a bit of a fantasy - what would you do if you had a £100000 windfall?

MadMat

Las Vegas - I'm turning my £100k into a million the quick way!!

kkgree1

My husband has recently been in the fortunate position of being given 100k by one of his relatives (early inheritance!).

It has enabled him to give up his job and set up his own business (with 25k of it) and he is loving the freedom of working for himself.

The rest is currently between cash ISAs and high-interest savings accounts whilst we plan an extension to our house. We haven't been frivolous with any of it yet on the basis that whatever we have left over from the extension we will use towards a new car!

We were already in the fortunate position of being almost mortgage free (7k left) so are fairly prudent savers.

atush

Buy 2 new cars (driving an 11 and 15 yr old now) then invest the rest, mostly in pension. I have saved for these cars, but haven't been inclined to spend the cash yet.

Might float the 3x boys one last holiday (as the 2 working are expected to pay for their own nowadays).

clear_as_mud

20% in pension, 20% in S&S, 20% cash and the rest on a new car, holiday and small home improvements.

AlanP_2

Malthusian wrote: »

I would spend half on booze, fast cars and loose women. The rest I would squander.

[/ObGeorgeBest]

My favourite George Best anecdote is where he, when at the height of is fame and earning ability, is in a hotel bed and the porter brings up a bottle of champagne.

On entering the room and seeing the 3 of them the elderly porter dolefully shakes his head and says;


"Where did it all go wrong for you Mr Best?"


Anyway, to answer the OPs original question expensive holiday, help the kids with student debt / house deposits and save some of it.

Flobberchops

justme111 wrote: »

Would you be able to afford mortgage for it and would they give you that mortgage?

Err... no idea! A mortgage is a good few years off for me and as a result I've hardly done any research.

gadgetmind

The answer is easy; I'd put it with the rest!

Linton

I would have to turn it down. Our overall strategy is based on....

1) Leave as little money as possible in our estate without putting our extreme old age at financial risk.
2) Avoid having the taxed income reach a higher tax band
3) Move SIPP money to S&S ISAs as fast as possible before we start drawing SP, to help achieve objective (2).
4) Ensure we continue to have enough income and savings to safely meet all our wants for our remaining days
5) Minimise hassle

As we currently are meeting (4) on reasonably pessimistic assumptions an extra £100K would need to be held outside an ISA for perhaps 10 years. Managing tax would be a hassle counter to objective 5 and the extra money would make achieving Objective 1 more difficult with no obvious gain.

So thanks but no thanks.

lippy1923

Can I give you one of my accounts numbers please Linton, in case you do ever get a £100k windfall. Please just send it straight to my account. I will take care of it for you

Malthusian

Linton: Why not just accept the £100k and invest it in EIS? No IHT or income tax (subject to conditions) so 1) and 2) aren't a problem. If the EIS goes tits-up you're no worse off than if you'd turned the £100k down, if it doesn't it's helped to meet 4).

Alternatively you could take it down the casino and put it on the roulette number of your choice. If you lose then again you're no worse than if you'd turned the £100k down. If your number comes up you can afford to hire an accountant who will take away all the hassle of paying tax.