Inheritance lump sum

Linton

Isla1972 said:

Anyone know the best place/way to find a unbiased financial advisor or are they all on commission to a company so push you to use that company 

If you use an advisor make 100% certain that they are a regulated IFA, I for independent.  IFAs cannot be restricted to any particular company’s products and cannot receive commission for investments. You pay them for financial advice and for activities such as setting up and managing investments.  If the advice given by an IFA is shown to be inappropriate for your circumstances you can claim compensation for resultant losses. Plain FAs can be regarded as salesmen.

Small local high street IFA businesses are likely to be significantly cheaper than national companies and the advice just as good.  Best to get recommendations from family and friends.  Or you can identify say 3 possible candidates and arrange half hour free introductory meetings with each one. You can explain your circumstances and what you are looking for. They will tell you how they can help and likely costs. You can then choose the one you feel most comfortable working with.

Before talking to an IFA I suggest you think through what you may want the money for and rough timeframes. If you are going to spend it all next year on a new house then you gain very little talking to an IFA. On the other hand  for early retirement in 20 years time using an IFA could be very worthwhile.

penners324

Put a big chunk in your pension and ensure that is invested in way your comfortable with.

Most investing is done through pension.

Bigwheels1111

Isla1972 said:

@Albermarle I'd say probably mixture as I want to use/ live off the money until I retire (maybe draw a income off it)
A lot of my family died young and didn't even see their pension so I don't see the point of saving it all away for the future and not enjoying it 
I'd say I'm in the lucky position to have the inheritance, my house and some savings 
A pension in the future too as well as old age pension 
Hope that helps and makes a bit more sense 

A few basic questions, age, earnings low or high, tax rate etc.
For myself I have taken out 3, 5 and 7 year fixed rates. Plus 3 year isa’s.
The isa’s have small early access charges so used as emergency funds.
Paid away annually.
I use 15k for regular savers at 8%,7.5%,7% and 7%.

Im a low rate earner £4001.00 a year.
So when my first year’s interest pays out I will get an income of 12.5k.
I expect this to rise by £500 to £1000 next year.
This way no tax is payable for myself.
Total is below £18,570.

As I don’t spend much due to not having much for the last 10 year, I will probably save 8k of it again each year.
I think in 5 years I will have my capital and 40k extra saved.
After 5 years I will start converting over to ISA’S as I get closer to my pension.
Trying to avoid paying tax on the interest.

I think I have a good life, I care for my best friend, have a place to live, clothes to wear, food and drink.
A nice car, 4 or more holidays a year around the country ( love an off season caravan ) .
Not a penny in debt.
Each to there own.

Unless you want stocks & shares I think a FA is not needed.
I worked all mine out myself.

Albermarle

Bigwheels1111 said:

Isla1972 said:

@Albermarle I'd say probably mixture as I want to use/ live off the money until I retire (maybe draw a income off it)
A lot of my family died young and didn't even see their pension so I don't see the point of saving it all away for the future and not enjoying it 
I'd say I'm in the lucky position to have the inheritance, my house and some savings 
A pension in the future too as well as old age pension 
Hope that helps and makes a bit more sense 

A few basic questions, age, earnings low or high, tax rate etc.
For myself I have taken out 3, 5 and 7 year fixed rates. Plus 3 year isa’s.
The isa’s have small early access charges so used as emergency funds.
Paid away annually.
I use 15k for regular savers at 8%,7.5%,7% and 7%.

Im a low rate earner £4001.00 a year.
So when my first year’s interest pays out I will get an income of 12.5k.
I expect this to rise by £500 to £1000 next year.
This way no tax is payable for myself.
Total is below £18,570.

As I don’t spend much due to not having much for the last 10 year, I will probably save 8k of it again each year.
I think in 5 years I will have my capital and 40k extra saved.
After 5 years I will start converting over to ISA’S as I get closer to my pension.
Trying to avoid paying tax on the interest.

I think I have a good life, I care for my best friend, have a place to live, clothes to wear, food and drink.
A nice car, 4 or more holidays a year around the country ( love an off season caravan ) .
Not a penny in debt.
Each to there own.

Unless you want stocks & shares I think a FA is not needed.
I worked all mine out myself.

It is good that this strategy suits you, but I think it is fair to point out to the OP that being 100 % all in cash savings, would not be the recommended strategy from most people who know about these things.
Especially as they seem to be relatively young and wondering what to with a large sum of money.

Bigwheels1111

Albermarle said:

Bigwheels1111 said:

Isla1972 said:

@Albermarle I'd say probably mixture as I want to use/ live off the money until I retire (maybe draw a income off it)
A lot of my family died young and didn't even see their pension so I don't see the point of saving it all away for the future and not enjoying it 
I'd say I'm in the lucky position to have the inheritance, my house and some savings 
A pension in the future too as well as old age pension 
Hope that helps and makes a bit more sense 

A few basic questions, age, earnings low or high, tax rate etc.
For myself I have taken out 3, 5 and 7 year fixed rates. Plus 3 year isa’s.
The isa’s have small early access charges so used as emergency funds.
Paid away annually.
I use 15k for regular savers at 8%,7.5%,7% and 7%.

