How to invest an inheritance

BellaTrix99

I'm 58, single and plan to go back to work after a carer break.
I am about to wipe out my savings but secure my housing by buying a property, but I expect to receive an inheritance which replaces the savings.
I will keep an emergency fund in my bank, so will have about 80K to invest.

I put 20K into my cash ISA in April - can I replace that this tax year, if I keep the ISA open? 
I want a good return so will accept some risk but I don't want to actively manage shares, so what other options are available to me, please!?

kimwp

Is it a flexible ISA?

eskbanker

BellaTrix99 said:

I put 20K into my cash ISA in April - can I replace that this tax year, if I keep the ISA open?

Only if it's a flexible one.

For the rest of the money, when would you anticipate needing access to it?

BellaTrix99

Not sure, it's my bank's cash ISA.  Will find out!

BellaTrix99

eskbanker said:

BellaTrix99 said:

I put 20K into my cash ISA in April - can I replace that this tax year, if I keep the ISA open?

Only if it's a flexible one.

For the rest of the money, when would you anticipate needing access to it?

I'll check about the ISA. 
The lump sum I'd probably leave to grow until I retire, and then rethink. 

eskbanker

BellaTrix99 said:

eskbanker said:

BellaTrix99 said:

I put 20K into my cash ISA in April - can I replace that this tax year, if I keep the ISA open?

Only if it's a flexible one.

For the rest of the money, when would you anticipate needing access to it?

I'll check about the ISA. 
The lump sum I'd probably leave to grow until I retire, and then rethink. 

But when is that?  Investing will generally be safest over, say, ten years or more....

Bostonerimus1

Do a budget so you can understand and control your spending.
Pay off all high interest debt.
Put 6 months spending in the bank or a cash ISA.
Put money into your pension, if it is a defined contribution plan make sure you understand how it is invested ie what funds are you buying, low cost index tracker funds or multi-asset funds are good options.
Put money into an S&S ISA and invest in low cost index tracker or multi asset funds.
Put anything left into a general investment account and invest in low cost index tracker or multi asset funds. Transfer to your S&S ISA when you can.

Albermarle

Do you have any kind of pension?

BellaTrix99

Hi Albermarle, yes I have an old workplace pension and will either add to that or join whatever scheme comes with the new job I plan to get.  I know there are tax advantages but also limits based on salary

I'm really hoping for thoughts/comments about different types of investment - I want instant access to some of the funds but I also want growth and long-term security, and the option to take a regular income in the future...

I did speak to a financial advisor (through my bank) some time ago which was helpful at the time (mainly focused on the bank's offers), but things are now changing and I'd like some independent thoughts before I get the inheritance.

Albermarle

BellaTrix99 said:

Hi Albermarle, yes I have an old workplace pension and will either add to that or join whatever scheme comes with the new job I plan to get.  I know there are tax advantages but also limits based on salary

I'm really hoping for thoughts/comments about different types of investment - I want instant access to some of the funds but I also want growth and long-term security, and the option to take a regular income in the future...

I did speak to a financial advisor (through my bank) some time ago which was helpful at the time (mainly focused on the bank's offers), but things are now changing and I'd like some independent thoughts before I get the inheritance.

If you need the money within 5 years- keep it as cash savings
If you do not need the money for over 10 years - invest most of it. Due to your age investing via a pension will be best due to the tax relief on contributions. You are right though that you can add more to a pension in a tax year than your earn.

If you have a good read through the forum, you will see many 'what can I do with my inheritance' threads and questions about investing from inexperienced posters.

EthicsGradient

For the "investing for 10+ years" part, the simplest option is probably in a global index tracker - you could go for "all world", or "developed world", which doesn't use the 10% or so of the global stock markets that are in developing countries (China, India etc. - the dividing line is drawn at South Korea - a FTSE index counts that as developed, while an MSCI index doesn't).

You could alternatively pick a fund that invests partly in bonds, which makes them a slightly more cautious option.