u/Antipogee

Hi everyone,

My wife and I in our early/mid forties have £690,000 to do something with from a house sale.

We have two children in their early teens.

We have no other real investments or retirement plans

We’re currently renting an apartment in South West London so our children could get into their local school.

£135,000 is my gross annual income (take-home pay is £83,000) plus there’s always overtime.

£690,000 is what we have from a house sale

£38,000 combined in a New Zealand retirement savings fund

£7,000 in an Australian Superannuation fund

Money in each month from my job is £6,400. Our monthly rent is £2700 and then there’s utilities and food.

We were initially thinking we’d buy a nice house in the area for just under £1,250,000 and have a big mortgage that we’d have into our mid seventies and nothing else to show for it other than the house.

—————————————————————————————————————————————————————————————————————

Is this a better plan?

Buy a £500,000 3 bedroom apartment, put £50,000 down as a deposit, repayments are £2281 per month at 4.5% over 30 years

Invest £600,000 in something? Hargreaves Lansdowne, Trading212 etc

Invest £1000 per month into wherever the £600,000 ends up

Keep £40,000 as an emergency fund.

When I type a £600,000 lump sum into the Hargreaves Lansdown compound interest calculator with £1000 per month invested, the total is £1,500,000 after 15 years at 5%

—————————————————————————————————————————————————————————————————————

Or do we play it safe?

Buy the £500,000 apartment outright, have no mortgage.

Invest £190,000 into something.

Invest a larger monthly amount into wherever the £190,000 ends up.

—————————————————————————————————————————————————————————————————————-

Is this the correct subreddit? Happy to be directed somewhere else.

What are your thoughts everyone? Thank you!

Hi everyone,

My wife and I in our early/mid forties have £690,000 to do something with from a house sale.

We have two children in their early teens.

We have no other real investments or retirement plans

We’re currently renting an apartment in South West London so our children could get into their local school.

£135,000 is my gross annual income (take-home pay is £83,000) plus there’s always overtime.

£690,000 is what we have from a house sale

£38,000 combined in a New Zealand retirement savings fund

£7,000 in an Australian Superannuation fund

Money in each month from my job is £6,400. Our monthly rent is £2700 and then there’s utilities and food.

We were initially thinking we’d buy a nice house in the area for just under £1,250,000 and have a big mortgage that we’d have into our mid seventies and nothing else to show for it other than the house.

Now we’re thinking this is not a good plan.

—————————————————————————————————————————————————————————————————————

Is this a better plan?

Buy a £500,000 3 bedroom apartment, put £50,000 down as a deposit, repayments are £2281 per month at 4.5% over 30 years

Invest £600,000 in something? Hargreaves Lansdowne, Trading212 etc

Invest £1000 per month into wherever the £600,000 ends up

Keep £40,000 as an emergency fund.

When I type a £600,000 lump sum into the Hargreaves Lansdown compound interest calculator with £1000 per month invested, the total is £1,500,000 after 15 years at 5%

—————————————————————————————————————————————————————————————————————

Or do we play it safe?

Buy the £500,000 apartment outright, have no mortgage.

Invest £190,000 into something.

Invest a larger monthly amount into wherever the £190,000 ends up.

—————————————————————————————————————————————————————————————————————-

We’re obviously incredibly late to the investing party, but aside from winning the lottery at this late stage of our working lives we’ve got no other tricks up our sleeves.

What are your thoughts everyone?

Hi everyone,

My wife and I in our early/mid forties have £690,000 to do something with from a house sale.

We have two children in their early teens.

We have no other real investments or retirement plans

We’re currently renting an apartment in South West London so our children could get into their local school.

£135,000 is my gross annual income (take-home pay is £83,000) plus there’s always overtime.

£690,000 is what we have from a house sale

£38,000 combined in a New Zealand retirement savings fund

£7,000 in an Australian Superannuation fund

Money in each month from my job is £6,400. Our monthly rent is £2700 and then there’s utilities and food.

We were initially thinking we’d buy a nice house in the area for just under £1,250,000 and have a big mortgage that we’d have into our mid seventies and nothing else to show for it other than the house.

Now we’re thinking this is not a good plan.

—————————————————————————————————————————————————————————————————————

Is this a better plan?

Buy a £500,000 3 bedroom apartment, put £50,000 down as a deposit, repayments are £2281 per month at 4.5% over 30 years

Invest £600,000 in something? Hargreaves Lansdowne, Trading212 etc

Invest £1000 per month into wherever the £600,000 ends up

Keep £40,000 as an emergency fund.

When I type a £600,000 lump sum into the Hargreaves Lansdown compound interest calculator with £1000 per month invested, the total is £1,500,000 after 15 years at 5%

—————————————————————————————————————————————————————————————————————

Or do we play it safe?

Buy the £500,000 apartment outright, have no mortgage.

Invest £190,000 into something.

Invest a larger monthly amount into wherever the £190,000 ends up.

—————————————————————————————————————————————————————————————————————-

We’re obviously incredibly late to the investing party, but aside from winning the lottery at this late stage of our working lives we’ve got no other tricks up our sleeves.

What are your thoughts everyone?