£25k

[CAPP0]

Random, but genuine question:

Someone you know has a windfall and, completely legally (well, provided they live for the next 7 years!) gifts you £25k. It's a nice sum of money but its not in any way life-changing for you. Assuming you're pretty solvent and already have a decent amount of savings (ie far more than the £25k) to hand, what's the best thing to do with the cash without being excessively reckless?

[Simpo Two]

I guess the first question is - spend or save?

[Baldchap]

Take a business class flight to somewhere like Tokyo (once the diseases go away over that side of the world) or New York, stay in a decent hotel like the Mandarin Oriental, enjoy every day and see absolutely everything you can whilst you're there.

Then come back and crack on.

[Westyrs]

Travel the world for a bit..

But completely depends on whether you want to spend the money of course, oh and family commitments etc

[otherman]

Baldchap said:

Take a business class flight to somewhere like Tokyo (once the diseases go away over that side of the world) or New York, stay in a decent hotel like the Mandarin Oriental, enjoy every day and see absolutely everything you can whilst you're there.

So, basically, get rid of it as fast as you can. I'd hang on to it until I know what it's for.

[Baldchap]

otherman said:

Baldchap said:

Take a business class flight to somewhere like Tokyo (once the diseases go away over that side of the world) or New York, stay in a decent hotel like the Mandarin Oriental, enjoy every day and see absolutely everything you can whilst you're there.

So, basically, get rid of it as fast as you can. I'd hang on to it until I know what it's for.

He's already said he doesn't need it. Why not enjoy it?

[CAPP0]

otherman said:

I'd hang on to it until I know what it's for.

It's definitely a gift. No strings. But you're not able to leave your current job for other, unrelated, reasons for at least 12 months.

Spend? Save? Invest (in what)? Anything else?

[V1nce Fox]

i had this happen a few years ago. took it off the mortgage.

[EarlofDrift]

I'd probably spend half and then keep the other half for a rainy day.

I know someone that cared for a friend every single day for about three or four years, never ask for a penny, never said 'no' when ask to do anything, sacrificed holidays and their own hobbies to care for them. The person had family living within 20 miles but they rarely visited. The person was told a few months before they died that they'd left them a gift in their will. The person then died and the house sold for near £1m. The person never gave it a second thought until they got a letter from the deceased solicitor. The gift was £100.

You always read about carers taking advantage of those in need but in this case I think the person in need took advantage of the person caring for them.

Edited by EarlofDrift on Sunday 2nd February 02:16

[I 8 a 4RE]

Find another £5-10k and buy a manual BMW M2.

Once you’re done with it in a year or so, should still be worth about £20k at worst.

[bogie]

Depends on your circumstances, goals in life, hobbies etc. Personally where i am , I would make sure my SIPP pension is maxed out (cant beat the 40% uplift from tax relief before it is even invested) then put the rest in stocks n shares ISA.

On the other hand I can think of a list of home improvement projects like new kitchen, bathroom I could spend it on. That would also pay for a couple of dream holidays.....or a very nice new motorbike....

Its nice to have the choice to make, but only you know your wants and aims in life at this point

[anonymous-user]

Save half, spend half.

As someone else mentioned go to somewhere far-far away, maybe somewhere you didn’t think you’d go due to cost / distance, travel in business and have a amazing time with no worries about the cost

[williaa68]

£10k on a lovely custom titanium bike. Every time I road it i would think of my friend. The other 15 I'd put in my pension, which with tax relief would be worth £25k. Win / win!

[uncleluck]

Buy 2-3 fresh import Evo 5’s

Yanks are suckers for JDM, sit on them for 3 years and cash in. There’s quite a few US youtubers bigging up JDM stuff & the 25 year rule comes into effect for the Evo 5 in couple of years. They’re big Evo fans.

Look at the skyline GTR’s! Mine owed me £7500, was a nice car too, I’d be advertising it these days for £25k! The Americans lap them up from Japan and they’re barmy money now. It means we can’t get them cheap from Japan anymore and it pushes the prices up here.

[QuartzDad]

Black. Everyone knows red is the reckless one.

[Ari]

CAPP0 said:

Random, but genuine question:

Someone you know has a windfall and, completely legally (well, provided they live for the next 7 years!) gifts you £25k. It's a nice sum of money but its not in any way life-changing for you. Assuming you're pretty solvent and already have a decent amount of savings (ie far more than the £25k) to hand, what's the best thing to do with the cash without being excessively reckless?

Got a mortgage? Pay it off that.

Any other option - ask yourself whether you would remortgage for £25K to have done it? Because, if you do have a mortgage, that's what you'll effectively be doing, having £25K more mortgage than you would otherwise have to achieve it.

[CAPP0]

Ari said:

CAPP0 said:

Random, but genuine question:

Someone you know has a windfall and, completely legally (well, provided they live for the next 7 years!) gifts you £25k. It's a nice sum of money but its not in any way life-changing for you. Assuming you're pretty solvent and already have a decent amount of savings (ie far more than the £25k) to hand, what's the best thing to do with the cash without being excessively reckless?

Got a mortgage? Pay it off that.

Any other option - ask yourself whether you would remortgage for £25K to have done it? Because, if you do have a mortgage, that's what you'll effectively be doing, having £25K more mortgage than you would otherwise have to achieve it.

What if you had an offset mortgage where you save an portion of your savings equal to your outstanding mortgage in a bank account, thus making the mortgage effectively interest-free (notwithstanding that you could clear it and start to invest elsewhere, but an equivalent current return of the bank's SVR, around 4.5%, on that amount for doing nothing is not too bad?)

I'm not a finance expert, hence the original question, but I've been told by a couple of finance-y people that the above approach is a valid one.

[p1doc]

mortgage-use at least half even despite offset for me as gives you more security which I prefer then spend rest on hols as suggested so lots of memories to remember friend who gave you gift

[Ari]

CAPP0 said:

Ari said:

CAPP0 said:

Random, but genuine question:

Someone you know has a windfall and, completely legally (well, provided they live for the next 7 years!) gifts you £25k. It's a nice sum of money but its not in any way life-changing for you. Assuming you're pretty solvent and already have a decent amount of savings (ie far more than the £25k) to hand, what's the best thing to do with the cash without being excessively reckless?

Got a mortgage? Pay it off that.

Any other option - ask yourself whether you would remortgage for £25K to have done it? Because, if you do have a mortgage, that's what you'll effectively be doing, having £25K more mortgage than you would otherwise have to achieve it.

What if you had an offset mortgage where you save an portion of your savings equal to your outstanding mortgage in a bank account, thus making the mortgage effectively interest-free (notwithstanding that you could clear it and start to invest elsewhere, but an equivalent current return of the bank's SVR, around 4.5%, on that amount for doing nothing is not too bad?)

I'm not a finance expert, hence the original question, but I've been told by a couple of finance-y people that the above approach is a valid one.

Effectively the same thing surely? Not sure what that gains you other than easier access to borrowing at mortgage rate (which is what you'd be doing if you took it out again).

[red_slr]

https://www.pistonheads.com/classifieds/used-cars/...

Leaves a few grand for track days and consumables.
Run it for a couple of years then sell it for what you paid and get your money back.
(you might regret the last part)

Its man maths at its finest..