Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • bcfclee27
    • By bcfclee27 6th Sep 17, 10:36 AM
    • 52Posts
    • 7Thanks
    bcfclee27
    What to do with my inheritance ?
    • #1
    • 6th Sep 17, 10:36 AM
    What to do with my inheritance ? 6th Sep 17 at 10:36 AM
    Hi all, just looking for advice on what to do with a sizeable inheritance. My father passed away leaving me a sum that I want to use wisely......

    I'm 37 in police and wife is a teacher so we have decent pensions.
    We have 2 kids no plans for anymore.

    House worth about 460k.
    2 year fixed mortgage ending 31 Jan 2018.
    Current mortgage left 264k

    6k loan paying off £112 a month for next 56 months.
    4K loan to father in law £250 a month (interest free)

    3k in savings.

    Received 160k from dad with a possible 30k to come from his shares.

    So what do I do with the money - I imagine the smart move is to...
    1) pay loans off at least the 6k one because of the interest.
    2) keep 20k emergency savings
    3) stick the lot of what's left into my mortgage.

    So just looking for advice on what to do with it all.
    Many thanks.
Page 4
    • kidmugsy
    • By kidmugsy 10th Sep 17, 4:29 PM
    • 9,850 Posts
    • 6,642 Thanks
    kidmugsy
    Because novice investors starting out dont have a large amount of money.
    Originally posted by atush
    What are you on about, atush? Our OP is about to have £190k.

    So if they put half or more in sovereigns,
    Originally posted by atush
    Nobody here suggested any such thing. You've just made it up.

    Gold should not be a large part of a diversifed portfolio.
    Originally posted by atush
    Says who? Why not? Harry Browne recommended 25%. I've seen people recommend 15%, 10%, 5%. Nobody can know what will prove best with hindsight. 2% seems trifling to me, but each to their own.
    • DiggerUK
    • By DiggerUK 10th Sep 17, 6:05 PM
    • 2,794 Posts
    • 2,681 Thanks
    DiggerUK
    "Yes officer"
    I'm going to urge you to see FIL's advisor. Not that I approve of such practices, but because I've heard you know a thing or two about 'interviewing'. I'm sure that you have met some right charmers over the years.

    I suspect, if the advisor is any good, that they will tell you how pleased they are to meet someone as wise as you, who has his families best interests to heart, as so few people take such a wise decision as you are proposing to make proper financial plans.
    I guess they will urge you to consider planning for an earlier retirement, or light up with a smile of favour if you mention it.

    OK, I could carry on in that vein, but I'll leave it there. Also I haven't got a clue why anybody should have mentioned gold, but as a small favour could I ask you to mention it during the interview. I suspect you will receive "I see that as a very brave thing to do prime minister" type rejoinder..._
    I am not now, nor have I ever been, a Financial Adviser.
    Forward, to the 'British Spring'
    • bcfclee27
    • By bcfclee27 13th Sep 17, 11:16 AM
    • 52 Posts
    • 7 Thanks
    bcfclee27
    So I have an appointment with the IFA next week.

    My current thoughts are S&S ISA.

    I'm thinking of putting 20k in my VLS80 ISA and then another 20k in next April.

    The one criticism I see people have with VLS is the size of the U.K. Investment. So I have be looking at HSBC global strategy which is similar but much less UK weighting.

    What are people's thoughts on this as I'm thinking of setting up S&S ISA in my wife's name to invest 20k in now and again in April next year.
    We would then hold 40k in HSBC global strategy and 40k in VLS80 as of April next year.

    What are people's thoughts on this please ?
    • JohnRo
    • By JohnRo 13th Sep 17, 11:29 AM
    • 2,458 Posts
    • 2,213 Thanks
    JohnRo
    Have you given proper thought to the psychological impact of exposure to global equities and their gyrations?

    These are high risk funds, which is fine if you understand what you're taking on, but you need to ask yourself some honest questions about how it might affect you if the valuation drops by 30% or more which is by no means a stretch.

