30k lump sum - possibilities

Jenniefour

I have just received 30k inheritance, with another 10k to come in a few months. I retired last summer, no mortgage, bought a nearly new car 4 years ago (love it and no intentions of changing it anytime soon) with an income - combined state and private pensions, plus lodger rent - of just over £27500 pa after tax. More than enough to live on.

At present I am using some of my income to pay for getting bits and pieces done in the house, repairs and so on. When all those jobs are finished I should be able to save money from my income anyway. I have about 15k in my bank accounts, more than enough to cover a relatively expensive emergency. I also have about 23k invested through Aegon/Cofunds and I still pay £100 per month into that, an equity ISA.

Would welcome suggestions of what I could do with the 40k that would increase my capital/savings just in case I ever need to pay for help/care in my home in the future. Many thanks.

tacpot12

It doesn't seem like you have an immediate need for the funds, so investing them for the long term is a sensible idea. I think I would invest them into your equity ISA. You should be able to put £18,800 into the equity ISA, and the rest into the bank for until the next tax year, then pay it into your equity ISA.

You might also like to spend some of it on a holiday.

MallyGirl

you could put £2880 per annum into a pension if you don't already do that - for a £720 contribution from HMRC

Jenniefour

Thanks, tacpot12, that is a really good idea.

I often go and visit friends for a break (and they come and stay with me) for some holidays. I am really lucky to have family and friends in great places in the UK, and, although I like going abroad too, visits to friends in the UK cost me very little, I love driving and I can take my dog with me too.

Mallygirl, I did wonder if HMRC might have closed that handy loophole somehow but if it's till a goer it would mad not to do it, especially since I'm still a tax payer.

enthusiasticsaver

I would use your ISA allowance for this year and invest £20k in your stocks and shares isa and also put £2880 in a sipp if you have one. Keep the rest in savings until next April and then put more in your ISA if you don't need it.