£150,000 need help?

Mofman

Hi all,

My wife is soon going to receive £150,000 from the sale of her shares due to the flotation of the company she works for.

We have £20,000 left on our mortgage, do we pay it off fully?

We have three young children, do we invest it for them, if so where?

Will she have to pay tax on this amount, if so, how much?

Should we buy a property and rent it out?

Should we just put it away for a rainy day and enjoy the interest, if so, which is the best place to put it?

Any other advice would be helpful.

Sorry for sooo many questions but thanking you all in advance.

N1AK

Mofman wrote: »

Hi all,

My wife is soon going to receive £150,000 from the sale of her shares due to the flotation of the company she works for.

We have £20,000 left on our mortgage, do we pay it off fully?

We have three young children, do we invest it for them, if so where?

Will she have to pay tax on this amount, if so, how much?

Should we buy a property and rent it out?

Should we just put it away for a rainy day and enjoy the interest, if so, which is the best place to put it?

Any other advice would be helpful.

Sorry for sooo many questions but thanking you all in advance.

Spend a little and talk to an IFA. You would normally have to pay capital gains tax on the majority of the £150k if all sold in one financial year, so on that basis the CGT will be in the region of £30k. There might be ways you can limit that but you'll only find out if you seek expert advice.

oldtoolie

You either have to educate yourself to make your own decisions or pay someone (IFA) to make decisions for you. You wouldn't rely on anonymous people on a website to make these decisions for you.

There are books such as "Be Your Own Financial Adviser: The comprehensive guide to wealth and financial planning (Financial Times Series)". That would be a good start.

G_M

So many factors to take ino acount before responding:

* interest rate on mortgage
* other debts
* level of current savings for emergencies
* other investments
* age/family circumstances
* income (& needs)
* Time-frame till this money might be wanted/needed
* current life/ill-health insurance cover
* etc etc

Short term, put it in the highest interest rate instant access accounts you can find (see threads on this forum) while you decide a longer-term strategy.

Archi_Bald

G_M wrote: »

Short term, put it in the highest interest rate instant access accounts you can find (see threads on this forum) while you decide a longer-term strategy.

And don't keep more than £85K in a sole account.

atush

Do you both have pensions?

You can minimise her CGT if she transfers half the shares to you right before the sale (if this is allowed).

Otherwise, could her work not pay some of her proceeds into a pension for her?