Investment options (inheritance)
Discussion
Hahaha. Hookers and coke? More like the M&S catalogue and a cup of tea for me.
I'm 52, married, 1 daughter, home owner (10 years left on mortgage currently fixed £400p/m) self employed and no pension.
No serious loans or debts. Paying off a recent kitchen installation but aside from that, just the usual expenses.
Just to mention, at some point in the future i'll be receiving another inheritance of a similar amount.
I'm 52, married, 1 daughter, home owner (10 years left on mortgage currently fixed £400p/m) self employed and no pension.
No serious loans or debts. Paying off a recent kitchen installation but aside from that, just the usual expenses.
Just to mention, at some point in the future i'll be receiving another inheritance of a similar amount.
Dawg said:
Hahaha. Hookers and coke? More like the M&S catalogue and a cup of tea for me.
I'm 52, married, 1 daughter, home owner (10 years left on mortgage currently fixed £400p/m) self employed and no pension.
No serious loans or debts. Paying off a recent kitchen installation but aside from that, just the usual expenses.
Just to mention, at some point in the future i'll be receiving another inheritance of a similar amount.
No pension, then max out your pension contributions this tax year and next year (do it now and April 6th 24)I'm 52, married, 1 daughter, home owner (10 years left on mortgage currently fixed £400p/m) self employed and no pension.
No serious loans or debts. Paying off a recent kitchen installation but aside from that, just the usual expenses.
Just to mention, at some point in the future i'll be receiving another inheritance of a similar amount.
Set aside lump sum as cash for paying off a lump of mortgage when fixed rate ends (assuming it's fixed at a nice low rate and you didn't fix recently)
If that leaves anything then ISA on dividend paying stocks or accumulating fund or similar.
Have fun with £10k , cars, holiday.
Mr Overheads said:
Dawg said:
Hahaha. Hookers and coke? More like the M&S catalogue and a cup of tea for me.
I'm 52, married, 1 daughter, home owner (10 years left on mortgage currently fixed £400p/m) self employed and no pension.
No serious loans or debts. Paying off a recent kitchen installation but aside from that, just the usual expenses.
Just to mention, at some point in the future i'll be receiving another inheritance of a similar amount.
No pension, then max out your pension contributions this tax year and next year (do it now and April 6th 24)I'm 52, married, 1 daughter, home owner (10 years left on mortgage currently fixed £400p/m) self employed and no pension.
No serious loans or debts. Paying off a recent kitchen installation but aside from that, just the usual expenses.
Just to mention, at some point in the future i'll be receiving another inheritance of a similar amount.
Set aside lump sum as cash for paying off a lump of mortgage when fixed rate ends (assuming it's fixed at a nice low rate and you didn't fix recently)
If that leaves anything then ISA on dividend paying stocks or accumulating fund or similar.
Have fun with £10k , cars, holiday.
At 52, you have a short(ish!) period to build a pension pot, most providers will be thinking 'maintain the value' rather than 'build the capital'.
Both you and your 'er indoors can bung £20k into an ISA now, and repeat for next tax year, offering tax free returns when you retire and want to draw an income.
The remainder can be held in an instant access account against a lump off the mortgage as suggested above and as 'treat' money.
Both you and your 'er indoors can bung £20k into an ISA now, and repeat for next tax year, offering tax free returns when you retire and want to draw an income.
The remainder can be held in an instant access account against a lump off the mortgage as suggested above and as 'treat' money.
Dawg said:
I had thought to use half of it as a deposit on another property and let it out. You can readily find terraced houses up here for £100k...
Any thoughts about that?
How much do you know about property management?Any thoughts about that?
I would have thought that at that end of the market, you’ll be dealing with low end tenants, which can be massive hassle (there was another thread on here about a chap who had a nightmare tenant destroying his house and not paying any rent)
If you don’t have a pension, chucking it in there can significantly reduce your tax liability and it’s literally hassle free.
Muzzer79 said:
Dawg said:
I had thought to use half of it as a deposit on another property and let it out. You can readily find terraced houses up here for £100k...
Any thoughts about that?
How much do you know about property management?Any thoughts about that?
