What to do with windfall

I think your decision may end up being as much about your basic instincts as opposed to financial recommendations because for many people being mortgage free, is about knowing that nobody can come along and repossess your home, even if you lose your job and can't meet the mortgage Psychologically, that is a big plus for those who worry about their financial future.

This is going to be down to your personal choice. In your shoes I would pay off a big chunk of the mortgage if you can do so without a costly penalty , but also start building up your pensions because your retirement pot may be all about the benefits of accumulation if you are not in a final salary scheme (and sadly there a few of them left these days!).

If you belong to schemes where you can pay more into a pension and have your employers match it this is obviously a wise route to take.

If not, consider perhaps allocating some of the inheritance over a couple of years to take advantage of everybody's £20K per annum ISA allowance into stocks and shares Isas. Over two years, this would enable both of you to put up to £40K each into ISAs which would have time to accumulate over the years for savings to use during retirement. you are still young enough to have a good length of time for your pots to build up but unlike a pension they are more flexible about how money can be withdrawn from them.

If a garden office is essential because one or both of you is self employed, this in my view would move it up the priority list and I would take the money needed for this out of the chunk being used to pay down the mortgage.

You're obviously spoiled for choice so don't rush your decisions. Sit down and work out the "What ifs?" for each option and how it will best affect/ease your lifestyle and future financial concerns. You may decide to have a bite at several different options to hedge your bets.

Our financial aspirations and concerns are all different and only the two of you know which ones are likely to worry you most or be the ones which make the most psychological difference to you.

If you have young children it seems to me that a garden office for a self employed partner might give you the space you need to make your day to day living easier. The financial benefits of working from home in a dedicated space can,t be costed but if it makes your family life easier, this has to be factored somewhere into your equation.

By the way, you might like to add some nominal sums into stocks & shares ISAs for your children if the inheritance came from a loved deceased relative. You don,t have to tell them what you've done now but it may make a joyful surprise for them when they get to the age of university, car purchasing or wanting to live independently. I never inherited anything from anybody and a surprise financial boost like this would have been welcomed with open arms !

colsten wrote: »

I can't add much to what's already been said - other than reminding you that you need to keep the money safe - e.g. FSCS covered - until you have decided what to do with it.

Absoutely ! Let's never forget what happened to Icesave and Northern Rock in the past !

Invest it in the FTSE 100.

kappa.

colsten wrote: »

DON'T. Not on it's own. Ever.

You couldn't make it up.....

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