Inheritance Use Suggestions Needed

Abigail1983

Hello,
I've lost both Parents to different illnesses in 2020. Me and my other Siblings are all having an equal share as per our Parents will. It will be in the region of 65k. Add to this, last year my Spouse also lost a Parent and inherited 45k. Mine won't be through for a few months yet, but I'm starting to think through my options.
We don't have children, we have a mortgage currently on a fixed rate for 4 years (with approx 65k left to pay), all but 1 car is owned outright..the last is on a bank loan which will be paid in full within 3 months. I'm on the fence about investing as I work for a large financial company which offers investment products. I've got a works pension which I can up my contributions from my salary into and the employer will pay in more too. I'm not into travelling and live a quiet life. Before the deaths happened, we were never "loaded" but we always had some money left each month as that was how we liked it. 
I would quite like a "career break" or to drop down to part time and enjoy my home more and get some new interests too. All I feel like I do is work at the moment.
Does anyone have any pointers to share or things to consider? I'm not rushing into anything, all this money is extra and 1 year ago we never knew 3 of our Parents would've passed on. We'd much rather have them back too.
Thanks
Abi

Brynsam

Abigail1983 said:

I would quite like a "career break" or to drop down to part time and enjoy my home more and get some new interests too. All I feel like I do is work at the moment.
Does anyone have any pointers to share or things to consider? I'm not rushing into anything, all this money is extra and 1 year ago we never knew 3 of our Parents would've passed on. We'd much rather have them back too.

Not a great 2020 for you. Very wise not to rush into anything while you are going through the grieving process.

You may find that a career break makes it hard to return to work, either because you find you don't have a job to go back to, or because you simply don't want to. Working part time may be a better solution simply because it keeps the job open (assuming you're enjoying it) and ensures your knowledge stays up to date. 

TBagpuss

I think you are wise not to rush into it. 
If it were me, I would probably look at paying off the debt and mortgage and then using the money saved on repayments each month to invest monthly into pension and other investments, which spreads the risk. 
Alternatively split the difference - pay a chunk off the mortgage, put a chunk into pension and other investments and then use the money you save from having a lower mortgage and no loan to put a bit extra aside each month. 

Do some budgets looking at the effect of dropping to part time, both in terms of how much income you will have but also the knock-on effect on pensions etc, and see how that would work out if you do use the funds to reduce or clear the mortgage. Also discus sit with your spouse. Would they also like to reduce their hours, and if not, would they have any issue with you doing so ? Are they similar to you in not being into travelling or is it possible that they would prefer to spend some of the money on holidays or other leisure activities? 

However, i would be inclined to give it a few months, and maybe let a few months worth of 'surplus' income build up in a savings account, before you make a final decision, 

beavere38

Sorry to hear about your loss. I am in a similar position and am intending to invest in property to rent out. Cash in the bank loses value due to inflation and very low interest rates. Most properties should slowly rise in value over the years and if you add up the rental income over many years it can be a considerable amount. The property will always be there to sell should you ever need to.

Savvy_Sue

It's worth considering how many more years you've got until retirement, either State or when your personal pensions will kick in. That would definitely affect my thinking. Because while it's true that if you take a career break now it may be difficult to get back into work later, that matters less if you've only got to survive a few years rather than if you've got 10+ years to go. 

The other thing you do have to consider is how easy it would be to get another fixed rate when the current rate ends, if you've reduced your income. It's my worry every time I need to renew our rate because DH's income is very variable. 

Savvy_Sue

By the way, if you consider buying an investment property do go in with your eyes wide open: there are an increasing number of obligations on landlords, and it is not for the faint-hearted, nor is it an easy way to make money - if it ever was, those days have gone! If you enjoy buying property and can do the work to bring it to a high standard, and have the time to manage it properly, it may be your 'thing'. 

AnotherJoe

My commiserations. This isn't really the right place for your post though, you want the savings and investments board.

https://forums.moneysavingexpert.com/categories/savings-investments

Maybe a mod will move this or you can just repost.

Abigail1983

Thanks everyone for your responses. Some very useful things to consider. Sorry if posted in wrong area too. I think working less, not quitting might be a good way to go. I get a lot of perks too and I'm only 35.

Abigail1983

Savvy_Sue said:

By the way, if you consider buying an investment property do go in with your eyes wide open: there are an increasing number of obligations on landlords, and it is not for the faint-hearted, nor is it an easy way to make money - if it ever was, those days have gone! If you enjoy buying property and can do the work to bring it to a high standard, and have the time to manage it properly, it may be your 'thing'. 

One of my family is a rental landlord, he said he wouldn't recommend it for a few reasons. Thanks for the suggestion though.

xylophone

What is your mortgage rate?

I've got a works pension which I can up my contributions from my salary into and the employer will pay in more too.

Pay in as much extra each month as will get you the maximum employer contribution?

badmemory

To be brutal.  £110k is not enough at your age to change too much.  Pay off your mortgage & up your pension contributions to the max your employer will contribute.  Unless you both really love your jobs the next thing to look at is how soon you can retire without undermining your lifestyle.  Some people do not actually want to stop working - you need to factor this in too.  The great thing about this inheritance is that it can give you so many options, just try to look at as many of them as you can.