What to do with our inheritance?

jerryjal

Well, we now finally have the money, it has equated to 1.2 million GBP and is currently sat in the bank.
Am I right in thinking that although the current safe amount to have in one (joint) account is £170k, there is a temporary limit of around £1m due to a life changing experience?

eskbanker

jerryjal said:

Well, we now finally have the money, it has equated to 1.2 million GBP and is currently sat in the bank.
Am I right in thinking that although the current safe amount to have in one (joint) account is £170k, there is a temporary limit of around £1m due to a life changing experience?

Yes, up to £1m cover for up to six months for 'life event' money, including inheritance: https://www.fscs.org.uk/how-we-work/temporary-high-balances/

jerryjal

eskbanker said:

jerryjal said:

Well, we now finally have the money, it has equated to 1.2 million GBP and is currently sat in the bank.
Am I right in thinking that although the current safe amount to have in one (joint) account is £170k, there is a temporary limit of around £1m due to a life changing experience?

Yes, up to £1m cover for up to six months for 'life event' money, including inheritance:

Thank you, that definitely puts our minds at rest for the moment. 

DiggerUK

It would be best to put all the money in government guaranteed accounts. It will get you accustomed to handling such sums. 

Then take your time to make any decisions. For now I recommend you pay off all debts, including mortgage. Instant access is best for now. NS&I and cash savings accounts. 

If you do decide to seek advice from a financial adviser remember a few things. 

They will not be responsible or liable for any investments going south. 

They don't do it for free. 

They will be so very, very, nice to you. 

They will say once, and once only, that you may not get back all you invest.
They will say over and over again what they 'hope to achieve' by way of returns.......in short make sure your B/S meter has fresh batteries installed..._

Malthusian

DiggerUK said:

If you do decide to seek advice from a financial adviser remember a few things. 

They will not be responsible or liable for any investments going south.

They are however responsible for their advice, and investments with a material chance of "going south" (i.e. with a risk of permanent loss, as opposed to temporary paper losses during a crash) are unsuitable for the vast majority of retail investors. If an FCA-regulated adviser recommends an unsuitable investment, they are liable, and if they go bust the FSCS steps in.

They don't do it for free. 

Anyone who thinks they would may as well dig up Charles Ponzi's grave and chuck their money in there.

fred246

IFAs love people like you. They'll instantly relieve you of a few percent at least. If you have no idea though about investments it probably makes sense though.

ProDave

I have a contrarian view of how I would spend that.

Assuming the £1.2m is already accounting for any inheritance tax and so is all 100% yours with no ties.

I would be looking to retire NOW, or say in 2 years time when you are 50.  Even by the time you have sold off your present house and moved to a bigger one (now mortgage free of course) you will probably have most of £1m left.

That is MORE than most people have in their pension / retirement pot after a lifetime of work.  So with it invested wisely and don't live a stupid lifestyle, I would be looking to enjoy the best years you have without the hinderance of having to work any longer.

I guess I have always been a "work to live" person, I certainly do not live to work.

atush

You are forgetting they will be giving substantial sums to their children, so wont have 1M.

BTW, S&S stands for stocks and shares rather than cash isas.

jerryjal

atush said:

You are forgetting they will be giving substantial sums to their children, so wont have 1M.

BTW, S&S stands for stocks and shares rather than cash isas.

That is correct, don't get me wrong retirement would be lovely but it is not right for us at this time.