What would you do with £10k right now?
Discussion
Hi all, as the title suggests I’ve somehow ended up with around £10k of genuinely spare cash that’s currently just lounging around in the bank doing sweet FA.
To give a bit of perspective, I’ve got no debt and own my home outright, so this really is play money rather than “oh god I need this for bills” money. I’d love to put it to work properly rather than watch it get nibbled by inflation. I’m after your collective wisdom – sensible, boring, or mildly adventurous all welcome!
A few directions I’ve been thinking about:
• Proper investing: Funds, stocks, ETFs (S&P 500 trackers, global stuff, UK-focused, etc.)
• Income ideas: maybe half sensibly invested, half for a fun side hustle or hobby that might even make a few quid back
• Or whatever clever/creative things you lot have actually done with similar money
What would you do with £10k right now?
Equally keen to hear the horror stories so I can avoid the classic rookie mistakes!
Be gentle with me… or don’t – flame away if I’m missing something obvious.
Thanks in advance!
To give a bit of perspective, I’ve got no debt and own my home outright, so this really is play money rather than “oh god I need this for bills” money. I’d love to put it to work properly rather than watch it get nibbled by inflation. I’m after your collective wisdom – sensible, boring, or mildly adventurous all welcome!
A few directions I’ve been thinking about:
• Proper investing: Funds, stocks, ETFs (S&P 500 trackers, global stuff, UK-focused, etc.)
• Income ideas: maybe half sensibly invested, half for a fun side hustle or hobby that might even make a few quid back
• Or whatever clever/creative things you lot have actually done with similar money
What would you do with £10k right now?
Equally keen to hear the horror stories so I can avoid the classic rookie mistakes!
Be gentle with me… or don’t – flame away if I’m missing something obvious.
Thanks in advance!
It depends how long you want to tie up the money for, but I would put 8,000 in premium bonds and put 1,000 in Vanguard 100/80/60 fund (depending on your appetite for risk) every month, cashing in a thousand after each draw to put in the Vanguard fund after the second month. Have it in an ISA if you haven’t already got one.
If you don’t need access to it I’d just stick it in a broad market ETF and leave it alone.
Low fee platform, global exposure, job done.
Personally I’m about 90% in a Vanguard FTSE Developed World fund and 10% in their Emerging Markets one. Keeps it simple but still gives you decent global coverage.
You’ll get all the usual noise about picking stocks or timing the market but for most people that just ends up costing them money. Boring works.
Main thing people forget is inflation. £10k sat in cash is just quietly losing value every year.
Slightly more left field, and depends on age and situation, but pension is worth a look too. If you’re a higher rate taxpayer the tax relief on something like a SIPP is hard to ignore.
Only real caveat is make sure you’ve got a cash buffer first so you’re not forced to pull it out at a bad time.
Low fee platform, global exposure, job done.
Personally I’m about 90% in a Vanguard FTSE Developed World fund and 10% in their Emerging Markets one. Keeps it simple but still gives you decent global coverage.
You’ll get all the usual noise about picking stocks or timing the market but for most people that just ends up costing them money. Boring works.
Main thing people forget is inflation. £10k sat in cash is just quietly losing value every year.
Slightly more left field, and depends on age and situation, but pension is worth a look too. If you’re a higher rate taxpayer the tax relief on something like a SIPP is hard to ignore.
Only real caveat is make sure you’ve got a cash buffer first so you’re not forced to pull it out at a bad time.
Do something before the kids need it. The last emergency cost me 14k.
I would put it to work myself tbh, bit of buying and selling, something to occupy the mind, you don't need big profits to beat the banks.
Not everyone can do it I guess, well. not if it doesn't interest them or have the confidence or time.
I would put it to work myself tbh, bit of buying and selling, something to occupy the mind, you don't need big profits to beat the banks.
Not everyone can do it I guess, well. not if it doesn't interest them or have the confidence or time.
keo said:
130R said:
If you are happy to lock it away for 5+ years I would invest it all in a global index fund inside a S&S ISA
I would do this ETA, I came into exactly the same amount of money in 1985 (when it was worth a lot more!). Everybody told me to be sensible and invest, buy property etc. I decide to blow the entire lot on musical equipment (and fair amount of holidays and drugs), and because I did that I got my first gig as a musician and composer. Because of that decision I've been a full time composer and earned a really good living ever since.
If I'd been sensible, I might have doubled or maybe tripled my money. Not the good living I've earned over the following 40 years.
Life is way too short to be sensible. Go live it.
...but that's just me.
Edited by GetCarter on Sunday 26th April 12:33
130R said:
If you are happy to lock it away for 5+ years I would invest it all in a global index fund inside a S&S ISA
This would be my first thought, or a SIPP depending on your age and tax band. As a few people have said though maybe enjoy a bit of it. Go on a holiday or do something you've always wanted to do. I assume you like cars as you are on here, I'd be booking a Palmersport day
GetCarter said:
I would never do this. But that's just me... I'd enjoy it.
