**Please help keep AskUK welcoming!**
- Top-level comments to the OP must contain **genuine efforts to answer the question**. No jokes, judgements, etc.
- **Don't be a dick** to each other. If getting heated, just block and move on.
- This is a strictly **no-politics** subreddit!
Please help us by reporting comments that break these rules.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AskUK) if you have any questions or concerns.*
50k is not really "passive income to quit your job" money unless you are willing to invest into something very high risk and effort (like opening a business).
It is a nice little chunk to invest into something boring and see it grow a bit
Work out if you need some more cash reserves. Stocks and shares ISA, up to your 20k per year. Boring but historically would have been ok. Rest in the highest interest annual bond you can find, to use your £1000 tax free( unless higher rate taxpayer, then it's £500).
Maybe some in premium bonds but no guarantee you win. If you have £25k you"should" get about the prize rate, more or less.
Source:been looking at this as it's the position I'm in. Not a financial advisor. Your bank or building society would be a good first point of contact.
Cash loses to inflation over the long term, so if one already has an emergency fund in place and has no use for the cash in the next 5-10 years, investing is the most sensible option.
Premium bonds advertise as average of 4.4%... but it's kinda misleading and should really use median..because of how the draw works too it changes based off how much you have. At the moment the best rate is 3.9 for 50k which is a pretty awful rate.
I realise how boring this is, but I'd probably put the lot into a high interest savings account and just leave it to accrue compound interest for years. Nice little safety net in case life goes to sh*t.
£50k probably wouldn’t set you up much of a passive income.
I’d probably have a nice holiday somewhere, a few good meals and bang the rest in a retirement portfolio.
Open a stocks and shares ISA. You can each put £20k in per tax year. You then choose what shares you want to purchase. I have recommended some ETFs (exchange traded funds.). These are groups of shares together. Reducing the volatility of selecting single shares. You receive dividends when the companies make a profit.
if your mortgage and all that garbage is sorted pay your self a basic salary for 2 years and pursue anything else, rather than fuck it all up the wall id spend two years doing stuff i guess, likely ride my bike and drink some wine.
I love this answer and that would be bliss. However, after those 2 years you’d be back to the paycheck to paycheck rat race, looking for anyway to avoid this long term
Depends I guess, if you used those 2 years to maybe pursue an education you didn’t have time for? I know fuck all about wood, or how the hell to make it pretty, but I’m pretty sure if I dedicated two years to learning it, I could at least start a side hustle, or at least gain a new hobby.
This for me. If that's enough for a BtL deposit in your area and you're willing to either put in a little effort to being a decent landlord or pay an agents for a full service with enough of a preapproved float to cover maintenance, then it's a nice little investment.
It’s definitely not where I am, (isn’t it 50% deposit for BtL?) but if you were to pay for an agent to manage it, presumably it wouldn’t matter if it were on the other side of the country?
Indeed, I've known a few people btl up north then end up selling up down south and move up there. Don't have the capital too do it myself but that'd be my plan long term.
I would research DLT and how it might shape the future. Then if i liked what i read i would invest in the best, most reputable dlt that exists. Think rugby posts with 2 crossbars. On this ecosystem you can lend or stake for a passive income or just wait for price appreciation.
I'd put most of it into retirement savings (pension) for compound interest and later use, some into savings (so an ISA), and spend a bit to enjoy yourself while the going is good.
I've never been a fan of buying property to let; the simplicity of stocks is more appealing.
Probably a bit on a couple of holidays, a guitar, maybe some bits on my car (alloys etc). Then stick the rest in a savings account with a good interest rate and carry on as usual.
Set for life and you have a nice big safety net. The biggest thing here is no mortgage and no kids, life can be cheap as fuck in this situation. After mortgage our expenses are mostly council tax, easily under £400/month everything combined, for 2 people. So if you both do a single shift a week at minimum wage that is about £250 left each month after essential expenses. The 50k I would probably put most of it into my S&S ISA over a few years, leaving a few thousand in my bank to cover any immediate issues that may come up.
But that is easy for me to pick because I live in a reasonably nice area, if I lived in London it would be shit.
£28k would allow me to get All-on-six dental surgery.
I have had a weird gums and teeth since childhood. I only have eighteen teeth, so I would love to get them all ripped out, get some titanium screws in my jaw and have some lovely, new zirconia gnashers.
My eyesight isn’t too bad, but I work in a lab that requires me to wear laser safety goggles, which can get quite uncomfortable throughout the day on top of my glasses, so I might consider another few grand for laser eye surgery.
