What to do with sold property money?

Kostandia

I have one rental property that I will want to sell in the next few years. But I don't know how best to bank the sale proceeds. I do not want my money in anything to do with stocks & shares...the world is going mad, I have stopped trusting global economics anymore.  What other ways could I save my money that is safe and stable, and if possible, that could give me a monthly income? Or at the very least just sit stably. I'm not looking for 'profits'. I just want my money to be stable, and that I can use it  up slowly for my retirement. Would something like putting the money in trust be good?
Thank you for a few starting point ideas.

propertyrental

Under the matress is safe (if you have a burglar alarm).

For monthly income, take out what you need on the 1st of each month.

Brie

Split it into however many pots of about £80k and put each in a different banking group.  So Natwest or RBS, not both.  That way if any bank goes under (very unlikely) the money is protected.  Move any interest out when it gets to £85k.  You could move money into a cash ISA so the interest gained isn't taxable.  

mebu60

Savings accounts, up to £85k in one institution for FSCS protection. Many offer monthly interest options. 

You could put cash you don't need for first year into a 1 year fixed rate bond, first two years into a 2 year bond, etc. Perhaps use your £20k annual ISA allowance for this.

Premium bonds, up to £50k. Also tax free.

If you're not making any other pension contributions and you are under 75 you could put £2880 a tax year into a SIPP which HMRC will kindly top up to £3600 for you. Your investment selection could be a short term money market fund earning similar to savings or you could be brave and go for a generic global fund for this relatively modest investment. 

Without some form of 'profit' inflation will erode the value of your pot even quicker. 

user1977

Kostandia said:

Would something like putting the money in trust be good?

What do you think you mean by "in trust"?

theartfullodger

Allow for CGT bill you must declare & pay within 60 days of sale

Tucosalamanca

Kostandia said:

I just want my money to be stable, and that I can use it  up slowly for my retirement.

Why do you think that cash is safer than elsewhere?
Inflation will erode your money's buying power. As you get older, the pot will be worth less and less in real terms.

Sell a house today and put the money in a savings account.
Do you think that money will buy the same house in 5, 10, 20 years time?

Live long enough, and the chances are that your pot of money will only buy half or quarter of a house.

You might tell yourself that the money is safe, you haven't lost a penny, perhaps even earned a little?
In reality, inflation is silently robbing you. Cash isn't as safe as you think....

Albermarle

Kostandia said:

I have one rental property that I will want to sell in the next few years. But I don't know how best to bank the sale proceeds. I do not want my money in anything to do with stocks & shares...the world is going mad, I have stopped trusting global economics anymore.  What other ways could I save my money that is safe and stable, and if possible, that could give me a monthly income? Or at the very least just sit stably. I'm not looking for 'profits'. I just want my money to be stable, and that I can use it  up slowly for my retirement. Would something like putting the money in trust be good?
Thank you for a few starting point ideas.

This is not really a property question. You would be better asking on this forum.
Savings & investments — MoneySavingExpert Forum

However I can tell you what sort of answers you may get.

Cash savings - safe and suitable for money you might need in the next 5 years, but in the long term the value will be eroded by inflation, so that is a risk.

Investments ( stocks and shares) - best for money for the long term, which means over 10 years. Plus some cash for emergencies.

For the medium term a mixture of both .

If a financial advisor said to you it would be better to stay in cash for the next 10,20, 30 years, they could be sued for giving such bad advice.

There is no point putting the money in a trust.

tacpot12

You say the world is going mad, but I bet if you review your post when you have sold the property you will see that the world is in a very similar situation AND yet everything has continued as normal - there is food in the shops, the NHS is providing health care for people in the UK, you have paid your council tax and income tax, and the bins get emptied.

The 'World' is not as bad (for us safe in the UK) as some would want you to believe, and there are many forces aimed at keeping it functioning well, and only a few malign operators that are trying to destabalise things. The longer we remain productive, the harder their job becomes IF governments and companies make investments that build resillience into society and their businesses.  

The risk of disaster is always there, but you can diversify your investments (including using savings that pay an interest rate) as a way of avoiding the worst risks. I have my life savings invested inthe Stock Market and have a very healthy income from it. I stopped working when I was 53 two years before Covid, and we have since had a war in Ukraine, and the Middle East, and yet still the large businesses that I am invested in continue to thrive.

BungalowBel

We are in a similar position and have wondered exactly the same question!  We already have a decent amount in Premium Bonds, (but not the maximum), so we could put some in there.  Don't know what to do with the rest, so thanks for the suggestions.

Albermarle

BungalowBel said:

We are in a similar position and have wondered exactly the same question!  We already have a decent amount in Premium Bonds, (but not the maximum), so we could put some in there.  Don't know what to do with the rest, so thanks for the suggestions.

It all hinges on your age, current financial position, mortgage or other debts , objectives, employment, pension situation, family situation, risk tolerance etc 
So there is no one answer fits all.
However the answer to similar questions tends to be usually not to just focus on doing one thing with the money, and spread it around between savings, investments/pensions, pay off mortgage and maybe have a nice holiday !