I am inheriting and need advise.

leighfire

Hello, I am in a rare position in that I am about to inherit around £60,000.00 and am at a loss in what to do, I’ve read the site and have ideas but also questions, your help would be great.

I will be putting this year’s ISA allowance for me and my Wife into Stocks and Shares ISA, there are so many to choose from, how do I choose? I’ve been onto money supermarket and can see the current best runners, but I am not interested in big returns (unless you can change my mind), just reasonable so ‘low to medium risk’, how do I pick one? do I go UK, ethical, spread into different ones, Unit trust? I am confussed. That take care of £22k

Next years I was going to do cash and Stocks and shares, same question as above, how do I choose?

Then I will have about £25k left, I don’t have any credit card balance or loans, I have about £30k left in mortgage a couple little pensions, so what to do.

I know there are many questions and more answers but your guidance would be welcomed as you may think of something I have not considered and mainly I want to avoid a IFA so I keep as much as possible, and yes I would use a money back site for the ISA’s.
Ask what you want and thank you in advance.

Stubod

Subject to your current mortgage interest rate I would certainly consider paying off the outstanding balance....its great not to have a mortgage...

Linton

leighfire wrote: »

.....
I know there are many questions and more answers but your guidance would be welcomed as you may think of something I have not considered and mainly I want to avoid a IFA so I keep as much as possible, and yes I would use a money back site for the ISA’s.
Ask what you want and thank you in advance.

What you should do depends very much on your circumstances, needs, plans and attitudes which can only be ascertained by someone else from a face-to-face discussion. You will be unlikely to get an answer which is right for you from a group of random people who just happen to contribute to an internet forum.

You could be risking far more than the cost of a few hours of an IFA's time. In my view your lack of knowledge and the size of the inheritance makes discussion with an IFA the sensible way forward.

The possible alternative I guess is to put most of the £60K in a fixed rate deposit account and start teaching yourself with the remaining, say, £10K. In a year or two you will have the confidence and knowledge to begin to move the rest of the money into investments.

innovate

Pay off your mortgage before you do anything else.

Nicholas-bloody-Parsons

The recession and EU crisis could last years and could be a real drag on savings rates and investment returns.

IFA will only sell you "products" which generate them a fee. Pay off your mortgage for certainty.

esmo

I went to a IFA for advise , he suggested after 3 hours investing all my pension lump sum in one fund . I believe investing is about spreading risk and avoiding high charges so I said no thank you . I manage my own money and do not claim to be qualified. I suggest you open an account with a low cost broker and spread your risk by buying shares in individual FT 100 companies in differing sectors or ETF s ensuring you maximise your ISA allowance .
I would split 50% cash ,picking best deals depending on how long you are prepared to tie up for and 50% shares or ETF s .

bannyso

Unless you are getting some payoff on having a mortgage, I would also say always pay off your debt first. Best wishes.

sleepless_saver

What interest rate are you paying on your mortgage, and is it a repayment one?

AlanWragg

I would tend to avoid letting anyone else advise you what to do unless you really feel you are clueless about money.

Bear in mind these people will want thousands for very little work. Spread and diversify, ISAs the way to go.

Don't pay thousands for someone to dress up the obvious as something very hard / difficult.

If you feel you really need advice see an IFA but agree charges upfront and DO NOT overpay! £75 - £150 per hour absolute maximum.

VT82

One thing I would add...

If you really don't want risk and are more comfortable with cash ISAs, if you aren't going to have any more savings to be putting away besides this inheritance, I wouldn't put it into S&S ISAs just because you want to shield it from the tax man. It'll only take another three years to get it all in cash ISAs than to use both cash ISAs and S&S ISAs. If you put it all into S&S now, by the time you wanted to move it into cash ISAs, the timeframe would be under 5 years i.e. not worth the risk that it might have gone down. And also less stressful to not worry about timing when to cash them in.

Actually reading back, I think Linton was thinking along the same lines.

But yes, what rate your mortgage is will have a big impact on what the 'right' answer is.

Glen_Clark

leighfire wrote: »

Hello, I am in a rare position in that I am about to inherit around £60,000.00 and am at a loss in what to do, I’ve read the site and have ideas but also questions, your help would be great.

I will be putting this year’s ISA allowance for me and my Wife into Stocks and Shares ISA, there are so many to choose from, how do I choose? I’ve been onto money supermarket and can see the current best runners, but I am not interested in big returns (unless you can change my mind), just reasonable so ‘low to medium risk’, how do I pick one? do I go UK, ethical, spread into different ones, Unit trust? I am confussed. That take care of £22k

Next years I was going to do cash and Stocks and shares, same question as above, how do I choose?

Then I will have about £25k left, I don’t have any credit card balance or loans, I have about £30k left in mortgage a couple little pensions, so what to do.

I know there are many questions and more answers but your guidance would be welcomed as you may think of something I have not considered and mainly I want to avoid a IFA so I keep as much as possible, and yes I would use a money back site for the ISA’s.
Ask what you want and thank you in advance.

It isn't likely to be worth putting £22k in a Stocks and Shares ISA because the charges are likely to be more than the tax savings.
Pay off your mortgage, put the rest into the best savings account you can find in the links at the top of this forum, using your maximum cash ISA allowance. You are wasting you money going to a financial adviser.