Inheritance - What To Do With It?
Discussion
I've put this in Lounge because I'm not sure if it's going to morph into a "what car" or "where to invest" thread
I've been given £200k
I'm in an unusual situation that I have a £1.5M house but I'm self employed and only earn £20k a year, (I decided to make my hobby, my job but it doesn't pay very well) no debts but no pension either, aged 51 married with kids
I'm torn between enjoying the money whilst I'm still young enough and preparing for old age
Should I invest towards a pension (my current plan is to downsize at 65) but a larger part of me is looking at Ferraris and taking the family on holidays
I might get another inheritance of circa £750k from my mother, I don't want to rely on it but it's pushing me toward enjoying at least some of this money
What would / have you done and any advice / regrets ?
I've been given £200k
I'm in an unusual situation that I have a £1.5M house but I'm self employed and only earn £20k a year, (I decided to make my hobby, my job but it doesn't pay very well) no debts but no pension either, aged 51 married with kids
I'm torn between enjoying the money whilst I'm still young enough and preparing for old age
Should I invest towards a pension (my current plan is to downsize at 65) but a larger part of me is looking at Ferraris and taking the family on holidays
I might get another inheritance of circa £750k from my mother, I don't want to rely on it but it's pushing me toward enjoying at least some of this money
What would / have you done and any advice / regrets ?
Need more info on your current situation
Owning a £1.5m house outright whilst earning £20k is unusual.
Are you satisfied with your current income?
How much savings do you have?
Does your wife have a pension?
What are your goals in terms of retirement age? (You mention downsizing at 65, but not actually retiring)
Owning a £1.5m house outright whilst earning £20k is unusual.
Are you satisfied with your current income?
How much savings do you have?
Does your wife have a pension?
What are your goals in terms of retirement age? (You mention downsizing at 65, but not actually retiring)
Sorry to the other sensible Kevins here - I would genuinely blow the lot (or pretty much the whole lot) on life now.
After seeing a couple of friends pass in their late 30/early 40s in the past couple of years and then another friend die recently from cancer at 50, life is far too short.
Downsizing will see you right in the main for the future.
Make some memories for you and your family - holidays, experiences, cars, etc.
After seeing a couple of friends pass in their late 30/early 40s in the past couple of years and then another friend die recently from cancer at 50, life is far too short.
Downsizing will see you right in the main for the future.
Make some memories for you and your family - holidays, experiences, cars, etc.
I left the ranks of the employed 20 years ago and made my money by extending / renovating properties that were my homes
When I got to the current house I stopped as I'd achieved what I wanted to live in but this meant that almost all my money is locked in the property and I can't access it
I buy and sell on ebay which earns a profit of circa £20k which I enjoy and don't intend to retire
I've done this the last 5 years, effectively subsistence living but we don't need much to live on, my wife has a part time job which she enjoys and a tiny pension from it
When I got to the current house I stopped as I'd achieved what I wanted to live in but this meant that almost all my money is locked in the property and I can't access it
I buy and sell on ebay which earns a profit of circa £20k which I enjoy and don't intend to retire
I've done this the last 5 years, effectively subsistence living but we don't need much to live on, my wife has a part time job which she enjoys and a tiny pension from it
If you have little or no savings and all money is tied up in the property, I'd be investing at least a significant portion of your inheritance in a pension or other such investment vehicle.
Who knows where the property market will be in 10-15 years' time.
That's not to say you shouldn't enjoy any of your windfall. Personally, I'd take 10% out for a great holiday and invest the rest.
Who knows where the property market will be in 10-15 years' time.
That's not to say you shouldn't enjoy any of your windfall. Personally, I'd take 10% out for a great holiday and invest the rest.
Alorotom said:
After seeing a couple of friends pass in their late 30/early 40s in the past couple of years and then another friend die recently from cancer at 50, life is far too short.
Downsizing will see you right in the main for the future.
Make some memories for you and your family - holidays, experiences, cars, etc.
Yes me tooDownsizing will see you right in the main for the future.
Make some memories for you and your family - holidays, experiences, cars, etc.
My mum used to travel a lot but now aged 80 says she's too old and doesn't want to do much
Everything I enjoy involves activity, I'm getting more arches and pains each year so I'm very aware I have a limited number of enjoyment years left
One issue with buying a supercar is that your income won't allow you to run it. So that will also eat into your capital somewhat.
Having said that :
Although they will depreciate, the reality is that you will get some of that capital back when you decide to be sensible and sell the car. If you chose something like a 458, you'd probably see most of your purchase money back in a few years.
