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Investing compensation

Hi all,

I am due a payout for a serious RTA that has left me disabled. The sum should be around £300k. I am currently not working but do get about £700 per month from benefits and an insurance policy I had.

I am debating whether to invest in a home or save for a while and get a small mortgage in addition to some of the money.

I am aware that a certain amount may take me into a higher tax payer band which could make it better to put the money in a house?

Any help much appreciated on the best way to invest to safe guard my future, whilst living at the same time? Currently in a little flat in an expensive part of the country and wanting a house...

Thanks
Charles J

Comments

  • dunstonh
    dunstonh Posts: 118,602 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If you put it all on deposit then it will go towards you taxable income. However, you have alternative investments that you can use which will stop that from happening.

    Buying a house will do nothing for your income but if it makes you happy, then that is the most important thing, providing you leave enough money to pay the bills.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • I am sorry to hear of your RTA.
    I would very seriously consider buying a property.
    £300,000 at 5% or thereabouts brings £15,000 per annum in interest pre tax.  £12,000 after 20% tax.
    Even with your other income at present you are not near to the Higher Rate Tax Threshhold.
    ...............................I have put my clock back....... Kcolc ym
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