advice please..investing

scoobysuzanne
scoobysuzanne Posts: 1 Newbie
in Savings & investments
Hello, I am new to this site and joined for some advise..It is really a minefield here and I such a novice. I am looking for advise please. I have inherited a large amount of money, well large to me. just short of quarter of million..I run and live in a pub, which is a new venture and all my time is taken in that currently. So where do I put my money until I am ready to buy a house. I would like to renovate a house but currently dont have the time, maybe in a years time. People are suggesting to wait because of Brexit houses will come down in price, but I am not clued up with current affairs so really am confused. Hence why I am here, I really dont want to pay a financial advisor because they will just suggest whats best for them, best commission etc...any input greatly appreciated.

Comments

  • MaxiRobriguez
    MaxiRobriguez Posts: 1,780 Forumite
    First Anniversary First Post Name Dropper
    Firstly, £250k is a huge sum to inherit, that is life changing for most.

    I wouldn't rule out talking to an IFA - lots of them are very good and if you pay them directly then they will serve your interests. The bonus is you get to sit down with them and actually pour over things and discuss your needs and wants openly. Don't rule it out, you'll get good advice here but we won't spend hours listening to your backstory and future plans!

    That being said...

    If you don't have the time to renovate the house then you don't have the time. it's not a money concern. Ignore Brexit noise, we don't know what's going to happen and in a years time house prices could have dropped after a recession brought on by a no deal, or house prices could rise after a second referendum delivers a remain vote. No one knows and it's almost irrelevant, because what you get from a house purchase is in an asset that you can live in which eventually (or perhaps instantly in your case) you don't have to pay for anymore.

    Your options on what to do in the short term are somewhat limited in my view. The £250k sounds like it's being ringfenced for property and therefore your choice is more about protecting that sum rather than growing it. You could invest in stocks and bonds and you'll get some good advice here, but the markets are pricey at the moment and there's a sizable risk of a downturn over the next 1-2 years.

    It'd also be good to know how old you are. If you're younger - let's say, under 40, you could if you wanted to use some of the money to put towards pension investment which you won't touch for 20+ years.
  • justme111
    justme111 Posts: 3,508 Forumite
    First Post First Anniversary Combo Breaker I've been Money Tipped!
    I think you need to go to IFA.
    I am usually suspicious of trades where I do not understand things as well but I still think you do. To minimise your stress about being advised not in your best interest see a couple of IFAs and compare their answers , ask them questions and ask questions on here after you seen them about their recommended course of actions. Btw commission was banned a few years ago for precisely that reason.
    The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
    Often people seem to use this word mistakenly where "quandary" would fit better.
  • tacpot12
    tacpot12 Posts: 7,962 Forumite
    First Anniversary Name Dropper First Post
    The safest place for such a large amount of money will be National Savings & Investments (NS&I). Depending on your income (whether the pub is making enough money), you might consider the Income Bonds (if you would benefit from some extra income, note that the income is taxed), or their Direct Saver (if you want the interest to be added to your money).

    You might consider paying someone else to renovate a property if you have a specific property in mind already; you now have the capital to do so! But there is a lot of satisfaction to be gained from renovating a property yourself, but it does take time.

    I would suggest you get the money stashed safely with NS&I and then wait a little while to see how the pub venture turns out. I agree with others that it is not worth worrying about Brexit. House prices will do what they will do, and everyone needs a home - unless they can live in their pub!

    Best wishes
    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.
  • short_butt_sweet
    short_butt_sweet Posts: 333 Forumite
    NS&I Income Bonds would be a good safe place to park the money for a year (and will pay you a bit of interest).

    an IFA may not be relevant, so long as you're sticking with the plan to renovate a house. that's not something they tend to get involved in. and what they do cover (shares, bonds, etc) is longer-term, so not suitable for just a year or so before buying a property. you can't sensibly beat cash deposits (e.g. NS&I) for such a short time.

    if you weren't so sure about property renovation, and wanted to consider other possibilities, then you might want to talk to an IFA (or to take some time to read up about investments yourself).
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