If you inherited £20k, what would you do with it?

eskbanker

Eyeful said:
1. You are supposed to buy  low and sell high. Gold Is now near the highest price its ever been.

A valid observation but one that's also applicable to most other investments too, or are you suggesting a specific alternative that's at a low price (by historical standards) and is undervalued with good growth potential?

Eyeful

eskbanker said:

Eyeful said:
1. You are supposed to buy  low and sell high. Gold Is now near the highest price its ever been.

A valid observation but one that's also applicable to most other investments too, or are you suggesting a specific alternative that's at a low price (by historical standards) and is undervalued with good growth potential?

I am suggesting that even if you like and want to buy gold, now is not a sensible time to buy it.

eskbanker

Eyeful said:

eskbanker said:

Eyeful said:
1. You are supposed to buy  low and sell high. Gold Is now near the highest price its ever been.

A valid observation but one that's also applicable to most other investments too, or are you suggesting a specific alternative that's at a low price (by historical standards) and is undervalued with good growth potential?

I am suggesting that even if you like and want to buy gold, now is not a sensible time to buy it.

Yes, I know, but my point is that the multi-asset funds and global trackers you were suggesting earlier are also at or near all-time highs, so that particular argument about gold would also apply to the obvious alternatives rather than being a differentiator, but you're not advising OP to steer clear of equities or funds on the basis that they can't be bought low just now!

Eco_Miser

autumndays11 said:

The ~£20k is currently sat in an easy access savings account that did have a 1 year bonus interest rate, but has since been reduced to roughly 1.75% and I know this could definitely be put in a better place (my £200/month loan return is also being paid into this account). 

My question to you is, if in a similar situation, what would you do with your money? Would you continue to invest in the Stocks ISA, invest in something different or move your money into a different savings account?

Definitely move your money into a better paying savings account - there are long running threads on here about each of fixed term, easy access and regular savers (ideal for that £200/month), and keep moving it as any bonuses end or it otherwise becomes significantly worse than other available similar accounts.  You always need some easily accessible cash for emergencies as well as the occasional treat and 'lumpy' planned spending.

Also keep investing for your future, whether in S&S ISA or pension, and what particular investment within those, depends on your circumstances.  

onomatopoeia99

I would live off the 20k until it was gone and while I was doing that have my employer salary sacrifice everything over NMW into my SIPP.

However I'm probably at a different point in my life to you and already have adequate savings outside of a pension wrapper and am already past the age to access my SIPP.

SH88SH88

I'd use the 20k to fully fund a S&S Isa. If you've already fully subscribed,  I'd stick the money in premium bonds with a view to fully subscribing to an ISA on April 6th 2026.

The premium bonds would also act as an Emergency Fund as they are reasonably 'liquid' .

Alexland

I'd buy a newer car with some of it and do home improvements with the rest. My utility room could do with a new ceiling, replaster and refit, a new back garage door, improvements to the bathrooms, repointing the drive, some new carpets, a new sofa, etc.

Because I value such things but am too tight to spend my own hard earned money on them.

Otherwise if I just stashed it away very tax efficiently (as I tend to do every month) then it would just get lost in my asset pools and just add to a surplus for someone else to inherit from me. I already lock away more of my income than I'd like for tax efficiency especially with the tax thresholds being frozen for so long.

Sometimes it's nice to spend money and enjoy the benefits for many years.

For me at least that's how it could make a difference.

luci

Alexland said:

I'd buy a newer car with some of it and do home improvements with the rest. My utility room could do with a new ceiling, replaster and refit, a new back garage door, improvements to the bathrooms, repointing the drive, some new carpets, a new sofa, etc.

Because I value such things but am too tight to spend my own hard earned money on them.

Otherwise if I just stashed it away very tax efficiently (as I tend to do every month) then it would just get lost in my asset pools and just add to a surplus for someone else to inherit from me. I already lock away more of my income than I'd like for tax efficiency especially with the tax thresholds being frozen for so long.

Sometimes it's nice to spend money and enjoy the benefits for many years.

For me at least that's how it could make a difference.

I have saved hard for many years, with the "only" major expenditure being frequent holidays. My IFA told us 18 months ago that we should start spending our money. I realised that I was saving like mad, but hadn't thought what I was actually saving for. It was a reality check, as we have no-one close to leave it to. Within days, we'd bought a new car and since then, have spent just under £100,000 on a new kitchen and bathroom and other big tag items. It actually feels liberating. I usually think, well I'm not paying that, but now I think, well it's not like I can't afford it.

wjr4

autumndays11 said:

For context- when my Grandad passed, money from the sale of his house was put into a Trust, ready for me when I turned 21. I have used a large proportion of this money for a deposit on a house, and so I now have roughly £20k left over. I have an additional £5.5k invested into a Trading 212 Stocks ISA, investing into the Vanguard S&P and FTSE All-World accounts and I'm happy with my return so far. Then finally, after lending family members roughly £10k, I have £200 being paid back to me each month.

The ~£20k is currently sat in an easy access savings account that did have a 1 year bonus interest rate, but has since been reduced to roughly 1.75% and I know this could definitely be put in a better place (my £200/month loan return is also being paid into this account). 

My question to you is, if in a similar situation, what would you do with your money? Would you continue to invest in the Stocks ISA, invest in something different or move your money into a different savings account?

Any and all advise is really appreciated as, although I'm very new to learning about investments etc, I find this all very interesting and I'm keen to learn more!

Thanks!

Keep is as an emergency fund in a Cash ISA. 

Bostonerimus1

I would probably give the 20k away. But our circumstances are probably different ...so what are you going to do with it? In order of priority you should consider paying off high interest debt, saving it for emergencies, investing it in your DC pension or ISA. Here is a flow chart to help you decide.

https://ukpersonal.finance/flowchart/