Long and complicated post... Sorry!
More by luck than good judgement, having just hit 40, I'm in an enviable position right now where I'm accruing spare cash. Of course, there's some reasons behind this... I'm in a relationship with my GF, where we split everything 50/50... Mortgage, bills, the lot (OK so if we go anywhere, I'll tend to pay for the hotels and let her pick up the food costs just to give her a bit of leeway, but that really is it). She doesn't live hand to mouth, she has a good job, but she has 2 teenagers that she hasn't had a penny of maintenance money for from their father (he's long term sick, chronic emphysema) and she doesn't earn as much as I do anyway. She's lucky to save £100-150 a month, where due to various reasons (better paid job with better perks, selling off assets I no longer need etc.) I'm saving 10x that each month right now easily! In fact, with what I have in the bank right now, the sale of 2 motorbikes I no longer use (keeping the one I do), various cycling equipment that I no longer use personally or is left over from the closure of my shop etc... I could easily pull £20k together in the next couple of months, as aside from bikes (and motorbikes) I really don't have particularly expensive tastes!
Then there's the other worrying factor... I am notoriously terrible with cash in the bank, and will find ways to spend it if I don't have a plan!
So... What to do with it...? I'm aware of the stock "coke and hookers" answer, but also acutely aware that it might not go too well with the GF. There's also the realisation that both these things have the potential to be highly addictive, and that £20k probably won't get me very far, and it will quickly turn into a habit that needs financing somehow! 😉
The obvious answer would be mortgage... We're due for renewal in 4 months or so, I could bung a load into the house, get a much better deal where we have more equity and lower monthly payments etc. But like I said above, the GF and I do EVERYTHING 50/50 when it comes to bills etc. We're both happy with this and don't wish to change it.
So what to do with it? Savings interest rates are the worst in living memory, next year's holiday is already paid for (by virtue that it was cancelled this year, and I was given vouchers which I've already used to rebook it). I already have a car (that I don't need) that I barely use, so upgrading that whilst it might seem fun, wouldn't make any sense. I don't need any more bikes, with 3 MTB's and 2 road bikes it's firmly "1 in 1 out" now anyway purely in terms of space, and 3 of them barely get used anyway... Really, I'm having an existential crisis where I've realised I have far more "stuff" than anyone could ever need, but even worse than that, I can't see a way to do anything more positive with the spare cash than to accrue more "stuff" right now sadly...
My best mate says to put it into the mortgage anyway, then just get a lawyer to write into the mortgage agreement that should anything unfortunately happen and we split or had to sell the house for other reasons, that I get the first £20k before anything else is split 50/50... However I'm about as trusting of the legal system as I am of inner tubes! Also the GF doesn't like this idea either, as it takes away from the 50/50 thing. She's not likely any time soon to have any more expendable income either, especially if her kids go to uni... There's also the fact that if we did split up, she wouldn't be able to afford to buy me out in a month of Sundays as it is, let alone if I've put an extra £20k in. I know I'm perhaps looking into this too deeply, but her ex husband cost her a LOT of money (they had to sell their house to pay off his gambling debts, he is an alcoholic, she had to work whilst he stayed home trying to get signed off "long term sick" which he finally achieved 2 years after she saw sense and left him), and she's only too conscious herself of the need to keep it all 50/50 and clear and transparent at all times otherwise money can become a problem in a relationship...
I'd go into Classic car buying an selling, but I don't have anywhere to store them, and realistically I don't have the contacts to get the deals that are going to make the money anyway (those I know that do, all have 30yrs+ in the trade!). I could invest in a better "family" car, but I can count the number of times in the last year that all 4 of us and the dog have travelled anywhere together on the fingers of one hand... 2.5x over in fact! The GF's BMW is fine for now anyway, it does a lot less miles now than it did 18 months ago, and at 12 years old with many big scary bills behind it, it's at the point of running it into the ground over time now anyway, and as a mother of 2 teenagers and a Labrador, a car is a mode of transport at best and a workhorse, so whether it's worth £3k or £30k, it'll get full of dog hairs quickly enough. My own car may also have to be sacrificed soon enough due to space reasons alone, as it is a pure luxury that I have to find a reason to use (we did 700 miles in it over the long weekend just gone, a Wedding near Newton Abbott was a good excuse, we took the long way home via Lands End of course!) as it doesn't move without a reason, and the GF's eldest is 17 in 3 months and will need to be able to park on the drive whatever underpowered rotbox he gets the privilege of driving in, otherwise he won't be able to get insured on it!
