How to deal with a big cash windfall

curi

If you were a single 50 year-old, no debts, no mortgage, owned a property at £300,000, no savings. Pension of £22,000 expected at 55 and full state pension, whenever they now pay that.

Suddenly you inherit £675,000.

What would you do?

mickey54

Spend it.!!!

nearlyrich

I would take stock and work out how to make that money give me a good income for the rest of my life, investments etc, set some aside to travel and then I would give up my job and do what I want to do for the future...the £22k pension is more than most people get especially at 55 so it's a great opportunity to be set for life.

atush

You don't tell us enough.

You are single but do you have any kids? God children, close relatives like parents. Brothers, sisters, nephews nieces. Basically anyone you would want to leave money to? AS you are well over the IHT if you do.

OBV, I would spend some. I would save some. I would 'take care' of all those things I hadn't got round to for lack of savings like home maintenance etc. Take a holiday and replace your car (but sensibly- no sports cars as you didn't win Millions).

Most of all I would seek tax advice, as you will need it. And part of that would be perversly putting some more into a pension for tax relief lol. Even though your current pension seems 'comfortable' (but thinking it isn't as you have no savings?)

I would invest some in equities, some in cash, some in bonds- maybe a rental. And I think, most of all I would relax a bit.

Dont' be too spendthrift esp at first. And be suspicous of ynew 'interest' in member of the opp sex. Or same sex lol.

atush

PS, when you do get advice, don't get it from your bank or your mates down the pub pr the gals from the book club.

Get it from an IFA, thru a rec from soneone who actually made money or unbiased.co.uk

BobQ

Personally,I would avoid independent financial advisors (unless I really felt confused) and start off by splitting the money over several financial institutions until I had worked out what to do next. I would leave about £50K in instant access savings, put £100K in fixed term savings then buy 2 good rental properties to generate an income, and put the rest in lower risk investment trusts. I would look forward to retiring 55, start taking some expensive holidays, buy a Chelsea season ticket and increase my contributions to charity. But that's me! You might prefer to retire early.

gozomark

I'd spend 50% on wine, women and song. The rest I'd spend on non-essentials

curi

nearlyrich wrote: »

I would take stock and work out how to make that money give me a good income for the rest of my life, investments etc, set some aside to travel and then I would give up my job and do what I want to do for the future...the £22k pension is more than most people get especially at 55 so it's a great opportunity to be set for life.

Thanks, a reply very close to my thinking.
I'll come clean. I had to give up work last year to look after a terminally ill mum, although I could because I had saved a lot myself. She died and left me an inheritance, which added to my own savings etc, is what I describe.

My trouble is, I wake in the middle of the night worrying if I need to get back into work (which was a stressful job). Then I work it all out again (given the economy) and my less than ostentatious spending. It seems most think I'm in a good situation, so maybe I should finally realise that and just live it out.

Thanks for the replies, they have helped.

purple45

With that kind of money behind you, you have the freedom to do so many things. If you find it difficult to get by without the structure of work, there must be loads of charity organisations all over the world that you could work for while you're having the adventure of a lifetime.

Sorry that you've lost your Mum, and I hope that in the end the money brings you great happiness rather than worry!

Mrs_Supersaver_1

Curi - I'm sorry for the loss of your Mum.

Please enjoy your pension and inheritence, and make the most of each and every day.
I say this as my husband has been a 'workaholic' for the last 36 years. He took early retirement recently, kids in their last and final years of uni and youngest working, we just arranged two hols and he has been taken ill very suddenly, it is terminal and not good news

Good luck with your inheritence.

Voyager2002

I think you need to work out what you want to do with the rest of your life. Most of us need something like work in order to be healthy mentally and physically. Your financial situation means that you could work without pay at something that you found enjoyable and worthwhile, but it would only keep you well if you took it seriously. So maybe your first stop should be some kind of careers adviser. Your next career (paid or not) might require further education and training, but of course that is something that you can organise if necessary.