What to do with 300k
Discussion
So after my fathers passing I am just trying to get to terms with his assets and it looks when all is said and done there will be 300k there.
Just wondered what others would do with it.
Mortgage currently 170k and have not long locked in to another 5 year deal, so maybe overpay that each year and pay off in full at the end of the term.
Not sure where to invest it really, I am not willing to take any risks with it to be honest.
May be better to sit down with a financial advisor to discuss options but I know you guys here are very knowledgeable.
Just wondered what others would do with it.
Mortgage currently 170k and have not long locked in to another 5 year deal, so maybe overpay that each year and pay off in full at the end of the term.
Not sure where to invest it really, I am not willing to take any risks with it to be honest.
May be better to sit down with a financial advisor to discuss options but I know you guys here are very knowledgeable.
Belle427 said:
So after my fathers passing I am just trying to get to terms with his assets and it looks when all is said and done there will be 300k there.
Just wondered what others would do with it.
Mortgage currently 170k and have not long locked in to another 5 year deal, so maybe overpay that each year and pay off in full at the end of the term.
Not sure where to invest it really, I am not willing to take any risks with it to be honest.
May be better to sit down with a financial advisor to discuss options but I know you guys here are very knowledgeable.
Not willing to take any risks is going to restrict you and leave you with the potential for inflation to eat away at the remaining sum.Just wondered what others would do with it.
Mortgage currently 170k and have not long locked in to another 5 year deal, so maybe overpay that each year and pay off in full at the end of the term.
Not sure where to invest it really, I am not willing to take any risks with it to be honest.
May be better to sit down with a financial advisor to discuss options but I know you guys here are very knowledgeable.
Nothing about current pension/work/age status so difficult to give further recommendations.
PoorCarCollector said:
With your Zero risk element, you are going to be restricted to max premium bonds and splitting the rest in savings accounts.
If you are a higher rate taxpayer, also look at low coupon gilts.
Yup.If you are a higher rate taxpayer, also look at low coupon gilts.
Overpaying mortgage by whatever doesn't impact it (10% perhaps?).
Pop £50k (£100k if a couple) into PBs - zero risk to capital.
NS&I offer zero risk bonds offering over 4%. (well - virtually zero - unless the British Government collapses, fiscally speaking!).
I would also recommend spending a chunk on something 'in honour' of him. Whether that is an object (watch/car/bike/painting/etc) or an experience (holiday, special trip somewhere, family thing) is up to you. But something you would NOT have got or done yourself, & you will look back fondly on in years to come.
gazapc said:
Belle427 said:
So after my fathers passing I am just trying to get to terms with his assets and it looks when all is said and done there will be 300k there.
Just wondered what others would do with it.
Mortgage currently 170k and have not long locked in to another 5 year deal, so maybe overpay that each year and pay off in full at the end of the term.
Not sure where to invest it really, I am not willing to take any risks with it to be honest.
May be better to sit down with a financial advisor to discuss options but I know you guys here are very knowledgeable.
Not willing to take any risks is going to restrict you and leave you with the potential for inflation to eat away at the remaining sum.Just wondered what others would do with it.
Mortgage currently 170k and have not long locked in to another 5 year deal, so maybe overpay that each year and pay off in full at the end of the term.
Not sure where to invest it really, I am not willing to take any risks with it to be honest.
May be better to sit down with a financial advisor to discuss options but I know you guys here are very knowledgeable.
Nothing about current pension/work/age status so difficult to give further recommendations.
Pensions dont add up to much as I have changed companies a few times, difficult to give figures for this.
I may dig out the paperwork now and crunch the numbers.
I may be willing to risk a very small portion of it to be honest but thats it.
We do have some substantial savings too so some higher risk stuff may be a consideration.
mikeiow said:
PoorCarCollector said:
With your Zero risk element, you are going to be restricted to max premium bonds and splitting the rest in savings accounts.
If you are a higher rate taxpayer, also look at low coupon gilts.
Yup.If you are a higher rate taxpayer, also look at low coupon gilts.
Overpaying mortgage by whatever doesn't impact it (10% perhaps?).
Pop £50k (£100k if a couple) into PBs - zero risk to capital.
NS&I offer zero risk bonds offering over 4%. (well - virtually zero - unless the British Government collapses, fiscally speaking!).
I would also recommend spending a chunk on something 'in honour' of him. Whether that is an object (watch/car/bike/painting/etc) or an experience (holiday, special trip somewhere, family thing) is up to you. But something you would NOT have got or done yourself, & you will look back fondly on in years to come.
I would also suggest putting funds into a pension (low risk options available) for your long term future. As an example in the 8 years since I retired and stopped paying in) my pension has grown by 46% !
See a IFA also
Belle427 said:
Currently 52, will probably work to 65 but would be nice to retire at 60.
Pensions dont add up to much as I have changed companies a few times, difficult to give figures for this.
I may dig out the paperwork now and crunch the numbers.
I may be willing to risk a very small portion of it to be honest but thats it.
We do have some substantial savings too so some higher risk stuff may be a consideration.
Defo crunch some numbers, and as Bompey said, consider adding a chunk in: the tax benefits should outweigh risks of falling funds.Pensions dont add up to much as I have changed companies a few times, difficult to give figures for this.
I may dig out the paperwork now and crunch the numbers.
I may be willing to risk a very small portion of it to be honest but thats it.
