What to do with this money?

AdmanPea

Hi all

So I'm about to 'inherit' approx 18k soon and was wondering what to do with it and thought I'd seek some advice...

My situation is:

37 years old. Well paid (decent) job for the area I live in and I'm in a defined benefit pension scheme. 

Have a mortgage with approx 22 years left on it and 123k left to pay. 

I have about 7k in my current account, a 10k emergency fund and approx 13k in a S and S ISA that I drip £240 a month into. 

My thinking was:

1. Spend some of it on a nice holiday because why not.
2. Add a portion into my S and S ISA as a one off payment.
3. Possibly use some to help renovate an area of the house. 

My other options would be: 

1. Open a new S and S ISA with my partner who is moving in and co-run that...
2. Invest in something different (but what?)
3. Add to other funds: current, emergency etc...

Any thoughts on what I could or should do with the new money coming in? I'm less interested in overpaying the mortgage as can make more interest back elsewhere but I do see some merit in it to a degree...

ColdIron

AdmanPea said:

1. Open a new S and S ISA with my partner who is moving in and co-run that...
2. Invest in something different (but what?)
3. Add to other funds: current, emergency etc...

ISAs can't be jointly held so that might simplify things for you. Nothing to stop them opening their own in their name though

Albermarle

1. Spend some of it on a nice holiday because why not.
2. Add a portion into my S and S ISA as a one off payment.
3. Possibly use some to help renovate an area of the house

Sounds like a sensible use of the £18K

1. Open a new S and S ISA with my partner who is moving in and co-run that...
2. Invest in something different (but what?)
3. Add to other funds: current, emergency etc...

1. As above you can not do that
2. You could start a new DC personal pension/SIPP. More tax benefits than an ISA, but money is tied up until you are nearly 60. Or you could open a LISA, again more benefits but money is tied up.
3. You already have far too much in your current account ( presumably earning zero interest ?) and £10K emergency fund is enough.

Linton

You cannot share an ISA.

In my view you are mixing up what you want the money for with how to manage the money. Only once you know what the money is for, how much money and when can you make a rational decision on where your put it.

Only you can decide whether you take an expensive holiday or do up the house.

What many people here would suggest is to put the money into a private pension. £18K put into a personal DC pension could allow you to retire perhaps 1-2 years earlier than would otherwise be possible. But that is not as much fun.

Beddie

Of the 2 sets of options, this one sounds better to me personally:

1. Spend some of it on a nice holiday because why not.
2. Add a portion into my S and S ISA as a one off payment.
3. Possibly use some to help renovate an area of the house. 

You have a good job, good pension and this is useful money but not life changing, so definitely enjoy at least some of it, not every penny has to be saved.

6022tivo

Pay off some of the Mortgage if you are able to. 
It's boring, but it's fine to do.