Investing inherited money

Hi there,

Sadly my farther recently passed away and I (25year old, full time employed) have inherited £40k to spend on a deposit for a house. I am not ready to buy yet and so wish to invest this money for 2 or 3 years.

I need help on how to invest this money.

Currently I am thinking of using the Nutmeg life time isa (£4K p.a.) alongside their investment isa (£16000).
I have previously saved £1250 into a Halifax help to buy so if I can I will transfer this over. This leaves me with £21250 to invest.
Can I put this money into another ISA?
If not can anyone recommend what to do with this money?

Any help would be greatly appreciated.

Thank you

Comments

  • dunstonh
    dunstonh Posts: 116,040
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    Sorry for your loss.
    I am not ready to buy yet and so wish to invest this money for 2 or 3 years.
    That is too short a timescale to invest.
    Currently I am thinking of using the Nutmeg life time isa (£4K p.a.) alongside their investment isa (£16000).

    What happens when you suffer a 40% loss 6 months before you need the money for the house deposit?

    You should stick to savings/deposit options.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • xylophone
    xylophone Posts: 44,140
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    edited 24 July 2017 at 12:40PM
    so wish to invest this money for 2 or 3 years.

    This seems rather too short a time frame for investment.

    It may be worth considering


    http://www.skipton.co.uk/savings/isas/lifetime-isa

    With regard to the balance, you might open a Nationwide Flexdirect account - 5% on £2500 for a year and 5% on Flexclusive Regular saver.

    It is easy enough to cycle in/out the required £1000 a month.

    There are other interest paying current accounts.

    http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

    Ulster Bank have a 1.25% savings account.

    http://digital.ulsterbank.co.uk/personal/savings/instant-access-accounts/eSavings.html

    Other savings

    http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html
  • IanManc
    IanManc Posts: 2,069
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    dunstonh wrote: »
    Sorry for your loss.


    That is too short a timescale to invest.



    What happens when you suffer a 40% loss 6 months before you need the money for the house deposit?

    You should stick to savings/deposit options.

    I agree entirely with Dunstonh.

    Having had a recent bereavement is a lousy time to make long term decisions.

    The timescale you're talking about is very short indeed in terms of investments. The markets always crash at some time, and if they did before you want to buy a home then you simply wouldn't have the time for them to come back up again before you were going to buy.

    As well as that, I expect that you're not going to be left such a large sum again anytime soon, if ever. So I think you should be keeping it safe, especially as you have a specific purpose for it in a relatively short time.

    I know that you're wanting to do the right thing, but I think in this instance investment would be the wrong thing. I really think that you should be putting the money into savings.

    Hope this helps.
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