I would have thought that at that end of the market, you’ll be dealing with low end tenants, which can be massive hassle (there was another thread on here about a chap who had a nightmare tenant destroying his house and not paying any rent)
If you don’t have a pension, chucking it in there can significantly reduce your tax liability and it’s literally hassle free.
If your self employment is within the building trade, then you will be able to assess and buy better than others.
What’s the interest rate on the mortgage? Is it fixed? For how long?
At your age, you only have 3 years to wait until you can start accessing a pension. It doesn’t give it much time to grow, but it does mean you aren’t locking it away for too long should you need it and it does have significant tax advantages. Depending on your income and tax position you could potentially avoid paying income tax by contributing to a pension and then access that money with a 25% tax free sweetener in just 3 years.
It really depends on your debt terms and personal income and tax situation, and then depending on that look at a combination of reducing the mortgage, contributing to a pension and contributing to ISAs
At your age, you only have 3 years to wait until you can start accessing a pension. It doesn’t give it much time to grow, but it does mean you aren’t locking it away for too long should you need it and it does have significant tax advantages. Depending on your income and tax position you could potentially avoid paying income tax by contributing to a pension and then access that money with a 25% tax free sweetener in just 3 years.
It really depends on your debt terms and personal income and tax situation, and then depending on that look at a combination of reducing the mortgage, contributing to a pension and contributing to ISAs
At 52 with no pension I think the answer is clear.
Assuming the mortgage isn’t about to skyrocket, then I think you really need some provision for your retirement.
So:
£40k into pension and £20k into ISA this tax year.
Put the remaining £40k into pension after 6th April next year.
Keep working and pay off the mortgage.
If/when you get another inheritance then you can pay off any remaining mortgage, and do the same again across pension/ISA.
Assuming the mortgage isn’t about to skyrocket, then I think you really need some provision for your retirement.
So:
£40k into pension and £20k into ISA this tax year.
Put the remaining £40k into pension after 6th April next year.
Keep working and pay off the mortgage.
If/when you get another inheritance then you can pay off any remaining mortgage, and do the same again across pension/ISA.
brickwall said:
At 52 with no pension I think the answer is clear.
Assuming the mortgage isn’t about to skyrocket, then I think you really need some provision for your retirement.
So:
£40k into pension and £20k into ISA this tax year.
Put the remaining £40k into pension after 6th April next year.
Keep working and pay off the mortgage.
If/when you get another inheritance then you can pay off any remaining mortgage, and do the same again across pension/ISA.
Annual allowance has gone up from 40k to 60k.Assuming the mortgage isn’t about to skyrocket, then I think you really need some provision for your retirement.
So:
£40k into pension and £20k into ISA this tax year.
Put the remaining £40k into pension after 6th April next year.
Keep working and pay off the mortgage.
If/when you get another inheritance then you can pay off any remaining mortgage, and do the same again across pension/ISA.
Why not pay off your mortgage?
If it has 10 years left and is £400 a month there must be about £40k'ish remaining?
I would be paying that off, owning you home outright changes everything, no matter how bad things get out there you have a home.
Then invest the remaining £60k.
Plus you have another £400 a month to put into any investments too.
Plus if you fancy taking some time off to travel etc. if you don't have mortgage payments it is far easier to justify when self employed.
If it has 10 years left and is £400 a month there must be about £40k'ish remaining?
I would be paying that off, owning you home outright changes everything, no matter how bad things get out there you have a home.
Then invest the remaining £60k.
Plus you have another £400 a month to put into any investments too.
Plus if you fancy taking some time off to travel etc. if you don't have mortgage payments it is far easier to justify when self employed.
Dawg said:
Just to mention, at some point in the future i'll be receiving another inheritance of a similar amount.
I can't offer any financial advice, but factor in the remote possibility of not actually receiving the future expected inheritance. That might sound weird but I was lined up for a decent inheritance but things changed due to unforeseen circumstances and I didn't receive anything. Obviously plan on receiving it, but be mindful of anything that might prevent that happening. The phrase 'Don't count your chickens before they've hatched' etc.Gassing Station | Finance | Top of Page | What's New | My Stuff