How best to use an inheritance

worksmarter

I have inherited £85k and am wondering how best to use it. I am in my mid 40’s

• Mortgage – Paid off already
• Debts – None
• Pension – Have been in a company scheme for the last 12years but have a rather patchy contribution history prior to this. However, I don’t like the idea of locking the inheritance cash away in case I need to use it because of redundancy, illness, etc.
• Shares – Had bad experiences of these previously and am now extremely risk adverse
• BTL – Finding it hard enough trying to keep current house maintained in good condition, let alone having the hassle of looking after a 2nd property on top of dealing with tenants, letting agents, legislation, etc.
• IFA’s – I don’t trust them. Had advice previously and didn’t take it which was just as well as I would have lost money on what they had recommended
• Gold – I think it has reached it’s peak
• Savings – Currently making full use of CASH ISA allowances and best buy accounts

Any ideas?

libra10

My husband and I were in a similar situation to yourself when I inherited a good sum of money.

We were (and are) also extremely risk averse when it comes to equity investments, having had our fingers burnt with what should have been 'safe' investments.

We were both working at the time - you don't state whether you are working, or not.

What we did with the money was buy into Tessas (the old form of cash ISA), paying maximum into the accounts yearly, and transferring to better rates when accounts matured.

The remainder of savings we placed in competitive fixed rate bonds. Bearing in mind, several years ago we were earning between 6% to 7% interest rates. A lot less these days, as I'm sure you know.

We did some home improvements, changed car regularly, helped children out, but in the main, neither of us were high spenders, and continued to save.

Bought some Premium bonds from which we've had some small wins.

Now drawing our pensions, we are comfortable with a nice nest egg to draw on, along with income from a couple of small pensions payable to my OH.

Being risk averse, I would keep to cash investments, find the best interest rates, use some money for home maintenance, holidays, and keep letting the money grow.

Good luck

paulwellerfan

ahh a breath of fresh air
not someone trying to say they have inherited money how do i hide it.
( due to getting benefits)
OP glad of your good fortune, i am sure some one on here will help you spend or save it wisely.

jem16

worksmarter wrote: »

Any ideas

You seem to have discounted most ideas.

xylophone

Given your "patchy" record, it might be a good idea to contribute something to your pension?

Archergirl

Book a lovely holiday and enjoy some of it before you lock it all away.

mgdavid

Archergirl wrote: »

Book a lovely holiday and enjoy some of it before you lock it all away.

agreed....

OR - what sort of company pension scheme is it? if it's based on length of service, ask if you can buy extra years.