how to spend 80k

Phonosophie P3 + PSU + ARO + Flair + Prefix (SC)
CD555 compact disc player
NAC 552 pre-amplifier
3 x NAP 500 power amplifier
Active DBL loudspeakers with SNAXO 362 crossover
Fraim

and the complete works of HMHB

That should do it - I think this would give you a lot of enjoyment and would hold its value - then I'd just blow the rest on something frivolous

Rotf

PS - You could buy £30,000 worth of premium bonds.

Me - I'd pay off the mortgage. You mentioned family life has to take priority and minimising your outgoings would give all round benefits.

In the future, once you get settled in your career again, you will have good income to look at all the various options you have.

Just the opinion of the common man........

Have you heard a CD555 ???

Jason

I think LTD is right - but seriously you should spend it on something you'll enjoy and will hold its value. In your postion, I'd clear the mortgage.

Second properties are lots of hastle and investing in a business is risky.

Good luck finding a new job - it took me five months some years ago, but it does come right.

Rotf

Pay off the mortgage.

We can see our mortgage debt online with the rest of our banking, in a year of payments of around 700 a month around £1200 has come of the bill, this is ultra depressing.

If you can loose that noose, imagine the free income you will have, god I envy you!

My redundancy settlement was a fraction of that!

You're a lucky man, Jason, well done, and yeah like the others above, if it were me I'd pay off the mortgage.

Then when you get another job then the world's yer oyster pretty much.

Like garyi I'm still at the stage where the majority of my payments every month go towards clearing the interest, so that capital part of it gets reduced hardly at all!

Cheers,

Jon

Clear your debt. Its a no brainer!

Bob

Pay off the mortgage. I certainly would.

I'm with the LTD & garyi.

Pay off your mortgage.

That's what we did as we thought so many of our friends are saddled with a heavy real estate debt.

The mortgage interest rate in the US is tax deductible ( up to 100k ) but, it sure takes the worrys off our mind.

However we could not do anything about a recent real estate tax hike.( more than doubled )

it,s definately the safe option. i will get penalised for paying off more than 10% as its my 1st year (about £5000 i think). if i can hold on till aug 07 then i can pay the money, not get penalised and shop around for the best deal. forgot to mention this at the beginning. maybe its worth cutting my losses and pay it sooner than later. i think i need to see a financial advisor to set me straight. anyone got a good tip for the 8;30 at haydock? (dare i?)

quote:

Originally posted by bob mccluckie:
Clear your debt. Its a no brainer!

Bob

Seconded, why take the risk?

Before you pay off the house, make up a spreadsheet and see how you might be ahead or behind in a couple of years given a predictable return on a safe investment.
Consider an "in between" solution where you pay off a large chunk of the house during AND refinancing so your payments are lower.
Depends on what you think the future holds for the value of your house, your next job, how long you'll be in that house, etc.
Certainly not having house payments is attractive, we've considered that too, but having money in an investment that is growing at the rate of your home loan WHILE your home is appreciating can be the best of both worlds. The comparison of interest and investment growth are not one-to-one, depends on the tax situation etc.
Your mileage will DEFINITELY vary.
Here are a couple of links. Get some competent financial advice that takes your situation into account.
Prepayment Investment
Securities vs. Down Payment
David

quote:

Originally posted by Polarbear:

quote:

Originally posted by bob mccluckie:
Clear your debt. Its a no brainer!

Bob

Seconded, why take the risk?

I am by no means an expert in these things, but you might like to consider moving to an "offset" mortgage, and depositing the money into the same account. You then only pay interest against the 20% balance outstanding.

I suspect you could consider that part of the mortgage "provisionally" paid off, but the capital is instantly accessible if you need it.

If there is some doubt as to when you'll next have good employment (or whether you'll be happy in your new job), this will reduce your mortgage payments dramatically, whilst not putting you in a corner if you really need the money.

The companies seem to claim that it is also a tax wheeze. If you earn interest on your £80K, you will pay tax on it.

Since you are merely avoiding paying interest on your mortgage, there is no tax to pay (capital gains, whetever).

I suppose that means that if your mortgage is at 6%, your capital is earning 6% net of tax.

cheers, Martin

You should buy some apostrophes and uppercase letters.

Joe

Jason

Use the 80k to pay your mortgage payment until the time comes to lob it all in. That will free you of the immediate cash burden each month to soften the blow of the redundancy.

