What to do with large inheritance?

sc00by-d00

and I'm guessing there is nothing in it for you Phil - who just decides to advertise uksharetrading.com whilst using a forum screenname of uksharetrading.

Ifts

sc00by-d00 wrote: »

and I'm guessing there is nothing in it for you Phil - who just decides to advertise ********** whilst using a forum screenname of ***********.

You will notice that the spam post you refer to has been removed for obvious reasons........

But you have reposted it for them (by quoting their spam post!), maybe you could delete or edit your post to remove any reference to their spam post.

Thx

AlwaysLearnin

You appear to have your head screwed on generally (with the exception of the view on pensions...), so I've no doubt you'll be fine financially.

Personally I would suggest considering earmarking at least a bit of it to spend on yourself. Perhaps not classic advice on a savings board, but when you have those sorts of amounts then there surely comes a point where you have to enjoy at least some of it.

I obviously don't know your personal circumstances and certainly don't mean offence, but we get one go here so make sure you make the most of it. You're 37, in a good financial position (even before your uncles legacy), single, but wanting kids at some point. I have a couple of kids and I'd certainly recommend it (best thing I've ever done!), but with the right partner. Dare I say you can perhaps afford to focus on areas of your life outside of finance.

Good luck!

atush

Ifts wrote: »

You will notice that the spam post you refer to has been removed for obvious reasons........

But you have reposted it for them (by quoting their spam post!), maybe you could delete or edit your post to remove any reference to their spam post.

Thx

Yes edit your post as his advertisements live on thru you lol

atush

AlwaysLearnin wrote: »

You appear to have your head screwed on generally (with the exception of the view on pensions...), so I've no doubt you'll be fine financially.

Personally I would suggest considering earmarking at least a bit of it to spend on yourself. Perhaps not classic advice on a savings board, but when you have those sorts of amounts then there surely comes a point where you have to enjoy at least some of it.

I obviously don't know your personal circumstances and certainly don't mean offence, but we get one go here so make sure you make the most of it. You're 37, in a good financial position (even before your uncles legacy), single, but wanting kids at some point. I have a couple of kids and I'd certainly recommend it (best thing I've ever done!), but with the right partner. Dare I say you can perhaps afford to focus on areas of your life outside of finance.

Good luck!

Excellent advice. Have a holiday (in SA maybe) live your life well. and look for a partner in all the Right places. There are a number of wrong places I but I don't think i need to tell you that lol.

sc00by-d00

atush wrote: »

Ok, first off my thought was diversify that 1.2M in one company Way too risky. and 2.5% isn't a great yield, but not awful.

You are getting a better yield on the Uk property than the SA one.

All those assets (ie 2M) re in the SA currency, which leans you are suffering currency risk. I'd be inclined to sell some of the stock, then move it to GBP based stock.

Is there a double taxation agreement with SA/UK? Have you considered some tax advice?

you have the bulk of your money tied up in SA, which may do great in future. But if the economy tanks or there are other major problems, having so much in one country/Economy is Very risky indeed. So i'd not only diversify companies, i'd diversify countries. Doesn't have to be UK only, could be anywhere else you like (or better yet Global).

finally:



This makes NO SENSE whatsoever. You are in BTL in 2 countries- risky. you have loads of assets in another currency, risky. So you seem to have an appetite for risk, but are afraid of personal pensions? Which are ring fenced, and only as risky as the investments you put in them? And which will only cost you 60 for each 100 you put in as you pay HR tax and get relief? Amazing.'

I'd be putting some of that money in pensions.

If you decided to put some of your personal wealth in an annuity (enough to pay you 20K per year) you'd have access to all of your pension pot. But 75% would be subject to tax at your highest rate at the time.

Thanks for that Atush. Interested in what you said at the end there. Are you saying that I could use a lump sum to buy an annuity when I retire, let's say in 20 years? If that's the case how will I have access to all of the pension pot if the annuity is only paying me a certain amount of it each year??

AlwaysLearnin

You don't have to buy an annuity. Atush was refering to drawdown. Currently, if you're drawing/receiving £20k or more pension, you can access flexible drawdown

chucknorris

sc00by-d00 wrote: »

the issue of 25% is only part of the reason for my not wanting to take a pension. I guess I'm just much more comfortable controlling my own money rather than being forced into buying an annuity although I understand the concept behind it. Would rather ration my income myself.

In addition, as I contract through my own limited company if I did start to contribute to a SIPP, I would not have an employer to make additional contributions. Any contributions my limited company would make would be money out of my left pocket and into my right pocket so to speak.

I just feel that investing my inheritance over a good spread of income producing assets such as BTLs, Stocks & Shares, Cash Deposit and ISAs would provide me with sustenance in old age which I have control over rather than a Pension (although I am aware that you can control what your Pension is invested in).

We had the same attitude towards pensions as you, we have quite a bit invested in property (excluding our home). But it dawned on me a few years ago that whilst we will be very comfortable living off the capital after selling up, because we don't know how long we will live it might prove tricky getting the right balance between spending it all and keeping enough for our retirement income in our later retirement years. So I started investing in pensions as a hedge against living longer, the more pension income we have the easier it will be to spend more capital. Of course it is a very different scenario if you want to leave your investment properties to your children (we don't have any), in which case it is best to just live off the rental income.

zerog

I agree with AlwaysLearnin

You need to decide if you want to live in the UK forever, or if you would move back to SA, or if you want to move to a 3rd country.

This will change if you get married/have kids.

Understanding your tax situation in both countries and how this would change depending on your life choices is also important.

It is a good idea to have a small pension just in case you become unable to manage your finances any more (dementia, disability etc).

calypso_rhapsody

I'd recommend you get up to speed with the rules about SIPPs and pension drawdown - there are lots of free leaflets or internet sites with the info. If you are going to be investing in stocks and shares a SIPP is really the only tax shelter after you've filled your S&S ISA (which won't make much of a dent in your funds!). Flexible drawdown means that you can access your funds over time once you reach retirement age.

I would also be looking to reduce the forex risk that you have.

But you look well placed financially and i'd tend to agree - enjoy life and don't spend to much time worrying about money just yet!