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So what to do with this burning hot lump sum??
jayartibee
Posts: 4 Newbie
Wife and I have received compulsory Teachers Pensions Lump Sums + arrears amounting to about £90K. It won't buy much of a Lamborghini.
Good idea to pay off 2 ½ years of fixed-rate mortgage? (35K @ 1.84%)?
Or just stick it in the best savings a/c I can find?
Good idea to pay off 2 ½ years of fixed-rate mortgage? (35K @ 1.84%)?
Or just stick it in the best savings a/c I can find?
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Comments
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savings accounts won't keep pace with inflation.
not enough info - do you need this money to work for you for your whole retirement? What other provision do you have?I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
It is good to have a savings fund for emergencies, but maybe you already have on? You need to give more info about your situation, to get better informed replies.0
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probably want to put it on ice for eighteen months or so depending on property move and so on. We don't need it for an emergency, and during full retirement the Teachers Pension + State will be sufficient (gulp!)1
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Autotrader has 30 Lambos under £100k starting from under £70k go get one.2
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Why 18 months? Is that when the other money kicks in? Or simply that you'll be moving then.
(& ignore MX5huggy - those cars are vastly over rated.) (in this weather just get any old banger as long as it has air con.)I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php
Check your state pension on: Check your State Pension forecast - GOV.UK
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung
⭐️🏅😇🏅🏅🏅🏅1 -
no - eighteen months is just a guestimate as to when we may want it for a property move0
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Therefore the original conundrum remains - pay off fixed rate mortgage (30 months left)- there is a £1700 early settlement penalty0
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Don’t pay off the mortgage you can get more than 1.84% interest in a fixed savings account so you’ll make a little bit extra, that’s before the early repayment charge.2
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Useful information - definitely do not pay off a low rate mortgage if it has an early repayment charge. As a bare minimum you can get above 2% in a savings account right now.jayartibee said:Therefore the original conundrum remains - pay off fixed rate mortgage (30 months left)- there is a £1700 early settlement penaltyI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.1 -
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