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Large inheritance - WWYD?

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atush Posts: 18,731 Forumite

25 May 2014 at 11:25AM

Husband at 36 with no pension. Maybe stick £15k in an low cost tracker fund, within an ISA. Treat that as retirement/pension money (but you have it available in emergencies).

Nope, not if he is paying HRT. I'd put that into a pension. I'd open a seperate DC one, if the LGPS AVCs can no longer be used to fund the Tax free sum (think this may have just changed last month). This would go some way towards making up for no past pension, going forwards it looks like both of you are OK for pension.

Do make sure each of you pays in enough to take you out of HRT.

As for your savings, your emergency pot should be in cash or cash equivalents, but I would put longer term savings into equities which could be a mix incl some bonds and some funds/shares. Have a look at the Vanguard series. These could be held in S&S isas in both your names.

So, my idea is 10K into the cash savings, 50K into mtg, and 50K into pension for OH, and S&S isas for you both. More pension for you only if you are still paying HRTax after your pension contributions.

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