Financial questions
Discussion
Hey all, I'd appreciate some thoughts/advice from you learned gentlefolk......
Little background, I've never had 'money', always earnt enough to keep a roof over my families heads, food on table etc.
Anyway, few years ago I had a bad accident which left me with a spinal cord injury and a paralysed leg, chronic pain blah blah.....the point being, I have now found myself in a decent job (42k a year) and around 40k from an insurance payout.
Now, as I say I've never had money before (I know to some folk this isn't really money, but it is to me!) And consequently I have no idea what to do with it other than jumping around between 4.6% fixed rate savings accounts every year.
Would anyone have any advice or suggestions on best thing to do with it to allow it to grow?
Little background, I've never had 'money', always earnt enough to keep a roof over my families heads, food on table etc.
Anyway, few years ago I had a bad accident which left me with a spinal cord injury and a paralysed leg, chronic pain blah blah.....the point being, I have now found myself in a decent job (42k a year) and around 40k from an insurance payout.
Now, as I say I've never had money before (I know to some folk this isn't really money, but it is to me!) And consequently I have no idea what to do with it other than jumping around between 4.6% fixed rate savings accounts every year.
Would anyone have any advice or suggestions on best thing to do with it to allow it to grow?
Swarf76 said:
Hey all, I'd appreciate some thoughts/advice from you learned gentlefolk......
Little background, I've never had 'money', always earnt enough to keep a roof over my families heads, food on table etc.
Anyway, few years ago I had a bad accident which left me with a spinal cord injury and a paralysed leg, chronic pain blah blah.....the point being, I have now found myself in a decent job (42k a year) and around 40k from an insurance payout.
Now, as I say I've never had money before (I know to some folk this isn't really money, but it is to me!) And consequently I have no idea what to do with it other than jumping around between 4.6% fixed rate savings accounts every year.
Would anyone have any advice or suggestions on best thing to do with it to allow it to grow?
Assuming you don't need the cash for expenses, I would open a vanguard ISA and split it between a Money Market Fund (VASSTAI) and a global tracker VWRP Little background, I've never had 'money', always earnt enough to keep a roof over my families heads, food on table etc.
Anyway, few years ago I had a bad accident which left me with a spinal cord injury and a paralysed leg, chronic pain blah blah.....the point being, I have now found myself in a decent job (42k a year) and around 40k from an insurance payout.
Now, as I say I've never had money before (I know to some folk this isn't really money, but it is to me!) And consequently I have no idea what to do with it other than jumping around between 4.6% fixed rate savings accounts every year.
Would anyone have any advice or suggestions on best thing to do with it to allow it to grow?
the split would depend on when you might need the money. If there is a chance you might need to spend the money in 5 years just put it all in the money fund, which will adjust to best available rates on it's own
Swarf76 said:
Would anyone have any advice or suggestions on best thing to do with it to allow it to grow?
When/what do you want it to grow for?If retirement and especially if your employer will match any extra pension contribution, think about increasing your pension contributions and using it to make up the difference so your living standard isn't impacted but you get a useful extra amount in your pension.
xeny said:
Have you considered moving it into cash ISAs so you don't incur a tax liability on the interest?
Yup for sure.£20k this tax year into a fully flexible cash ISA and the rest after April 5th 2026 into a fully flexible cash ISA.
If you trust yourself not to shove the lot into a S&S ISA I'd go with Trading 212.
Shoving some of it into some AI tech stocks for a year or two, however, may pay off.
Or just watching your daily 'free' interest ticking over in the cash ISA may be good enough for you.
I bloody love ISAs.
Get yer thieving hands off RFA ya evil lefty twunt etc.
xeny said:
When/what do you want it to grow for?
If retirement and especially if your employer will match any extra pension contribution, think about increasing your pension contributions and using it to make up the difference so your living standard isn't impacted but you get a useful extra amount in your pension.
That's not a bad idea, I'll look into that, thanks.If retirement and especially if your employer will match any extra pension contribution, think about increasing your pension contributions and using it to make up the difference so your living standard isn't impacted but you get a useful extra amount in your pension.
Swarf76 said:
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hstewie said:
hstewie said: £40K is very much real money.
Not to sound downbeat but if your situation changed and you lost your job what savings do you have before you'd be needing to dip into that £40K?
Not much, sadly, but then I've never been able to save much anyway! Not to sound downbeat but if your situation changed and you lost your job what savings do you have before you'd be needing to dip into that £40K?
Opinions will vary on the amount but you should consider making sure that you have 6-12 months of "essential expenditure" in "safe" savings IMO.
If you look at investments and things that can go down as well as up what you don't want to do it put all your money in them only to find that if/when you need "cash" you're forced to sell at what might be a bad time because the investments have lost value.
So (made up example) if you have £40K and spend £2K/month to survive maybe keep £15K in savings or something safe and quickly accessible.
You could then (on paper) take more risk with the £25K to try to grow it over the long term.
There are no right answers here though IMO it's very much a mix of your lifestyle and expenditure and your timescales and your appetite for risk
A nice and easy approach, assuming you won’t need the money in the near future, would be to keep some cash around as an emergency fund, say 5K and invest the remainder in a stocks and shares ISA (you could split this between you and your wife. So 20K for one and 15K for the other or 17.5K each) in this years allowance.
Again keeping it simple buy S&P 500 stocks. Leave it there as long as possible and you are quite likely to come out ahead of a cash ISA and don’t have to worry about which stocks to buy.
Again keeping it simple buy S&P 500 stocks. Leave it there as long as possible and you are quite likely to come out ahead of a cash ISA and don’t have to worry about which stocks to buy.
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