What to do with inherited money?

[itwasacceptableinthe90s]

I've recently received an inheritance from my grandad and I am unsure what to do with it. I still live at home so my first thought was to buy a flat but I am disabled and only work very part time so I don't think I'd get a mortgage with my income. I was just wondering what I can do with the money- I suppose I'm worried about it just sat there. I would really appreciate any advice/help. Thank you

I think your best bet would be to speak to a financial advisor. The sensible thing to do would be to ensure your future is provided for, and they’ll be best placed on how to advise you to do that.

@Nagado thank you. Is there specific companies that you'd use for a financial advisor or can you get one through a bank?

@itwasacceptableinthe90s how much is it? I think that’s relevant to the advice xx

@Tyuii £75,000

@itwasacceptableinthe90s you may still get a flat for that on part time. If so id personally do that as it’s a great investment usually and everyone needs a place to live 😊

@Tyuii Thank you. I would really like to buy a flat but my income is only £990 per month so I don't think I'd get a mortgage. My only other thought was using it to start a pension but that won't solve where I'll live when I'm older

I inherited a very similar amount at the start of the year. I have £50k in premium bonds and have the rest in savings until I can pay it off my mortgage in a few years.

I would put it in several different places, don’t put all your eggs in one basket and all that. If it were me, I would put some into a tracker fund (vanguard life strategy is probably a good place to start), some into an Isa, I would also look into a REIT and then some into a pension. Also, make sure you treat yourself too so if all else fails, you have something you really want 😊

How old are you OP?

I would definitely speak to a financial advisor in this scenario - people you know might be able to recommend someone.

In your position I would probably put most of it into a stocks and shares ISA with Vanguard.

£70k alone could return you £300k+ in 20 years time. The longer you’re able to let the interest compound, the better.

@Work2live I'm 30 (31 next month)

In that case you can definitely afford to take some risk if you’re thinking about retirement/pensions.

Vanguard is a good option as it allows you to split the investment across different funds.

Roughly what area do you live in? (I love a look on Rightmove) And how many beds might you need? Do you have any dependants?

Might be worth seeing if there is an affordable flat nearby. Based on your income (I estimated 11.5k pa) and a deposit of 65k - so giving you a cushion of 10k for moving fees, many mortgage brokers would lend you around 40k, so you oculd buy a property worth 100k approx. Your monthly repayment would be £160-170pcm which has to be cheaper than renting.

If you could find a nice 1 bed for less than 100k you could keep back more of the money.

Be careful re benefits you get you don't want to have payments stopped because of savings.

Maybe aske on the investment board

Personally I would open a stock and share ISA and start to put 20 grand in ( allowance each year) , normally the advice is to drip feed in but the markers are incredibly low at the moment
I would but a eft fund which means you are buying a little of everything.
You can even buy global companies eg vanguard's global fund.

I would also use premium bonds as another savings barrier, the idea is what you invest is your capital that keeps growing and growing untill you need to either take an income or use it.

So some in premium bonds or elsewhere means you don't touch your capital until you need it.
Then put some into a fun account to be used to keep life happy!

Oh yes as pp above I would open up a " self invested personal pension".

Same as the ISA

You control the money and what's it's invested in vanguard do life strategy fund's and so do black rock.

Definitely put some money into a sipp to grow for the future. 10/ 15 grand?

There is some useful advice here OP regarding finding a financial advisor

www.citizensadvice.org.uk/debt-and-money/getting-financial-advice/

I'm not sure you do need financial advice for that amount, even if you do, you need to think first about what you want, to get the most out of it.

You say that you don't think you'll get a mortgage, but that depends how much flats cost where you live. There's many places where £75k would pay for half to 75% of the cost of a flat, even when keeping back, say £10-20k for fees, moving costs and any work you might want to do. And you could well get a mortgage for the rest on what you earn - payments might only be £2-300 pm.

Any money you put away for a pension is inaccessible until your late 50s so don't do that unless you're sure. It will also take several years to get all the money into a pension, even if that' what you decide to do.

For any money you invest rather than save, you also need to consider that you might not be able to touch it in the short to medium term without losing money.

It's likely we're going to hit a rocky patch economically, which might mean that property values drop and you're well placed with £75k to get a flat for around £100-120k for example.

Definitely open a LISA and just put a small amount of money in it. Then after a year you'll get a bonus if you do decide to buy.

Then put in the best instant access account - I think you can get nearly 2% now, while you decide what to do with the rest.

If you do get income based benefits, it's right that you might lose those with an inheritence, but not any that are due to your disability, as they're not means tested.

Give it to me!

only kidding.

Could you get a Help to buy house, whereby you have+a smaller mortgage and pay rent.

75k is a decent amount of money. You never know, you maybe able to get a mortgage with a long term. Worth speak

Don't use a financial adviser tied to a bank - they'll just try to sell you the bank's products. If you do use an adviser, make sure it's an independent one.

Personally I prefer to spread savings across cash (mostly fixed term ISAs because they have better interest rates) and investments (unit trusts and a stakeholder pension) Some people on Mumsnet are quick to suggest investments but you really need to understand the options and the risks involved. Different investments will perform differently and you're at real risk of losing value for at least part of the duration of your investment. Investors are currently seeing the values of their investments being less than they were last year, but we keep the money invested in the realistic hope the value will rise in future. Which is fine for people who don't need to access to their money at the moment but not for people soon to retire and needing to access their pension.

I don't know if there's a recommended split of cash savings/investments as a lot is down to how much you have and your attitude to risk. But for God's sake don't put the whole amount in the stock market.