We do need to redecorate the house at some point, but beyond a lick of paint and new carpets (which is probably £1500 in materials and a few weeks of our time), I'm not spending anything else on this house as it has been purchased as a stepping stone... Our longer term goal being to rent this one out when her kids have flown the nest, and to buy somewhere more suited to the 2 of us in the countryside and with a an even bigger garage for bike storage and workshop.
Thoughts...? The idea of investing in anything that requires me to lock the funds in, also scares me, just in case I needed them for whatever reason... It's one thing to have to sell a car a little sooner than expected, it's something entirely different to miss out on the house of your dreams because you had all your capital tied up in an investment for 3-5 years that was only yielding 5% ROI anyway...
the stock “coke and hookers“
Some times the old ways are best.
NSI & I income bonds account. 1.1% paid monthly instant access let it sit until you need it. Keep adding to it (is uses direct bank transfer) if you want to.
Offset mortgage? Are those still a thing?
That way you're lowering your payments, or paying more off the capital sum every month and you can still do it 50/50 and not upset the status quo.
Sold my house and now living in a rental waiting to have a new one built. Depends on your level of risk (speak to an IFA) or just put it into Premium Bonds and hope you get lucky.
Reduce mortgage, it will save you both lots so swallow the pride of 50:50.
Pension - you could put it all in?
Savings - I'd be tempted by a stocks and shares ISA.
SRAM ELECTRONIC gearing etc then flog on for what you bought it for 😜
By an awesome guitar.
Find a forum for financial advice? Or spend it on bikes.... the time taken to write all that could have been well spent elsewhere. However, if you need emotional support we’re all here for you.
How much/little are you prepared to risk?
If none then NS&I or premium bonds.
If a little, say £2-5k...bank shares as they're very cheap or Fundsmith; there's a view that bank shares are cheap for a reason but I can't see this gov allowing any of the high street banks collapse and dividend payments which are currently suspended will resume - possibly next year. Fundsmith won't go pop - look at the investment portfolio.
Other than that, hope your good fortune continues.
Stocks and shares ISA. You can pretty much choose what you do in terms of risk and it’ll perform way better than a savings account.
My ISA was a net loss at the start of lockdown, now it’s 12.5% up.
Of course you could always withdraw the profits you make and use them to fund something a little more exciting if just having an ISA seems a bit dull.
ISA’s can go down as well as up, I’m not a financial advisor etc etc etc.
Some one way cables for the stereo?
Find someone else with similar amount if cash and buy a small buy to let together?
Shares.
If you put it anywhere (savings) at less than inflation you simply lose money.
Personally - lock it away and forget you had it. Then in ten years, take a peek.
Think about dumping a chunk into pension. Maybe not all of it, but then if you're saving money each month perhaps a good chunk. You'll get the tax benefit they easy too.
Find a forum for financial advice?
There has been, in the past, a huge amount of good advice given on this forum for a variety of different things, including finance. Also, it's probably far easier for me to explain to a group of people on here my thoughts and concerns, and that my only real concern is bikes (imagine going on a forum where someone is telling you to sell all of your bikes except for one, as nobody can ride more than one at a time. I don't need that kind of negativity in my life!) or possibly travel... Or why I don't feel the desperate need to put a brand new £40k motor on the driveway that will never get used, just to keep up with the Jones'!
By an awesome guitar.
And do what with it (assuming you meant "buy" and not "by" here...)...? Cos I sure as shit can't play one!
Find someone else with similar amount if cash and buy a small buy to let together?
I think I'd rather burn it than add any more stress in my life, getting financially involved with other people with different financial aims and goals to myself! It's stressful enough owning a house with my GF, and she's so chilled out that as long as she has more money (even £1!) left in her bank at the end of this month than she did at the end of last month, she's happy. I have traditionally been pretty bad with money, but gave myself an enforced kick up the arse about 6yrs ago to sort things out in the vain hope that one day I could buy a house etc. Well done that, reaping the benefits, and now trying to move onwards and upwards even more without getting distracted and returning to my old ways... 😂
Stocks and shares ISA. You can pretty much choose what you do in terms of risk and it’ll perform way better than a savings account.
My ISA was a net loss at the start of lockdown, now it’s 12.5% up.
