Investment query

RockLobster300

Later this year I will come into an inheritance (around 250k). I'd really like to make this work for me to make the rest of my life more comfortable and I'm wondering what my options could be.   I'm approaching 60 and I don't have much of a pension apart from state pension when the time comes, so in a way this will replace it! I'm happy where I live and i don't need or want a flashy car or any other extravagance though I would like to travel a bit. I work but i'm not a high rate tax payer. Mortgage is paid and I'm not a risk taker!  What would you do?

dunstonh

What would you do? 

You wouldn't do what I would do and I wouldn't do what you would do.   So, don't waste your time asking what others would do.     Focus on what is right for you.

Mortgage is paid and I'm not a risk taker!

Every option has risk.   Its the degree of risk and type of risk that matters.

Albermarle

 What would you do? 

Either spend some time reading about personal finance, investments, tax, pensions, savings etc. Good start to post on here, but you should also read through this forum, and the pensions forum regularly.

Or engage an IFA to sort your finances out in an efficient way . At a cost but it might pay for itself. 

You will get some decent pointers from your post, but £250K is a lot of money and you want to use it well to support your retirement. It is lucky you have it because just living off the state pension would not be a lot of fun.

First though you will get better answers if you give more detail. Such as:

Married ? Any offspring?
Any desire to leave an inheritance?
Why poor pension ? Self Employed ?
How much longer do you intend to work?

I'm not a risk taker! 

In this arena, taking no risks is a risk in itself, so try and get over this for your own long term benefit.

eskbanker

RockLobster300 said:

I'm approaching 60 and I don't have much of a pension apart from state pension when the time comes, so in a way this will replace it!

How were you going to fund your retirement if the inheritance hadn't materialised, i.e. what's the gap between your state pension entitlement (have you checked this btw?) and your projected expenditure?

RockLobster300

dunstonh said:

What would you do? 

You wouldn't do what I would do and I wouldn't do what you would do.   So, don't waste your time asking what others would do.     Focus on what is right for you.

Mortgage is paid and I'm not a risk taker!

Every option has risk.   Its the degree of risk and type of risk that matters.

That is true, we are all different, I'm just looking for good ideas really. At some point i'll be asked where I Want the money transferred to, and right now I'm not sure what to do with it!

Beddie

RockLobster300 said:

dunstonh said:

What would you do? 

You wouldn't do what I would do and I wouldn't do what you would do.   So, don't waste your time asking what others would do.     Focus on what is right for you.

Mortgage is paid and I'm not a risk taker!

Every option has risk.   Its the degree of risk and type of risk that matters.

That is true, we are all different, I'm just looking for good ideas really. At some point i'll be asked where I Want the money transferred to, and right now I'm not sure what to do with it!

£20k into an easy access Cash ISA and £50k into Premium Bonds is a good start, to avoid tax. Premium Bonds are not locked away and can be accessed if you decide to do something else. The rest into savings accounts for now, £80k max in each for safety (look up FSCS.) The best rates are all on this website:

https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false

Then you should look into possibly investing some of it. Loads to read on here, lots of Youtube videos about investing, but it is a big subject if you've never done it before. Maybe speak to an IFA, but not St James Place as they are not independent. But if you aren't comfortable with investing, then maybe fixing some of it while rates are high would be good for you. Again rates are on the above website.

It's a nice "problem" to have, so do plenty of research before making any long term plans. 

Albermarle

RockLobster300 said:

dunstonh said:

What would you do? 

You wouldn't do what I would do and I wouldn't do what you would do.   So, don't waste your time asking what others would do.     Focus on what is right for you.

Mortgage is paid and I'm not a risk taker!

Every option has risk.   Its the degree of risk and type of risk that matters.

That is true, we are all different, I'm just looking for good ideas really. At some point i'll be asked where I Want the money transferred to, and right now I'm not sure what to do with it!

Initially it would probably make sense to put it all in safe savings accounts, whilst you work out what would be better in the longer term. So £250K paid into your normal bank account and then immediately distributed.
Easy access accounts would be best to begin with whilst you work out a strategy.
It is best not to put more than £85K with any savings provider ( or a bit less) so you would need to open a few. You can start doing that now even before the money arrives. Generally best to avoid well known
 high st banks as their rates are poor.
Alternatively you can put it all in an NS&I savings accounts ( maybe £50K in Premium Bonds ) as they are government backed and safe up to any amount but not with such great interest rates.
Read this.
Best savings accounts: 5.08% easy access or 5.23% fixed rates (moneysavingexpert.com)

ColdIron

RockLobster300 said:

I'm approaching 60 and I don't have much of a pension apart from state pension when the time comes, so in a way this will replace it!

You are in work so pension contributions seem to suggest themselves. Cash won't keep up with inflation so not a great replacement

Before long, if it's in your bank, you will have to split it up into £85,000 chunks to get FSCS protection though you might be covered for 6 months

If you don't want to do that or while you are weighing up options you could think about one of the NS&I accounts. Direct Saver or Income Bonds might suit. Not great rates but 100% protection up to one or two million

https://www.nsandi.com/products

RockLobster300

Albermarle said:

 What would you do? 

Either spend some time reading about personal finance, investments, tax, pensions, savings etc. Good start to post on here, but you should also read through this forum, and the pensions forum regularly.

Or engage an IFA to sort your finances out in an efficient way . At a cost but it might pay for itself. 

You will get some decent pointers from your post, but £250K is a lot of money and you want to use it well to support your retirement. It is lucky you have it because just living off the state pension would not be a lot of fun.

First though you will get better answers if you give more detail. Such as:

Married ? Any offspring?
Any desire to leave an inheritance?
Why poor pension ? Self Employed ?
How much longer do you intend to work?

I'm not a risk taker! 

In this arena, taking no risks is a risk in itself, so try and get over this for your own long term benefit.

I have children and they will be left my property and whatever else I have. I'm unlikely to blow all my cash as it's not in my nature but if i did they'd still get the house so I wouldn't feel too bad about it!

I'm only employed part time and am also self employed,spent many years as a carer and didn't pay into any private pension at that time.

Don't really know how long i intend to work , I quite like my day job but the self employed job is hard physical work so will probably not go on to retirement age with it.

I am luckier than most I realise -  though I'd rather have the person who left it to me back - but that's another story !