I've recently come into the possession of a big chunk of money and I don't know what to do with it. It's sufficiently big that even after exhausting my appetite for coke and hookers there will still be a sizeable amount left. The easiest thing would be to add it to other investments in a variety of Vanguard Lifestrategy funds, but at the same time I'm thinking of keeping some in eg money market funds for safety, given this is an amount I really can't afford to lose. What should I be thinking of?
after exhausting my appetite for coke and hookers
You'll need a bulk purchase of Greggs to refuel.
I don't have anything useful to add as this is not a problem I have/am ever likely to have, sorry, for me mostly 😉
Boring answer, clear out all your debts. Do you still have a mortgage? Car on loan / PCP? Credit cards, phone contracts... Immediate family you can help out?
Pension scheme?
When you say 'for safety', how safe?
Premium Bonds, (edit to add...and some other National Savings Bonds for various periods)
Cash ISA
Bank or Bldg Soc 1, 2 or 3 year Bonds (convert some to ISA each year after this one)
Those are the first 'safe' options that occur to me.
There's some pretty fancy bikes out there...................
Boring answer, clear out all your debts. Do you still have a mortgage? Car on loan / PCP? Credit cards, phone contracts... Immediate family you can help out?
Only if the debt costs more than you can make on the money, its not always prudent to pay off debt.
Maximise ISAs (before Labour stop you doing it)
Anything more than that depends on how much money it actually is are you talking £10s k or £100s k
Decide what you’re going to do with it first. Buy/size up. a house, invest for yourself, invest for children etc.
Where you put it depends on your risk appetite and time frame. However there is no such thing as risk free, because “safer” investments tend to get eaten by inflation over the longer term.
LQQS.
Right now i'd not be dumping masses of it into any one thing.
Euros/£/$/Gold/BTC/ETH or your usual investment portfolio would all be on my radar
Speak to a financial adviser...then buy a couple of bikes. Don't bother about the coke and hookers, only measurable return on those is likely to be regret when you realise the amount of money spent!
Boring reply - we don't have any debts. We're retired so we'd prefer that the money (it's from the sale of a property, so not small but not vast) doesn't go up in smoke as there's only so much I can replenish by getting a job at B&Q.
Buy an ox and watch your neighbours covet it
I'm happy to offer a bank account to put it in that you can't access. I will then keep it safe.
We're retired
How near death are you? What's your income like otherwise? Do you want to spend it, or leave it to others?
easiest thing would be to add it to other investments
This line suggests you are already in a comfortable position, so does it really matter where you put it – as long as it is safe and earning some reasonable interest, there's loads of places to put it. I do tend to agree with the Premium Bonds idea – you'll get a reasonable return and you always get the beginning of the month 'rush' when you wait to see how much (if anything) you've won.
But, as others have asked – is there anyone that you want to leave an inheritance to?
Usual suspects - pay any money you can into tax sheltered vehicles - ISA & pensions, premium bonds if you pay more than base rate tax, spread of deposits. If you are a higher rate tax payer and happy looking at investments then investigate the subject of low coupon gilts.
Maybe find a crowdfunder you would like to go in on?
I would tend to split it up. You sound as if you are already quite organised and have investments so I might split it between the investments you already have, something like renovations that improves quality of life and then something fun. The usual 'safe' stuff such as bonds seems a bit pants at the moment
How near death are you?
Depends on my wife not finding out about the previous coke and hookers incidents.
Have a look at the Grand Designs thread for inspiration. A fast EV to drive around Siverstone, the Nurburgring... . 😉
If it's surplus, you're retired and n don't have kids get a kick out of it by helping people who you think deserve it.
An uncle of mine does this and he's the happiest person I know
If you want to invest it and hope to leave it to your children, just give it to them now when they will be able to make good use of it.
Obviously I'm making wild assumptions about your family structure which may be completely wrong or irrelevant, in which case do something else! To be fair you haven't given us a huge amount to go on...
Buy an old Aston Martin and do some epic road trips, or buy an old Porsche so's you actually get home from them.
If my post makes no sense to you DrJ it's because I once again confused you, a GP with DrP who is a PhD into interior design and fast EVs.
In your case all I can suggest is a new bike and a locum for a few months so you can take a real holiday.