I've got one. Not much money in it though. Did have about £2k in it, got a bit jittery with all the Coronavirus talk on the news, and took it all out just before the stock market crashed... Just as well too, would have lost over 10% overnight! Slowly been putting a bit back in (Standing order of £10 a week) into it since the economy has started recovering. Im only about 3% up, but at least I wasn't over 10% down!
Offset mortgage? Are those still a thing?
Great shout! I didn't know they still existed... Seems to be that could make a lot of sense.
Only downer I can see is the crap interest rates on most of them. I guess I will need to shop around.
If none then NS&I or premium bonds.
Looks a good shout, even if I only put a couple of grand in there. I like the fact that you can put more in, or take it out with ease.
I’ve got one. Not much money in it though. Did have about £2k in it, got a bit jittery with all the Coronavirus talk on the news, and took it all out just before the stock market crashed… Just as well too, would have lost over 10% overnight! Slowly been putting a bit back in (Standing order of £10 a week) into it since the economy has started recovering. Im only about 3% up, but at least I wasn’t over 10% down!
If you're freaking out over the fact that you could have lost £200 on an ISA, take the absolute lowest risk option available with your £20k
Buy 20 grands worth of stainless Rolex sports watches if you can find any.
If you’re freaking out over the fact that you could have lost £200 on an ISA, take the absolute lowest risk option available with your £20k
Not freaking out, but isn’t the whole point about money that you have but aren’t spending as it’s sat in an account somewhere, that it should’ve gaining interest and not losing value...? I can make it lose value by spending it on things, and at least I’ll have some enjoyment from it. There is zero enjoyment to be derived from money if it’s sat in an account somewhere, so it has to create a return or literally, what is the point in having it...? 🤷🏻♂️
Besides, it’s not the absolute value... It’s that it would have been a 10% loss overnight. Many people had a lot more in savings, and they’re still not back to where they were prior to lockdown now!
There is zero enjoyment to be derived from money if it’s sat in an account somewhere
£20,000 credit is better than £20,000 debt. That's where I derive pleasure from having money sat in the account. My only concern would be having money losing value due to inflation, I don't need to make large returns because I'm not that materialistic. So if I were you I'd find somewhere where your money doesn't lose value from inflation...but then I'm not you so you could spend it on a once ion a lifetime experience (learn to fly for instance)...or find a deserving charity...or employ someone for a year to pick up litter as a part time job in your local area, amongst a huge array of other options.
Personally I'd go stocks and shares ISA, probably get the highest return that way, although there is always risk with shares in the short term at least. They generally always recover any losses over time as long as you have a reasonable spread.
So... Got to ask
You live with your GF, she has 2 dependants, earns less and generally has less money.
You earn so much more that you under-speed by £1k a month.
Perhaps reading a bit too much between the lines, even with a £20k surplus, you'd rather not pay down your mortgage, because the reduction in monthly payments (which will only increase your, already, hansom disposable income) would benefit your GF as much as you.
I really don't know if I envy you, or pitty you.
My Wife is magnetically opposed to money, her appetite to spending knows no limits, it's turned me into a ghoul, I bitch and moan about how much we spend, she moans about how much I moan and calls me "tight and miserly" - I explained that if we had loads of money in savings and ran a surplus every month, she's be right, but we don't and I have to battle constantly so we don't over-spend more than we already have. Now than then, I worry about the state of my mental health, I never used to be like this, I wonder if I'm over-reacting, so I shut up, smile sweetly and let her carry one - 2 weeks after our salaries (which are very generous btw) are paid, we're broke again. A couple with 2 kids and £90k+ a year income shouldn't have to worry about buying food at the end of the month.
Anyway, with that off my chest.
Assuming you love her and you've no plans to kick her to the kerb at any point, just pay down your mortgage, take advantage of the historical low rates and fix it for as long as possible and gift your GF with a slight reduction in her monthly expenditure.
If that's a bit too much like charity for you, then just reduce the term until the payments are roughly the same, it's generally the best investment you'll ever make.
Put some of it into an ISA for rainy day money.
Personally I’d go stocks and shares ISA, probably get the highest return that way, although there is always risk with shares in the short term at least. They generally always recover any losses over time as long as you have a reasonable spread.
Wouldn't argue with that either.
The way to make money is to buy stuff when it's cheap and sell it when it's expensive, but our attitude to risk usually means we only want to buy in when things are booming.
