£500k gift......

Band7

ChilliBob said:

Band7 said:

I would pay an IFA for professional, tailored advice, and not rely on opinions from strangers on the internet.

There's certainly no harm in discussing the situation with a few IFAs for sure. I did similar a couple of years back, which gave me some decent things to think about. I didn't end up using one in the end, however, everyone's circumstances are different, and I may well do so in later years. 

I would say the main focus of most IFAs (in intro discussions that is) will be to understand your yearly expenses, goals, assets and position - they'll then give you ideas as to how you could perhaps minimise tax, or make the most of certain circumstances. 

Ironically, as I found out, investments wasn't a huge focus besides asset allocation and risk appetite. 

May be I should have clarified why I would suggest an IFA - -  it's not necessarily about investing through / with the help of the IFA but about a personal service that can look at all relevant aspects (near- and long term objectives, family situation and security, tax considerations, IHT consideration etc etc), in a way that is not really possible on a public Internet forum. It might just be a couple of individual discussions, or it might turn into a long term arrangement, or anything in between.

ChilliBob

Band7 said:

ChilliBob said:

Band7 said:

I would pay an IFA for professional, tailored advice, and not rely on opinions from strangers on the internet.

There's certainly no harm in discussing the situation with a few IFAs for sure. I did similar a couple of years back, which gave me some decent things to think about. I didn't end up using one in the end, however, everyone's circumstances are different, and I may well do so in later years. 

I would say the main focus of most IFAs (in intro discussions that is) will be to understand your yearly expenses, goals, assets and position - they'll then give you ideas as to how you could perhaps minimise tax, or make the most of certain circumstances. 

Ironically, as I found out, investments wasn't a huge focus besides asset allocation and risk appetite. 

May be I should have clarified why I would suggest an IFA - -  it's not necessarily about investing through / with the help of the IFA but about a personal service that can look at all relevant aspects (near- and long term objectives, family situation and security, tax considerations, IHT consideration etc etc), in a way that is not really possible on a public Internet forum. It might just be a couple of individual discussions, or it might turn into a long term arrangement, or anything in between.

Yeah, totally get that. I think depending on someone's circumstances and the type of person..

A. You get non specific ideas from various sources - here, books, blogs etc and are capable of, and happy to and have the time , apply these to your own circumstances 

B. You need a dedicated person to draw this stuff our of you, point things out and make plans for you, you don't feel confident to do anything like this yourself, you don't have the time, or, you're just not very interested, and would rather take the fee of the IFA on the chin rather than have to sort it yourself.

Every individual needs to decide where they sit, and at different times in their lives they will likely flit between the two camps too!

I'm not one of those people who's against IFAs, or indeed passionately for them. They provide a service, some people will benefit hugely from it, others won't even need it. Every case is different really when it comes to investing/getting a lump etc 

Band7

As you say, everyone is different.

As much as I like this Forum, I wouldn't make decisions on £500k for my family based on the opinions expressed here, especially if I am a newbie to this board, but also because I wouldn't want to share all my details on an open Internet forum.

redux

If you're already considering a deed of variation, how about some of this going straight to your kids, instead of via you

kimwp

redux said:

If you're already considering a deed of variation, how about some of this going straight to your kids, instead of via you

This is what I scrolled to say too. £100k to each (in a trust fund?) will set them up very nicely.

I'd have a good think about an extension - so many people seem to do extensions, then only really use the extended bit, which isn't a great use of the house.

Albermarle

ChilliBob said:

Band7 said:

ChilliBob said:

Band7 said:

I would pay an IFA for professional, tailored advice, and not rely on opinions from strangers on the internet.

There's certainly no harm in discussing the situation with a few IFAs for sure. I did similar a couple of years back, which gave me some decent things to think about. I didn't end up using one in the end, however, everyone's circumstances are different, and I may well do so in later years. 

I would say the main focus of most IFAs (in intro discussions that is) will be to understand your yearly expenses, goals, assets and position - they'll then give you ideas as to how you could perhaps minimise tax, or make the most of certain circumstances. 

Ironically, as I found out, investments wasn't a huge focus besides asset allocation and risk appetite. 

May be I should have clarified why I would suggest an IFA - -  it's not necessarily about investing through / with the help of the IFA but about a personal service that can look at all relevant aspects (near- and long term objectives, family situation and security, tax considerations, IHT consideration etc etc), in a way that is not really possible on a public Internet forum. It might just be a couple of individual discussions, or it might turn into a long term arrangement, or anything in between.

Yeah, totally get that. I think depending on someone's circumstances and the type of person..