We do have some substantial savings too so some higher risk stuff may be a consideration.
Also: you could consolidate your different pensions - most companies are part of Origo Options which helps make things easy to move. This could perhaps make things easier when you come to drawing down later. It is easy enough to do yourself - check if there are any "guaranteed benefits" to each one, if not, then you can move it.
That said, be aware of the "small pots rule" which might be potentially handy - described in many places, such as https://www.litrg.org.uk/pensions/pension-withdraw...
Belle427 said:
My current workplace pension is actually pretty good, even though I have only paid into it for 9 years. I have another 5 I no loner pay into, but will look into consolidating them into my works one if possible and it works out financially.
Time to sit down and do some sums!
Given your changed financial circumstances, then I would definitely speak to an IFA to fully assess all your options especially wrt the pensions - as others have said depending on the benefits transferring them in may nit be the best option and/or putting funds into a SIPP might be a consideration.Time to sit down and do some sums!
SS ISA for this year. £20000.
SIPP as much up to the £60k limit.
re-claim basic and maybe high rate income tax by doing self assessment in april 2026.
for both isa and sipp formulate a strategy - short or long term, low or high coupon gilts.
the rest in a dealing account for low coupon gilts
repeat each year moving money from dealing account into sipp and ss isa
and then when retired withdraw the 25% tax free lump sum from sipp and move it back to dealing account.
all things being equally you will get 4% apr with zero risk as long as you don’t sell the gilts but keep till maturity.
SIPP as much up to the £60k limit.
re-claim basic and maybe high rate income tax by doing self assessment in april 2026.
for both isa and sipp formulate a strategy - short or long term, low or high coupon gilts.
the rest in a dealing account for low coupon gilts
repeat each year moving money from dealing account into sipp and ss isa
and then when retired withdraw the 25% tax free lump sum from sipp and move it back to dealing account.
all things being equally you will get 4% apr with zero risk as long as you don’t sell the gilts but keep till maturity.
Greenmantle said:
SS ISA for this year. £20000.
SIPP as much up to the £60k limit.
re-claim basic and maybe high rate income tax by doing self assessment in april 2026.
for both isa and sipp formulate a strategy - short or long term, low or high coupon gilts.
the rest in a dealing account for low coupon gilts
repeat each year moving money from dealing account into sipp and ss isa
and then when retired withdraw the 25% tax free lump sum from sipp and move it back to dealing account.
all things being equally you will get 4% apr with zero risk as long as you don t sell the gilts but keep till maturity.
You'll get more just sticking it in a Trading212 invest account as uninvested cash.SIPP as much up to the £60k limit.
re-claim basic and maybe high rate income tax by doing self assessment in april 2026.
for both isa and sipp formulate a strategy - short or long term, low or high coupon gilts.
the rest in a dealing account for low coupon gilts
repeat each year moving money from dealing account into sipp and ss isa
and then when retired withdraw the 25% tax free lump sum from sipp and move it back to dealing account.
all things being equally you will get 4% apr with zero risk as long as you don t sell the gilts but keep till maturity.
Luke. said:
Greenmantle said:
SS ISA for this year. £20000.
SIPP as much up to the £60k limit.
re-claim basic and maybe high rate income tax by doing self assessment in april 2026.
for both isa and sipp formulate a strategy - short or long term, low or high coupon gilts.
the rest in a dealing account for low coupon gilts
repeat each year moving money from dealing account into sipp and ss isa
and then when retired withdraw the 25% tax free lump sum from sipp and move it back to dealing account.
all things being equally you will get 4% apr with zero risk as long as you don t sell the gilts but keep till maturity.
You'll get more just sticking it in a Trading212 invest account as uninvested cash.SIPP as much up to the £60k limit.
re-claim basic and maybe high rate income tax by doing self assessment in april 2026.
for both isa and sipp formulate a strategy - short or long term, low or high coupon gilts.
the rest in a dealing account for low coupon gilts
repeat each year moving money from dealing account into sipp and ss isa
and then when retired withdraw the 25% tax free lump sum from sipp and move it back to dealing account.
all things being equally you will get 4% apr with zero risk as long as you don t sell the gilts but keep till maturity.
Belle427 said:
Mortgage currently 170k and have not long locked in to another 5 year deal, so maybe overpay that each year and pay off in full at the end of the term.
I'd investigate what the cost/penalties are for getting out of the mortgage. If the mortgage is costing, say, 4% p.a. and you're a 40% taxpayer you need an investment return of 7% just to break even. You'll never get 7% "risk free" whereas paying down debt is entirely risk free.
Martin Lewis is covering investing for the first time this week, I'd definitely recommend giving that a watch.
In your position I'd definitely be looking to put a good chunk into some simple low cost tracker funds that follow the market, ideally maxing out any ISA allowances.
Over the longer term the markets have significantly out performed savings rates. The risk is getting a blip at the wrong time (eg Covid) when you need access to the money.
Also agree with other comments about buying 'something', this being PH when I was in this position I treated myself to a nice numberplate.
In your position I'd definitely be looking to put a good chunk into some simple low cost tracker funds that follow the market, ideally maxing out any ISA allowances.
Over the longer term the markets have significantly out performed savings rates. The risk is getting a blip at the wrong time (eg Covid) when you need access to the money.
Also agree with other comments about buying 'something', this being PH when I was in this position I treated myself to a nice numberplate.
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