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Original poster

What should I do with this money?

37 replies

Illputtheminapie · 14/05/2021 19:04

I'm very lucky to have come into £75,000, and I just cannot think what to do with it for the best.
I'd be glad of any perspectives please.

I guess we could pay it off our mortgage, very sensible.

We could stash it for a rainy day (although our income is good so we don't feel particularly exposed) or I guess save it for our kids to be deposits on their first homes or something like that

We could save it for a deposit for a holiday cottage somewhere one day

We could try to have a go at flipping a property (I realise it's not enough on its own to do that)

We could start up a business of some sort, but frankly I don't have any burning ideas that I think I could make a success of!

We could have a go at investing it somehow to make more, but we have zero experience in this.

What do you all think? And are there any options have I not considered in your opinion?

OP posts:
WineAcademy · 14/05/2021 19:05

Pay down the mortgage, no doubt. It's one of my most burning desires in life to be mortgage free as soon as possible.

MyGoMargot · 14/05/2021 19:06

I’d pay off mortgage

PickleSarnie · 14/05/2021 19:11

Mortgage definitely. Although if you haven't already got savings, I'd probably fill up a stocks and shares ISA just in case you need it for rainy day. But assume since you say your income is decent, you probably already have some savings.

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HollyGoLoudly1 · 14/05/2021 19:12

You have your whole working life to pay off your mortgage. As long as you aren't in a bad financial position (you say your income is good) then I'd use it for something else.

I'd go on a once-in-a-lifetime holiday, save some for the kids house deposits, invest some in something higher risk than I would normally be comfortable with and put some away for a rainy day.

I like the flipping idea, could be fun and lucrative!

NoSquirrels · 14/05/2021 19:15

Pension? Stocks and shares ISA?

How old are you and how far from the DC leaving home are you? How’s your retirement funds looking? How long till your mortgage is up? And what’s your attitude to risk?

stillcrazyafterall · 14/05/2021 19:16

Stick the maximum in PBs and pay the remaining off your mortgage.

Mistressinthetulips · 14/05/2021 19:16

How old you and your dc are is very relevant to the question

DancesWithDaffodils · 14/05/2021 19:19

Do you gave a savings account? If not, I'd put 6months expenses in there.
If you already have savings, and dont foresee a need for this money in the next 5-10 years, I'd put 20k in a stocks and shares isa for you, 20k in a stocks and shares isa for DH (you saw we so I'm assuming you are part of a couple). Probably into a fund or tracker rather than buying individual shares.
Have a holiday (10k) add to the savings account (10k) and pay down some of the mortgage (15k)with the rest.

Stompythedinosaur · 14/05/2021 19:21

Get a financial advisor.

Original poster
Illputtheminapie · 14/05/2021 19:24

Thank you for the replies.

Mortgage I know is a smart option, but I also feel the pull that @HollyGoLoudly1 shares!

DC are bottom half of primary so we're miles off them leaving home.
We're around 40. Our pensions aren't brilliant, although to be trans
parent we may be lucky to inherit a bit that makes that less of a worry than it might otherwise be.

OP posts:
Original poster
Illputtheminapie · 14/05/2021 19:26

Attitude to risk is difficult! We like to think we'd give something bold a go but I fear in reality we're a bit chicken!

OP posts:
MimiSunshine · 14/05/2021 19:28

PENSION PENSION PENSION.

To be comfortable you need more than you think. For perspective £100k pot would give you c£5k a year to live on.
Yes you should be mortgage free but you’d still have bills and living expenses, would £5k pa be enough?

I’d keep £5k and do something fun with it and then stick the rest in your pension.

AnathemaPulsifer · 14/05/2021 19:30

I’d go pension as well.

DonttouchthatLarry · 14/05/2021 19:31

Definitely put 50k in Premium Bonds even if only while you decide - you'll win more than you would receive in interest from an ISA or savings account. I've won £200 so far this year. There's no risk, you can cash them in again quickly and easily at any time and it's like having 50000 lottery tickets every month.

MimiSunshine · 14/05/2021 19:33

@DonttouchthatLarry

Definitely put 50k in Premium Bonds even if only while you decide - you'll win more than you would receive in interest from an ISA or savings account. I've won £200 so far this year. There's no risk, you can cash them in again quickly and easily at any time and it's like having 50000 lottery tickets every month.
Winnings aren’t guaranteed. I’ve had PBs since I was a child. I’ve never won once
FedUpAtHomeTroels · 14/05/2021 19:33

Pension and mortgage.

SandysMam · 14/05/2021 19:36

If you are already financially secure then please take 10k and do something amazing with it. Make your life amazing and make fab memories for your kids. Do something boring and sensible with the rest but really, really enjoy a bit of it!!

MintyMabel · 14/05/2021 19:47

I wouldn’t put it in to my mortgage. If something happens in the future and I need it, it’s harder to re-mortgage the older I get.

I’d set it aside in a couple of savings accounts for DD’s future. I might take some of it to do up the house.

Standrewsschool · 14/05/2021 19:51

I would put it the mortgage or pension, but also have some fun money as well. Ie, new car, holiday, plus some money for a rainy day (3-6 months salary).

Standrewsschool · 14/05/2021 19:52

Or give it to me!

Blankiefan · 14/05/2021 20:01

Pension. Definitely. (How old / far away from retirement are you?)

Compound interest on, say £60k over 15 years at a moderate risk level (you could expect 5%) would turn £60k into £126k.

And I believe you can get tax relief so more benefit again.

That would leave you a tidy £15k to have fun with.

DO NOT PAY OFF YOUR MORTGAGE WITH IT unless you're paying a ridiculous interest rate (in which case, switch if possible) . With interest rates as they are, you should be able to earn more via a pension investment vehicle than the interest in your mortgage costs you.

Go and see an IFA. It'll be a few hundred pounds we'll spent.

Blankiefan · 14/05/2021 20:04

Sorry - should've said compound growth- not interest.

Obviously capital is at risk on this type of investment but a good IFA should more than cover their % vs. market performance.

DonttouchthatLarry · 14/05/2021 20:05

MimiSunshine not small amounts but everyone I know with £45-50k wins nearly every month - my winnings were over 2% last year, better than savings.

I had a £1 bond bought for me as a baby - that never won in 50 years but I've won thousands in the last 7 years after investing 40k.

Original poster
Illputtheminapie · 14/05/2021 20:58

Thanks everyone for the perspectives, especially about not tying money into mortgage repayment I hadn't thought of it that way.
@Blankiefan that's really interesting thank you, and yes, I agree it's well worth seeing an advisor.

OP posts:
Original poster
Illputtheminapie · 14/05/2021 20:58

We have a few hundred quid in PBs that we haven't won anything on since I was a teenager

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