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  • FIRST POST
    • capital0ne
    • By capital0ne 7th Jan 18, 3:50 PM
    • 524Posts
    • 254Thanks
    capital0ne
    What would you do with 10k, 20k, 50k, 100k, 500k
    • #1
    • 7th Jan 18, 3:50 PM
    What would you do with 10k, 20k, 50k, 100k, 500k 7th Jan 18 at 3:50 PM
    Question I asked my colleagues at work.

    What would you do with 10k, 20k, 50k, 100k, 500k
    Answers I got were:
    10k - holiday or new car
    20k - holiday, new car and maybe do something to their home
    50k - big family holiday. new cars, help kids
    None could make anything different wuth very large sums of money, but one striking theme was no one mentioned investing or contributing into their pension?
    They dis say saving was waste of time because of low interest rates, but no one seemed to understand the affect of 3% inflation.
    Quite an eye opener, but to be honest to me it wasn't really unexpected.
Page 3
    • Prism
    • By Prism 10th Jan 18, 11:11 AM
    • 363 Posts
    • 281 Thanks
    Prism
    I do have 10k: this is an inheritance and Im unlikely to have significantly more: I want to save it and make the most of it. I see people saying invest: in what way would you invest it to gain the most from it?
    Originally posted by Alexmerris
    Typically when people say invest they mean a stocks and shares ISA or their pension funds - basically the stock market.
    • Ray Singh-Blue
    • By Ray Singh-Blue 10th Jan 18, 12:20 PM
    • 397 Posts
    • 518 Thanks
    Ray Singh-Blue
    Interesting question & I initially posted "invest it".

    To flesh that out a bit, I'm a simple guy, have all the modest material things I want, so would not need to spend any. It would all be about meeting future aspirations: paying off the mortgage, seeing the kids through university, and ensuring a future income stream once no longer working for money.

    An extra 10K, 20K or 50K would not make much difference, but an extra 100k or especially 500K would make me look again at the numbers and probably look to start working less if I could wang it.
    Last edited by Ray Singh-Blue; 10-01-2018 at 12:39 PM.
    • gingercordial
    • By gingercordial 10th Jan 18, 12:29 PM
    • 1,160 Posts
    • 1,198 Thanks
    gingercordial
    10k, 20k, 50k - add to house deposit savings

    100k, 500k - proceed to buying a house (I'm in London so would still need a mortgage with the 500k deposit, just much lower!)

    As for pension contributions - I take (and have always taken) full advantage of matched contributions at work and have made some additional contributions this tax year, but the house deposit is the main focus for the next couple of years.
    • movilogo
    • By movilogo 10th Jan 18, 1:16 PM
    • 2,337 Posts
    • 1,569 Thanks
    movilogo
    Not surprised, most people don't get the concept of investing. This is why most lottery winners buy liabilities and become penniless after few years.

    People either earn compound interest or pay it
    Happiness is buying an item and then not checking its price after a month to discover it was reduced further.
    • Ray Singh-Blue
    • By Ray Singh-Blue 10th Jan 18, 1:25 PM
    • 397 Posts
    • 518 Thanks
    Ray Singh-Blue
    5O k - one third spend (beauty, new shed etc)
    Originally posted by justme111
    Assuming you are female... are you available to give my wife lessons?
    • Morphoton
    • By Morphoton 10th Jan 18, 1:34 PM
    • 83 Posts
    • 70 Thanks
    Morphoton
    10k, 20k, 50k, 100k - Invest.
    500k - invest and retire !
    But then I am in my early 50's and working towards early retirement anyway.
    • Teacher2
    • By Teacher2 10th Jan 18, 3:48 PM
    • 331 Posts
    • 2,571 Thanks
    Teacher2
    Give the first three amounts of money to my kids for house deposits and school fees. With half a million I'd do the same and keep some to invest for my older age.
    • JustAnotherSaver
    • By JustAnotherSaver 10th Jan 18, 9:26 PM
    • 3,013 Posts
    • 495 Thanks
    JustAnotherSaver
    This is true. The wealthier you are, the smaller the % of your wealth you will spend.
    Originally posted by economic

    • Snakey
    • By Snakey 10th Jan 18, 9:30 PM
    • 1,064 Posts
    • 1,282 Thanks
    Snakey
    Up to 50k - bring forward the flat refurbishment plans, although that requires effort and I'm lazy so I might just throw it at the mortgage when the fixed rate runs out next year.
    100k - as above plus look in to extending the lease on my flat so that it's done.
    500k - bring forward the retirement plans by 2-3 years, which I suppose is another way of saying "invest it".

    In theory listening to somebody talk about what they'd do with certain sums of money tells you a lot about them. In practice, people tend to be consistent and the ones who'd blow it all on something they could show off in the pub or on Facebook are the ones you'd expect would do just that. (And good for them - I sometimes wish I found it easier to spend money instead of having such terrible trust issues re: the willingness of "society" to support me should I ever fall on hard times.) That said, I suppose if what somebody would really do is e.g. leave their husband, they wouldn't tell you.
    • SamSam17
    • By SamSam17 10th Jan 18, 10:17 PM
    • 67 Posts
    • 146 Thanks
    SamSam17
    From the 10k I would probably spend 5k for holiday/buy few luxury items and save the other half (ISA)

