Short term low risk investment

[Cash-Money]

Hi folks,

Am taking time off work soon and plan to use my savings of 80k lump sum (have runway for ~2 years off at 4K a month burn rate)

While I’m living off savings I’ll have the entire amount of cash in my current account. Of course as an avid AAM forum reader I know this will mean squat diddly returns more than likely and it’s being eroded by inflation.

So my question is - what should I do with this lump sum while I live off it at the current burn rate?

- I’ll be unemployed for a while (I prob won’t take 2 years off) so I need access at relatively short notice
- low risk tolerance as having to cash it out to live in it means I can’t hold investment for too long potentially
- Prize bonds seem attractive given the return rates mentioned here - but are there any good alternatives? Should I diversify?

Thanks

 

[jpd]

Keep it in your savings account - there is no risk free investment

80k in Prize bonds would expect to win € 280 per year but the chances of winning a prize are about 1 in 5 in any year, so the probability of winning nothing is 80%