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  • FIRST POST
    • byrney15
    • By byrney15 19th May 17, 8:54 PM
    • 5Posts
    • 0Thanks
    byrney15
    what to do with inheritance
    • #1
    • 19th May 17, 8:54 PM
    what to do with inheritance 19th May 17 at 8:54 PM
    Good Evening everyone

    I'm about to inherit between 75-80 thousand pounds from my step-dads will and was wondering what everyone thought of my plan to save it. This is only based on a few hours worth of reading this site over the last few evenings, before this I've never looked into any sort of financing.

    - using the 123 current account as my main account to earn 1.25% on the first 20K
    - 2 HTB accounts in my name and my girlfriends name
    - opening and feeding a Santander regular saver at 5%
    - opening a nationwide FlexDirect 5% account
    - opening a nationwide Flexclusive saver
    - JISA for my little boy

    I have a few debts to settle first and want to book a family holiday but after that I need to put it away.

    thanks for your help guys
Page 1
    • AlanP
    • By AlanP 19th May 17, 9:05 PM
    • 737 Posts
    • 500 Thanks
    AlanP
    • #2
    • 19th May 17, 9:05 PM
    • #2
    • 19th May 17, 9:05 PM
    Good starting points and nothing fundamentally wrong but to get more specific advice a bit more information would help.

    Put it away for how long? If it's for a few years cash is fine, if it's for when you retire in 40 years time it won't go far if left in cash.
    2 * HTBs - Guess you plan to buy a first property?
    Pension situation?
    Last edited by AlanP; 19-05-2017 at 9:10 PM.
    • MatthewAinsworth
    • By MatthewAinsworth 19th May 17, 9:16 PM
    • 2,514 Posts
    • 979 Thanks
    MatthewAinsworth
    • #3
    • 19th May 17, 9:16 PM
    • #3
    • 19th May 17, 9:16 PM
    Stocks and shares ISA! (For first 20k) Check out vanguard lifestrategy funds, check out the monevator or motley Fool blogs
    (Historically always comes back from crashes eventually)
    • byrney15
    • By byrney15 19th May 17, 9:36 PM
    • 5 Posts
    • 0 Thanks
    byrney15
    • #4
    • 19th May 17, 9:36 PM
    • #4
    • 19th May 17, 9:36 PM
    Plan is to start to look at buying our first home next year sometime, nothing really set in stone yet. I'll be wanting to use a sizeable chunk of it for the deposit on the house when the time comes. I just want to make sure that with the rest of it I'm doing the best I can to look after it.
    • kidmugsy
    • By kidmugsy 19th May 17, 10:36 PM
    • 9,277 Posts
    • 6,091 Thanks
    kidmugsy
    • #5
    • 19th May 17, 10:36 PM
    • #5
    • 19th May 17, 10:36 PM
    Plan is to start to look at buying our first home next year sometime ... I'll be wanting to use a sizeable chunk of it for the deposit on the house when the time comes. I just want to make sure that with the rest of it I'm doing the best I can to look after it.
    Originally posted by byrney15
    In that case don't even think about investing in stocks and shares; your plan is better. Use your capital to get a mortgage loan at a favourable interest rate by virtue of having a good loan-to-value ratio.

    2 HTB accounts in my name and my girlfriends name
    Originally posted by byrney15
    Have you considered LISAs for the two of you (Lifetime ISAs)? You each save 4k and next April (I think it is) the taxpayer adds 1k for each of you. You can use the funds tax-efficiently to buy a first house or (but presumably not for you) you can let the account run until you are 60 and use it as a sort of pension with tax-free withdrawals.
    • byrney15
    • By byrney15 19th May 17, 10:49 PM
    • 5 Posts
    • 0 Thanks
    byrney15
    • #6
    • 19th May 17, 10:49 PM
    • #6
    • 19th May 17, 10:49 PM
    In that case don't even think about investing in stocks and shares; your plan is better. Use your capital to get a mortgage loan at a favourable interest rate by virtue of having a good loan-to-value ratio.



    Have you considered LISAs for the two of you (Lifetime ISAs)? You each save 4k and next April (I think it is) the taxpayer adds 1k for each of you. You can use the funds tax-efficiently to buy a first house or (but presumably not for you) you can let the account run until you are 60 and use it as a sort of pension with tax-free withdrawals.
    Originally posted by kidmugsy
    I've looked into them, just trying to weigh up which will be better for us, I've got the 4k to deposit straight into a LISA so maybe its worth doing that.
    • bostonerimus
    • By bostonerimus 19th May 17, 11:15 PM
    • 124 Posts
    • 76 Thanks
    bostonerimus
    • #7
    • 19th May 17, 11:15 PM
    • #7
    • 19th May 17, 11:15 PM
    Pay off high interest debt, put some aside in a cash emergency fund, put whatever you need for the house deposit in an insured savings account and put the rest in something like a low cost Vanguard Life Strategy fund in an ISA.... think about a LISA depending on your work place pension situation and need for liquidity.
    • MatthewAinsworth
    • By MatthewAinsworth 20th May 17, 5:27 AM
    • 2,514 Posts
    • 979 Thanks
    MatthewAinsworth
    • #8
    • 20th May 17, 5:27 AM
    • #8
    • 20th May 17, 5:27 AM
    It'd be worth keeping the house deposit as low as possible if you are going to invest, since investing almost certainly will outstrip the mortgage
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