    What you don't want to do is find yourself losing sleep and being panicked into selling at the worst possible time before a recovery, which might take years, has kicked in.

    It's very easy when a bull market is raging to glibly dismiss such concerns but it's what the IFA will or should focus on, their job isn't to pick winners it's to ensure you're invested appropriately based on your tolerance to risk and attitude to (temporary) losses.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
    • Chappers27
    • By Chappers27 13th Sep 17, 11:34 AM
    • 54 Posts
    • 57 Thanks
    Chappers27
    (1) pay off loans.
    (2) put the rest into your own personal private property, savings or pension (without your missus knowing about it, if you can).

    It may seem harsh, but speaking from experience divorce can ravage your financial position. Take private advice.
    Last edited by Chappers27; 13-09-2017 at 11:39 AM.
    • Audaxer
    • By Audaxer 13th Sep 17, 1:11 PM
    • 573 Posts
    • 251 Thanks
    Audaxer
    What are people's thoughts on this as I'm thinking of setting up S&S ISA in my wife's name to invest 20k in now and again in April next year.
    We would then hold 40k in HSBC global strategy and 40k in VLS80 as of April next year.

    What are people's thoughts on this please ?
    Originally posted by bcfclee27
    I think they are good funds, but assuming you are going for the HSBC Global Strategy Dynamic fund which has similar percentage of equities to the VLS80, then maybe a bit high risk unless you are prepared to face a possible 40% fall in value in the event of an equity crash.

    I already have VLS40 and VLS60 and am thinking of investing a further lump sum in the HSBC Global Strategy Balanced fund, which should be less volatile than the combination you are considering.
    • bcfclee27
    • By bcfclee27 13th Sep 17, 1:23 PM
    • 52 Posts
    • 7 Thanks
    bcfclee27
    I think they are good funds, but assuming you are going for the HSBC Global Strategy Dynamic fund which has similar percentage of equities to the VLS80, then maybe a bit high risk unless you are prepared to face a possible 40% fall in value in the event of an equity crash.

    I already have VLS40 and VLS60 and am thinking of investing a further lump sum in the HSBC Global Strategy Balanced fund, which should be less volatile than the combination you are considering.
    Originally posted by Audaxer
    Ok then so would I be better off investing in VLS60 and HSBC balanced ? Should that still generate reasonable returns but with a bit less risk baring in mind this is an investment for at least 10-15 years.
    • atush
    • By atush 13th Sep 17, 3:17 PM
    • 16,334 Posts
    • 10,082 Thanks
    atush
    (1) pay off loans.
    (2) put the rest into your own personal private property, savings or pension (without your missus knowing about it, if you can).

    It may seem harsh, but speaking from experience divorce can ravage your financial position. Take private advice.
    Originally posted by Chappers27

    This is asinine advice. Because, hidden or not yo must delare all assets when divorcing So lying under oath about yor assets will cost you more in the end.
    • Fatbritabroad
    • By Fatbritabroad 13th Sep 17, 4:58 PM
    • 184 Posts
    • 79 Thanks
    Fatbritabroad
    How about doing your own offset? So rather than overpay your mortgage or pay it off in one lump invest the money you would have overpaid by at a higher rate and earn some money rather than just not pay the interest on the mortgage.

    The method of investment can range from a straightforward cash savings account to investing via a S&S ISA.

    I'm choosing to invest into an index linked tracker fund within my ISA rather than overpay the mortgage. Mortgage rates are very low at the moment so its not worth just offsetting or paying off for me. By investing in my ISA i'm expecting a much better return on my money over a 10 year period and I still have the ability to take money out and pay a chunk off the mortgage when it comes to remortgaging time if that suits.
    Originally posted by Anonymous101
    Exactly what I'm doing. Fixed mortgage for ten years at 2.49% at 60%ltv. Saving in anything I can that likely to earn me more than that (high interest current accounts stocks and shares p2p ablrate etc). Hopefully if the market is kind being in a position to pay a sizable lump off in ten years
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

729Posts Today

5,531Users online

Martin's Twitter