What to do with a small inheritance?

atush

welshartist wrote: »

Not an option I'm afraid. My brother and sister are both settled (much older than me in their 60's) and want the money. We live in Wales and love it here. I really don't want to move back to the NW!

OK so that easy option is out (although a mtg would have paid off your siblings).

Renting in retirement, unless you are already in a council house, will not an easy retirement make.

The fat you have made it to age 50 w/o any savings or pensions or owning a home is a worry for your retirement, as having all 3 as bowlhead says is important.

So your 37K wont stretch far (although if in the valleys in wales you can buy a house for 40K so could use 10K as a downpayment- just saw you are in pembrokeshire, could you not move to a cheaper area?). Do either of you have a job with an employer even part time (saw the employment statistics although I can't beleive there are not any jobs payimg more than 10K in all of wales)?

If not, is being an artist an 8 hour 9-5 commitment? Could you get one each even part time? AS an employers pension is the best pension as they pay into it alongside you. We call it Free money here, and you need some of it.

If not, you should each open a personal pension, pay off any debt, then save the rest into the current accounts that pay interest mentioned above. Save enough in cash to make sure you have 6-12 months living expenses. then consider a S&S isa for the rest.

Apart from buying the house, I would not consider blowing any of the cash on anything else as your 37k will not enable you to retire before state pension age and you may have to continue to work to afford increasing rents in old age.

Kernel_Sanders

kidmugsy wrote: »

Will Her Majesty have to send herself a telegram?

She may have to send her husband one!

noggin1980 wrote: »

Congratulating herself on living long enough that we get to avoid Charles. Long Live the Queen!

Well I like Charles, and hope he gets at least as long on the throne as Edward VII. He'll only be 77 if HM makes it to 100 so probably will, even if she doesn't abdicate. After all, Charles has led a healthy lifestyle and eats organically and when your parents are still alive with a combined age (in one month's time) of 183, there's no reason why he shouldn't reach 100 himself.
In a lame attempt to portray this post as being in some way on-topic, I say to the OP that these examples of longevity could apply to themselves and they should consider how much rents and fuel will cost in 30 years time when (if immigration is not curbed) we could have a population approaching 80m competing for resources.

kidmugsy

Kernel_Sanders wrote: »

In a lame attempt to portray this post as being in some way on-topic

Somewhere recently I saw an IFA remark that when discussing pension planning he invites his customers to assume that they'll live to 99.

J_B

Kernel_Sanders wrote: »

Charles has led a healthy lifestyle and eats organically .

What's 'healthy' about eating organically???

Kernel_Sanders wrote: »

there's no reason why he shouldn't reach 100 himself.

Not if he keeps eating that organic muck

Kernel_Sanders

J_B wrote: »

What's 'healthy' about eating organically???

It doesn't involve the intake into the body of the residues of pesticides.

justme111

welshartist wrote: »

Southend 1, We're artists, we've spent a lifetime being poor! But seriously, that's why I'm on here, I want to maximise my small inheritance to the full.

And yes, DigggerUK, we are lacking. It's only in the past five years that we've made anything like £30,000 a year. Being self employed and with a low/variable income the last time we enquired we were told we would have to stump up 25% deposit. The average house in our area is around £150,000. The sums don't add up for us.

25% of 150 000 is 37000. What do you mean "sums don't add up"? Further question -why do you want "an average house "? May be a bit smaller / requiring some work would do ?

welshartist

TBH we're happy renting. We've live in a detached cottage in a little hamlet with a garden, woodland and veg plot. The beach is 2 miles away. The rent hasn't changed in 12 years as we maintain the grounds and house (our landlord is a good friend). Our son is about to start uni so that's 4 years that we need to stay in Wales (due to the assembly subsidy on tuition fees). We don't want to commit to a mortgage because we may want to live elsewhere in the future. Quality of life is important to us whilst we're still relatively young and healthy. Moving to a built up town where the property is cheap and social problems are common isn't at all appealing. I'm happy to put my money into savings for now, not property.

xylophone

Don't forget a pension for each of you......