Managing an inheritance in the short term.

T'Da

Hi.

I am capable of, and happy to, research. But as the range of options are a little overwhelming, I thought I would see if anybody had any pointers or advice that I could then look into myself.

I stand to inherit £120,000. There should be no issues with inheritance tax to consider.

A few years ago I would have gone straight to the housing market, and that, eventually will be the plan as I own no property. But right this minute I want to hold off. That said, having some or all of the money without too much delay would seem wise.

Other than a pre 2011 student loan which I will ignore, I have no debt.

I have £15,000 ish, poorly saved up elsewhere.

I’m single, in my early 30s and have a reasonably good income.


I plan to rotate roughly 30k through the better interest current accounts. Santander, Lloyds etc. Maybe also leave money in a reasonable notice account.

…After that I’m not certain.

-Max a cash isa?
-Drip feed a HTB isa? (seems like that would take a few years to pay a significant benefit)
-Drip feed some regular saver accounts? (though I still need somewhere to put the balance from which to drip!?)
-Max my remaining premium bond space? (fingers crossed for the big one…)

A combination of the above seems sensible but that still leaves potentially 60k that I don’t actually have anything to do with.

Do I just lump it in the best instant access saver I can find?

Am I missing something dead obvious… (pension? I don’t have one of those!)

Im less concerned with making a killing on the investment than making sure im putting it somewhere sensible, prudent and not wasteful while I decide how to turn it into an investment in the future.

All on red?

Any thoughts?

Thank you in advance!

Eco_Miser

The government bonus on HTB ISA makes it worthwhile even for a few months, even though the actual amount is quite small.
Regular savers offer the highest interest rates available with full FSCS protection.
Pensions are good, but you can't get the money back for over 20 years.
There's little point in a cash ISA (low rates and nearly everyone can have up to £1000 a year tax-free interest), but for you there may be a point.
S&S ISA (or unwrapped) investments should be held for at least 5 years, so maybe not for you if you're planning on buying a house.

Premium bonds are not normally recommended here, but the capital is guaranteed, you can reasonable expect 1% (but no guarantees) and you might get lucky.
NS&I Income bonds pay a guaranteed 1% (variable) if you run out of current accounts and regular savers, etc.

Startup1985

T'Da wrote: »

Hi.

I am capable of, and happy to, research. But as the range of options are a little overwhelming, I thought I would see if anybody had any pointers or advice that I could then look into myself.

I stand to inherit £120,000. There should be no issues with inheritance tax to consider.

A few years ago I would have gone straight to the housing market, and that, eventually will be the plan as I own no property. But right this minute I want to hold off. That said, having some or all of the money without too much delay would seem wise.

Other than a pre 2011 student loan which I will ignore, I have no debt.

I have £15,000 ish, poorly saved up elsewhere.

I’m single, in my early 30s and have a reasonably good income.


I plan to rotate roughly 30k through the better interest current accounts. Santander, Lloyds etc. Maybe also leave money in a reasonable notice account.

…After that I’m not certain.

-Max a cash isa?
-Drip feed a HTB isa? (seems like that would take a few years to pay a significant benefit)
-Drip feed some regular saver accounts? (though I still need somewhere to put the balance from which to drip!?)
-Max my remaining premium bond space? (fingers crossed for the big one…)

A combination of the above seems sensible but that still leaves potentially 60k that I don’t actually have anything to do with.

Do I just lump it in the best instant access saver I can find?

Am I missing something dead obvious… (pension? I don’t have one of those!)

Im less concerned with making a killing on the investment than making sure im putting it somewhere sensible, prudent and not wasteful while I decide how to turn it into an investment in the future.

All on red?

Any thoughts?

Thank you in advance!

You defiantly need to look into a pension of some sort although if you are employed I would have thought you would be or will be getting auto enrolled into one?

I think you have the right idea stuffing high interest current accounts.

As for the rest left over have you thought about maybe putting a small portion of it into one of the p2p lending platforms? No doubt some members of the board will roast me for that idea but as far as I'm concerned the benefits well out weigh the risks if you diversify and research before investing. I currently get 6.3% on ratesetter over five years although if you need the money you can sell out. I also get 12% from saving stream. I am with more p2p platforms but for me these two are my favourite.

Whatever choices you make good luck

bigadaj

The starting point should be what do you want or need to do with the money.

This primarily seems to be a house purchase, how much of the money will be used for this?

Otherwise you've covered the obvious options, you can get £50k into high interest current accounts and get a few thousand per month into regular savers.

A help to buy isa seems small change relatively but as you're looking to buy a house anyway then it's probably worthwhile.

This gives you £50k ish left, if this is all for a house purchase than keep it in cash and you can have £75k covered by fscs so just choose the best instant access rate you can get.

If some of the money is longer term and not needed for the house then you could look at either pension or stocks and shares isa.

If your employer offers a pension then you should contribute a base amount anyway to get their contributions, not signing up to it is effectively just turning down free money.

T'Da

Eco_Miser wrote: »

Startup1985 wrote: »

bigadaj wrote: »

Thanks All!

I suspect that all or near all of the funds will end up in a property. depending in the outcome of my next research binge into mortgages.

As you all say the HTB is actually a no brainer in hindsight, thanks for pointing that out!. 25% of anything is 23.5% better than anything else on offer.

Im not totally averse to putting some towards longer term options. So ill look into the S&S and P2P side of things. The entry level P2P seem to be glorified savers anyway.

Im not enrolled on work place pensions unfortunately and anyway, my boss, an !!!!, embezzled the funds and briefly skipped the country. Im self employed.

I definitely need to look at pensions though i think this is likley to be as a result of any investment i make, rather than drawing down on lump sum. However im totally clueless here so will need to get reading asap!

Thanks again.