First world problem after inheritance.

Krakkkers

Porsche 911 Turbo S

Exodi

Singlespeeder said:

Bigwheels1111 said:

Just on your mortgage rate vs saving rates I would not pay it off.

50k with NSI, do you win lots ?.

No one likes to pay tax on interest.

But if your a lower rate tax payer, 80% of the interest is not to bad is it.

Prob more than NSI would have paid out tax tree, unless you were lucky.

Please don't stick 85k in the account, yes the 85k is protected. But the interest would not be.

80k max in any account.

The £50k in PB's have yielded just under £7000 in the last rolling 12 months... there's also the excitement of the reveal.
I accept I'll have to pay some tax, I'm ok with that.

I have a Pension from a former company with about £80k in that pot . I've had the 25% drawdown on that.
So if I had a SIPP and paid in the maximum £60k a year for 3 years , presumably this'd produce maybe 4%, £7200.
What's the Tax relief ? 

Jesus wept, no wonder you're so keen on them! My stepfathers have returned exactly £1000 in the last rolling 12 months (so 2%, which is below average, with average luck you'd expect to win ~£2k) but £7k is wayyyy above average.

While Premium Bonds don't really make much financial sense, I suspect it will be hard to convince someone that has seemingly hit the jackpot with them within the last 12 months!

kempiejon

Krakkkers said:

Porsche 911 Turbo S

I had a chat with older pal about an inheritance, he was making succession plans, wanting a legacy, leaving a few quid to his children and grand children and a sum to charity.

I suggested now might be the time to start thinking about fast cars, loose women, booze and drugs - the rest he should just fritter away. 

Singlespeeder

Krakkkers said:

Porsche 911 Turbo S

I think not.

Singlespeeder

Albermarle said:

Singlespeeder said:

Bigwheels1111 said:

Just on your mortgage rate vs saving rates I would not pay it off.

50k with NSI, do you win lots ?.

No one likes to pay tax on interest.

But if your a lower rate tax payer, 80% of the interest is not to bad is it.

Prob more than NSI would have paid out tax tree, unless you were lucky.

Please don't stick 85k in the account, yes the 85k is protected. But the interest would not be.

80k max in any account.

The £50k in PB's have yielded just under £7000 in the last rolling 12 months... there's also the excitement of the reveal.
I accept I'll have to pay some tax, I'm ok with that.

I have a Pension from a former company with about £80k in that pot . I've had the 25% drawdown on that.
So if I had a SIPP and paid in the maximum £60k a year for 3 years , presumably this'd produce maybe 4%, £7200.
What's the Tax relief ? 

How much tax relief you can get is related to your earnings, and I do not think you have mentioned your salary level . Unless you are a high(ish) earner the £60k pa limit of pension contributions may not come into it.

mid £40's k p.a.

SavingsBoo

Singlespeeder said:

I suspect in June '26 the mortgage rate available will be  a fair bit higher that 1.75% even though it'd be a £50k mortgage on a £300k house.
We only pay £3.22 a day interest on the mortgage, a little over a £1000 a year. 
If we had the £60k required to pay it off in a 4% account we'd get £2400. 
Personally I'd rather have no mortgage and save the £700pcm  (£8400pa) we're paying now.
I'm a basic rate tax payer, though not far from the threshold.
I haven't been in the LGPS for 100's of years, only 6 at best so it's never going to be a massively lucrative pension.
I'm struggling to understand AVC's but will continue looking. 

Singlespeeder I'm in the LGPS too and was directed by our Payroll / Pension team to this website for further info when I was trying to get my head around AVCs.  It really helped as I was completely confused!  There's plenty of basic info available on the website around AVC options and if your employer is partnered with Moneywise then there is even more help available. Home | For all your financial wellbeing needs | My Money Matters (my-money-matters.co.uk)

gt94sss2

Singlespeeder said:

But what to do with the rest?. I'd be at about £220k.
I'd probably put £85k/£85k/£50k in the highest interest easy access accounts. 

You can take time to decide where and what you want to do with the money

See https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/