Where do i put my money?

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dollyface85
dollyface85 Posts: 5 Forumite
in Savings & investments
Hi all,

So my parents house is being sold and I am going to be getting around £65K and I have no idea what to do with it or who to ask.
I currently have £8k debt so I will wipe that off, I'm going to treat myself to a long awaited holiday with my family for around £2k. No idea what to do with the rest- I don't earn enough to apply for a mortgage, my partner is within 20 years of retirement and is a free lancer in his job so we have been told a big no. Also house prices are very high around here (South East) so my question is- what on earth do I do with it- because if I don't have a plan in place when I get it, I know I will just fritter it all away!

Many Thanks x
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  • Alistair31
    Alistair31 Posts: 947 Forumite
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    Put it to your pension for later in life ?
  • tacpot12
    tacpot12 Posts: 8,028 Forumite
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    I would suggest that investing it to provide a pension for yourself is the most useful thing you can do with this money. An Independent Financial Advisor should be able to set you up a cost-effective pension, but do come back to MSE before signing up for anything that will cost you money.

    I would keep a bit back (perhaps three months of living expenses) as an emegency fund. I would suggest you look for a Notice account where you will lose some interest if you withdraw it, but can withdraw it if an emergency arises.

    You might also put £1000 into Premium Bonds in case the Universe decides you need some more good luck.

    Enjoy the holiday!
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • G_M
    G_M Posts: 51,977 Forumite
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    A pension is an excellent option:

    * locks it away out of (reasonable) reach
    * tax efficient - HMRC will add to it
    * secures your future retirement

    Do you work/have income? There are limits based on income on how much you can contribute annually to a SIPP (Self invest Personal Pension) eg see
    https://www.hl.co.uk/pensions/sipp/what-is-a-sipp


    You've got till April 4th to set one up this year, then April 5th you could top up with next year's annual contribution.
  • greenglide
    greenglide Posts: 3,301 Forumite
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    You've got till April 4th to set one up this year, then April 5th you could top up with next year's annual contribution.
    The tax year runs from 6th April to 5th April the following April.


    A contribution on 5th April would be in this tax year!!
  • Alexland
    Alexland Posts: 9,668 Forumite
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    dollyface85 wrote: »
    I don't earn enough to apply for a mortgage, my partner is within 20 years of retirement and is a free lancer in his job so we have been told a big no. Also house prices are very high around here (South East)

    It might be worth trying a lender you already have a relationship with and/or a mortgage broker to see if there are any lenders that might consider giving a mortgage in your revised situation. Having somewhere to live in retirement is useful.

    Alex
  • dollyface85
    dollyface85 Posts: 5 Forumite
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    Thank you all,

    Sounds like a pension fund is going to be the best thing to do.
    I have just switched from part time to full time work and in the process of sorting my pension out at the moment. Is it best to add to that one or get another?

    Alexland- yes I think I will have a look around at others, this was only what our bank have said to us.
  • steampowered
    steampowered Posts: 6,176 Forumite
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    edited 19 March 2019 at 11:33AM
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    dollyface85 wrote: »
    Alexland- yes I think I will have a look around at others, this was only what our bank have said to us.

    Don't speak to your bank - they will only sell you the bank's products!

    Speak to a mortgage broker, they should be able to advise you which banks are more willing to lend to people in your specific situation, e.g. approaching retirement or freelancing.

    I used https://www.landc.co.uk/ and thought they were very good.
  • xylophone
    xylophone Posts: 44,562 Forumite
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    I have just switched from part time to full time work and in the process of sorting my pension out at the moment. Is it best to add to that one or get another?

    Your employer has a pension scheme and you have been automatically enrolled?

    Does your partner have a pension?

    You are now working full time and presumably your partner can produce accounts etc to show his record of income?

    Try a mortgage broker to explore the possibility of a mortgage.
  • dollyface85
    dollyface85 Posts: 5 Forumite
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    Thank you steampowered, I will look into it.

    xylophone- yes I have been given one via Aviva but its separate from the company as such so if I want to change it etc I need to get an advisor etc
    He doesn't unfortunately- silly man! But yes he does have his record of income etc.

    someone mentioned maybe putting it into shares/ bonds etc, but surely that's more risky?!
    I looked into an ISA aswell.
  • MallyGirl
    MallyGirl Posts: 6,656 Senior Ambassador
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    the pension is just a wrapper. Inside it you will be investing in shares and bonds, and other things potentially

    cash ISA rates are low.
    S&S ISAs don't have the tax advantages that a pension does
    I’m a Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
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