Invest, start a new business, what to do?

ChrissieJames

My husband is about to be made redundant. We are in our early forties with 3 pre-school age children. There do not seem to be great options at the moment for replacement jobs. I am really worried about the future but realise that there are lots of choices. It would be really helpful to hear some ideas about what any of you would do in our situation on the basis that there is no suitably alternative employment.

Basic facts: we have about 1 property in Herefordshire mortgage-free valued about £600,000. The other is valued about £2.5 million with a mortgage of £1.2 million, so £1.3m equity. Both are used by us, neither are investments. We have savings of say £50,000. When my husband loses his job, although there may be a pay-off of say £300,000, we will not be able to afford to keep up the mortgage payments (currently about £5000 per month but that is on a great deal currently paying 4.25% and that runs out at the end of the year).

If we sold the larger value house and moved to the countryside, in theory we could live off the interest if we invested wisely but with inflation would this really last us with school fees until the kids leave home. Also there is of course the fact that we don't want to be sitting around doing nothing!

We could put lots of money into starting a new business - great opportunity to do something new, though I am very risk-averse and we have no great ideas for a business.

Any help would be much appreciated.
Chrissie

bartsimpson

What is your past working experience? I would advise you to start a business doing something you know inside out - don't start one for the sake of doing something 'completely new'.

ChrissieJames

Background is commercial law in large law firms, so no direct business nouse though hopefully can learn?!