what to do with inheritance

byrney15 · 19 May 2017 at 8:54PM

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

AlanP_2 · 19 May 2017 at 9:05PM

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?

System · 19 May 2017 at 9:16PM

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 · 19 May 2017 at 9:36PM

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 · 19 May 2017 at 10:36PM

byrney15 wrote: »

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.

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.

byrney15 wrote: »

2 HTB accounts in my name and my girlfriends name

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 · 19 May 2017 at 10:49PM

kidmugsy wrote: »

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.

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 · 19 May 2017 at 11:15PM

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.

System · 20 May 2017 at 5:27AM

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

what to do with inheritance

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free