Examples of investing inheritance

kidmugsy

ViktorOnopko wrote: »

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.

Your first move might be to contribute enough to a pension to avoid higher rate tax. You could complete a form for each pension provider specifying that in the event of your death the pensions go to your bidie-in.

As for financial balance: you could always pay rent as a lodger, which the house owner would avoid tax on by using the rent-a-room allowance (up to £7500 per year). She could consider making pension contributions for herself up to the level of her earnings ("earnings" would not include the rent you pay).

You might even enjoy the thought that as a couple you could aim for early retirement in your fifties. With an unmortgaged house and no children, with one big earner and the other having substantial capital, it might well prove practical. You might not need to be frugal as long as you spend sensibly. After all, no children = holidays in the cheap months. Currently the minimum age for drawing from your pensions is 55.

Afterthought: if you have worries about length of life the big thing you can adjust is smoking. If neither of you smokes you're already on average ahead of the field. Ahead financially too.

ViktorOnopko

Clive_Woody wrote: »

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.

Hi Clive - thank you. It is a truly sad time and it's an incrediblt surreal moment to think about the opportunities that lay ahead for us thanks to the sad passing of such an incredibly hard working and wonderful person.

ViktorOnopko

kidmugsy wrote: »

Your first move might be to contribute enough to a pension to avoid higher rate tax. You could complete a form for each pension provider specifying that in the event of your death the pensions go to your bidie-in.

As for financial balance: you could always pay rent as a lodger, which the house owner would avoid tax on by using the rent-a-room allowance (up to £7500 per year). She could consider making pension contributions for herself up to the level of her earnings ("earnings" would not include the rent you pay).

You might even enjoy the thought that as a couple you could aim for early retirement in your fifties. With an unmortgaged house and no children, with one big earner and the other having substantial capital, it might well prove practical. You might not need to be frugal as long as you spend sensibly. After all, no children = holidays in the cheap months. Currently the minimum age for drawing from your pensions is 55.

Afterthought: if you have worries about length of life the big thing you can adjust is smoking. If neither of you smokes you're already on average ahead of the field. Ahead financially too.

I hadn't even considered early retirement. I'm 36 but stuff like that feels a lifetime away!

I'm not sure I understand the paying rent suggestion?

kidmugsy

ViktorOnopko wrote: »

I'm not sure I understand the paying rent suggestion?

It makes your finances more equitable rather than leaving her putting a roof over your head free while you earn far more than she does. If you pay her by standing order she will (I guess) feel more able to afford pension contributions for herself.

ViktorOnopko

Oh I see, I'm with you now. The alternative would be that I support with the work we plan to decorate and change the house as part of moving in to it.

kidmugsy

ViktorOnopko wrote: »

Oh I see, I'm with you now. The alternative would be that I support with the work we plan to decorate and change the house as part of moving in to it.

Call me an old romantic, but I'd think that a monthly transfer of money might also be welcomed.

ViktorOnopko

kidmugsy wrote: »

Call me an old romantic, but I'd think that a monthly transfer of money might also be welcomed.

But then I'm paying my OH rent to live with her, which makes me her lodger.