Best way to use a £25000 windfall...?

ronaldadio

After a long wait, my wife and I are about to inherit around £32,000 before or just after New Year (within 2 - 3 weeks)
We will use around £7,000 to clear debt - Credit Cards, loan, etc and then we will be left with around £25,000.
We have nothing at all at the moment. We have just taken on a 2 year rental agreement that we are basically stuck with and do not have any other savings.
We are both self employed and clear around £800 - 1,000/ week, so a combined annual income of about £40 - 50,000 after tax.
My wife is 50 and I'm 53.
I think I will continue to work for a long, long time - no real retirement plans.
Really don't want to risk the money massively, but at the same time, want to do more than put it into an ISA and get 1.5% return.
All advice appreciated.
Many thanks

eskbanker

ronaldadio wrote: »

All advice appreciated

Even that given before?!

https://forums.moneysavingexpert.com/discussion/5329228
https://forums.moneysavingexpert.com/discussion/5335690

Sam_J12

ronaldadio wrote: »

After a long wait, my wife and I are about to inherit around £32,000 before or just after New Year (within 2 - 3 weeks)
We will use around £7,000 to clear debt - Credit Cards, loan, etc and then we will be left with around £25,000.
We have nothing at all at the moment. We have just taken on a 2 year rental agreement that we are basically stuck with and do not have any other savings.
We are both self employed and clear around £800 - 1,000/ week, so a combined annual income of about £40 - 50,000 after tax.
My wife is 50 and I'm 53.
I think I will continue to work for a long, long time - no real retirement plans.
Really don't want to risk the money massively, but at the same time, want to do more than put it into an ISA and get 1.5% return.
All advice appreciated.
Many thanks

The best advice is still to deposit it in the highest interest paying current accounts and regular savings.

If you are sure you won't need it in the next 10-15 years I would invest some or all of it in a highly diversified stock portfolio. That is not low risk however, although the vast majority of 15 year periods in the past show a profit.

jimjames

Maybe if you can explain what was wrong with the suggestions before then people may be able to offer alternatives

redux

One noticeable change since your last two queries has been the arrival of the Help to Buy ISA.

If you are still considering house purchase in the next few years, it might be worth considering one each of these.

Each person only qualifies though if you they have never owned a property.

As a perhaps unwelcome comment, I'd suggest if you are earning £1000 a week between you, you ought to hope to also set regular amounts aside for savings or investment (including pensions) on top of this windfall.

jimjames

redux wrote: »

As a perhaps unwelcome comment, I'd suggest if you are earning £1000 a week between you, you ought to hope to also set regular amounts aside for savings or investment (including pensions) on top of this windfall.

It's a good point that with £50k annual income you should be able to save something every month rather than being in a net debt situation.

Maybe the technique of "paying yourself first" would be worth doing. One reason I'd suggest investments is that it may discourage spending if the money isn't instantly available.

ronaldadio

jimjames wrote: »

It's a good point that with £50k annual income you should be able to save something every month rather than being in a net debt situation.

Maybe the technique of "paying yourself first" would be worth doing. One reason I'd suggest investments is that it may discourage spending if the money isn't instantly available.

I don't understand the phrase "paying yourself first"

ronaldadio

redux wrote: »

One noticeable change since your last two queries has been the arrival of the Help to Buy ISA.

If you are still considering house purchase in the next few years, it might be worth considering one each of these.

Each person only qualifies though if you they have never owned a property.

As a perhaps unwelcome comment, I'd suggest if you are earning £1000 a week between you, you ought to hope to also set regular amounts aside for savings or investment (including pensions) on top of this windfall.

Not sure where we stand here.
Unfortunately I was made bankrupt in 2007 (Out since 2013)
Not sure if I count as owning a property or not. I did before the bankruptcy. I guess that still counts as owning one in the past.

ronaldadio

jimjames wrote: »

Maybe if you can explain what was wrong with the suggestions before then people may be able to offer alternatives

Nothing wrong, but there are a few changes.
Taking on board what was said, we will be getting rid of any interest bearing debts. So instead of £30,000 we will have £25,000.
On top of stuff said I read something on peer to peer lending - again, is that an option?

ronaldadio

eskbanker wrote: »

Even that given before?!

https://forums.moneysavingexpert.com/discussion/5329228
https://forums.moneysavingexpert.com/discussion/5335690

Things have changed since then.
And I've looked at peer to peer lending as an option.
Plus, the money is basically on it's way. A few months back it was early stages.
I really can't afford to make a mistake with this, so I apologize if I'm going over old ground.
If you had been set up by people that had been good friends for years like I was a few years back, you would understand.

xylophone

Interest bearing current accounts, if you can get them, would seem to be the way forward - a Nationwide Flexdirect each and a joint would also give you access to a Flex monthly saver.

TSB sole each and joint would be another to hook into.

A couple of Tesco accounts each?

Consider Santander 123 for interest and cash back?