A. You get non specific ideas from various sources - here, books, blogs etc and are capable of, and happy to and have the time , apply these to your own circumstances 

B. You need a dedicated person to draw this stuff our of you, point things out and make plans for you, you don't feel confident to do anything like this yourself, you don't have the time, or, you're just not very interested, and would rather take the fee of the IFA on the chin rather than have to sort it yourself.

Every individual needs to decide where they sit, and at different times in their lives they will likely flit between the two camps too!

I'm not one of those people who's against IFAs, or indeed passionately for them. They provide a service, some people will benefit hugely from it, others won't even need it. Every case is different really when it comes to investing/getting a lump etc 

I would add a 'C'

You are incapable of basic mental arithmetic, understanding percentages, interest rates, averages etc., and/or you are incapable of assessing risk and return objectively, and/or you are lacking in at least basic IT skills.
Many seemingly normal people can struggle with some or all of the above, especially, but not necessarily,  as they get older.

london21

Some suggestions:

Pension

Invest in lower costs index funds 

Put some of the money in fixed savings account

Put some of the money in instant access savings 

Enjoyment pot holiday, hobbies, a car etc.

Goliath64

billy2shots said:

Hopefully I'm not speaking out of line here but.....

It sounds like the long lost uncle accomplished a great deal in his life, being able to leave behind £1m (possibly more if others also benefited)

It also sound like your parents have done exceedingly well being able to live a comfortable life without needing the pensions which will be 'more than enough ' for both you and your brother in the future to live on.


With that in mind. Could you use a portion of this gift to help you reach higher highs than may have been possible. 
Take time off to retrain to better yourself knowing cash isn't a problem for X number of years. 
Or start a business of your own?

Fast forwarding a few decades. Imagine the pride leaving your kids in a great position from your endeavours rather than giving them some of mum and uncles money. 

Just a different take on how to maximise this windfall, it's not all about £s

Absolutely fine and all posts are being listened to!

Great uncle was a London lawyer, no children, two properties, no desire to setup trusts etc so the taxman has taken at least £1.5m in his will, lots left to charity etc. My parents have also done very well from running their own business. My wife and i (and brother!) have never relied on them to bank roll us even though they could have done. We both thoroughly enjoy our jobs and don't have any 'wanting desires' to be doctors/lawyers/accountants etc. My wife works in the charity sector in her main. We both have a good work life balance which is crucial with the two children, again putting us off starting a business at the moment if we even found something to do. 

RE the pride thing, yes Im sure there would be the feeling of that. We've paid into their JISA's from when they were born and as such, hopefully they will have a house deposit as and when the time is right but they don't know about this at all and have and will be brought up to have a solid work ethic.

Goliath64

ChilliBob said:

I'd be looking to max out the JISA contributions too - based on your children's ages that's 10 or 8 years of compounding until they can access it

If you like eating nicely you can always step up a grade food wise if applicable too! - Organic Corn Fed chicken vs the standard - although you probably do this already if you eat well at home. It was the sort of swaps we did when in a more fortunate position. 

You could also use a spreadsheet to figure out what you reckon you spend per year, how you'd use this year on year - e.g. 40k into ISAs for you and the wife, 9k for the children, perhaps plan if uni fees etc - to see how the money looks really - assume growth rates and inflation rates and play with some scenarios really - it's quite surprising how over a say 40-50 year horizon it makes a difference if you consume 30k a year vs 35, or if inflation is 2% (or gulp! 10!)

JISA contributions are good and are being done annually anyway but not hte £9k you're suggesting. Also hoping to put a good age limit on it, i.e. not 18 but unsure if we can do that. I had a bit of money given to me when I was 12 but couldn't access it until I was 21. That was important or else I'd have blasted it!

RE food wise, completely agree. Try and do this in the main too but good point. Thanks. Always use local where possible and as sustainable options if we can.

Goliath64

ChilliBob said:

Band7 said:

I would pay an IFA for professional, tailored advice, and not rely on opinions from strangers on the internet.

There's certainly no harm in discussing the situation with a few IFAs for sure. I did similar a couple of years back, which gave me some decent things to think about. I didn't end up using one in the end, however, everyone's circumstances are different, and I may well do so in later years. 

I would say the main focus of most IFAs (in intro discussions that is) will be to understand your yearly expenses, goals, assets and position - they'll then give you ideas as to how you could perhaps minimise tax, or make the most of certain circumstances. 

Ironically, as I found out, investments wasn't a huge focus besides asset allocation and risk appetite. 

What I want to do doesn't appear to be too complex hence the 'asking for opinions from strangers on the internet'. 

Plenty of excellent advice and where to focus here. Our goal is to enhance our 'daily life' in the main whilst also achieving more 'financial freedom' and improving our property. Here's hoping.