Inheritance £150k

CoinMaster

Hi all,

I am due to inherit an amount of money in the near future, I will be using some of this to pay off debts but the thought of what to do with the remainder has got me stumped.

I will be left with approx £150k to do 'something' with... What would you do with £150k if it was made available to you??

FYI: I will obtain professional independent financial advice before i do anything.

CM

Sea_Shell

Do you rent, own (mortgage), live with parents?

fwor

I'd immediately go out and buy an Aston Martin Vanquish with it. But knowing that is of no use to you at all.

Nobody here can give you any specific guidance because you haven't said anything about your age, circumstances (other than that you have debts) and longer-term plans.

Without that, all you could reasonably expect is for someone to speculate - which probably won't help you a lot.

sendu

With no debts, is there anything else you need or want to spend the money on?

If not, you're going to want to invest it. There are a lot of routes to go down, but if you like the idea of a long-term investment that ought to give you solid returns, then seeking the average stock market return would be a good way to go (you can do this with the purchase of a single global index tracking fund). You can funnel this in to an ISA at £20k/year so that eventually all your future gains will be tax free.

£150k may seem like a lot, but this is actually a very simple situation to deal with, and doesn't require ongoing advice. So hear what IFAs have to say, but don't pay anyone a yearly % fee.

Linton

In my case I would put £60K into my growth fund, £45K into my income fund and £45K into my Wealth Preservation fund. But not much use to you as I guess you arent an aged retiree.


So I suggest....

As a first step put it somewhere simple and safe - eg an NSI savings account which is 100% protected by the government.


Then take some time to think through specifically what you want it for and when? eg £60K + investment return for retirement in x years time, £40K+ savings interest for a house deposit in 5 years time, £10K to charity now, £30K for a new car next year, keep £10K as cash for emergencies. Come up with an idea, you can always change your mind later.


Then its simpler to choose appropriate savings or investment strategies for each. Only at that point could it be worthwhile to see an advisor. If you dont know what you want the money for an advisor cant help much.

gaydrianmole

There's a book I read recently, I Will Teach You To Be Rich by Ramit Sethi.
He suggests that investing in a quality stocks and shares ISA for 10 years outstrips most other investment opportunities if you choose the right one and the right mix.
I'd probably do that with a chunk of it.

Might be worth a read...only 10 squids.

Prism

We all have different needs, however I wouldn't need the money right now so would put it all in our pensions and ISAs over the next couple of years

rawhammered

Depending on your pension situation I’d Sal sacrifice my income down to the AL and pay no tax for a few years. Invest the rest in S&S ISA and max out regular savers and decent current accounts.

Ilovesavin19

It depends on your circumstances for me I would use it to buy a house or as a large deposit on a house, then a holiday.��

MovingForwards

If it was me I would buy a house.

Put £5k in to emergency fund.

Put £20k into one of my pensions.

Put a £2k into my s&s ISA.

Put the remainder into fixed rate bonds for 1y, 2y and 5y.