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  • FIRST POST
    • Si Clist
    • By Si Clist 11th May 18, 10:48 AM
    • 405Posts
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    Si Clist
    What to do with 40K?
    • #1
    • 11th May 18, 10:48 AM
    What to do with 40K? 11th May 18 at 10:48 AM
    I have been mooching round the forum trying to pick up some clues on what best to do with our savings but I'm getting nowhere, so ...

    My wife and I are not taxpayers, our mortgage is paid off, and if it makes any odds, I'm 70. Our only income now is my State pension plus a private pension of 50 a month (!) Can somebody please point me to whichever thread(s) will help me decide where best to put 40,000 of savings?

    Thank you
    A positive attitude might not solve all your problems, but it'll annoy enough people to make the effort worthwhile
Page 1
    • worried jim
    • By worried jim 11th May 18, 10:57 AM
    • 9,313 Posts
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    worried jim
    • #2
    • 11th May 18, 10:57 AM
    • #2
    • 11th May 18, 10:57 AM
    Stick it all on Dusty Carpet in the 14:40 at Kempton, it's never been beaten.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • soulsaver
    • By soulsaver 11th May 18, 11:06 AM
    • 1,758 Posts
    • 716 Thanks
    soulsaver
    • #3
    • 11th May 18, 11:06 AM
    • #3
    • 11th May 18, 11:06 AM
    Try a little more in-depth mooching at Nationwide, TSB, Tesco..

    ..should be able to get 12k at 5% plus another 12K at 3% for c. 1 year and maybe 500 in referral rewards. You'll need to do some research to find direct debits if you've not got enough... there's a starter for 24..so ... get on yer bike..
    • richardlionheart
    • By richardlionheart 11th May 18, 11:11 AM
    • 273 Posts
    • 554 Thanks
    richardlionheart
    • #4
    • 11th May 18, 11:11 AM
    • #4
    • 11th May 18, 11:11 AM
    Hi

    Perhaps have a chat with a local independent financial adviser ?


    Or buy a share in a racehorse! That could be fun !!!

    Cheers
    Richard
    • El Torro
    • By El Torro 11th May 18, 11:41 AM
    • 294 Posts
    • 270 Thanks
    El Torro
    • #5
    • 11th May 18, 11:41 AM
    • #5
    • 11th May 18, 11:41 AM
    What do you want this 40k to do? Generate an income? As a rainy day fund?


    If it's an emergency fund you should put it in high interest current accounts to maximise the interest.


    If you want an income from it you can invest it in funds that specialise in doing that. With 40k I wouldn't expect much more than 130 a month off that, it's more than what you're getting from your private pension at least.
    • Si Clist
    • By Si Clist 11th May 18, 12:46 PM
    • 405 Posts
    • 2,659 Thanks
    Si Clist
    • #6
    • 11th May 18, 12:46 PM
    • #6
    • 11th May 18, 12:46 PM
    Thanks folks. It's primarily a contingency fund for unpredictable expenses like new boiler, mobility scooter and/or stair lift come the day one of us needs it, and suchlike.

    I'm beginning to get a less fuzzy picture of what's what, but what's with these regular saver accounts that seem to be paying the highest interest? Why do they pay a higher rate if you put 500 a month in, say, than 6000 in one hit?

    Can't be doing with "financial advisers", btw.
    A positive attitude might not solve all your problems, but it'll annoy enough people to make the effort worthwhile
    • enthusiasticsaver
    • By enthusiasticsaver 11th May 18, 1:32 PM
    • 6,699 Posts
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    enthusiasticsaver
    • #7
    • 11th May 18, 1:32 PM
    • #7
    • 11th May 18, 1:32 PM
    High interest current accounts would probably give you the best return or put a proportion in fixed term investment. Premium bonds?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Si Clist
    • By Si Clist 11th May 18, 2:07 PM
    • 405 Posts
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    Si Clist
    • #8
    • 11th May 18, 2:07 PM
    • #8
    • 11th May 18, 2:07 PM
    ... Premium bonds?
    Originally posted by enthusiasticsaver
    Our 40K is currently still in Premium Bonds, which have paid us just 325 over the last 12 months. That's why we want to do something else with it ...
    A positive attitude might not solve all your problems, but it'll annoy enough people to make the effort worthwhile
    • stoozie1
    • By stoozie1 11th May 18, 2:25 PM
    • 567 Posts
    • 521 Thanks
    stoozie1
    • #9
    • 11th May 18, 2:25 PM
    • #9
    • 11th May 18, 2:25 PM
    5 years worth of paying 2880 into a SIPP and getting 720 a year from the treasury?
    Save 12 k in 2018 challenge member #79
    Target 2018: 24k Jan 2018- 560 April 2670
    • soulsaver
    • By soulsaver 11th May 18, 2:31 PM
    • 1,758 Posts
    • 716 Thanks
    soulsaver
    5 years worth of paying 2880 into a SIPP and getting 720 a year from the treasury?
    Originally posted by stoozie1
    .....each... and in addition to post #3...
    • FB13
    • By FB13 11th May 18, 2:52 PM
    • 124 Posts
    • 24 Thanks
    FB13
    You might want to think about creating a bond ladder. This will provide you with some liquidity for cash, give you better returns than keeping it all in an easy access account and protect you if interest rates increase in the future. When one of the bonds matures each year, use the money to either top up the easy access account and/or reinvest in a new 5 year bond.

    Maybe something like this:
    10k (or whatever you feel comfortable with) easy access to cover emergencies
    6k one year bond
    6k two years
    6k three years
    6k four years
    6k five years

    This is an American article, but it explains the concept:
    https://www.investopedia.com/terms/c/cd-ladder.asp
    • xylophone
    • By xylophone 11th May 18, 3:22 PM
    • 25,773 Posts
    • 15,226 Thanks
    xylophone
    Assuming that neither of you has ever had a Nationwide Flexdirect account, a sole each and a joint will give you 5% on a total of 7,500 for a year - you will also have access to the 5% regular monthly saver - 250 a month each.

    You might open sole and joint TSB Plus current accounts - 5% on a total of 4,500.

    If you can scrape up the necessary DDs, two Tesco current accounts each- 3% on a total of 12,000.

    You would set up same day SO's to meet the monthly inputs.

    See also https://forums.moneysavingexpert.com/showthread.php?t=5580163&highlight=2880+into+sipp
    • Si Clist
    • By Si Clist 11th May 18, 5:32 PM
    • 405 Posts
    • 2,659 Thanks
    Si Clist
    Some very good ideas there that would never have occurred to me. Thank you!
    A positive attitude might not solve all your problems, but it'll annoy enough people to make the effort worthwhile
    • Katiehound
    • By Katiehound 11th May 18, 10:26 PM
    • 4,448 Posts
    • 38,879 Thanks
    Katiehound
    and as is always said if you could switch (a defunct / donor account) to Nationwide with their 'refer a friend ' scheme you could bank a further 100, then invest the 2.5k earning 5% for the first year. Check t&cs for what the account needs to have (funding, DDs). See referrer's board for someone to help you. Once one of you has the account open you can refer 'in house' (another 200!)
    Being polite and pleasant doesn't cost anything!
    If you found my posting helpful please hit the "Thanks" button!
    Many thanks

    2018 Wombling : Entrant 8 ..2319 cc+.2205mm (2.20.5) + RK 5.21= 30.64.5
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