How to invest inheritance

Kennyn1980

Hi, I am hoping for some advice in how to invest my inheritance.

I have received £60k. I would like to keep £20k in an account that is accessible in order to withdraw money if need be, but still get a reasonable return on the savings. This money will eventually be used for a new kitchen and windows.

The other £40k I am happy to lock away somewhere for several years and not touch it.

Any advice greatly appreciated!

Many thanks.

Thrugelmir

Personally I'd split it between short, medium and long term needs. Emergency fund, ISA - fixed term deposit or general investment fund and pension. It's a once in a life time amount. Not letting it simply dribble away is the key.

caronoel

Have you considered putting the lot in a decent VCT, and getting 30% (or £18k on £60k) back as a tax refund on your current years taxes?

Any gains and dividends are tax free, and you can withdraw the whole amount in 5 years and do it all again

Jamesd explains the mechanics here:
https://forums.moneysavingexpert.com/discussion/5700774

grandst

20k this tax year in an isa and 20k in the next tax year. Multi asset funds are off the shelf ready made portfolios, just chose the one which matches your appetite for risk.

bostonerimus

Pay off any high interest debt you have.
Put 20k into an stocks and shares ISA (a low cost multi asset fund that aligns with your tolerance for risk is a good choice)
Put 20k into a low cost multi-asset fund in a regular iinvesting account.
Put 20k into an immediate access account the the highest interest you can find.
Next year transfer 20k of the regular investing account to your ISA.
You might also think about extra contributions to a pension if you are ok with locking the money up for longer.

A_T

I'd put as much as I could into a SIPP invested in an equity/bond mix

bigadaj

Kennyn1980 wrote: »

Hi, I am hoping for some advice in how to invest my inheritance.

I have received £60k. I would like to keep £20k in an account that is accessible in order to withdraw money if need be, but still get a reasonable return on the savings. This money will eventually be used for a new kitchen and windows.

The other £40k I am happy to lock away somewhere for several years and not touch it.

Any advice greatly appreciated!

Many thanks.

You can get the majority into high interest current accounts and regular savers if you're risk averse, maybe a blended average interest rate of around 2.5% with most instant access.

Alternatively doing that with the £20k would free up the rest for longer term investment, the obvious options are stocks and shares funds in pension or isa or p2p, may be a blend of the two.

Unless you have significant other investments then vct would be inappropriate.

bigadaj

caronoel wrote: »

Have you considered putting the lot in a decent VCT, and getting 30% (or £18k on £60k) back as a tax refund on your current years taxes?

Any gains and dividends are tax free, and you can withdraw the whole amount in 5 years and do it all again

Jamesd explains the mechanics here:
https://forums.moneysavingexpert.com/discussion/5700774

Or maybe a few grand on the 2:30 at kempton?

Vct are high risk investments for experienced investors who understand the risk and have significant conventional investments in pension, isa and/ or unwrapped.

It's a bit reckless to suggest this to someone who shows in evidence of investment experience or knowledge; you're also assuming the OP is paying at least £18k income tax and so must be a high earner, no evidence for that either.