P-Jay - you sound like a candidate for a joint Bills account which you both pay into to cover Bills and food on the 1st of the month - then the both of you do whatever you like with your own remaining money in your own accounts.
They way she can spend what she likes out of her bank account and take responsibility for her own wages and spending whilst you manage yours. It would seem it might remove some stress from your relationship perhaps.
Offset mortgage or 50/50 split, pension and gold.
P-Jay – you sound like a candidate for a joint Bills account which you both pay into to cover Bills and food on the 1st of the month – then the both of you do whatever you like with your own remaining money in your own accounts.
They way she can spend what she likes out of her bank account and take responsibility for her own wages and spending whilst you manage yours. It would seem it might remove some stress from your relationship perhaps.
It's a long and slightly bitter story, but we had that, it sort of worked... I even off-set it because I earn more, but it was actually me that ****ed that up so we went for a full joint account, which I sort of regret now.
Just remember how much effort it took to save those 20k. That alone should stop you from spending it wildly.
got a bit jittery with all the Coronavirus talk on the news, and took it all out just before the stock market crashed… Just as well too, would have lost over 10% overnight!
I took a massive hit at the start of the corona bollocks (just over 20% loss around April)....however, I'm back up at over 13% where I was in March.
How about buying € then wait a few months and buy GBP. I've a feeling there might be a bit of movement in GBP imminent. I've just sold a house in France and left the proceeds in euro for that very reason. Bit black or red but looks like there's some logic behind it.
If none then NS&I or premium bonds.
Looks a good shout, even if I only put a couple of grand in there. I like the fact that you can put more in, or take it out with ease.
shove it into premium bonds, while you decide what to do long term. I'd be thinking of mortgage so that both of you benefit long term, but agree that would be problematic if you split.
I took a massive hit at the start of the corona bollocks (just over 20% loss around April)….however, I’m back up at over 13% where I was in March.
Which funds are they, out of interest? I also saw a 20% hit at the bottom, and it's just about back up to net zero now, and that's with a reasonable amount of topping up after the lowest point. Vanguard Lifestrategy btw.
Mboy, I'd agree with the others - if the risk of losing 10% of £2k frightened you, surely the only option would be pay down the mortgage and share your good fortune with your gf. My partner and I are very well matched on income and outgoings so 50:50 works fine. If I had that much of a surplus and she had none, I don't think I'd feel good about sticking to 50:50.
Get married, that will cover it
Paid my mortgage off with my 20 k last week, hurrah.
Open a Vanguard ISA, stick it all in a Lifestrategy fund (probably the 80 one), and try to forget about it.
Tax free earnings and it should have be well north of £100k by retirement age.
Offset mortgage or 50/50 split, pension and gold.
I've heard Silver is the new Gold... (IANAE)
2nd votr for vanguad
Probably an all market tracker fund with very very low managemnt costs
In fact i would do 12k off mtg, then put say 200pcm into a vanguard fund for pound cost averaging reasons, keep some for rainy day money.
Treat gf to a holiday at center parcs
Then drip feed into pension funds with the aim to get 3 below 10k as you can close out small pensions fully once over 55. I a n a i f a but this seems semsible to me
Why Sir, THIS is your lucky day, you can be a man if the future! I just happen to have some spare capacity to design you a bespoke monorail. Send me the 20k and I'll get right on the preliminary design, I take it sir would like laser lights on his monorail? Of course you would!
If OP earns enough to pay higher rate tax then a private pension and enough contributions to use a good bit of the 40% tax reluief is a no brainer.
IE if in England earning £60k then £10k pension payments can get the 40% relief.
Other than that once a rainy day fund is in place to cover the unexpected say £10k I'd stick everything else in low cost trackers. Assuming any big moves lik new house etc is 5 or more years out.
the stock “coke and hookers“
Some times the old ways are best.
Get with the times daddio, the modern stock STW answer is to buy a half decent mid-range wind-up wris****ch of some sort.
£20,000 credit is better than £20,000 debt.
Agreed. It has taken me some time to get to this position, from the former one...
Paid my mortgage off with my 20 k last week, hurrah.
Awesome! I however have approximately 85% of mine left to pay off...
Get married, that will cover it
😂
We're good ta... She's made that mistake once... I have no desire to make it at all!
Mboy, I’d agree with the others – if the risk of losing 10% of £2k frightened you, surely the only option would be pay down the mortgage and share your good fortune with your gf. My partner and I are very well matched on income and outgoings so 50:50 works fine. If I had that much of a surplus and she had none, I don’t think I’d feel good about sticking to 50:50.
