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Original poster

WWYD with a windfall?

68 replies

WWYD22123 · 03/10/2017 01:07

Posting here for traffic.

If you came into a windfall of just over £300k, what would you do with it investment wise?

I don’t have a clue! No debts, small mortgage of £50k.

Don’t like the idea of BTL and no idea where to even start with stocks and shares.

Absolutely don’t want to piss it up the wall either. Maybe a few thousand I’ll blow on luxuries but no more than that.

Help!

OP posts:
PetiteBlonde · 03/10/2017 01:11

Could you put some of it in Premium Bonds and ISAs maybe? They're fairly safe, investment-wise.

Gingernaut · 03/10/2017 01:27

Pay off mortgage.

gluteustothemaximus · 03/10/2017 01:30

Pay off mortgage number one.

Do you have kids? Money aside for them in future?

I’d be keen on starting a business, or a job you’ve always wanted to do that would take money.

Save a chuck. Blow some.

Enjoy Grin

DH and I regularly have chats about spending windfalls. Sadly, we have no windfalls Grin

TattyCat · 03/10/2017 01:39

Ok, you do have a debt.... your mortgage. Get rid of it, and be free.

Then, treat yourself. Then again, you've given no details of your lifestyle, so sensible ideas are off the table for discussion!!

What do YOU think you should do with it? What would you LIKE to do?

GetOutOfMYGarden · 03/10/2017 01:43

Pay off the mortgage. Getting rid of debt is the best investment possible, with investing in something you don't if your money will grow or shrink where with getting rid of debt you're only going to improve your situation.

If you're investing then make sure you hedge. Perhaps go for a trust so you're not actually doing much work, some of them pay over 4% so not bad at all.

Original poster
WWYD22123 · 03/10/2017 01:45

After paying off the mortgage I’m still left with £250k.

No kids, no partner, decent salary. This money would be for investment only (minus a couple of grand for a mini blow out). Have already maxed out ISA limit and regularly put money aside for pension.

Maybe I need to hire a financial advisor. Aren’t they really expensive though? Are they worth it?

OP posts:
quizqueen · 03/10/2017 01:45

Buy another property and rent it out for extra income. Then you'll have two houses to pass on to your kids.

ra60 · 03/10/2017 01:48

It might not necessarily be the best thing to pay off your mortgage. Depending on your age and how long until you need access to the money, you may be better off investing it. Mortgage rates are so low right now that the interest rate on your investment wouldn't need to be very high to mean that you'd be making a better return than you'd be saving on mortgage interest.

Put the maximum into ISAs. Do you have a pension?

Original poster
WWYD22123 · 03/10/2017 01:51

Yes, that’s true. Current interest rate I’m on is 1.5%.

I’m 40 so a good 25 plus years left before retirement.

OP posts:
ra60 · 03/10/2017 01:52

Sorry, cross post!
Regarding IFA, there's a recent thread over on Investment board which might be helpful...

www.mumsnet.com/Talk/investments/3045107-What-value-does-an-IFA-bring-to-investments

Original poster
WWYD22123 · 03/10/2017 01:54

Thanks for the link ra! That’s really helpful.

OP posts:
Perfectly1mperfect · 03/10/2017 01:59

In your shoes I would pay off the mortgage, help anyone out that had been good to me and might be struggling. I would then buy a small holiday home, give some to charity and invest any remaining money.

Everyone's different though. Would you like to travel ?

HappenedForAReisling · 03/10/2017 02:01

Find a REALLY good financial advisor - one who will invest and manage your money rather than someone who will just sell you an investment product.

Original poster
WWYD22123 · 03/10/2017 02:06

How do I find a good IFA?

OP posts:
pallisers · 03/10/2017 02:06

I would put the money in the highest interest account you can find for the moment.

Then I would research financial advisers and see if you can find one who is independent and recommended.

While it is very tempting to clear the mortgage, depending on interest rates, it might make more financial sense - depending on interest rates - not to since the mortgage is small and you are well able to pay it as it is. (I do have a psychological need to be mortgage free so find myself balancing this against the financial advice we are given).

Maybe take a few grand and have a holiday or buy something you like but then I would save in a mixture of medium/low risk mutual funds etc. I would try to do it as tax efficiently as possible. Having the savings will give you a peace of mind and a flexibility to spend your money more self-indulgently.

Also there is nothing like the feeling of giving money to a good cause. I would suggest you really think about what kinds of charity you want to support and try to forge a personal connection before giving anything significant. We have one charity we donate significantly to since our income has increased. We know the people involved, volunteer as well as give money, give feedback on initiatives etc. It is immensely satisfying to think you can help- we get way more than we give.

junebirthdaygirl · 03/10/2017 03:53

Have you ever longed to have an apartment somewhere warm and pleasant? I would go for that. Continue paying your mortgage as it sounds no bother to you.

wannabestressfree · 03/10/2017 04:12

I would see the world :)

BarbaraofSevillle · 03/10/2017 04:19

Use it to be able to work less. I'm lucky that if I told my employer l wanted to go part time and give up certain aspects of my role they would probably accommodate me and I'd still be able to earn a bit and top it up with the £300k to last until my pension kicks in (I'm slightly older than you and will get some pension at 60 and the rest, along with the state pension much later).

TakeMe2Insanity · 03/10/2017 06:08

I'd go with paying off the mortgage.

Then invest in yourself? Are there any training/courses that you've been interested in? Invest in a business?

Maybe set aside 10k for an epic trip?

chockaholic72 · 03/10/2017 06:20

I had a small windfall (£15,000) several years ago. £10,000 went on clearing debts and doing up the house, but I really wanted to spend some on remembering the generosity of the person who had left it to me. I thought about a pice of art, or jewellery, but settled on a holiday way out of my comfort zone, to somewhere I had always wanted to go - India and Nepal.

It turned out to be a trip that changed my life. India was indescribable, chaos, wonderful. Nepal was beautiful, and started a love of the mountains that has never abated - I've gone back to mountaineer several times, as well as in the Alps, here, and South America.

My parents died when I was a young adult, and I am very aware that life doesn't always work out how you want it to - both my parents died way before retirement, when they were going to do so much. If I had a windfall of that size I would set aside some to travel, and invest the rest to retire early. Max out your ISA allowance first, then seek advice from an IFA on where else. They will ask about your future plans, and your attitude to risk, and give you advice, plus at least yearly update meetings on how your money is doing. Finally, enjoy it!

Ttbb · 03/10/2017 06:28

Firstly clear all of your debts. If you have children then put the money into an educational trust to pay for school fees. If you have any left over then Nike and Coca Cola are both pretty safe stocks.

Cupoteap · 03/10/2017 06:36

Ms? I would pay off my mortgage or consider a new house that was paid off.

Then I buy a house or two and rent them out.

Allthebestnamesareused · 03/10/2017 06:43

I would also look at what yiu would be allowed to put into your pension and how much you can top up previous years because whatever you out in you will also get tax relief amount out in too so it's worth doing. I think they can backdate 6 years. Again an ifa could advise.

TravellingFleet · 03/10/2017 06:43

Go to see a proper financial advisor who you can trust. I very strongly advise this. I can highly recommend mine if you want to give me a pm and you're in the south-east.

Firenight · 03/10/2017 06:46

Definitely books an appointment with an IFA - see if anyone you know can recommend someone.

Clearing the mortgage would be my priority (leaving a nominal making if appropriate) and invest the rest either in a property to let it holiday in or in decent return investments (IFA can advise).

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