    20,50,100, and 500 I would spend around 10% on myself and invest the rest.
    • pennystretcher
    • By pennystretcher 11th Jan 18, 6:00 PM
    • 386 Posts
    • 1,448 Thanks
    pennystretcher
    10k & 50k - additional pension contributions (APCs) - I'm on LGPS.
    100k - 50k APCs, 50k tuck away somewhere hopefully making a bit more over time and stop working couple of years earlier than planned.
    500k - 50k APCs, 450k invest/save and stop working.
    Last edited by pennystretcher; 11-01-2018 at 6:36 PM.
    Mortgage free
    • pennystretcher
    • By pennystretcher 11th Jan 18, 6:30 PM
    • 386 Posts
    • 1,448 Thanks
    pennystretcher
    Question I asked my colleagues at work.
    What would you do with 10k, 20k, 50k, 100k, 500k
    Answers I got were:
    10k - holiday or new car
    20k - holiday, new car and maybe do something to their home
    50k - big family holiday. new cars, help kids
    None could make anything different wuth very large sums of money, but one striking theme was no one mentioned investing or contributing into their pension?- - -
    Quite an eye opener, but to be honest to me it wasn't really unexpected.
    Originally posted by capital0ne
    I'm not surprised you got that kind of answers. In the past I have mentioned that I am overpaying my mortgage and the responses I got were along the lines of "but you have to enjoy your life now" or "I can't afford to pay any extra" followed by 'last week/month I bought X/Y/Z' and that X/Y/Z is a luxury item bought on a whim and without price comparison etc.... ...I'll drink a toast to them after I stop working and they keep complaining about having to work...
    Last edited by pennystretcher; 11-01-2018 at 6:35 PM.
    Mortgage free
    • Mnd
    • By Mnd 11th Jan 18, 8:38 PM
    • 545 Posts
    • 644 Thanks
    Mnd
    Up to 50k I would use to complete my wife's early retirement bridge..but I would be getting my Nissan leaf or similar as well
    • chucknorris
    • By chucknorris 11th Jan 18, 8:59 PM
    • 9,581 Posts
    • 14,366 Thanks
    chucknorris
    I'm not surprised you got that kind of answers. In the past I have mentioned that I am overpaying my mortgage and the responses I got were along the lines of "but you have to enjoy your life now" or "I can't afford to pay any extra" followed by 'last week/month I bought X/Y/Z' and that X/Y/Z is a luxury item bought on a whim and without price comparison etc.... ...I'll drink a toast to them after I stop working and they keep complaining about having to work...
    Originally posted by pennystretcher
    My response would have been very different (I never understand why people like you can't see this):

    My mortgage is only about 1%, but my dividend income is about 4%, it would be insane for me to pay off my mortgage. Additionally if you don't have 100'sk invested (I do) the dividend income is tax free.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now mostly hike, gym classes and weight training (also a bit of cycling and swimming), less impact on my joints.
    • economic
    • By economic 11th Jan 18, 9:15 PM
    • 2,940 Posts
    • 1,586 Thanks
    economic
    My response would have been very different (I never understand why people like you can't see this):

    My mortgage is only about 1%, but my dividend income is about 4%, it would be insane for me to pay off my mortgage. Additionally if you don't have 100'sk invested (I do) the dividend income is tax free.
    Originally posted by chucknorris
    Right before i quit my last job i released equity from my property (just over a year ago). Borrowing at 1.5% fixed for 2 years, is a no brainer. I invested the money in the stock market.

    My ltv is around 45% which i think is still a bit low since i am only 34, but to get the best rates the max ltv would have been 60% anyway so not much difference.
    • justme111
    • By justme111 11th Jan 18, 10:54 PM
    • 3,000 Posts
    • 2,899 Thanks
    justme111
    Assuming you are female... are you available to give my wife lessons?
    Originally posted by Ray Singh-Blue
    about shed or about beaity ?
    You may not want me to do it - I often envy women who have spending on their appearance as a priority.
    • pennystretcher
    • By pennystretcher 12th Jan 18, 9:41 AM
    • 386 Posts
    • 1,448 Thanks
    pennystretcher
    My response would have been very different (I never understand why people like you can't see this):

    My mortgage is only about 1%, but my dividend income is about 4%, it would be insane for me to pay off my mortgage. Additionally if you don't have 100'sk invested (I do) the dividend income is tax free.
    Originally posted by chucknorris
    Some of my OPs came from interest from savings or money I have made from selling some of my shares. I decided paying off mortgage was the way to go for me rather than to re-invest at this point of time.
    Mortgage free
    • chucknorris
    • By chucknorris 12th Jan 18, 1:12 PM
    • 9,581 Posts
    • 14,366 Thanks
    chucknorris
    Some of my OPs came from interest from savings or money I have made from selling some of my shares. I decided paying off mortgage was the way to go for me rather than to re-invest at this point of time.
    Originally posted by pennystretcher
    But if your shares make more money than you save from not paying the mortgage interest, then you could pay your mortgage off quicker. Unless of course your mortgage rate is higher, in which case that would be the rationale for not doing so.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now mostly hike, gym classes and weight training (also a bit of cycling and swimming), less impact on my joints.
    • movilogo
    • By movilogo 12th Jan 18, 1:37 PM
    • 2,337 Posts
    • 1,569 Thanks
    movilogo
    If I get 500k suddenly, half of the amount I shall give away to MSE forum members.
    Happiness is buying an item and then not checking its price after a month to discover it was reduced further.
    • chockydavid1983
    • By chockydavid1983 12th Jan 18, 1:47 PM
    • 583 Posts
    • 354 Thanks
    chockydavid1983
    Only half? Seems a bit stingy...
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