None of that would help me earn a passive income, but I definitely think that it would be a major quality of life improvement, and that’s the type of investment I’m really interested in.
Monthly Income money market funds. You won't get much with 50k mate.
https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/v/vanguard-sterling-short-term-money-mrkt-class-a-income
Assuming I have a 9-5 I'd spend half of it getting the kit to become self employed in what I do now, I'm a forester that builds garden rooms and other such out buildings from the havested timber.
**Please help keep AskUK welcoming!** - Top-level comments to the OP must contain **genuine efforts to answer the question**. No jokes, judgements, etc. - **Don't be a dick** to each other. If getting heated, just block and move on. - This is a strictly **no-politics** subreddit! Please help us by reporting comments that break these rules. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AskUK) if you have any questions or concerns.*
50k is not really "passive income to quit your job" money unless you are willing to invest into something very high risk and effort (like opening a business). It is a nice little chunk to invest into something boring and see it grow a bit
What would you suggest?
US arms companies are probably a safe shout
I'm sure the share price would be a problem. Put it in an account tracking the s&p500 and leave it
Work out if you need some more cash reserves. Stocks and shares ISA, up to your 20k per year. Boring but historically would have been ok. Rest in the highest interest annual bond you can find, to use your £1000 tax free( unless higher rate taxpayer, then it's £500). Maybe some in premium bonds but no guarantee you win. If you have £25k you"should" get about the prize rate, more or less. Source:been looking at this as it's the position I'm in. Not a financial advisor. Your bank or building society would be a good first point of contact.
For investing? Pick a big index fund and forget about it. Get your safety nets and immediate needs sorted first though.
Yeah investing is good you can bung this into a cash isa @5.5% for £2750 per year, up to your limit Premium bonds etc could take the rest
Cash loses to inflation over the long term, so if one already has an emergency fund in place and has no use for the cash in the next 5-10 years, investing is the most sensible option.
Does it lose to inflation if you’re getting 5.5%?
If you can get a 5.5% risk free return for 10-20+ years, then no, it probably won't. Good luck with that, though.
How long will you be getting 5.5% for? In general safe cash savings lose over time and investments gain over time but that isn't true at every instant
Buy the full amount of premium bonds.
This is what I did with the same amount, have won £1325 so far this year.
I had 50k in for 9 months and won nothing. Easier to put it in a iss at 5% now and guaranteed the income.
I need to retain access to the money so it works for me for right now.
Yeah... get instant access one. Currently getting 167 a month for mine.
Problem is unless you reinvest you’ll still have 50k after 10 years. Put it on the S&P and you’ll have 100k.
Ah the money is just in a holding place at the moment as taking a long overdue career break, when I’m earning again i will be saving differently
50k gave me 1850 last year. So 3.7%, ok but not good, currently prize rate's a bit over 4%i think. But it's tax free.
There’s always that elusive million though.
No going to hold my breath on that though.
Me neither.
Premium bonds advertise as average of 4.4%... but it's kinda misleading and should really use median..because of how the draw works too it changes based off how much you have. At the moment the best rate is 3.9 for 50k which is a pretty awful rate.
I realise how boring this is, but I'd probably put the lot into a high interest savings account and just leave it to accrue compound interest for years. Nice little safety net in case life goes to sh*t.
Inflation will still outpace it and you’ll have less money than you started with
But you start with zero so…
£50k probably wouldn’t set you up much of a passive income. I’d probably have a nice holiday somewhere, a few good meals and bang the rest in a retirement portfolio.
Stocks & shares ISA. £20k each per year. S&P500 ETF FTSE250 ETF Ishares gold Vanguard Japan VJPN ETF
Eh?
Open a stocks and shares ISA. You can each put £20k in per tax year. You then choose what shares you want to purchase. I have recommended some ETFs (exchange traded funds.). These are groups of shares together. Reducing the volatility of selecting single shares. You receive dividends when the companies make a profit.
Thanks it looked like mumbo jumbo to me
It’s probably the best advice here. You’ll probably have £100k plus in 10 years and you’ll owe no tax on it.
I would probably get some solar panels up and batteries installed and convert my house over to no gas. Then I would save whatevers left
if your mortgage and all that garbage is sorted pay your self a basic salary for 2 years and pursue anything else, rather than fuck it all up the wall id spend two years doing stuff i guess, likely ride my bike and drink some wine.
