Inheritance.

Ozzie8

Hello. Need some advice please about an inheritance. My Mum passed away in April and has left me approximately £110,000. This was totally unexpected and I am a bit overwhelmed with the responsibility of it all.
 I would like to invest some of it but would also like some to provide me with an income too.
 I have a final salary teachers pension which I can access in 4 years.
 I am currently on a career break which I took to look after Mum.
 Don't have a mortgage or any debts to speak of.
 Any advice appreciated.

Albermarle

So you need money to live off for the next 4 years, and then the Teachers Pension will be enough until the state pension arrives? At what age will the Teachers pension start to be paid?

If so what is your expected annual expenditure, and do you have any other savings, investments etc?

This info would be useful as the main point is that money needed in the short term ( < 5 years) is usually best kept in savings account(s), whilst money that might be needed long term ( > 10 years) is usually best invested. Medium term something inbetween.

Only by having some kind of plan of when money might be needed, can you start to decide how to save or invest your inheritance.

xylophone

For the moment, you could hold the cash in a couple of top paying savings accounts.

Do you intend to return to work?

VKE

Sorry for your loss.
Right now open some easy access savings accounts this will give you some interest and will allow you a little time to to look at different options without jumping into something that you later Q 4 or 6 months down the road

Ozzie8

Thanks all. I’m 56 and my teachers pension is accessible at 60.
Work wise I’ll do something but probably not teach again.
Not sure about outgoings yet as I’m separating from my husband and moving house in 3 weeks.
Savings accounts sound straightforward and will give me time I think.

badger09

Condolences on your loss. 

You’re going through not just one, but the three most stressful life events, all at the same time. 

My advice - don’t make ANY hasty decisions. Either financial or other. Split the £110k between 2 or 3 easy access savings accounts with decent interest rates. I’d probably put £20k into a Flexible ISA to use up this tax year’s allowance rather than lose it. When you’ve got a clearer idea of your income & outgoings and tax position, you can then make longer term plans. Good luck 

LHW99

And maybe keep a couple of thousand in a savings account with the bank that runs your C/A.

Lower interest, but will transfer across in minutes if something sudden needs extra cash - not impossible with what you are having to cope with just now.

Good luck

Ozzie8

badger09 said:

Condolences on your loss. 

You’re going through not just one, but the three most stressful life events, all at the same time. 

My advice - don’t make ANY hasty decisions. Either financial or other. Split the £110k between 2 or 3 easy access savings accounts with decent interest rates. I’d probably put £20k into a Flexible ISA to use up this tax year’s allowance rather than lose it. When you’ve got a clearer idea of your income & outgoings and tax position, you can then make longer term plans. Good luck 

Yes, I think I forget that sometimes. Finding somewhere else to live when I was under such a lot of stress was very difficult. Like the ISA idea. I'm glad you are all of the same mind as me. Makes me feel better.

cardriver98

beware if the X wants his "share".   

Ozzie8

cardriver98 said:

beware if the X wants his "share".   

He's not getting any. Our agreement was signed before I got my inheritance.