invest it in L&G instead. That will be £1000 please.

More seriously putting it all into a single company is a very bad idea. Particularly Aviva where the consensus appears to be that they have consistently underperformed. 

We probably need more information about your circumstances to give any meaningful suggestions. Do you want a regular income from this money or is it just a bonus fund for big ticket items like cars and holiday? Are you happy to take out capital or do you just want to take the interest/dividends? What's your risk appetite? Have you got the full state pension? 

Put it in NS&I until you decide what to do.

EDIT: An IFA suggesting an £80k investment in a single company is such odd advice I was wondering if they meant instead to buy an annuity from Aviva? 

Most likely funds on an  Aviva platform rather than an annuity. And certainly it won't have been investing into Aviva the company. 

Laineyrose

Thank you all for your comments. My IFA who I have had for 3 years now helped me with a self invested pension plan in which I paid £80 per month which enabled me £20 tax so saving £100 a month. This was linked to investments of this money with various businesses best ones chosen through Aviva platform according to my chosen risk(low risk). The money I made over the 3 years was only £245 and I had paid out over £300 to my IFA so really didn’t make anything as I could have set up my own self investment pension plan. Since receiving my lump sum and money from the house I would like to keep at least £30,000 for updating my property, holidays etc and investing £50,000. My gripe is whether it’s worth paying out over a £1,000 for my IFA to deal with investing the latter amount and if anyone can advise if there are other IFAs who wouldn’t charge as much. 

xylophone

The money I made over the 3 years was only £245 and I had paid out over £300 to my IFA so really didn’t make anything as I could have set up my own self investment pension plan.

By the same token, you could set up your own stocks and shares ISA.

Have a look at the links in my post above.

You might start modestly with this year's ISA allowance (£20,000).

adam06_2

I'm no expert, but the normal advise is when are you likely to need the 50k? If it's within the next 5 years then put it in ns&I/ premium bonds or something. 

If it's more than 5 years look at investing. If you don't already have one, get a stocks and shares isa you can put 20k a year into that. If you are retired maybe look at vanguads Target retirment 2025 fund, but drip it in Rather than all in a once.

respectmymonah

adam06_2 said:

I'm no expert, but the normal advise is when are you likely to need the 50k? If it's within the next 5 years then put it in ns&I/ premium bonds or something. 

If it's more than 5 years look at investing. If you don't already have one, get a stocks and shares isa you can put 20k a year into that. If you are retired maybe look at vanguads Target retirment 2025 fund, but drip it in Rather than all in a once.

/
Lump sum works better than drip feeding about 2/3 of the time and takes away all the stress. At most, I'd say the OP could consider setting up an automatic drip feed of £5k/mo over a year but that leaves you open to trying to time the market. If you get it all over and done with all at once, especially for someone new to investing, no problem.
That said, leaving £50k as NS&I premium bonds isn't a bad idea at all.