Inheritance qu

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If you were in the unexpected fortunate position of inheriting some money, what would your priorities be?

(Think around 200k)

Have I missed anything blatantly obvious from my list? I am childless, and currently renting.

• pay off all debt
• replace car with a more reliable and newer one
• a holiday as i havent been able to treat myself to a break for several years
• put away 50k for emergencies/future job loss/employment gaps etc
• house deposit with the remainder, budgeting maybe 100-125k for it

Not meant as a goady post, i have literally never thought about this, and am now in this unexpected position having lost a very dear aunt

We have stocks and shares ISA and really disappointed with return but they always get recommended by financial people.

Love my premium bonds. Exciting every month and using all the winnings (£650 last month) to buy DH his own stash. You can take the money out at any time. Winnings tax free. Down side doesn’t keep up with inflation over time,

Definitely prioritise house purchase as PP have said. Then once you kniw how much you are saving on rent transfer that amount via standing order each month into high interest account. That can cover rainy day fund, car and holidays. Getting a lower mortgage will be more beneficial.

How brilliant OP and what a lovely aunt.

@nextstepp ooh good shout! I hadn't clicked that to be fair; although i'm not 100% when probate will be finished with/completed so will bear that in mind

@M3ganne south east but outside of london, so looking at a hefty price for something in a nice ish area - i need it to be something that will last me rather than needing to change it if life changes (partner,kids etc)... although i appreciate i can't plan for all that
That seems like a pretty decent split, and obviously I can top up the rainy day fund with money saved by not renting...

@kaos2 to a certain extent yes, although a better car would be ideal for work - more fuel efficiency and less repairs looming!

@SaveMeFromMyBoobs i'll have to look properly into a mortgage costs and monthly payments etc, get an appt with a mortgage advisor as a PP recommended!

@Hollyhocksandlarkspur i must admit, it is the thrill of maybe winning something that keeps making me look at premium bonds again, especially as a stocks and shares isa scares me due to the risk!
Theyre both mentioned on MN quite often, so will definitely look into both..

"stocks and shares isa scares me due to the risk"

The risk reduces the longer you keep them and the more diverse your portfolio of shares. Advisors normally say at least 5+ years. I'm a fairly recent convert, but read up a lot on it after I got an inheritance. Best and most common advice seemed to be to choose a global tracker fund for diversity and to keep charges to a minimum. You'll see Vanguard funds mentioned a lot on the investment threads, and they do seem to have a good reputation and some of the lowest charges, so that was the provider we eventually went with. I put in a lump sum just before Russia invaded Ukraine, which lost money for the first few months, but then started to go up and is looking healthy now.

ISAs are pretty low risk.They are also tax free. We have a hefty amount in stocks and shares ISAs. We do consider it long term savings though. In effect you shelter the shares in an iSA. For short term, we use fixed term saving bonds. Immediate cash savings in another account,

One thing not mentioned here is a pension. Do you have one? I would not put it all into property and I would buy a car.

You should be able to get a mortgage if you are employed. Look at loan to value ratio because that should determine your deposit size. Often 65% on a mortgage gets you a lower mortgage interest rate. I’d look at what you might like to buy. Unfortunately FTB stamp duty holiday is going, I think, in April. I would look at your rent and decide if you can pay more or less on a mortgage. I would not necessarily be driven by a percentage of what you inherit or random ideas on here.

I would just put 100% into a house .

That's me though , we bought our first house at 23 and have our dream home paid off at 50..

We have premium bonds and Isa's too..

Having the max amount of PB's have given a good return and worth doing . Easy to get if needed .

"ISAs are pretty low risk"

Cash ISAs are zero risk. S&S ISA risk varies depending on where the money is invested. When you open a S&S ISA, you usually put the money in as cash then choose from a range of investment funds.

The range of funds will depend on the provider, e.g. Hargreaves Lansdown or Fidelity will give you whole market access - you can choose from tracker funds, managed funds (more expensive, and rarely perform better than trackers), or actively trade in individual shares (not advisable for beginners). You'll pay a platform fee and either a fund fee or trading fees.

Other platforms, like Vanguard, give you access to a limited range of their own funds. Again, there will be platform fees and fund fees, but they may be lower.

If you get a global tracker, then you will be investing in thousands of different companies across the globe, which spreads the risk.

Invest a few quid in a good financial advisor. Such things are always more nuanced than you've laid out here.
Yes, you may get some sound advice on here, but you'll get some ridiculous advice too. Professionals are professionals for a reason!

"Invest a few quid in a good financial advisor."

Easier said than done. If you know someone who has used the same financial advisor for many years and would recommend them then fine, but if not, then make sure you choose one from a relatively safe website like unbiased.com, and be wary.

There is a very good financial planning podcast called Meaningful Money that was recommended to me by a Mumsnetter, and has lots of good independent financial advice in it. Listen here to what the presenter has to say about choosing a financial advisor:

If you go onto a website like Hargreaves Lansdown (others available) you can look at various funds that you can invest into via a Stocks & Shares ISA. They will have a key investor information doc which tells you past performance, types of areas they invest in, cost and level of risk. You can even search the funds with filters on, so if you prefer lower risk you can look at funds that invest more in Government bonds / Corporate bonds and compare against shares. Past performance is no guarantee of future performance, but generally if you are looking to invest for a longer period this should beat any returns you can get in cash savings.

@NotOneOfTheInCrowd My Premium Bonds have given me a return of nearly 10% in the last year!

The current prize fund rate is 4.15%, but many people will get less, and some will get more. That's where the luck comes in.

@kaos2 What you could do 25-30 years ago at 23 is not what the op can do at 38 now. She might be buying one home to live in and reading up could be difficult. Having no money for repairs, an unreliable car and debts do need to be considered.

trading up!