All at once

xylophone

Being a landlord is being a business owner.


It seems to me that most people think long and hard about going into any other business than  renting out property  (as property appears to be regarded a sure fire winner  and administration of the lettings something anybody can do).


Having read these boards for a long time ( and knowing the trouble and expense to which a young relative of mine was put when a certain tenant turned out far less trustworthy than he appeared), I'd say this is far from the case.


Unless the OP genuinely wants to run a business and  to put in the time to do it properly, selling up  and using the proceeds to fund  early semi - retirement could be the answer.

TVAS

You don't seem to know anything about equity based investments. 

Why not sell and have the money in the bank.

Start listening to MoneyBox, read the financial press, learn about investing, learn about taking risk. Have some understanding BEFORE you see an IFA who will always recommend you invest so he will get a fee.

Have a look at Vanguard Nutmeg.

How long are you investing for? You want a general mix of worldwide and UK funds Global Equity stay away from property funds. 

If anybody says they can guarantee you an 8% return with no risk walk away it is a scam.

The IFA might try and advise you to transfer your DB plans I would not.

Or if you to retire early you can live on the monies from the sold property until the 2 x DB and State Pensions kicks in.  

HIA

I already have a wealthify investment ISA because I took one of the bonus offers on here and I've just let it run. Other than that my savings are in premium bonds or cash in the bank. I have the forms to apply for my pensions but haven't filled them in so I'll go back to the pension modellers and run the numbers.

Nebulous2

There are some similarities between your situation and mine. 

I've just stopped public sector work with a DB pension at 59. I've also got more capital than I've ever had from a house sale. 

I have a gap until state pension kicks in, don't have my options from the LGPS yet, but I intend taking the pension, despite the reduction. That will require topping up the DB pension, though by how much isn't entirely clear. I've taken a part time job, which may not have as much work as I had hoped. 

We've split the money roughly 50/50 with half to be invested in equities for the longterm and half in cash - mainly premium bonds. 

I've gone self-invested, rather than IFA, but I may be more of a risk taker than you. 

Here's my thread about some of my decision-making. The consensus was that I was over complicating it for my level of knowledge. 

https://forums.moneysavingexpert.com/discussion/6260303/planning-a-portfolio/p1

JohnWinder

HIA said:

I just don't know where to invest the money for a decent return if I do sell the house.

It's probably simpler than you think. Once you understand it enough you can write down how to do it in a paragraph. But the beginner reading that paragraph wouldn't understand it without a good few pages of explanatory notes that were bewildering at first, and shouldn't follow something they don't understand sufficiently.

First however, anyone needs to be clear what they'd mean by 'a decent return'. Because no one can dial up a particular return, unless it's a bank deposit interest type return because that has no risk (of losing your money). That's why the professionals won't promise you a 6%/year return; you can only get what the markets are giving at your time of investing, and a bit more or less with skill and luck. If a 'decent return' is a fair return for the risk you take, then that's easier but still needs the gods to smile.

Albermarle

I've gone self-invested, rather than IFA, but I may be more of a risk taker than you. 

Also depends on the sums involved . The OP has £100 K, even if 50% goes into investments , it is a level where many IFA's would not be that interested .

MX5huggy

Nebulous2 said:

There are some similarities between your situation and mine. 

I've just stopped public sector work with a DB pension at 59. I've also got more capital than I've ever had from a house sale. 

I have a gap until state pension kicks in, don't have my options from the LGPS yet, but I intend taking the pension, despite the reduction. That will require topping up the DB pension, though by how much isn't entirely clear. I've taken a part time job, which may not have as much work as I had hoped. 

We've split the money roughly 50/50 with half to be invested in equities for the longterm and half in cash - mainly premium bonds. 

I've gone self-invested, rather than IFA, but I may be more of a risk taker than you. 

