Where to Put Early Retirement Lump Sum (30k)

flyingfolly

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My wife is soon retiring on Ill Health Grounds and as part of this gets 30k lump sum (after tax / reductions etc.). She's aged 39 and wants to invest it for 20-25 years or so.

I earn around 170k gross and will be able to swap some of my income to paying her instead (she's a director of my company) to benefit from her lower tax band for 10k-20k or so.

My entire pension is in the S&P500 and we have other investments in the S&P500 too so I'm a little hesitant to put anything else in there so would rather diversify a little.

We're trying to figure out where to put the 30k so that it can grow for 20-25 years without being touched, other than the S&P500 or some "product" by life investment companies. I was wondering about potentially buying something like the EUROSTOXX Select Dividend 30 (https://www.stoxx.com/index-details?symbol=SD3E) in 5k sums over the next few months (in case the market drops more) so she'll get a return of potentially 3-8% per year before tax and can let it grow, but I know dividend stocks are generally not recommend unless you're close to retirement and because you'll pay tax on the dividends.

Another option was perhaps just buy Berkshire Hathaway stock.

Our criteria are:
- Not S&P500 to diversify our investments further
- Time horizon of 20-25 years

Any thoughts?
 
You are earning 170k per year i wouldn't worry about 30k lump sum. Get your wife to max out her pension contributions through your company and enjoy the 30k on new car couple of holidays etc
 
A world index and the S&P500 will have a significant amount of crossover seeing as many of the world's largest companies are American, so unless you've a strong conviction that the US will outpace growth in the rest of the world over the lifetime of the pension I don't see much point in mixing the two.

By going heavy into a world index you'll still be invested in American companies while also having exposure to a long tail of companies from the rest of the world that might be the next big thing.
 
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