Why all these assertions that I'm so risk averse...? 🤷🏻♂️ I started my own business 7 years ago, rode the good times and the bad, and only jacked it in last year after being back where I was 7yr previously and with a landlord starting to take the piss. I have dabbled with Bitcoin, I am currently a little bit up on it but was 60-70% down for a good while, after being 15-20% up on it for a few weeks... Such a volatile market, and one heavily manipulated by those with the most to gain from it! Still... It's sat there as an experiment, and after 2 1/2 years of being patient it's finally worth more than I paid for it again.
The 50:50 thing is just something both of us are very strict about, neither of us wants to be in a relationship where money is ever a cause of an argument. My GF had a lot of unsecured personal debt when I met her, mostly caused by her ex husband. She still has a few thousand £'s of personal debt too, thankfully these days it is all on a 0% balance transfer card so its not accruing huge interest any more, and she is eating into it at a rate that she will have paid it off by April 2021, so after that she'll be a few hundred £'s per month better off herself anyway. Fortunately through all of this, and with quite a bit of help planning by me, she actually has a near perfect Credit Rating score! But she was paying interest on credit cards at 24.9% for a while though, which won't have helped the amount she has had to pay back... Oh and trust me, I've offered to pay off her personal debt (it's about £4k now) and she can then pay me back monthly rather than the credit card company, but she won't hear of it and now it's at 0% anyway, she's especially adamant that she doesn't want to restrict what I do with my own money given that she has her situation fully under control. She's not going hungry or going without, put it that way. Neither of us lives particularly lavish lifestyles, I'm just lucky I don't have the dependants and also have a slightly higher salary with more perks, which accounts for my significant extra expendable income.
So… Got to ask
I'm not asking for your pity certainly P-Jay... In fact, with a combined income vastly superior to ours yet you live hand to mouth, ! I guess both my GF and I have learnt the hard way in our 20's and 30's what getting into debt does, and what is actually important in life isn't countless frivolities or keeping up with the Jones'. I'll admit, these days, I'm pretty tight. Not to the point of money getting in the way of enjoyment, but I have to justify any significant purchases to myself one way or the other. Working in the bike trade has helped with expensive bike purchases, as I don't generally suffer the initial depreciation on bike related purchases that the average consumer might, though that said, these days there's far less difference inbetween the trade prices and what the average consumer pays than there ever has been! I only really ride 2 of my bikes too, and I do look after them, so expect things to last me a decent length of time. My GF has her road bike which she loves, but even with the wheel upgrade it stands her in for less than £2500, and that's the only thing she owns (other than her car) of any note. Our main expense beyond the mortgage in our house, is food! I don't get how people fritter money away any more... Yes it's nice to have a new car on the drive, but is it worth £500 a month for 3 years, and £1500 equity in it by the end if you're very lucky?
So, I hear your pain... I know many people in similar situations, and I know that both my GF and I are petrified of being in a relationship like yours where one person spends significantly more than the other regardless of whether they can afford to or not. We have both kept our financial independence as much as possible, we have a shared account specifically for bills for which we both have a standing order going into each month from our personal accounts, but beyond that we are responsible for our own spending. What's probably caused my excess expendable income, is that until 8 months ago, I had spent the previous 6 years self employed and on an absolute bare minimum wage, and I haven't increased my spending habits significantly since getting a decent job and a wage.
Out of interest, what does your missus spend money on? I know a family of 4 locally that have a £250 per week eating out budget, on top of their £200 per week grocery budget! Thing is, they've probably only got £45k combined income roughly! I guess once something becomes habit, it becomes far too easy to justify your expenditures and very difficult to change them!
Anyway... I think for now, I'll put a few grand in Premium Bonds, I have just upped my standing order from £10 per week to £25 per week into my Vanguard ISA. We are scheduled for a remortgage in 5 months time, I'm concerned I may need to cough up a few quid anyway to push us over a LTV threshold unless a valuation is particularly kind, but that said, we both have much better credit ratings than we did when we bought the house so we should be looking at a 2% cut in the interest rate we pay on that anyway, so can drastically reduce our payments each month or cut our mortgage term significantly.
I’m just lucky I don’t have the dependants
That's not luck, that's skill!
