WWYD Money

[loverly]

I have been told I will be getting an inheritance soon equal in value to the cost of a business that my sibling received. I don't know how much really it will be.

So asking (fairly lighthearted)...wwyd? I own a small flat with a mortgage, unmarried, living with my boyfriend...in the next few years we want to marry and have kids :)

The reason for the inheritance is that my dad and my great aunt died recently (dad was very unexpected). Please be nice - I know its lucky but obviously I would rather he was still here.

I agree with pp, protect your property from any partners.

Also I’d recommend asking for advice on money saving expert and having a look at basic investment advice online- monevator is good for passive investing. You should be aware that placing that amount of money in cash or premium risks it being eroded by inflation so it is not without risk. You need to understand what your risk tolerance and aims for the money to work out a strategy that best suits your circumstances. I’ve had to go through this recently and I feel a great responsibility to make sure the money is used wisely and in a way that the deceased would have wanted.

Why does everyone always suggest premium bonds.

Premium Bonds are good as a temporary location for money. The limit is now £50k and is better than just leaving funds in your current account while you decided what to do with it.

The fs guarantee limit on any one bank is £85k so it is madness to keep more than that in any bone bank even temporarily ..

Pay off the majority of your mortgage, keep a buffer of several months salary in savings .
Buy another property together when you get married and rent out your current place.
Do not go on a spending spree , buy cars or go on holiday . This is a super opportunity for you to set yourself up for the foreseeable. Do not waste it .
And sorry for your loss.

Premium Bonds are good as a temporary location for money.

But the OP doesn't NEED a temporary location for money, as they don't have the money yet and by the time they get it, this thread will have advised them on the permanent location.

Which, let's be clear, should NOT be premium bonds, which offer a terrible return.

OP, any portion of the money which you're not going to need for a few years should be invested. Investments like shares are volatile in the short term, but in the long run will return more than savings. If you don't want the hassle of managing Investments, you can use a platform like Moneyfarm which does the investing for you based on the level of risk you're happy with.

Which, let's be clear, should NOT be premium bonds, which offer a terrible return.

My sister bought lots of premium bonds years ago and thinks she's done a lot better than if she'd put the money in a bank account. She gets small wins every few months - amounting to only a few hundred a year, but more than she'd get in interest. You need to buy them in blocks, apparently...