As above, if no debt then max out pensions and ISAs, or if you don't need it then pass it on to the younger generation as it could make a huge difference to someone's life in the long term. We (gen x) got relatively lucky in the grand scheme of things... so pass some of that luck on if possible.
as a retired couple that spend very little, but love to cycle abroad, i would take a cycle tour of Europe.
ferry to Holland, turn left and keep on going, kind of north, east, south and west.
If you are retired then I would be thinking about passing on a fair chunk to any offspring/grandchildren in the most tax efficient way to avoid future inheritance tax. It is nice to see them enjoy it/have less pressure while you are still around to see it.
I'm happy to offer a bank account to put it in that you can't access. I will then keep it safe.
I'll keep it safer. Honest guv.
In your case all I can suggest is a new bike and a locum for a few months so you can take a real holiday.
You can get a locum in to take over for you from being retired for a bit?! Damn, that's a profession I'd have been bloody great at!
So DrJ is the EV and Scandanavian interior design catalogue abode and I'm terminally confused.
As a few have already said, if you're in a good position anyway get the bugger spent on the people you love. Starting with me. XOXO
If it's a large enough amount that if you spent 25 percent of it that it would still be a large enough amount to invest properly and see some returns then spend that 25 percent on a holiday. If you have kids / grandkids take them on a family holiday , if you don't go somewhere you've always wanted to see but have never been able to .
You're a longtime dead , no point being the richest person in the graveyard etc etc
I'm happy to offer a bank account to put it in that you can't access. I will then keep it safe.
I'll keep it safer. Honest guv.
I'm happy to offer to administrate a bank account on your behalf and can assure you the money won't be safe but it will have a lot of fun...
Charity? There is a lady in 11 Downing St who us apparently a bit short at the moment.
Well duh
@edukator ...you're mixing up your Drs!
"A fast EV to drive around Siverstone, the Nurburgring... .
"
As you correctly noted, is me. And alas, no spare cashola floating around for me!
"If my post makes no sense to you DrJ it's because I once again confused you, a GP with DrP who is a PhD into interior design and fast EVs."
Erm..I'm a GP..maybe DrJ is a designer??!
DrP
Erm..I'm a GP..maybe DrJ is a designer??!
Not a designer. Or a GP. Or a medical type of any description whatsoever. I do like Scandi stuff and own an EV.
Without wanting to sound too sandal-wearing, consider chucking £1k of it in the direction of your local homeless charity?
Well, if you like Scandi stuff, I am in Sweden and can loan you a bank accou... Dammit, that's been done.
Not much to add to what has been said, but I would think more towards Premium bonds (short-med term) and then ISA and pension with the rest, leaving enough spare to cope with something like a new boiler, or maybe kitchen
I'd average it into VWRP over the course of a year and chill, then transfer £20k over to your S&S ISA each year.
Or, put some of it into a SIPP, then VWRP, depending on your retirement timeframe.
Coke and hookers was the tenth reply, this place is going to the dogs.
Ask a professional?
I have to say, that unless you have enough money to qualify for wealth management services, for personal finance, asking a professional is an area where you invariably get given bad advice that costs you in the long run.
However you do need to take the time to understand what you are investing in and what the risks you are taking are. However the same applies if you are using a “professional”. Invariably, once people do understand, they realise that professionals don’t add value.
asking a professional is an area where you invariably get given bad advice that costs you in the long run.
Last time I asked a professional it cost me a lot of money cos he invested it in a scam project. Caveat emptor and all that, but it left me with a sour taste.
Yes. The problem with asking a professional in personal finance is that turkeys won’t vote for Christmas, and they won’t tell you that there’s no good evidence that professional financial advisors add value for the majority of people.
Not a designer. Or a GP. Or a medical type of any description whatsoever. I do like Scandi stuff and own an EV.
Ha! You're a retired basketball star!
Who used to have a great line in Converse basketball boots?
^Nice - now I want to play One on one: Dr J vs Larry Bird.
I've recently come into the possession of a big chunk of money and I don't know what to do with it. It's sufficiently big that even after exhausting my appetite for coke and hookers there will still be a sizeable amount left. The easiest thing would be to add it to other investments in a variety of Vanguard Lifestrategy funds, but at the same time I'm thinking of keeping some in eg money market funds for safety, given this is an amount I really can't afford to lose. What should I be thinking of?
Pinarello dogma x, myway with princeton carbon works rims