I've been married 25 years in December and separate money is a weird concept to me - we've had a joint account since we were 23. I earn 4 x what she does, but it's all 'our' money, we both work hard and it's not measured - granted, she isn't a dick and I spend more than she does (and a fair chunk goes on the 20yr old leech / daughter we are blessed with), but there are no rules, restrictions, or splits
If we split up tomorrow, I'd gladly give her and the daughter the bricks and mortar I've (technically) paid for
If it were me I would fix your mortgage when it's due at the crazy low rates currently available and max out your ISA allowance, investing via Vanguard. Hold on tight and get ready for a roller coaster. I invested £10k 3 months ago; lost 23% in the first 2 weeks and am now sitting with a nice 15.2% return on my initial investment. If like me this is all new to you, google Mr Money Moustache and get reading. He is US based but the lessons and knowledge are transferable.
Small boat, the rest into premium bond.
TLDR...
Get an offset mortgage account where the account is only in your name.
Pension. Not Quite coke and hookers i know. But you have excess cash and need an investment. And I am assuming you are at least a basic rate taxpayer. How much of that 1.05mn personal allowance have you used up. To retire you want to be saving your age as a % of your income into some form of investment.
Buy a couple of mint Honda sp1 and sp2 bikes, they won't lose any cash and prices are in the up.
I bought a BMW Hp2 sport, cast iron cash maker that 😁
Motocross bike and a van.
Buy a couple of mint Honda sp1 and sp2 bikes
It has genuinely been considered already...
Thing is, I don’t have the storage space. I already have too many bikes hence 2 are going. I do have a “useable investment” in the form of an original Aprilia Tuono Limited, one of only 200 made and all in original condition and prices are slowly increasing for these so I’m keeping it low miles an original.
I guess what I really need is an original Foggy Rep 916SPS, they’re starting to change hands for crazy money and values are continuing to rise! 😂
Motocross bike and a van.
Don’t need the van. Have one with work anyway. Have considered an MX bike as I’m local to Apex Worcester and I’m quite good friends with the guy that runs it, but worried I’d be massively out of my depth and/or break myself. I’ve done a couple of Ady Smith’s Enduro days now so getting handier off road, I guess we’ll see, but it does appeal. It may be one for the future anyway, but not right now I don’t think.
To retire you want to be saving your age as a % of your income into some form of investment.
Got it... 40% of my take home pay on Coke and Hookers... 👍🏻 That should take care of me ever getting the opportunity to retire nicely! 😉
A deposit on a mansion somewhere in the Canary Islands to move to before Jan 2021.
A new Kona.
Obviously you would need to find a bit more money.
I think there's 3 options
Work less. Doesn't sound like you need the money, why not go part time and get more riding/motorcycling/other fun stuff in?
Trade in your bikes and motorbike for something top end. I know you don't need to, but you can easily spend £8-10k on top end bike these days without even fitting an electric motor, why not try it out, at least if you have anything a bit racy? Or get a "nicer" motorbike?
Invest it or put it in savings. But then you'll end up with more of a "problem" if it goes well, and stress if it doesn't. An offset mortgage could be an option. Also how is your pension pot? Mine *was* doing quite well until recently, I haven't got around to checking it as I've had more immediate problems.
Canary Islands
****ing terrible place to live...
Worked there for six months and the size of any of the islands is limiting.
It sounds like you’ve made up your mind, but I’m just going to put another vote out there for more money into the Vanguard ISA. From what I’ve seen, read and experienced (IANAFA) it’s time in the market rather than timing the market. Like other people here I took a hit a few months ago but it’s well up now, and certainly doing far better than the pitiful interest available in regular savings accounts. I reckon it’s that or the mortgage that’ll give you biggest bang for your buck.
Someone up there mentioned Mr Money Mustache, he’s pretty full on with his thinking but that doesn’t mean he doesn’t have some good points. For a more uh, British, view on things I quite like Monevator (and also Indeedably and Simple Living in Somerset while I’m here).
So, in the great tradition of ignoring all the best advice given, including my own, here's where the first £10k went... 😂
In my defence... I've always wanted one, the seller almost certainly under valued it, it's now a depreciation proof classic (the coupe's are already appreciating!), it's a lot more fun to drive than the TT it has replaced, the GF likes it (thank god!) and given the lack of viable foreign travel for the forseeable future, I expect it'll get used for a few UK mini breaks in the next 12 months at least so all good... I could sell it tomorrow for more than I paid for it, so in that respect, not a bad investment!
