The Windfall Diary

WindfallWinnie

atush wrote: »

Ok, if the accts are to be in your name only, open 4 lol. You need to have 85K or less in each. And that means each insititution with a seperate license as someshare one.

Check with the benefits office, but I think up to 6K will NOT affect your childs DLA. But the limits could be higher. So get them an ISA too.

ISAs can be 3% or more. So check for the best rates and open them. Dont forget you will lose 20% or more of your interest at AA to tax!

Sounds like you are set with a good IFA. That is half the game right there.

Will check benefits limits for our 18yr old. Think that savings need to be below £14,000. He's had generous grandparents saving for him since he was born so has approx £8,000 already!

Also, need to keep an eye on ISA rates for us all...

All this & also trying to help elderly relations invest their savings too. Phew!

WindfallWinnie

atush wrote: »

First on my list would be any maintence or repairs on your home you were saving up for. Do them asap. And then look (if you won't be moving) at any upgrades you may want. Start planning and seeing abt the costs. This is money you will wat to set aside and as it will improve your home's value isn't really a waste)..

Once we'd made the decision to downsize we came up with a 3-4yr plan for maintenance & re-decoration. Just to keep on top of things until we're ready to sell.

atush wrote: »

Cars. If any are getting on, good time to think of replacing them. Dont forget to ask for Cash Discounts (I do this even when buying more than one white good) and look at buying almost new (ie demos). Never be afraid to haggle if you have cash in the bank. If they won't give you one, pay with the cashback credit card you will have just opened. That will cost them and you will still get a discount ;-) Given you have paid off CCs I would look for the best ones for people who don't carry a balance. For me that means ones that give you cashback, extra tesco points, free flights etc.

Have been trying to persuade hubby to change his 5yr old car for something slightly newer but he seems reticent. Think he's a bit 'fazed' by the windfall still...

atush wrote: »

Plan a nice little holiday (or a slightly bigger one-took my 3 boys on a caribbean cruise when I had a windfall).

Already had a nice holiday booked for Aug this year & saved up for 18mths! Have a long list of lots of other places I'd like to see, just need to fit them around children's school holidays!

atush wrote: »

If this was an inheritiance, do something like even just having a drink of champagne and toasting them to making a small gift to charity in their name.

This isn't something we've done. In fact, we've scarcely acknowledged it. Not told the children, just our parents. And not told any other family members or friends. Sounds strange, but its as if we're 'scared' of it...
Have thought about giving some to my brother to help him clear his debts and help pay for my niece's school trips.
Like the idea of the charitable donation & will give that some more thought.

Thanks once again!

geewcee

Hopefully your IFA will advise you put some of it in decent blue chip dividend paying stocks. Thats the first thing I would be doing with a windfall of that size.
Will be interested to hear what your IFA does recommend to do. Not that I'm ever going to be inline for a windfall that size in my lifetime!
Good luck with it all, interesting read!

gadgetmind

geewcee wrote: »

Hopefully your IFA will advise you put some of it in decent blue chip dividend paying stocks.

For a wide variety of reasons, no IFA would do that.

I do hold a modest portfolio of such stocks, but as just one "theme" in a much larger balanced portfolio of UK/global equities, bonds, property, infrastructure and a smattering of ITs.

I'd expect an IFA to recommend a similar portfolio but using OEICs and/or trackers.

atush

the 5 yr car, if working well doesn't need replacing if he doesn't want. but if you have had probs with it, expensive to maintain I would.

My OH's car is 12.5 yrs and still working lol. It was an audi A4 so was a good car to begin with and runs well. It was his old company car but they no longer do that.

As far as the household maintenance, I might move that up a bit as you won't be downsizing now I think you said? I am going to do up my house. Built it 16 yrs ago, and things are showing wear plus i was skint then and would like to upgrade the bathrooms etc (and maybe not have to tile them myself this time lol) Give it a whole facelift then either live there or downsize. Will start this project next year this time.

geewcee

gadgetmind wrote: »

For a wide variety of reasons, no IFA would do that.

Interesting, guess thats why most investors I know avoid them like the plague then

WindfallWinnie

atush wrote: »

As far as the household maintenance, I might move that up a bit as you won't be downsizing now I think you said? I am going to do up my house. Built it 16 yrs ago, and things are showing wear plus i was skint then and would like to upgrade the bathrooms etc (and maybe not have to tile them myself this time lol) Give it a whole facelift then either live there or downsize. Will start this project next year this time.

We've got a couple of rooms that will need re-decorating/re-carpeting in the next 3-4yrs. We built ours 12yrs ago & the bathrooms still look OK - we put good quality suites & tiling in which hasn't dated. If anything the kitchen could do with replacing but I don't think its worth it. A buyer can rip it out & put something in to their own taste.

atush

gadgetmind wrote: »

For a wide variety of reasons, no IFA would do that.

I do hold a modest portfolio of such stocks, but as just one "theme" in a much larger balanced portfolio of UK/global equities, bonds, property, infrastructure and a smattering of ITs.

I'd expect an IFA to recommend a similar portfolio but using OEICs and/or trackers.

Have to agree here.

atush

geewcee wrote: »

Interesting, guess thats why most investors I know avoid them like the plague then

Doing what you suggestis fine- I do it. I buy esp in times like these when prices are falling and yields high. But that is for investors who have experience and time to research.


In this case, the mjority of such investments should be collective invesments into funds and investment trusts. A small proportion into an online broking acct (ISA or otherwise) to learn and invest with themselves would be a good idea. But not all of it.

atush

WindfallWinnie wrote: »

We've got a couple of rooms that will need re-decorating/re-carpeting in the next 3-4yrs. We built ours 12yrs ago & the bathrooms still look OK - we put good quality suites & tiling in which hasn't dated. If anything the kitchen could do with replacing but I don't think its worth it. A buyer can rip it out & put something in to their own taste.

If you are definitely still going to sell it then I agree. But if staying put I would move up the timescale for redecorations and maybe do the kitchen too.

I have to redo my bathrooms as while neutral weren't high spec and the house is worth so much now as a whole I need to put in bathrooms worht of it lol.