Im a low rate earner £4001.00 a year.
So when my first year’s interest pays out I will get an income of 12.5k.
I expect this to rise by £500 to £1000 next year.
This way no tax is payable for myself.
Total is below £18,570.

As I don’t spend much due to not having much for the last 10 year, I will probably save 8k of it again each year.
I think in 5 years I will have my capital and 40k extra saved.
After 5 years I will start converting over to ISA’S as I get closer to my pension.
Trying to avoid paying tax on the interest.

I think I have a good life, I care for my best friend, have a place to live, clothes to wear, food and drink.
A nice car, 4 or more holidays a year around the country ( love an off season caravan ) .
Not a penny in debt.
Each to there own.

Unless you want stocks & shares I think a FA is not needed.
I worked all mine out myself.

It is good that this strategy suits you, but I think it is fair to point out to the OP that being 100 % all in cash savings, would not be the recommended strategy from most people who know about these things.
Especially as they seem to be relatively young and wondering what to with a large sum of money.

That’s why age and income were the first thing I said.
For long term FA would help, re investments. 

Buying a house, living in it for 9 years and renting it for 10 years was my long term investment.
Tenants basically paid for the house and sale returned 4 times what I paid.
Happy days.

Isla1972

jimexbox said:

Myself, I want to maximise my enjoyment of life now (early 50's) and the next 20 years. I know folk that are working dreadful jobs with massive amounts of stress for the pension. I have a fairly decent pension pot, so I intend to work part time soon and use savings/inheritance and investments to help support a more relaxed lifestyle. Basically tick over until I fully retire. 

That's how I want to be 

Isla1972

Bigwheels1111 said:

Albermarle said:

Bigwheels1111 said:

Isla1972 said:

@Albermarle I'd say probably mixture as I want to use/ live off the money until I retire (maybe draw a income off it)
A lot of my family died young and didn't even see their pension so I don't see the point of saving it all away for the future and not enjoying it 
I'd say I'm in the lucky position to have the inheritance, my house and some savings 
A pension in the future too as well as old age pension 
Hope that helps and makes a bit more sense 

A few basic questions, age, earnings low or high, tax rate etc.
For myself I have taken out 3, 5 and 7 year fixed rates. Plus 3 year isa’s.
The isa’s have small early access charges so used as emergency funds.
Paid away annually.
I use 15k for regular savers at 8%,7.5%,7% and 7%.

Im a low rate earner £4001.00 a year.
So when my first year’s interest pays out I will get an income of 12.5k.
I expect this to rise by £500 to £1000 next year.
This way no tax is payable for myself.
Total is below £18,570.

As I don’t spend much due to not having much for the last 10 year, I will probably save 8k of it again each year.
I think in 5 years I will have my capital and 40k extra saved.
After 5 years I will start converting over to ISA’S as I get closer to my pension.
Trying to avoid paying tax on the interest.

I think I have a good life, I care for my best friend, have a place to live, clothes to wear, food and drink.
A nice car, 4 or more holidays a year around the country ( love an off season caravan ) .
Not a penny in debt.
Each to there own.

Unless you want stocks & shares I think a FA is not needed.
I worked all mine out myself.

It is good that this strategy suits you, but I think it is fair to point out to the OP that being 100 % all in cash savings, would not be the recommended strategy from most people who know about these things.
Especially as they seem to be relatively young and wondering what to with a large sum of money.

That’s why age and income were the first thing I said.
For long term FA would help, re investments. 

Buying a house, living in it for 9 years and renting it for 10 years was my long term investment.
Tenants basically paid for the house and sale returned 4 times what I paid.
Happy days.

I'm 51 and have enough income in my current job to pay my bills and live
just about at the moment 

Isla1972

I'm 51 
Own my own property £315.000
Work in retail 
Earn £19.000 before adjustments 
Savings 20.000 in stocks and shares 
Have £10.000 in Tesco shares 
All this is before inheritance 

Bigwheels1111

Isla1972 said:

I'm 51 
Own my own property £315.000
Work in retail 
Earn £19.000 before adjustments 
Savings 20.000 in stocks and shares 
Have £10.000 in Tesco shares 
All this is before inheritance 

Ok, that means all interest would be taxed at 20%.
I know nothing about investing.
80% of interest is better than nothing.
Over pay pension could be a good option.
Not got one but see it’s spoken about on here.

wjr4

Isla1972 said:

I'm 51 
Own my own property £315.000
Work in retail 
Earn £19.000 before adjustments 
Savings 20.000 in stocks and shares 
Have £10.000 in Tesco shares 
All this is before inheritance 

How much is in your workplace pension? Who is it held with? 

Which age do you want to fully retire, if any? 

Have you got any large planned expenditure eg house repairs? 

What do you want out of life? Any bucket list items you want to tick off? 

Search your local Facebook group for IFA recommendations, but do not speak with anyone who is linked to St James Place/SJP! A google search for local IFAs, check reviews on VouchedFor (although a lot of IFAs aren’t on there, myself included, but it is a good place to start).