Also managed to sneak a wheel upgrade for my road bike in too (albeit I've sold a few other bits to cover the cost of the wheels), so need to get out on that and get some miles in now really!
As soon as I realise it, the next £10k will probably be going in a mix of Vanguard ISA and Premium Bonds, at least until such a position (hopefully in 5-6 months) when I change my mortgage and can overpay it without penalty. Next mortgage I'll be looking to save 2% APR anyway, so will be accruing a lot more equity in my house each month than I am currently for a given outlay. Fortunately, mine and the GF's jobs still appear totally safe even after the govt's announcements yesterday too, so as soon as I can do so without penalty, will pay off as much of the mortgage as possible whilst I can.
Nice car but...if parked outside your house, do tidy up the hedge and your neighbour's foliage is just unacceptable - by STW standards.
gold
put the spare money into the property especially if you want to rent it in future. Done wisely this will increase the value of the property and increase the rental income.
We have a small flat we rent out. Ok it was somewhat shabby but I put £12000 and a lot of my time into it. Doubled its rental value and put £30 000 on its sale value. In 7 years rental I get my £12000 back in increased rent ( or would have done if I hadn't reduced the rent due to the ruddy 'rona) and still get the capital increase
i may also be able to save say £100 p/m at the moment. its not a lot but better than my bank account sitting with a healthy balance but doing nowt.
ive got a HL s&s SIPP, and a vanguard or fidelity (cant remember which) s&s ISA.
do they cost the same to either chuck a lump sum into, or drip feed a monthly DD into? im thinking that if they charge a small amount for each transaction, then it may be better to just do 1 payment into? or am i mistaken?
and if theyre both the same, with the same tax implications, which would be better to put money into? (im 55 and want to retire at 60).
i think i asked this before on a thread but cant remember the answer and in true stw fashion i did neither at the time 😀
thanks
I've got a fair few shares in AstraZeneca. Since 2016 they have doubled in price. I don't really know much about stocks and shares, and understand this could all come crashing down, but to have 80K double in 4 years is pretty good. Will I ever take the money out of the shares is another thing, maybe I see it as a pension, or money for the kids etc, I don't fully know yet.
Godders
The first rule if investing is DIVERSIFY ... spread your risk man !!
It sounds like you dont think you've worked hard for that doubling of the money and so arent too worried about it ... but it'll be a shame to see it reduce.
Please get advise.... please please act on this matter.
And OP
Don't put money in the market for 6 months.... Investing, as opposed to saving, is a long term (read really long term) activity.
Good Luck all
Premium bond rates are shite now stick it all in some type of fund.
(Though I read recently that the bloke who predicted the sub prime crash is predicting some type of tracker fund crash...)
Godders
This is what I'd do
Transfer half over the to the wife, there's no tax implications.
Then each sell 12000 worth, again no (Capital Gains) tax implications.
Putting the funds into pensions to immediately receive 25% (more if higher earning) gain from the tax rebate.
Do that each year until your single stock holding is reduced to a far more balanced amount
MAybe one year put the funds into an ISA so you can get at some of it if needed.
Good luck
Give it to me. I will pay you back 100 per month. Promise 🙂
Sensible option is premium bonds. Everything else is risky at the moment.
Lunar:
Hold on tight and get ready for a roller coaster. I invested £10k 3 months ago; lost 23% in the first 2 weeks and am now sitting with a nice 15.2% return on my initial investment. If
Can we have an up date on this please.
Want to know if it's just me that's been poleaxed the last four weeks.
I'm down £2k since April at present.
put the spare money into the property especially if you want to rent it in future. Done wisely this will increase the value of the property and increase the rental income.
Yes, don't worry, that's the plan in future... Can't at the moment as still got another 5 months on a mortgage that we can't overpay without a heavy penalty.
Nice car but…if parked outside your house, do tidy up the hedge and your neighbour’s foliage is just unacceptable – by STW standards.
Not my house. Was a few houses down from my friends house when I parked it up on the way back from collecting it (she lives close to where I collected it from). I daren't take a pic on my driveway, as it needs weeding yet again! 😂
I mean ebike 🤷♂️
Apple shares.
NS&I rates have just cliff-edged to 0.01% (from November)
https://www.nsandi.com/income-bonds
So, as you’ve got the car, I’m going to say a couple of £5k Gold ingots.