What to do with £25k inheritance?
Discussion
I won't go into too many details but I was left £25k by a much loved relation and I know they would want me to do something sensible with it, invest perhaps.
It's been sitting in an account earning about 0.5% for the past year and I'm sure it could be doing a lot better.
As I have no pension (after being shafted following loss of my job and 7 years of final salary pension payments have become £20 a year when I hit retirement) I'm thinking that if carefully invested the inheritance will be useful.
It's been sitting in an account earning about 0.5% for the past year and I'm sure it could be doing a lot better.
As I have no pension (after being shafted following loss of my job and 7 years of final salary pension payments have become £20 a year when I hit retirement) I'm thinking that if carefully invested the inheritance will be useful.
PD9 said:
Put 10k on Black.
And if you win walk away and never gamble again ever. If you lose bet another £10k on black. If you win walk away and never gamble again ever. If you lose walk away with £5k and never gamble again ever. Be happy and feel lucky in the knowledge that you have at least tried but failed and still have £5k left.Please do your own research however if you put this into Aviva shares now you would be looking at a 7% plus dividend and if you reinvest that (Scrip dividends) you will most likely double your money inside 5 years!
Share has been in a decline for a few years - they now have a new CEO are selling off non core assets to invest in areas where they can maximise profits. I believe we are at the start of and upward trend.
Share has been in a decline for a few years - they now have a new CEO are selling off non core assets to invest in areas where they can maximise profits. I believe we are at the start of and upward trend.
elanfan said:
Please do your own research however if you put this into Aviva shares now you would be looking at a 7% plus dividend and if you reinvest that (Scrip dividends) you will most likely double your money inside 5 years!
Share has been in a decline for a few years - they now have a new CEO are selling off non core assets to invest in areas where they can maximise profits. I believe we are at the start of and upward trend.
Can you expand on this or provide a link for more reading?Share has been in a decline for a few years - they now have a new CEO are selling off non core assets to invest in areas where they can maximise profits. I believe we are at the start of and upward trend.
Thank you kindly
.If you specifically want to put it into pension provision, and you pay income tax, then consider using a SIPP wrapper. This will give you tax relief on your initial investment, and you will still have access to the same range of investments that you would have if you invest directly into the markets.
The significant downside is that the cash is then locked away until retirement age. If you don't want the lockup, then put it into a set of Shares ISAs (25k is more than one year's allowance, so you need either to use multiple tax years or route some through your partner if that's suitable).
The significant downside is that the cash is then locked away until retirement age. If you don't want the lockup, then put it into a set of Shares ISAs (25k is more than one year's allowance, so you need either to use multiple tax years or route some through your partner if that's suitable).
I inherited a bit more than that a few years back. Most, sadly, went to my ex so I could buy her our of her share of the house - but it did mean I got to keep the house. The rest paid off outstanding CCs, loans.
I'm now mortgage free and debt free. Its a wonderful feeling and, to me, my Mum helped me finally get settled in a comfortable place in the world and it feels like part of her is here in this house, always.
I'm now mortgage free and debt free. Its a wonderful feeling and, to me, my Mum helped me finally get settled in a comfortable place in the world and it feels like part of her is here in this house, always.
amusingduck said:
Can you expand on this or provide a link for more reading?
Thank you kindly
I am NO expert (used to be an employee so know their ups and downs) - if you get yourself over to www.iii.co.uk and search out the share and then there are lots of free discussion boards, charts, technical info etcThank you kindly
elanfan said:
amusingduck said:
Can you expand on this or provide a link for more reading?
Thank you kindly
I am NO expert (used to be an employee so know their ups and downs) - if you get yourself over to www.iii.co.uk and search out the share and then there are lots of free discussion boards, charts, technical info etcThank you kindly
elanfan said:
I am NO expert (used to be an employee so know their ups and downs) - if you get yourself over to www.iii.co.uk and search out the share and then there are lots of free discussion boards, charts, technical info etc
Just watch out on some of the discussion boards over there. There are some excellent posters but there's some right garbage banded about sometimes. You'll just have to use your judgement. Kentish said:
I won't go into too many details but I was left £25k by a much loved relation and I know they would want me to do something sensible with it, invest perhaps.
It's been sitting in an account earning about 0.5% for the past year and I'm sure it could be doing a lot better.
As I have no pension (after being shafted following loss of my job and 7 years of final salary pension payments have become £20 a year when I hit retirement) I'm thinking that if carefully invested the inheritance will be useful.
Pay.....Off.....Debt !!!It's been sitting in an account earning about 0.5% for the past year and I'm sure it could be doing a lot better.
As I have no pension (after being shafted following loss of my job and 7 years of final salary pension payments have become £20 a year when I hit retirement) I'm thinking that if carefully invested the inheritance will be useful.
Your posting, I interpret, is one of a risk averse person so the LAST thing you should be looking at is shares. With the US only recently buying time on its fiscal position stocks are most certainly heading downwards as the next review point looms.
You never had the money to begin with, you made no conscious effort to earn it, so use it in a boring but meaningful manner
It totally depends on your financial position where you are in life your life goals etc.
£25k is a lovely amount to have though in grand scheme of things not a huge amount but very welcome indeed.
That said mortgage reduction - you can always take it back out. Paying it in will reduce your term which means quicker route to financial freedom
As for investing it into a pension fund DON'T. Only do that if you have employer matching contributions reason- currently your lucky to get the value of your fund back which is fine when its a combination of your investment ad the company and mr taxman but when it is just yours you'll be unlikely to get it all back ie 25-30 years so better to hold as cash or pay off mortgage. Of course annuities may change in the future
Right now put as much as you can into an ISA and then the remaining into another ISA in April.
£25k is a lovely amount to have though in grand scheme of things not a huge amount but very welcome indeed.
That said mortgage reduction - you can always take it back out. Paying it in will reduce your term which means quicker route to financial freedom
As for investing it into a pension fund DON'T. Only do that if you have employer matching contributions reason- currently your lucky to get the value of your fund back which is fine when its a combination of your investment ad the company and mr taxman but when it is just yours you'll be unlikely to get it all back ie 25-30 years so better to hold as cash or pay off mortgage. Of course annuities may change in the future
Right now put as much as you can into an ISA and then the remaining into another ISA in April.
Over the years we have inherited £3K, £10, £36K, and £12K.
The first I split into £1000 to replace my car and £2000 into an ISA,
The £10K I added a loan of £6K and had a loft conversion.
The £36K - £6 on a bathroom, Paid of the £6K loan, £1500 on a car, £10K in Childrens Bonus Bonds, Then 6 years later £15K off mortgage. The rest is in ISA's
The £12K - £5K on a car, the rest into paying off mortgage
Not the best in
The first I split into £1000 to replace my car and £2000 into an ISA,
The £10K I added a loan of £6K and had a loft conversion.
The £36K - £6 on a bathroom, Paid of the £6K loan, £1500 on a car, £10K in Childrens Bonus Bonds, Then 6 years later £15K off mortgage. The rest is in ISA's
The £12K - £5K on a car, the rest into paying off mortgage
Not the best in
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