Large inheritance and savings

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Comments

  • badger09
    badger09 Posts: 11,205 Forumite
    First Post First Anniversary Name Dropper
    With such a short timescale, I'd agree with xylophone.

    Obviously you could eke out a bit more interest by opening several current accounts and their linked regular savers, but you probably don't want to be monitoring multiple monthly money shuffles from Tanzania for the sake of a few extra £s.

    Have you considered Premium Bonds? You might achieve more than the interest on the Guaranteed Income or Guaranteed Growth Bonds.
  • silvermum
    silvermum Posts: 223 Forumite
    Photogenic Name Dropper First Post First Anniversary
    How old are you both?
    Have you ever owned any property?

    If you're under 40 and haven't owned property then you should also be looking at LISAs to get the govt. bonus.

    Have you any approximate idea where you'll live when you come back? North/South? If it's likely to be the North, then you could probably keep half for a deposit in savings accounts/NS&I earning 1-2% but invest the other half in e.g. global tracker funds with a view to leaving it there for 5-7 years (which would hopefully iron out any market fluctuations).
    The other £150k would provide a decent deposit for a house, and you could get a small mortgage on your return (or if your investments had grown in this time you could cash them in).
    If you're likely to return to the South East you may need all your cash for a deposit.
  • neuvilla
    neuvilla Posts: 5 Forumite
    getmore4less wrote: »
    Review the wife's options with the NHS, they may be able to take a sabbatical and retain NHS status/pension etc.

    Thanks, my wife's boss is currently looking into this. It's a bit complicated a she's on a secondment at the moment so technically she needs to get the approval from the boss in her old department.
  • neuvilla
    neuvilla Posts: 5 Forumite
    edited 11 December 2017 at 6:06PM
    silvermum wrote: »
    How old are you both?
    Have you ever owned any property?

    If you're under 40 and haven't owned property then you should also be looking at LISAs to get the govt. bonus.

    Have you any approximate idea where you'll live when you come back? North/South? If it's likely to be the North, then you could probably keep half for a deposit in savings accounts/NS&I earning 1-2% but invest the other half in e.g. global tracker funds with a view to leaving it there for 5-7 years (which would hopefully iron out any market fluctuations).
    The other £150k would provide a decent deposit for a house, and you could get a small mortgage on your return (or if your investments had grown in this time you could cash them in).
    If you're likely to return to the South East you may need all your cash for a deposit.

    Yeah, that's the problem. It could be anywhere in the UK really. We'd really like to be in the north, but there's no guarantee at all we will be. So I think we want to keep all the money available.

    Thaks for your suggestion about the LISA. We are in our mid-30s so this would work. II had heard about them but didn't know much about them. I'm thinking maybe we both open one of these, so we'd get £1000 each plus the interest, and then put the rest in a 3 year NSI Guaranteed Income Bond or a 2-year fixed bond from somewhere else.
  • Audaxer
    Audaxer Posts: 3,508 Forumite
    First Anniversary Name Dropper First Post
    Just recently launched is a 3 year NS&I bond that pays 2.2% per annum and has a maximum deposit limit of £1m. Accordingly if you want to keep your £300k in cash with no risk, and nearly keeping up with inflation for three years, I think that would be a very good option for consideration. I only found out about it the other day from the following thread on this forum:
    http://forums.moneysavingexpert.com/showthread.php?t=5753722
  • xylophone
    xylophone Posts: 44,392 Forumite
    Name Dropper First Anniversary First Post
    http://www.skipton.co.uk/savings/isas/lifetime-isa

    is the only cash LISA currently available.

    You could each open one for this year and then proceed as in my previous.

    http://forums.moneysavingexpert.com/showthread.php?t=5521869
  • atush
    atush Posts: 18,726 Forumite
    Name Dropper First Anniversary First Post
    I would certainly put some into pension. If you are paid, and pay tax in the UK, you should be able to do so.

    Then save the rest as suggested above to look at buying a home on your return.
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