Here's my thread about some of my decision-making. The consensus was that I was over complicating it for my level of knowledge. 

https://forums.moneysavingexpert.com/discussion/6260303/planning-a-portfolio/p1

Both you and the OP and me for the future need to understand the value of delaying receiving our DB pension the % reductions are known and then % increase if we wait beyond retirement are are also known. It’s a complex calculation to know if using up the capital say over 5 years delaying taking the pension is better than taking a reduced pension and supplementing that reduced pension for maybe 30 years. 

https://www.lgpsmember.org/more/reductions.php

https://www.lgpsmember.org/arl/already-left-when.php

Nebulous2

MX5huggy said:

Nebulous2 said:

There are some similarities between your situation and mine. 

I've just stopped public sector work with a DB pension at 59. I've also got more capital than I've ever had from a house sale. 

I have a gap until state pension kicks in, don't have my options from the LGPS yet, but I intend taking the pension, despite the reduction. That will require topping up the DB pension, though by how much isn't entirely clear. I've taken a part time job, which may not have as much work as I had hoped. 

We've split the money roughly 50/50 with half to be invested in equities for the longterm and half in cash - mainly premium bonds. 

I've gone self-invested, rather than IFA, but I may be more of a risk taker than you. 

Here's my thread about some of my decision-making. The consensus was that I was over complicating it for my level of knowledge. 

https://forums.moneysavingexpert.com/discussion/6260303/planning-a-portfolio/p1

Both you and the OP and me for the future need to understand the value of delaying receiving our DB pension the % reductions are known and then % increase if we wait beyond retirement are are also known. It’s a complex calculation to know if using up the capital say over 5 years delaying taking the pension is better than taking a reduced pension and supplementing that reduced pension for maybe 30 years. 

https://www.lgpsmember.org/more/reductions.php

https://www.lgpsmember.org/arl/already-left-when.php

I think I have an understanding of that.

My situation is slightly different, as I am in Scotland, and by a strange anomaly I don't have a lump sum because I transferred my previous LGPS from England into the 2009 scheme. 

I have 32/60ths in the 2009 scheme with a NRA of 65 and what I have since acquired in the care scheme with an NRA of 67.

I haven't done all the figures but when I handed in my notice I looked at the scenario for deferring for a year and concluded it would take 28 years to 'pay back' the deferred year. 

There is also a psychological aspect. The DB pension replaces some of the income I have just given up, and will cover most of our requirements. That provides a comfort blanket, where spending from capital would cause more anxiety. 

We also have a neighbour whose property we would like to buy. The timescale for that is unknown, possibly never, depending on him, but we would like to know the money is there should the opportunity arise. 

woolly_wombat

MX5huggy said

Both you and the OP and me for the future need to understand the value of delaying receiving our DB pension the % reductions are known and then % increase if we wait beyond retirement are are also known. It’s a complex calculation to know if using up the capital say over 5 years delaying taking the pension is better than taking a reduced pension and supplementing that reduced pension for maybe 30 years. 

https://www.lgpsmember.org/more/reductions.php

https://www.lgpsmember.org/arl/already-left-when.php

Personally, I have opted to live off a combination of savings, a small GMP pension and taking lump sums/small pots in early retirement rather than take a reduced defined benefit pension early.

My thought processes, which may or may not prove correct, include:

1. I think property prices are looking rather toppy 

2. I am happy to live off fixed income for now, while inflation is low

3. I want the maximum index-linked pension later, when I suspect inflation may well take off

Incidentally, Kirstie Allsopp wrote an article in the Sunday Times a few days ago in which she expressed concerns over the current state of the property market (behind paywall):
https://www.thetimes.co.uk/article/relocators-beware-dont-rush-into-too-radical-a-change-7d9h0dnd5

She expresses the view that the stamp-duty holiday has “overheated the market” and “the fact that 17% of people are still on furlough and the economic impact of Brexit and Covid is still unknown, this feels troubling” .

Also: ”Interest rates are likely to go up a bit at some point. Have would-be buyers calculated what that would mean for their mortgage repayments?”

Plus: “If people are making financial decisions based on the fact they will be saving £5,000 a year on a season ticket, that is premature. If people are called back to work in cities, their travel and daily expenditures will soar and the impact could be felt in the property market.”

Albermarle

Similar follow up article on house prices on BBC website( no paywall)
https://www.bbc.com/news/business-56906524