What to do with my inheritance ?
Comments
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barginfinder wrote: »is it better to buy the coins or invest in an fund that's based on gold?
It depends upon what your goal is.
If you want an investment, then buy securitized gold, or a derivative thereof. You can hold, buy and sell at close to fair value cheaply, and there's a continuously-quoted liquid market.
If you want insurance, then hold coins (sovereigns, essentially). You'll need to provide the storage -- either using a local safe, or a hiding place. There's little point in your specie being lodged at a bank's safety-deposit vault when you need to buy transport because the Nazis are coming for your family.
The two aims are quite distinct, and shouldn't be confused.
Warmest regards,
FAThus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...THE WAY TO WEALTH, Benjamin Franklin, 1758 AD0 -
Ok so reading back through the thread, it would seem the majority believe I should use the money either in a S&S ISA or a personal pension.
If possible could you please recommend a S&S ISA that you would invest in if you were me - I have been investing small amounts already in VLS80 but some don't seem to like the uk percentage involved. So could you pleas give an example of a similar product that doesn't have as much uk but is still as good a product as VLS.
Also in regards to pensions as I have stated my wife and I already have good pensions but if people feel that I should use the money to enhance these further again any recommendations as what ones to use.
Also how safe are these pensions ?
Many thanks for all your help0 -
Ignoring the fact that cheap debt is the root cause of bubbles in an economy, also means you have to deny that the debt monkey won't turn in to the obese 1000 pound gorilla in the room..._FatherAbraham wrote: »......."the debt monkey on my back"?........Debt currently weighs next to nothing -- its being massively subsidised by savers. Cheap debt is the compensation we're getting for the other bad things which have happened in the economy, and not exploiting it to acquire real assets is illogical........0 -
The expected return from the s&p over the next 10 years is highly likely to be well below historical average, food for thought.0
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Is the majority right though. At the end of the day you will have to hold your own counsel.Ok so reading back through the thread, it would seem the majority believe I should use the money either in a S&S ISA or a personal pension............
If a gamble on equities is what you fancy, wait until you have funds spare after they become freed up because you don't have a mortgage.
As to extra pension.....why? what do you need extra pension for. If you feel you do, then again, wait until you have freed up spare cash from not having to pay the mortgage.
Come hell or high water, you are gonna have to clear the mortgage..._0 -
strongboes wrote: »The expected return from the s&p over the next 10 years is highly likely to be well below historical average, food for thought.
Based on what?0 -
You are in the lucky position of having final salary pensions, which if you both keep in your employments will bring in a very good pension when you come to retirement. Given that, and that your wife seems to be low risk, I would think of simply paying down the mortgage but then set up some investments with the monthly money you save on the mortgage. This will reduce the effort you will otherwise need to do to get the money into the ISA (you can only put 20k per person per year), and if there is a stock market fall then you'll be buying more of them per each monthly investment, so your money goes further. Of course the stock market could simply keep on growing, in which case putting all of the money in at the beginning would probably be the best way to invest.0
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Ignoring the fact that cheap debt is the root cause of bubbles in an economy, also means you have to deny that the debt monkey won't turn in to the obese 1000 pound gorilla in the room..._
Even if it does, the OP will have an index-linked salary, and an index-linked pension, so can afford to risk losing a large proportion of the investment -- the mortgage will get ground down eventually.
Ideal position to be in, and it would be crazy to throw all that away because of overweening caution. Repaying the mortgage would be bonkers for this scenario.
Warmest regards,
FAThus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...THE WAY TO WEALTH, Benjamin Franklin, 1758 AD0 -
FatherAbraham wrote: »"Increasingly chaotic times"?
In what way are present times more chaotic than the 1930s, the 1950s, the 1970s or the 1990s?
"the debt monkey on my back"?
An idiom like that begs the question. Debt currently weighs next to nothing -- its being massively subsidised by savers. Cheap debt is the compensation we're getting for the other bad things which have happened in the economy, and not exploiting it to acquire real assets is illogical.
"The other 25% would be spent on purchasing British gold bullion coins, which are CGT free, as a financial insurance policy."
The OP is a police officer, for Goodness' sake. Even the Bolshevik government paid the salaries and pensions of ex-Tsarist police officers who went over to their side. Police officers always get paid.
Your risk-reduction suggestions are inappropriate and needlessly expensive in this case. The interesting challenge is to increase this family's risk and return, not reduce it.
Warmest regards,
FA
In what way are present times more chaotic than the 1930s, the 1950s, the 1970s or the 1990s?
Unsure whether that line was typed with tongue firmly in cheek or not. But presuming it was a serious question: world debt is currently 327% of annual global GDP. The means being pursued to reduce the debt load is, er, more debt. Tell me when in the decades you mentioned was the base rate at 0.25% or as prior for years on end at 0.5%? You can't because it had never been since the BoE's inception in 1696. If that fact alone doesn't alert you to that something extraordinary is afoot then I don't know what will.
Staying with debt, that's what fiat money is. It's also why Russia, China and India continue to buy gold hand over fist. BRICS nations and others know that the petrodollar's days are numbered.
As for the OP, yes he and his wife have secure employment and pensions, and yes as you intimated they'll always get paid. Though it's not all sunshine and roses because their real incomes have declined for several years thanks to .gov robbing them with their work for less reward scheme.
The transition to SDRs will be a painful experience when the bubbles, neigh balloons, pop. What will be the needle? That's anyone's guess.0 -
Is the majority right though. At the end of the day you will have to hold your own counsel.
If a gamble on equities is what you fancy, wait until you have funds spare after they become freed up because you don't have a mortgage.
As to extra pension.....why? what do you need extra pension for. If you feel you do, then again, wait until you have freed up spare cash from not having to pay the mortgage.
Come hell or high water, you are gonna have to clear the mortgage..._
The extra pension (or ISA) is there to give options about retirement dates - either they can retire earlier than the scheme pension age without having to take a long term decrease in pension, or maybe they can just retire earlier because the scheme they are in won't allow it. It's not there to supplement their existing pensions, necessarily.
The mortgage will get paid down in the general scheme of things as it is. Paying it off earlier (which was the question) leaves them poorer longer term = less able to retire at a time of their choosing. I've just retired 3 years early. That wouldn't have been possible without additional pension / savings. Had I been more on the ball that could easily have been 3 or 4 years additionally early.0
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