ETA, I came into exactly the same amount of money in 1985 (when it was worth a lot more!). Everybody told me to be sensible and invest, buy property etc. I decide to blow the entire lot on musical equipment (and fair amount of holidays and drugs), and because I did that I got my first gig as a musician and composer. Because of that decision I've been a full time composer and earned a really good living ever since.
If I'd been sensible, I might have doubled or maybe tripled my money. Not the good living I've earned over the following 40 years.
Life is way too short to be sensible. Go live it.
...but that's just me.
If you had invested that money in a boring S&P 500 tracker in 1985 and done nothing else, today you would have £924,000.ETA, I came into exactly the same amount of money in 1985 (when it was worth a lot more!). Everybody told me to be sensible and invest, buy property etc. I decide to blow the entire lot on musical equipment (and fair amount of holidays and drugs), and because I did that I got my first gig as a musician and composer. Because of that decision I've been a full time composer and earned a really good living ever since.
If I'd been sensible, I might have doubled or maybe tripled my money. Not the good living I've earned over the following 40 years.
Life is way too short to be sensible. Go live it.
...but that's just me.
Edited by GetCarter on Sunday 26th April 12:33
I prefer your way, but your estimate of double or triple is a bit off.
dozen said:
GetCarter said:
I would never do this. But that's just me... I'd enjoy it.
ETA, I came into exactly the same amount of money in 1985 (when it was worth a lot more!). Everybody told me to be sensible and invest, buy property etc. I decide to blow the entire lot on musical equipment (and fair amount of holidays and drugs), and because I did that I got my first gig as a musician and composer. Because of that decision I've been a full time composer and earned a really good living ever since.
If I'd been sensible, I might have doubled or maybe tripled my money. Not the good living I've earned over the following 40 years.
Life is way too short to be sensible. Go live it.
...but that's just me.
If you had invested that money in a boring S&P 500 tracker in 1985 and done nothing else, today you would have £924,000.ETA, I came into exactly the same amount of money in 1985 (when it was worth a lot more!). Everybody told me to be sensible and invest, buy property etc. I decide to blow the entire lot on musical equipment (and fair amount of holidays and drugs), and because I did that I got my first gig as a musician and composer. Because of that decision I've been a full time composer and earned a really good living ever since.
If I'd been sensible, I might have doubled or maybe tripled my money. Not the good living I've earned over the following 40 years.
Life is way too short to be sensible. Go live it.
...but that's just me.
Edited by GetCarter on Sunday 26th April 12:33
I prefer your way, but your estimate of double or triple is a bit off.
dozen said:
If you had invested that money in a boring S&P 500 tracker in 1985 and done nothing else, today you would have £924,000.
I prefer your way, but your estimate of double or triple is a bit off.
Yea, but I wouldn't have left it in a tracker for 40 years!I prefer your way, but your estimate of double or triple is a bit off.
Out of interest, it's a large multiple of £924,000 that I've earned from taking a risk in the musical gear I bought in 1985.
But that was more luck than judgement! If I did the same thing today, I'd be screwed.
butchstewie said:
No debt is obviously a good thing but do you have an established emergency fund?
i.e. lose your job tomorrow how many months can you survive?
You've had some good suggestions but that might help steer you between a saving product or an investment product.
This is a good point, I feel there's a balancing act between safety and risk which will likely be different depending on how you feel. I've got a war chest in an ISA of £30k which undoubtedly could be put to better use but I like the comfort of having it there quickly. Sure it's depreciating slightly but not to the extent that it can't do its job if needed.i.e. lose your job tomorrow how many months can you survive?
You've had some good suggestions but that might help steer you between a saving product or an investment product.
dozen said:
If you had invested that money in a boring S&P 500 tracker in 1985 and done nothing else, today you would have £924,000.
I prefer your way, but your estimate of double or triple is a bit off.
I love figures like this and stats. It's fairly sad just how uneducated our society is on investing or maybe risk adverse. I prefer your way, but your estimate of double or triple is a bit off.
I follow a lot of financial type people on YouTube and associated platforms. They often post things like this; stuff like "Stick this in a tracker fund and get 8% returns..." and there are often about 50+ comments of people bitterly saying how ridiculous it is. And "Yea right - show me this magical 8%" or something
I only "discovered" investing when I was 38 (a few years ago) and have aggressively put all my money into the Vanguard Global All Cap Index. Managed to fill my ISA each year, and also have a GIA in the same fund. Had 60+% returns on the ISA and about 18% on the GIA since it was opened.
SonicHedgeHog said:
Given the state of the world at the moment I d steer well clear of the stock market. You can get about 5% on a 1 year cash ISA. Lob the cash in there and enjoy not worrying.
You're going to get bugger all from a cash ISA, about £400 per year on 10k, which is almost nothing after inflation is accounted for.If you can put the money away for 5 or 10 years, the stock market is almost certainly going to do better, and probably much better.
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