Take £1k and treat the wife (and kids if yo uhave any). Be selfish on yourself.

Your time will come when you get the cash flowing.................

Above all

TAKE PROFESSIONAL ADVICE !!!!!

quote:

Originally posted by long-time-dead:

TAKE PROFESSIONAL ADVICE !!!!!

How true.

Do not buy a fur coat for Lady j without visiting a mink farm first. (If they'll let you in) And if you do go then take a nose peg and several sick bags.

I heard on the TV news today that furs are back in fashion. That would explain being able to smell a mink farm from well over a mile away downwind.

Business must be looking up! I bet SAGA wouldn't like that image cluttering up the place as their clients try on their expensive furs in "luxury" surroundings. They should try living near a mink farm! You thought pig shit spraying took your breath away and made your eyes water? A mink farm leaves it for dead!

Do not pay off the mortgage, at least for now.

Cash is often one of the most difficult things to get a hold of, and if you hand it over to the bank so as to pay off the mortgage, you will have to sell your house to get it back or you will have to go back to the bank to get a mortgage ON THEIR TERMS

Remember, mortgage money is the cheapest money you will ever get (talk to any small businessman) so consider other options. Maybe you could start your own business (i.e invest the money in yourself)

Remember that curently you have options but if you repay the mortgage, you are no longer in control.

Regards P

Premium Bonds make sense for somebody unemployed.

The money remains yours and is easy to get your hands on again. While the taxfree windfalls (from a serious investment) warm the heart on those cold winter evenings as you burn the last of the antique furniture thinking you'll never work again.

quote:

Originally posted by Nime:

quote:

Originally posted by long-time-dead:

TAKE PROFESSIONAL ADVICE !!!!!

How true.

Do not buy a fur coat for Lady j without visiting a mink farm first. (If they'll let you in) And if you do go then take a nose peg and several sick bags.

I heard on the TV news today that furs are back in fashion. That would explain being able to smell a mink farm from well over a mile away downwind.

Business must be looking up! I bet SAGA wouldn't like that image cluttering up the place as their clients try on their expensive furs in "luxury" surroundings. They should try living near a mink farm! You thought pig shit spraying took your breath away and made your eyes water? A mink farm leaves it for dead!

Nime straddling the gap between Berlin Fritz and random Poles?

quote:

Originally posted by Deane F:

Nime straddling the gap between Berlin Fritz and random Poles?

Falling through the gap I think...

Almost every house in our previously pleasant rural area is, or has been, up for sale. But blighted by an ever-expanding, intensive pig farm about a mile away which sprays the local fields with industrial-strength pig shit all too regularly. And a mink farm which doesn't need to broadcast its stink. Its foul, choking, cheesy, sweaty smell carries well enough without help.

Hi Jason,

I agree that mortgage money is the cheapest loan you'll get, and yet the cheapest of all loans is the one that is paid off.

I'd pay off a big chunk of your mortgage - maybe 60% or a little less, and keep the remaining 20K for a rainy day/month/year. If you get employed again quite soon without digging too far into the 20k, great, you can can just lump it onto your mortgage later. If you have to go a bit longer without a job, its a useful safety net.

Incidentally, a nice Ferrari 308 from about 80-82 would cost you about 20K

Cheers,

Rich

I have to revisit this topic...
"how to spend 80k"
Think about
"how to save 80k"
or
"how to get by for maybe a year's unemployment on 80k"
or
"wow, 80k is far more than many people will have to spend in a lifetime -- and its just been handed to me -- what a blessing -- how do I treat it wisely"
I have to say that if I was offered 80k (nearly 140k US) to quit my job I'd be out of my office in 20 minutes with no trace left behind. I love my job but not THAT much!
You DON'T have to spend it all at once...
Good luck, think about what you do with it and you'll make the best decision for you.
Davd

But after the income tax taken out, a 140K$ doesn't go too far.

Being in the trade of investment advice myself, if you want to know what's best to do with your £80K I'd suggest you take personal advice from an IFA who will look at yourcircumstances and agree what's best with you.

No offence but asking a bunch of strangers is like taking tips from the press. There is no right or wrong, but there is best for you . Would you seriously take our advice on removing a kidney? Or help with a complex legal dispute? Same for what to do with £80K, this is a potentially life changing sum of money, take some time out to make it work.

Having said all that, whoever's advice you take - get a job you like first..! Then decide.

I think you should remove a kidney, flog it for another 80k and give all the 160k to me...