Inheritance money: what to do with it

julie32457

Hi all. I have inherited a significant amount of money-£140,000 in total. I've put £15000 into the highest interest paying isa I can find, but I'm unsure what to do with the rest of it. I've got a mortgage, but don't want to put the money there as it then becomes a joint asset and I want to keep it separate from the marriage `pot`. Have considered buying a flat and renting it out. Am quite risk averse but conscious the cash will depreciate over time. Advice please! Thank you

atush

Have you got any non mtg debt? have you got a pension? If no pension, put some into a pension. You can put in 40K or your entire income which ever is smaller.

As for being risk averse, you are talking investment risk as you know that risk of depreciation counts.

So I would consider drip feeding money into a good general investment trust plan. Drip feeding helps with risk of volatility as you aren't investing all at one point in time, and if markets go down, you buy more units for the same money. Look up pound cost averaging. It is a good way for the more risk averse to invest some of their money.
QAs a side note, the money is already a joint asset in that you are married. So if your interest rate is high, paying down some of the mtg would not be too bad an idea.

ChopperST

As atush says the monies are already a joint asset. Are things not good with the marriage as to why you are looking to keep if from your other half as it will have implications as to what the best advice will be?

You also need to consider a few things.

Pension provision
Basic Rate / Higher Rate Tax Payer
Debts other than mortgage
Timescale you are willing to tie the cash up for
Your risk profile

tara747

The money will already be classed as an asset of the marriage, whether you buy a house with it or not...!

kidmugsy

tara747 wrote: »

The money will already be classed as an asset of the marriage, whether you buy a house with it or not...!

Unless the devolutionary politicians have changed the position that statement is untrue of Scotland, I understand.