In your position, I think I'd be very tempted to buy something, accept that it will wipe 10% off my capital if I sell it in a year or two, and enjoy it!
Having said that :
Although they will depreciate, the reality is that you will get some of that capital back when you decide to be sensible and sell the car. If you chose something like a 458, you'd probably see most of your purchase money back in a few years.
In your position, I think I'd be very tempted to buy something, accept that it will wipe 10% off my capital if I sell it in a year or two, and enjoy it!
You are in a good position at present and your pension is your house.
How much downsize are you talking?
In your present situation on £20k a year and kids I wouldn’t run a Ferrari.
If you may have £750k from your mother coming I would buy it when that arrives and would invest/save the £200k you got into a pension/isas and the kids. Sure treat yourself and blow say £50k on nice holidays, etc.
A 355 is a lovely thing but has maintenance costs of an expensive car that on £20k a year might be tight if a big bill comes along.
Enjoy a bit, save a bit.
How much downsize are you talking?
In your present situation on £20k a year and kids I wouldn’t run a Ferrari.
If you may have £750k from your mother coming I would buy it when that arrives and would invest/save the £200k you got into a pension/isas and the kids. Sure treat yourself and blow say £50k on nice holidays, etc.
A 355 is a lovely thing but has maintenance costs of an expensive car that on £20k a year might be tight if a big bill comes along.
Enjoy a bit, save a bit.
I'm still not clear on the cash situation?
Like not down to the penny but you want a new kitchen or need a new bathroom suite or a big bill comes do you have a rainy day fund?
I see lots of big expensive houses go on the market where I am and loads have green 70's bathroom suites because the owners could afford the house but retired or whatever and just didn't have the ongoing income/savings for the upkeep.
Like not down to the penny but you want a new kitchen or need a new bathroom suite or a big bill comes do you have a rainy day fund?
I see lots of big expensive houses go on the market where I am and loads have green 70's bathroom suites because the owners could afford the house but retired or whatever and just didn't have the ongoing income/savings for the upkeep.
I don't really have a dream car - I always wanted a 69 Camaro as a kid (and a 911 until I drove one)
I love the noise a Ferrari / Lamborghini makes but realistically I don't know when I'd drive one other than on a planned road trip, I'd just like to try one
I always seem to find money for anything I need and find a way to do it cheaply, I refurbed my house and can do most work to homes / cars myself.
I suggest the reason old people's homes appear to need a refurb is two fold - they like it as it is / are used to it. The cost / hassle to change it is disproportionate to the benefit.
My father recently died which is why I have the inheritance, he had plenty of spare cash yet his house hasn't been touched since he refurbed it 30 years ago
I love the noise a Ferrari / Lamborghini makes but realistically I don't know when I'd drive one other than on a planned road trip, I'd just like to try one
I always seem to find money for anything I need and find a way to do it cheaply, I refurbed my house and can do most work to homes / cars myself.
I suggest the reason old people's homes appear to need a refurb is two fold - they like it as it is / are used to it. The cost / hassle to change it is disproportionate to the benefit.
My father recently died which is why I have the inheritance, he had plenty of spare cash yet his house hasn't been touched since he refurbed it 30 years ago
Jap90s said:
I don't really have a dream car - I always wanted a 69 Camaro as a kid (and a 911 until I drove one)
I love the noise a Ferrari / Lamborghini makes but realistically I don't know when I'd drive one other than on a planned road trip, I'd just like to try one
I always seem to find money for anything I need and find a way to do it cheaply, I refurbed my house and can do most work to homes / cars myself.
I suggest the reason old people's homes appear to need a refurb is two fold - they like it as it is / are used to it. The cost / hassle to change it is disproportionate to the benefit.
My father recently died which is why I have the inheritance, he had plenty of spare cash yet his house hasn't been touched since he refurbed it 30 years ago
Might be worth renting one and going on a road trip. Might find that gets it out of your system or conversely convinces you to get one. I love the noise a Ferrari / Lamborghini makes but realistically I don't know when I'd drive one other than on a planned road trip, I'd just like to try one
I always seem to find money for anything I need and find a way to do it cheaply, I refurbed my house and can do most work to homes / cars myself.
I suggest the reason old people's homes appear to need a refurb is two fold - they like it as it is / are used to it. The cost / hassle to change it is disproportionate to the benefit.
My father recently died which is why I have the inheritance, he had plenty of spare cash yet his house hasn't been touched since he refurbed it 30 years ago
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