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

PeacefulWaters

tempus_fugit wrote: »

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

2 X £40k pension lump sums will generate £100k to basic rate taxpayers. £25k of that can be accessed tax free.

Surely better than paying off low interest debt.

An IFA could be worth the fees here.

bigadaj

PeacefulWaters wrote: »

2 X £40k pension lump sums will generate £100k to basic rate taxpayers. £25k of that can be accessed tax free.

Surely better than paying off low interest debt.

An IFA could be worth the fees here.

Dependent on how much the OP earns.

PeacefulWaters

bigadaj wrote: »

Dependent on how much the OP earns.

And any other half earns!

bigadaj

PeacefulWaters wrote: »

And any other half earns!

...and how much thy trust them.

PeacefulWaters

bigadaj wrote: »

...and how much thy trust them.

Well if they're married it's all 50/50!

atush

bigadaj wrote: »

...and how much thy trust them.

No trust required, already half theirs if they split. Easier to keep it all in your sweaty little hands if you remain married Big.

OriolaW

The Baby Steps


Step 3: 3 to 6 Months of Expenses in Savings
Step 4: Invest 15% of Household Income Into Retirement
Step 6:Pay Off Home Early

bigadaj

atush wrote: »

No trust required, already half theirs if they split. Easier to keep it all in your sweaty little hands if you remain married Big.

How do you work that out?


The OP hasn't responded to say whether they have a partner, married or not.

TERRYGL

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.

Thanks, at the moment the endowment is good and is covering the mortgage but like you say in another few years who can say. I will deffo keep a good size back 'just in case'.

Terry

PeacefulWaters

OriolaW wrote: »

The Baby Steps


Step 3: 3 to 6 Months of Expenses in Savings
Step 4: Invest 15% of Household Income Into Retirement
Step 6:Pay Off Home Early

Step 2 is flawed with the value of tax relief, tax free lump sums and low interest rates. Should ge further down the list.

Step 1 is flawed as it takes no account of individual spending commitments and involves a foreign currency speculation.