Inherited money any advice on how to use it wisely welcome...

mike88

As your other half is not your husband then I would be very wary of the advice given to invest in his pension and to open joint savings accounts. That probably is an old fashioned view but life has a habit of throwing curve balls so my guess is that your dad would be appalled if his some of his lifetime savings and net worth ended up in somebody else's pocket. That is no comment on your relationship but just a fact of life so absolutely no offence intended.

As a person whose net worth is tied up in stockmarket related investments my advice to you would be not to invest is unit trusts, investment trusts or individual shares as clearly your comments indicate that you might panic when the price falls and sell at a loss. The stockmarket is no place for those who are nervous investors.

Buying a field and saving money on livery sounds like an excellent idea as does paying off part of your mortgage. Actually you don't seem to need advice as you have things pretty well sussed out.

Good luck.

countrygirl27

No offence! Obviously you don't know what the future holds, and in the nicest way we do keep a lot of our finances separate. OH will eventually inherit a healthy sum, barring anything unexpected, and should be able to fund his retirement mainly through this.

I think if I do put anything into the stock market or shares etc, then it'll only be a maximum of 30-40% of my 'worth'. I'd like to spread out my assets.

kidmugsy

gadgetmind wrote: »

What percentage of the UK's fields would you say get planning permission for residential building per decade?

Within a mile of our house, 100%.

kidmugsy

countrygirl27 wrote: »

I'd like to spread out my assets.

Never say that to an American.

countrygirl27

Right been to mortgage advisor and will be fixing for five years and saving just over £100 pm on mortgage.

Asked a few questions regarding my inheritance and basically his advice boils down to.....

Extend your house and pay all that off
Have some emergency money saved
Put the rest down as deposits on 2 (yes two) buy to let houses.


Thoughts please

(Obviously he's a mortgage advisor so it's in his interest to advise you to take out mortgages)

kidmugsy

countrygirl27 wrote: »

Right been to mortgage advisor and will be fixing for five years and saving just over £100 pm on mortgage.

Asked a few questions regarding my inheritance and basically his advice boils down to.....

Extend your house and pay all that off
Have some emergency money saved
Put the rest down as deposits on 2 (yes two) buy to let houses.

Bah! You'll get a good deal more pleasure out of hosses than out of being a reluctant landlord. Why would you go for a hugely undiversified property portfolio (three properties!) with the BTLs being illiquid (i.e. can be hard to sell), risky (tenants) and indivisible (you can't sell off part of a BTL when you want to realise a few thousand). Bah again!

mw2655

"Put the rest down as deposits on 2 (yes two) buy to let houses."

hi,

i wouldn't go for this option, you already have a chunk of your net worth in your house and it's a little putting all your eggs in one basket becoming a landlord and borrowing more money to invest in more residential property.

remember BTL is a leveraged investment i.e. you are putting a deposit down and borrowing to but more "house"


(to be fair this is why most people have done well out of property investment long term because on the whole house prices have risen (if you look over a long enough period) and because houses take time to sell you can't easily panic after a drop in house prices and sell quickly like you can with shares. it's all too easy to buy high sell low with shares, i.e. get overexcited and buy into a trend and then panic and sell when it goes down.)

would you be as comfortable borrowing money to buy e.g. more shares?


the rainy day fund is a good idea. one option is to aim for 3-6 months of income/salary.

cheers matt

countrygirl27

Thanks for all this advice. Got some final quotes through for my extension and looks like I'm gonna have to put a bit more money towards that than I thought but not too much so shall press on and do it.

I agree about the money being tied up thing with btl, I like to know that if anything went sunny side up, I'd have some money available to fall back on.

atush

As your other half is not your husband then I would be very wary of the advice given to invest in his pension and to open joint savings accounts. That probably is an old fashioned view but life has a habit of throwing curve balls so my guess is that your dad would be appalled if his some of his lifetime savings and net worth ended up in somebody else's pocket. That is no comment on your relationship but just a fact of life so absolutely no offence intended.

Any and all advice of this kind is based on people actually being married. Some say OH when they are married, others may not but we cannot mind read around PC phrasing!

I can't say often enough, never share anything you REALLY care about (and for me this means money, property and children) with someone who you don't care enough for, or trust, or who is unwilling to, marry you.

The legal and monetary problems if you do, means you can be seriously unprotected.