Examples of investing inheritance

Audaxer

Gosh, that is one very complex flowchart. Somehow I managed to get to retirement without one.

getmore4less

A relatively simple approach to start with is go mortgage free don't spend any more, move in and see how it goes just living off current money(no rent). Think about things for 6 months.

If you want to be invested in the house buy as much as you can, it will need to be a joint mortgage that you pay all of.

Really depends how integrated you want your finances.

The life changing bit is the house the cash assets are a good base for investment retirement planning.

elephantrosie

your question about enjoy life versus frugality- my take is do what you like.

some people say travel as much as you could while you are able. my take is.. i dont really enjoy travelling, so am i doing this just because the public consensus is travelling is on the top of life enjoyment list?

you get what i mean.

bigadaj

elephantrosie wrote: »

your question about enjoy life versus frugality- my take is do what you like.

some people say travel as much as you could while you are able. my take is.. i dont really enjoy travelling, so am i doing this just because the public consensus is travelling is on the top of life enjoyment list?

you get what i mean.

Surely in your case it's being able not to panic at any rumour that a p2p loan is defaulting.

atush

ViktorOnopko wrote: »

Hi all,

I've been reading through previous posts on inheritance as my OH is about to inherit a house to the approximate value of £380k and cash to the approx value of £200k after her mum sadly passed away at the start of August. We are planning to use £40k of the inherited money to pay off the remainder of the mortgage and then follow some of the advice shown via the forums in terms of diversification, savings, and potentially property.

For context, my OH is 28, I'm 35, we rent and have gone from "I wonder when we'll have a chance to buy" as I was the only one with savings of c.£40k to her owning a house with zero mortgage and significant inheritance. It's a strange situation as we'd give it all back in an instant but it is what it is.

The thing is I don't see any follow up to the advice threads so it's hard to know what people have experienced and what has or hasn't worked. So, does anyone have examples of how they've used inheritance and how that's progressed for them?

I'd also be interested to know how people draw the line in terms of investigating in their pension and retirement versus enjoying life before then. I've seen OH Mum pass away at 54 and my Dad won't make it to retirement either, sadly.

Any input welcome, thanks.

My biggest advice is, invest for the long term, and dont sweat the drops.

My father died in the late 80's just before the big crash. My mom invested his life insurance, then weeks later the crash of 89 happened and she was looking at HUGE paper losses.

But she did not panic and sell (making paper losses, real losses). A few years later, she was well up on the initial investment.

Secondly LE. You seem to have parents that died young.

Unless there are genetics involved (such as carrying a brac gene etc) make sure you dont follow their example in bad choices such as smoking, drinking to excess, sedentary lifestyle. Eat a good, balanced diet, dont carry too much weight and move about.

In addition, if you buy she will be putting up much of the money. So make an agreement if you arent married as to who owns what % of the house. Better yet, if you are together for the long term- get married. It is the best way to take advantage of saving on tax, and inheritance is by far simpler.

ViktorOnopko

Hi all,

Thanks for the replies - I need to go back through and digest.

There were some questions about our future plans and mortgage.

We probably will get married one day. We've been together a long time but have never really been the type of couple who were overly bothered by marriage. Kids? Not so sure.

I'm in to my third pension due to job changes. I've had a pension since my early 20s and my OH has only recently set up a salary through her job. Someone asked about salaries, my OH is on a low salary but I'm on £60k per year + bonus so our individual income is very different.

The House. I think I need some input on this as my OH will own the house and will be able to pay of the ~£35k remaining on the mortage via some of the inherited cash. I then kind of become a non-paying lodger (we'd split the bills). Should I be bothered? I'm not sure. I'll be saving a lot (no mortgage, see salary above) which I could invest or save for at time when we buy another house. Ideas on options/scenarios here would be welcome.

ewaste

ViktorOnopko wrote: »

The House. I think I need some input on this as my OH will own the house and will be able to pay of the ~£35k remaining on the mortage via some of the inherited cash. I then kind of become a non-paying lodger (we'd split the bills). Should I be bothered? I'm not sure. I'll be saving a lot (no mortgage, see salary above) which I could invest or save for at time when we buy another house. Ideas on options/scenarios here would be welcome.

Are you worried about not being seen to 'pay your way'? If so then what arrangement do you have in place at the moment? In lieu of rent or mortgage you could always put an agreed amount into a maintenance and upkeep account for the house.

Otherwise I wouldn't really be bothered about the house to be honest especially if bills and upkeep are going to be split and as you yourself identified it allows you to save a lot of money you'd otherwise be spending on rent or mortgage even without your high income. Therefore if you do for whatever reason end up apart you have still benefited and should have saved a considerable amount which means finding accommodation shouldn't be too difficult. The problem would come if you didn't take this into account and spent any additional money instead, of course this is somewhat separate from saving money into a pension which you wouldn't be able to access should you need to get your own accommodation.

Audaxer

ViktorOnopko wrote: »

The House. I think I need some input on this as my OH will own the house and will be able to pay of the ~£35k remaining on the mortage via some of the inherited cash. I then kind of become a non-paying lodger (we'd split the bills). Should I be bothered? I'm not sure. I'll be saving a lot (no mortgage, see salary above) which I could invest or save for at time when we buy another house. Ideas on options/scenarios here would be welcome.

With your salary you are in a position to save each month amounts equivalent to what you would normally pay for a mortgage or more, so you could save that money for both of you - half in your name and half in her name in S&S ISAs, if your other half agrees.

ViktorOnopko

Thanks both, that aligns with my thinking. I didn't see it as a problem given my circumstances and the fact I don't see us having future issues (not that you can ever predict these things) and hence I expect to save on the side and then we can joint purchase a property in the future after we've done up her mums house and want to find somewhere else.

Clive_Woody

Not much to add what was said above, but I would add one comment - this is a sad time for your partner losing her mum, but this puts you both in a very healthy (financial) position, so enjoy your lives and take a moment to celebrate your good fortune, even if this celebration is just a bottle of wine and a takeaway.

We never know when our lives will end so don't spend too much time worrying over money (I'll probably get lynched for saying that on this board) - make the most of every day and each other.