Been left money and don't know what to do.

TERRYGL

Hi all first time on here although i use the site regularly.

I've been left £95,000 in my late mothers will and i am in a mess as to what to do with it as the interest rates are crap etc.

Was thinking I've got a TSB current account so would have to put it there to start with? I then have a Mortgage of £40,000 which is on an endowment and at the moment is on track to payout in 2024, i have no other debts. I've got a ISA with TSB so would add to that and start a new one in this year as I've not done so. I would love to be able to put the money away to provide me with an income in my later years but where and who with?

Oh i'm 58 and still working with Royal mail and looking to hopefully retire when i'm 60.

I know i should contact a financial adviser to answer these sort of questions but they cost so i thought i'd try here first so thanks for any advice anyone can give.

Terry

frenchplonka

How soon do u need to have the money available to you?

PeacefulWaters

Get it in a savings account paying 1% plus.

Take a step back and think things through carefully.

Topping up pension arrangements, with tax relief added, perhaps for you and your partner if you have one, might be the approach that gives the best leverage.

I'd suggest posting on the pensions board with this one.

Wookey

TERRYGL wrote: »

Hi all first time on here although i use the site regularly.

I've been left £95,000 in my late mothers will and i am in a mess as to what to do with it as the interest rates are crap etc.

Was thinking I've got a TSB current account so would have to put it there to start with? I then have a Mortgage of £40,000 which is on an endowment and at the moment is on track to payout in 2024, i have no other debts. I've got a ISA with TSB so would add to that and start a new one in this year as I've not done so. I would love to be able to put the money away to provide me with an income in my later years but where and who with?

Oh i'm 58 and still working with Royal mail and looking to hopefully retire when i'm 60.

I know i should contact a financial adviser to answer these sort of questions but they cost so i thought i'd try here first so thanks for any advice anyone can give.

Terry

Is the endowment going to cover the final payments to clear the mortgage? A lot of peoples have come up short by quite a ways and with you hoping to retire in two years but have 6+ years left to go on the mortgage you could well have a chasm to fill, so setting aside a large chunk may well be needed just to cover any shortfall. I would be looking into this first before deciding to move on anything else.

notbritishgas

TERRYGL wrote: »

Hi all first time on here although i use the site regularly.

I've been left £95,000 in my late mothers will and i am in a mess as to what to do with it as the interest rates are crap etc.
. I've got a ISA with TSB so would add to that and start a new one in this year as I've not done so.

Terry

You can only put money into one isa each tax year so be careful.

trailingspouse

Don't be afraid of financial advisors - you can ask them upfront how much they will charge, and then you can make an informed decision about whether their advice is worth that much money to you.

All the usual advice applies - pay off your highest interest loans first, then look at how much interest you can earn on what's left. Also think about spending (some of it) on things that will enhance your life - new car, new kitchen etc.

tempus_fugit

Wookey wrote: »

Is the endowment going to cover the final payments to clear the mortgage? A lot of peoples have come up short by quite a ways and with you hoping to retire in two years but have 6+ years left to go on the mortgage you could well have a chasm to fill, so setting aside a large chunk may well be needed just to cover any shortfall. I would be looking into this first before deciding to move on anything else.

Yes, this would be my priority as well. Followed by pensions contributions, S&S ISAs and interest-paying current accounts, in that order.

Eco_Miser

notbritishgas wrote: »

You can only put money into one isa each tax year so be careful.

You can actually put money into four ISAs in a tax year - one each of cash, S&S, IF and LISA, with a maximum total subscription of £20,000.
Further, so long as all the current year subscriptions of any type are kept together, you can have your partially subscribed ISAs transferred to other managers, with the apparent effect of putting money into more than one ISA of the same type in the same year.

Eco_Miser

TERRYGL wrote: »

Was thinking I've got a TSB current account so would have to put it there to start with?

If you're given a cheque, that's the obvious thing to do, but it's not compulsory. You could open a different account and pay the cheque into that. Similarly with other forms of payment.

Balances over £85000 are protected for six months when they arise from inheritance, so move at least £10,000 before then.

If you're thinking of investing, have a read of Monevator. It's a blog so articles are somewhat random in order.

teddysmum

Can you get a forecast, from the mortgage company, on what the position is likely to be at settlement time ? I imagine it will be different from what it was when the mortgage was taken on.


I am a pensioner and my husband is too, but still works and besides the 'high' rate paying current accounts and the 65+ bonds (which will soon be maturing), we have funds in premium bonds which are a bit of fun and can quickly be cashed in, if we get the promised rise in interest rates.

atush

I agree with Peaceful waters, look at a DC pension for the next few years.

What % is your mtg?