On the specific point about potentially 'investing' the redundancy lump sum, if it's 'expected to last a couple of years', until access to an employee pension is available, then it sounds like it might actually *have* to last that couple of years, and so on that basis I'm wondering if any form of 'active investment' with that capital would be the best approach?Alaric wrote:I don't think so. If you are only expecting the redundancy lump sum to last a couple of years, you presumably invest it with caution.Fenix wrote:
Am I missing anything obvious ?
Given the clear sequence of returns risk over such a short period of time, then maybe a relatively 'known enemy' of low inflation might be a price worth paying for removing any potential market-risk that might severely affect the ability of the capital to last it's required two-year lifetime, and perhaps something like Premium Bonds or a similar low-risk home might be more appropriate on a two-year time-scale than exposing the lump sum money to the vagaries of the market...
Best wishes Fenix.
Cheers,
Itsallaguess