What is the best way to invest inheritance?

Special_Impress_4442

I am soon to receive a large amount of inheritance from a family member and want to try and be as smart as possible with it. I currently have a mortgaged home which although could do with a bit of an update I don't think this will increase its value so would rather not put money in to this home if the value wouldn't change. Ideally I would be looking to move in the next 2-5 years (mortgage is fixed till 2027) and I would like to use the funds from this inheritance to pay towards my next home. But to get the most out of this money I would like to invest a smart as possible

What is the best way to get the most of out £10K-30K for a short term savings process and what would the benefits be for longer term options? 

Brie

Can you overpay on your mortgage?  That will save you interest which might be better than trying to invest it somewhere.  

wmb194

Special_Impress_4442 said:

I am soon to receive a large amount of inheritance from a family member and want to try and be as smart as possible with it. I currently have a mortgaged home which although could do with a bit of an update I don't think this will increase its value so would rather not put money in to this home if the value wouldn't change. Ideally I would be looking to move in the next 2-5 years (mortgage is fixed till 2027) and I would like to use the funds from this inheritance to pay towards my next home. But to get the most out of this money I would like to invest a smart as possible

What is the best way to get the most of out £10K-30K for a short term savings process and what would the benefits be for longer term options? 

In that case just find a savings account that suits.

When you look at the tables make sure to sort by, "rate":

https://moneyfactscompare.co.uk/savings-accounts/

tacpot12

As per Brie's comment, one option is to overpay the mortgage. You are not 'putting more into the property' if you pay off the mortgage. Whether it makes financial sense to pay off the mortgage  this depends on the rate of your mortgage and what rate you can get putting it elsewhere, and how much money will you need to move (you will need some money for fees, and you may want to buy a property that needs a lot of work doing to it). If you need money for the move, you don't want to take out a long-term investment (e.g. stocks and shares). 

scoobyjones1

for no risk, no worries about tax on interest or capital gains tax you could put up to £20k into an easy access, cash ISA. With the rest put it into an easy access savings account. Search for both on MSE.
Here are the best cash ISAs : 

https://www.moneysavingexpert.com/savings/best-cash-isa/

A stocks and shares ISA can make more money...but they can go down as well as up. If you go this way, invest in an S&P 500 fund, or perhaps "safer" stocks such as Apple and/or Microsoft. Gains are tax free.

Do you have a SIPP? The gov will top up the tax on contributions you make into one...then you can invest in that...but there are lots of rules with a SIPP and income tax to pay when you draw it down, depending on your financial situation. Gains are tax free, initially.

Whatever you do make sure your money is in a tax wrapper, ie in an ISA or SIPP.
One other option is premium bonds...tax free if you get a win...and the money is quite easy to get out again.

ISA would be my first choice but you can use a combination and split your money 2 or 3 ways.
Good luck.

Angelica123

Special_Impress_4442 said:

I am soon to receive a large amount of inheritance from a family member and want to try and be as smart as possible with it. I currently have a mortgaged home which although could do with a bit of an update I don't think this will increase its value so would rather not put money in to this home if the value wouldn't change. Ideally I would be looking to move in the next 2-5 years (mortgage is fixed till 2027) and I would like to use the funds from this inheritance to pay towards my next home. But to get the most out of this money I would like to invest a smart as possible

What is the best way to get the most of out £10K-30K for a short term savings process and what would the benefits be for longer term options? 

If your goal is to move and use money in 2-5 years, investing is probably not the best option for you as too short a time frame. 

If you want to pay towards next home then your options are to either overpayment your mortgage (meaning you have more equity at sale) or keep money in savings. It depends what your mortgage rate is and what early penalty charges you have. 

Bobziz

Please don't do this to unless you're comfortable with the possibility that you may find yourself with significantly less money in 2-5 years time.

"If you go this way, invest in an S&P 500 fund, or perhaps "safer" stocks such as Apple and/or Microsoft. Gains are tax free."

scoobyjones1

Bobziz said:

Please don't do this to unless you're comfortable with the possibility that you may find yourself with significantly less money in 2-5 years time.

"If you go this way, invest in an S&P 500 fund, or perhaps "safer" stocks such as Apple and/or Microsoft. Gains are tax free."

If you read my post that you quote from it clearly says "shares can go down as well as up" and for "risk free use a cash ISA"....but the OP is looking to try to make something with the investment.
Cash ISAs just about keep up with inflation...albeit risk free.

The last 3 years my wife and I put 20k per year each into SnS ISAs...stocks such as Nvidia, Microsoft, Apple.
That 120k has now grown to 180k with no CGT or income tax. A 50% gain of more than £60k. Not bad considering some only went in 6 months ago...some 18 months ago and some went in 30 months ago.
If we had just held it as cash it would have made 4-5k which in real terms is not much.
No risk, no reward.
The markets are pretty high right now...so IF you decide to take this risk, wait until there is a pullback.