# what to do with a lump sum



## mart. (Jul 7, 2008)

trying to decide what's the best thing to do with a lump sum of 30K

pay it off the mortgage and it back in equity 

or 

put it in a savings account or similar 


?


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## stangalang (Nov 27, 2009)

Its hidden option number C I am afraid, go and see a financial advisor who is recommended to you, consult a qualified professional not a detailing forum. We will spend it on wax :thumb:


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## Obsessed Merc (Apr 10, 2011)

Use up your tax free ISA allowance in a managed account ?

Very hard question to answer without knowing your circumstances, age etc.

Don't be had over by your bank pretending to look after you with the old we will look after you/your money routine. They make commissions. I'm surprised your bank has not rung you up and called you sir if it's hit your account ?


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## Leo19 (Mar 9, 2011)

Or go to Vegas and blow the lot on an awesome weekend?:lol::lol:


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## mrbloke (Oct 13, 2010)

Depends on circumstance as stated. Mortgage likely to be a winner for sensible option (depending on your current rate).


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## JohnZ3MC (Mar 9, 2008)

Stangalang is wise beyond his years.
Yeah, spend it on wax. Wax for you, wax for your friends, wax for Stangalang. 
Forget about the mortgage.


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## DetailedClean (Jan 31, 2012)

Depends on your personality really, if your low risk then just pay the mortgage


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## Buck (Jan 16, 2008)

Depends on your mortgage interest cost?

If you're quick put your max into a cash ISA for this year then from 6 April do the same for next years allowance and put the rest into your mortgage. 

That way you reduce your mortgage by a sizeable chunk and have a couple of investments earning more than your mortgage is costing you subject to your rate.


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## Mirror Finish Details (Aug 21, 2008)

Give it me!!!!


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## SurGie (Aug 6, 2010)

Save 10k in a high interest rate savers account, then 10k on a classic sports car that is going up in value, so in ten years will be worth a lot. Then spend the 10k left over on the mortgage and have a great year doing lots with the usual mortgage payments. Hell its 2012 and there may not be any more great/usual years left if the Mayans predictions come true, ie big changes to humanity so ive read.


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## Will_G (Jan 23, 2012)

Depends if you get charged for paying back into your mortgage. If you do and there is a set limit per year you can over pay then increase your payments to that and keep the money in a high interest account and set it to transfer out to your current account each month. Use up your ISA allowance also. I'd only do this however if you already have sufficient saving in cash/shares/isa as you never know what's around the corner


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## greenwagon (Dec 31, 2008)

Pay off the mortgage 
Money in the bank often means you squander it 
When house is paid for its a great feeling 

Also with savings over 16k I think you don't get benefits I'd you loose your job 

Alternative apart from blowing it on waxes and not sure why no one has suggested yet 


Booze and hookers lll
You will remember it to the day you die


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## RaceGlazer (Jan 10, 2007)

Surgie had the right idea - invest it on a stable of classic cars, which are a darn sight more fun, may well do far better than any of the dull and sensible suggestions - with a windfall like this its an opportunity to do something different, maybe take a bit of a risk. No-one got rich doing the really sensible thing which includes giving it to a bank or someone else to invest - returns in the standard investments are so low these days to make the alternatives far more attractive.

You can't go wrong buying a classic Porsche for example. Or blow the lot on a Ferrari and have some fun. Actually, buy the right one and have fun and make some cash.

Remember waht George Best said when asked where all the money went - 'half of it I spent on booze and women, the rest I squandered'


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## Huw (Feb 16, 2007)

Depends on what your plans are for the future. Will you need liquid funds to make a purchase in the next few years? If so, paying the mortgage off may not be the best idea. An offset mortgage may be a better option, depending on the costs of getting out of current mortgage.


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## mart. (Jul 7, 2008)

Decided to buy a bigger house. mean's mortgage will be the same but I'll be able to get a better %.


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## Will_G (Jan 23, 2012)

Interesting decision, good time to buy in property as long as you are comfortable with repayments if rates go up


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## shonajoy (Jan 27, 2009)

Good plan.


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## Dixondmn (Oct 12, 2007)

50% off mortgage, 50% in the bank for a rainy day.

it really depends how you came into this money. If you earned it and saved it i'd go with the above option.

if you came into it via redundancy/inheritance/winnings, I'd have a bit of fun with it too.
Bleak times ahead, with fuel prices, tax and interest rate increases forecast for 2014, you might do well to use it to create some good memories for youself and your loved ones while you can.


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## Gruffs (Dec 10, 2007)

Offset Mortgage?

Best of both worlds then.


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## mart. (Jul 7, 2008)

This is what left after I've had some fun :lol:


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## R7KY D (Feb 16, 2010)

Bigger house = Bigger running costs ?


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## Martyboy84 (Mar 9, 2012)

Use up your maximim tax free savings allowance this tax year.. Then 7th of April use up your next years maximum allowance.. Then put the rest towards your mortgage.. 

Win win!


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## slineclean (Dec 23, 2011)

I would say the same in the way of what is your mortgage like? is it worth paying some on that to reduce or payments? but if your payments arent to bad , id look to treat yourself to something or a holiday and put the rest a side for the future. You never know when you might need ab it of cash. 

But my main advice is , in todays world at the moment ' there is no one way of making money or easy money out of your own money' JUST KEEP WHAT YOUVE GOT SAFE thats the main thing . Only put it in set isa allowance ( but for the interert you get at the mo , it is only the same you used to get in a normal saving account ) 

ive been screwed over twice by the bank and there advice has cost or lost me money. The last time I gave them a 2nd chance , i lost money within only couple of months ( about £30 ) and I pulled my money out and kicked up a fuzz , it went to the banks odbuds people and letters back and forth went to and from ( basically the bank trying to get out of admitting their fault ) about 16mths went by and in the end it went in my favour and all i got back was just over that £30. 

