Best way to use money

Gmaster147

Hello. 

We are moving back to the UK from NL with a large sum of cash from the sale of our house. (Over 250k) 

We have been out of the UK for 10 years and are keen to explore the best way to get the most out of our money with the family. 

I see we have options for ISAs and Stocks ISAs etc, which we can use once per year. Is that for all family members? (We have a 15, 12 and 6 year old). 

We will also explore buying some property etc as looking to take 1 year off work to reintegrate into the UK (so not sure if being unemployed works in our favour in someways, anyone know?) 

Our plan is to seek financial advice / advisor once we are back, however I wanted to see what advice is out there based on experiences? 

Thanks for any advice. 

eskbanker

Gmaster147 said:

We will also explore buying some property etc as looking to take 1 year off work to reintegrate into the UK (so not sure if being unemployed works in our favour in someways, anyone know?)

Not sure I'm following the logic of that sentence but you'll obviously need to find somewhere to live, so that would seem a sensible destination for the sale proceeds from your last place.  However, being unemployed wouldn't give you many mortgage options, so whether £250K buys a family home outright depends heavily on where in the country you're heading.

Before looking at the detail of where best to put money, you need to have some sort of plan about when it's going to be needed and for what, so if you are going to buy a new home in the near future then you'd just be looking to keep it somewhere safe and accessible, whereas if it's long term money then investment may come into play.

Albermarle

When you start employment again , you will be offered to enrol in a workplace pension . As well as regular contributions from salary , you can normally add further lump sums . A pension is the most tax friendly way to save for retirement.
Also you could look into topping up missing years in your state pensions . This is excellent value for money .

Gmaster147

eskbanker said:

Gmaster147 said:

We will also explore buying some property etc as looking to take 1 year off work to reintegrate into the UK (so not sure if being unemployed works in our favour in someways, anyone know?)

Not sure I'm following the logic of that sentence but you'll obviously need to find somewhere to live, so that would seem a sensible destination for the sale proceeds from your last place.  However, being unemployed wouldn't give you many mortgage options, so whether £250K buys a family home outright depends heavily on where in the country you're heading.

Before looking at the detail of where best to put money, you need to have some sort of plan about when it's going to be needed and for what, so if you are going to buy a new home in the near future then you'd just be looking to keep it somewhere safe and accessible, whereas if it's long term money then investment may come into play.

Thanks. Sorry if I wasn’t so clear. 

We will be renting for the coming 12 months and once our credit is back up and running we will see what is next. 

We are thinking of buying a small property to rent out, as we won’t need a mortgage and buy it outright.  Then maybe thinking of putting some money into ISAs. 

We won’t need all the money right away, but would like to invest at least 50-70% of this info property and maybe a business of some kind. The rest can just go somewhere safe with some return on it.  

Gmaster147

Albermarle said:

When you start employment again , you will be offered to enrol in a workplace pension . As well as regular contributions from salary , you can normally add further lump sums . A pension is the most tax friendly way to save for retirement.
Also you could look into topping up missing years in your state pensions . This is excellent value for money .

Thanks for the note. Yes pension is great for longer term and once we find out our path we will continue to think like that. 

We may decide to go back into employment or start our own business, either way we will use some of the money to do that and get us going.  

Hopefully once in a good place we can put more away. 

Thrugelmir

Gmaster147 said:

eskbanker said:

Gmaster147 said:

We will also explore buying some property etc as looking to take 1 year off work to reintegrate into the UK (so not sure if being unemployed works in our favour in someways, anyone know?)

Not sure I'm following the logic of that sentence but you'll obviously need to find somewhere to live, so that would seem a sensible destination for the sale proceeds from your last place.  However, being unemployed wouldn't give you many mortgage options, so whether £250K buys a family home outright depends heavily on where in the country you're heading.

Before looking at the detail of where best to put money, you need to have some sort of plan about when it's going to be needed and for what, so if you are going to buy a new home in the near future then you'd just be looking to keep it somewhere safe and accessible, whereas if it's long term money then investment may come into play.

We are thinking of buying a small property to rent out, as we won’t need a mortgage and buy it outright.  

You are aware of the cost of housing in some parts of the UK ? 

Albermarle

We are thinking of buying a small property to rent out, as we won’t need a mortgage and buy it outright.  Then maybe thinking of putting some money into ISAs. 

Being a small time landlord is not very profitable nowadays . Maybe be worth ploughing through this thread .

 

Why are so many landlords now selling up do they anticipate a housing market crash coming? — MoneySavingExpert Forum

The rest can just go somewhere safe with some return on it.  

I am afraid this is the Holy Grail at the moment . To get any sort of decent return you need to take a risk.

jimjames

Albermarle said:

We are thinking of buying a small property to rent out, as we won’t need a mortgage and buy it outright.  Then maybe thinking of putting some money into ISAs. 

Being a small time landlord is not very profitable nowadays . Maybe be worth ploughing through this thread .

 

Why are so many landlords now selling up do they anticipate a housing market crash coming? — MoneySavingExpert Forum

The rest can just go somewhere safe with some return on it.  

I am afraid this is the Holy Grail at the moment . To get any sort of decent return you need to take a risk.

If you have no other income then the tax issue will be much less of a problem.