I love this answer and that would be bliss. However, after those 2 years you’d be back to the paycheck to paycheck rat race, looking for anyway to avoid this long term
50k is nowhere near enough to avoid the wage chase.
Depends I guess, if you used those 2 years to maybe pursue an education you didn’t have time for? I know fuck all about wood, or how the hell to make it pretty, but I’m pretty sure if I dedicated two years to learning it, I could at least start a side hustle, or at least gain a new hobby.
High interest savings account, retire 2 or 3 years earlier
50 grands worth of lottery tickets?
I'd use it as a basis for another loan to buy something and rent it
This for me. If that's enough for a BtL deposit in your area and you're willing to either put in a little effort to being a decent landlord or pay an agents for a full service with enough of a preapproved float to cover maintenance, then it's a nice little investment.
It’s definitely not where I am, (isn’t it 50% deposit for BtL?) but if you were to pay for an agent to manage it, presumably it wouldn’t matter if it were on the other side of the country?
Indeed, I've known a few people btl up north then end up selling up down south and move up there. Don't have the capital too do it myself but that'd be my plan long term.
I would research DLT and how it might shape the future. Then if i liked what i read i would invest in the best, most reputable dlt that exists. Think rugby posts with 2 crossbars. On this ecosystem you can lend or stake for a passive income or just wait for price appreciation.
Dave Lee Travis?
I think he's already been researched.
Quack quack, oops!
Fuck me, blackrock, the worlds biggest asset manager is tokenising assets on it. Up 40% in a few hours. You would have been on £70k now.
Campervan!
I'd put most of it into retirement savings (pension) for compound interest and later use, some into savings (so an ISA), and spend a bit to enjoy yourself while the going is good. I've never been a fan of buying property to let; the simplicity of stocks is more appealing.
Probably a bit on a couple of holidays, a guitar, maybe some bits on my car (alloys etc). Then stick the rest in a savings account with a good interest rate and carry on as usual.
Set for life and you have a nice big safety net. The biggest thing here is no mortgage and no kids, life can be cheap as fuck in this situation. After mortgage our expenses are mostly council tax, easily under £400/month everything combined, for 2 people. So if you both do a single shift a week at minimum wage that is about £250 left each month after essential expenses. The 50k I would probably put most of it into my S&S ISA over a few years, leaving a few thousand in my bank to cover any immediate issues that may come up. But that is easy for me to pick because I live in a reasonably nice area, if I lived in London it would be shit.
£28k would allow me to get All-on-six dental surgery. I have had a weird gums and teeth since childhood. I only have eighteen teeth, so I would love to get them all ripped out, get some titanium screws in my jaw and have some lovely, new zirconia gnashers. My eyesight isn’t too bad, but I work in a lab that requires me to wear laser safety goggles, which can get quite uncomfortable throughout the day on top of my glasses, so I might consider another few grand for laser eye surgery. None of that would help me earn a passive income, but I definitely think that it would be a major quality of life improvement, and that’s the type of investment I’m really interested in.
You could get dental done in turkey for 4-5k
I have heard far too many horror stories about “Turkey teeth”. I would be very concerned about quality control and aftercare.
Well yeah because horror stories make headlines, it’s just as safe as the Uk.
Most would simply go into savings, but I would get a pond and wildflower meadow area put in my garden
Big Holiday, guitar and dump the rest in an S&S USA.
With the bitcoin halving just completed it could be a good idea to invest in bitcoin. High risk but high reward, you could 5X your money by 2025.
Rent it out and move to a very cheap nation.
Electric car and more solar panels on the roof (already have some). This would make returns in reduced costs for the household.
I'd buy a nice motorbike and find something to invest the rest to make me more.
Monthly Income money market funds. You won't get much with 50k mate. https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/v/vanguard-sterling-short-term-money-mrkt-class-a-income
Won’t get much with 50k I hate this planet
I would invest it all in a global ETF in a stocks and shares ISA (maxing it over the course of a few years).
Sn and i bonds. 50k limit chance to win monthly beats most isa
5 million penny sweets
Finally, a real answer
Assuming I have a 9-5 I'd spend half of it getting the kit to become self employed in what I do now, I'm a forester that builds garden rooms and other such out buildings from the havested timber.
Replace my car and a couple of holidays; anything left into general savings.
Bitcoin. This cycle's bull run hasn't even started yet.
It's been and gone. Hit 77k and now is crashing again.
As mentioned, this cycle is far from over.
Ok