I wouldnt try any bank again ,they only want your money and let you take the risks. 

I would put 20k ( your limit ) into premium bonds and you will get far better return that way and at all times your money is safe 100% , the only down side is ? what ever you put into it? thats all you get when you take it out BUT hence in the mean time you can chance to win money :thumb:


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## tmitch45 (Jul 29, 2006)

Some good advice on here but it really does depend on your situation. Your age, retirement plans, pension, job stability, any currrent savings and size of mortgage.

I've been in a situation where I had an amount of cash in my savings account and needed a new car. Didin't want to touch the savings really but for the small amount of interest I get verses the higher interest charged in getting a loan or finance I decided to use my saving. What I'm getting at is it would be a good idea to use an amount towards the mortgage as this will save more in the long run than any savings account. 

If your situation is such that you need/want some money for emegencies (i.e. if your job is not safe) I would put a chunk into an instant access ISA that way its there if you need it but its also doing better than just sitting in a current account.

For me I'd put 10 in an instant access ISA and pay 20 off the mortgage or as mentioned 10 ISA, 10 mortgage and 10 classic sports car (but seek advice on this to make sure you choose something that will appreciate in value). My option three and prob what I'd actually do is 9.5 ISA, 9.5 mortgage and 10 classic sports car and treat you and your loved ones with 1k. I'm thinking nice new TV, holiday etc. 

At the end of the day its your money and you must do what it right for you and your personal situation.


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## Woodking (Oct 21, 2011)

If you can without any penalty, pay a lump off your mortgage. This will then lower the capital amount you need to repay and should lower your monthly repayment.

*Note*.

This is where you will benefit big time. Don't lower your monthly payment, leave it at the same amount and 'Overpay' your mortgage. This will have a snowball effect and you'll end up repaying your mortgage years earlier than you should, and you'll save tens of thousands of interest payments to the bank.

Read through this, and put your details in the repayment calculator and see how much it'll save you.

http://www.moneysavingexpert.com/mortgages/mortgages-vs-savings

I've shortened my mortgage considerably by doing this and can't wait until its paid off.


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## ITHAQVA (Feb 20, 2011)

I paid my mortage off by the age of 41, the feeling of freedom is beyond words, do it :thumb:


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## tmitch45 (Jul 29, 2006)

ITHAQVA said:


> I paid my mortage off by the age of 41, the feeling of freedom is beyond words, do it :thumb:


I bet its an amazing feeling. I would be so well off without my mortgage!


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## 2157R (Mar 19, 2012)

High-interest fixed bond or (if you want to hide a lump sum from the taxman) buy about 25x 1oz Gold Kruggerands. 

I bought a few ounces of gold about 18 months ago for just under £900 and if i wanted to liquidate today, a jeweller would give me £1040.


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## PaulN (Jan 17, 2008)

Mortgage every time. Make sure you find out how much interest charges it will save you. Maybe £15k + over the term of your Mortgage. What other system would make you that much with only £30k....


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## 123quackers (Jan 29, 2009)

Use it as a deposit for another property, it will always gain in the long term..With the right rental you could be on for 6 to 8% return far more than an ISA or savings..... Plus when the market moves on up again there is extra growth........ That's if you are looking long term........Just my thoughts

Gold is the other area worth a look.:thumb:


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## vRS Carl (Aug 14, 2011)

You lot are all Mental 

Go put a £30k deposit on one of these :car: :devil:


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## kh904 (Dec 18, 2006)

Pay off some of your mortgage, or invest it in commodities or silver & gold! Spend/invest it on REAL assets that will at least hold their value (so not a car, bike, technology etc that will lose value).

I wouldn't hold onto paper currency in the future (it will become worthless)!


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## The Cueball (Feb 8, 2007)

Drugs and women...

No point worrying about the future or buying s**te you don't need...

Go and have a weekend like a legend.... go ball deep.

:thumb:


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## SurGie (Aug 6, 2010)

vRS Carl said:


> You lot are all Mental
> 
> Go put a £30k deposit on one of these :car: :devil:


That looks like a great investment, buy it then as soon as it leaves the forecourt you have lost 10k straight the way.

What about the missing link, Rock N Roll babay yeah..


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## vRS Carl (Aug 14, 2011)

SurGie said:


> That looks like a great investment, buy it then as soon as it leaves the forecourt you have lost 10k straight the way.
> 
> What about the missing link, Rock N Roll babay yeah..


I was taking the proverbial :lol:


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## SurGie (Aug 6, 2010)

LOL, Cueball has the right idea, you only live once


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## Damien89 (May 13, 2007)

I would certainly pay the mortgage especially if with the 30k you would be debt free, if you had to lose your job for any reason you wouldn't have to start selling stuff at half the price to pay the monthly payment.

If you invest it and you lock the money for 3 years and lose your job what will you do?

I say go for the mortgage and your mind will sleep better during the night knowing that you don't owe money to no one.


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## PaulN (Jan 17, 2008)

Just to check everyone keeps saying pay off your mortgage.... i would guess the OPs total mortgage is more than £30k so although it will not be clear it will be a great help.


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## Gruffs (Dec 10, 2007)

If you change your mortgage for offset, you get to keep the savings just in case and not pay interest on £30K of your mortgage. You then reduce the interest accrued but keep paying the same. Therefore, you'll be overpaying, and accruing less interest and keeping your savings. The savings won't 'earn interest at anywhere near the same rate they can prevent your debt accruing interest.


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## Hotchy (Jul 22, 2010)

Stuff it, get a wayne rooney transplant, buy a soft top car and finally enjoy having your long flowing locks back? Thats what id do :lol:


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## OutLore (Jan 19, 2007)

Buy stamps.


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