Help

Options
135

Comments

  • Jenniefour
    Jenniefour Posts: 1,393 Forumite
    First Anniversary First Post Combo Breaker Mortgage-free Glee!
    Options
    Now I'm not saying it's going to happen but both my wife and me have been in failed realationships before. I'm not saying it's going to happen with my wife and myself but you just never know so why would I put money into her pension when if something did happen which touch wood it doesn't that would be money lost.

    Dave, can I put a slightly different perspective on this. In the (hopefully unlikely) event that your marriage were to end then all the more reason to make this money work hard for you. Just in case.
    I also have her brother who is hinting at me to give him money so he is mortgage free. I've taken risks with my life to get this money and I just don't want to be stupid with it

    Resist all attempts by anyone to part you from some of this money, or borrow it, including your brother-in-law. Stick to your very sensible aim of making the money work to secure a good future for you and your immediate family - wife and children. You might want to consider having a conversation with your wife about who gets to know about this money, you can do without having to deal with this kind of nonsense. As you have said, you need time to think about what to do with the money.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Options
    Davethepioneer wrote: »
    I also have her brother who is hinting at me to give him money so he is mortgage free. I've taken risks with my life to get this money and I just don't want to be stupid with it

    Suggest to the brother that he take a running jump. I'm afraid that once people know you have a large capital sum chancers will try it on with you. That's why everyone who can should keep it a secret.
    Free the dunston one next time too.
  • Davethepioneer
    Davethepioneer Posts: 29 Forumite
    First Post First Anniversary
    Options
    To be clear if we were to split I'd be the one having the boys as I'm the one who's home but I doubt it would come to any of that lol as for the brother in law I have no intention and either does the wife of lending the money to him. What are people's thoughts on buying a property. For example I could buy and old terrist house for around £85,000 -£100,000 or modern 1&2 bedroom apartments same area for £100,000 to £130,000
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Name Dropper First Post First Anniversary Post of the Month
    edited 20 September 2017 at 5:54AM
    Options
    Davethepioneer wrote: »
    What are people's thoughts on buying a property.
    Presumably you have no experience being a landlord? In order to make money in the landlord game you need to treat it as a second business alongside your other one, with a proper business plan etc.

    To be competitive with other "rival" landlords in terms of getting a decent return for your risks and being able to charge a competitive rent, you would need to have multiple properties so your eggs aren't in one basket, and use mortgage finance to help you buy them. As well as maintenance and renovation costs (can be a lot when a tenant trashes the place) you would have agency costs and property management costs if you're not going to do everything totally yourself. And it's pretty inefficient tax-wise (compared to you and wife and kids using the full extent of ISA and pension allowances every year.

    Whereas, if your current place is not as big as it might need to be for your family as the kids get older, investing in your own house is quite tax efficient as you don't have any rental income to be taxed or any 'capital gains' tax to pay if you sell in future.

    You mentioned early on that you were thinking that if something happens to the relationship, any money you put into your wife's pension would be "lost". But presumably when you split, the default position is she gets half your stuff and you get half hers. Pensions would be included in that analysis.
    For example I could buy and old terrist house for around £85,000 -£100,000
    As someone ex-army, you should know more than most that it might be unwise to buy an old terrorist property.

    :D
  • xylophone
    xylophone Posts: 44,427 Forumite
    Name Dropper First Anniversary First Post
    Options
    You do not mention the source of the money but it does not appear to be an inheritance.

    Have you fully allowed for any tax that may be due?

    You can hold the whole amount safely in NS&I Income bonds while you consider your options.

    I think it would be well worth considering paying off your mortgage and loans so as to be debt free.

    You say that you own a business - it would be a good idea to explore the possibility of starting a pension.

    https://directory.moneyadviceservice.org.uk/en

    http://www.taxcafe.co.uk/pensionmagic.html may be worth a read.

    Had you considered a JISA for each of the children?

    https://www.gov.uk/junior-individual-savings-accounts

    Consider opening stocks and shares ISAs for you and your wife.

    And in your position, I would avoid making any gifts/loans to the BIL.
  • LHW99
    LHW99 Posts: 4,219 Forumite
    First Anniversary Name Dropper First Post
    Options
    Make sure any advisor your see is truly independent, don't ever go to a company that cold calls you.
    The main thing with your advisor is to be sure they can properly explain their approach to you in a way you can understand, and that they can discuss it without making you feel inferior. Some can, some can't!
  • Davethepioneer
    Davethepioneer Posts: 29 Forumite
    First Post First Anniversary
    Options
    The money is an insurance payout from the US department of labour. I want to diversifie with the money so it would be in ISA and JISA, LISA, stocks and shares, SIPP, property and of course paying my mortgage off. The house is 4 bedroom detached and is big enough for my wife two sons and myself, we've already extended the property so it's more than adequate. From what everyone has mentioned it would seem that I will be in a good position. I don't need a lot of money to actually live on, my wife gets a decent wage and she normally covers the holiday payment so if putting this money into several things brings a little back then that would be perfect. Everything I'm looking at is long term
  • Davethepioneer
    Davethepioneer Posts: 29 Forumite
    First Post First Anniversary
    Options
    Terraced not Terrist ��
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Options
    Davethepioneer wrote: »
    I want to diversifie with the money so it would be in ... property ...

    It might be well worth your while to find an accountant with the expertise to advise you about the advantages of buying and running your BTLs within a limited company, and the balance of advantage in mortgaging rather than buying entirely with cash.
    Free the dunston one next time too.
  • Davethepioneer
    Davethepioneer Posts: 29 Forumite
    First Post First Anniversary
    Options
    I shall have a word with my accountant and see what he says
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards