250k inheritance to spend but on what??

[TheMuminator2]

Came out of the blue from a relative we hadn't seen since we were young. Am tempted not to spend a penny and just invest

@Budsbegginingspringinsight thank you for your vote of confidence. Although it is a real life-changing blessing, trying to decide what to do with the DC’s money was the hardest part. It’s one thing taking risks with your own capital, and another thing entirely when it’s someone else’s!

The scariest part is that DS and DD will get their hands on their money when they turn 18. DH and I know that we have a tremendous amount of responsibility when it comes to teaching them how to manage finances wisely. DS (at 12) already has 2 junior current accounts and is learning how and when to move his money between his ‘spending’ and ‘saving’ accounts. After his first experience of ‘blowing’ half his monthly allowance treating his friends to McDonalds using his contactless card, he has become a bit ‘wiser’.

Sweet yes agreed hard when someone else money.

I must admit I wouldn't give large sums at that age. Even most trusted child could just mention that money in pub... drunk and one person could over hear and tap into them.

I read recently about stealthy long term way a drug dealer targeted some friends.. etc.

What I mean is, as much as you teach them, there will be someone ruthless who may realise they're rich and could target them. Even boyfriend s , girls friends Etc.

Buds, I agree entirely. DH and I had our own wills written so that our DCs’ inheritance would stay in trust until they were 21 if anything happened to us. We had absolutely no idea that DH’s relative (a childless great aunt) had named him and our DCs in her will. It was specified that minors would gain control of their portion of the trusts at 18, so that’s what will have to happen.

No I said two 90k properties. Yielding £600 each. That's 2 beds, in fact there are some 3 beds in that price range but they tend to need more work.

I'm sitting in a large 3 bed semi with medium sized garden, driveway and garage that cost 150k. This is a cheap but nice area.

But yes btl are not for everyone and don't yield the same all over but there are still places in this country where it's still worth doing. Even with the removal of some tax breaks and even with the higher stamp duty. This is what I would do but that's just me and I've enjoyed reading what others would do with the money.

I can't say for you but if I received 250k tomorrow I'd maybe look into buying a house and paying for a masters degree. Alternatively I'd quit my job and do some travelling for year and use the time to work on my writing. I'd probably put some of it in savings but that kind of money would change my life in some substantial way so I wouldn't just leave it all in a savings account and not think about it again. There's no point in having money if you're not going to use it on anything.

My serious answer for you echoes other people's - go to a financial advisor and see what they say re investments. I'd also say to have a think about how much you want to spend and how much you want to save - do you want it to be a 50:50 split or more one way than the other or do you want to put all of it in stocks or spend it all? Maybe make a little list of things you need/would like and see what jumps out at you.

“so I wouldn't just leave it all in a savings account and not think about it again. There's no point in having money if you're not going to use it on anything.”

Just because it’s sitting in a savings account doesn’t mean it’s not serving a purpose. Some people would be thrilled at that amount as a ready made pension pot, especially if they only have a low-paid part time job and putting little aside for retirement

Of course it’s weighing in between living for today and saving for a better tomorrow. A few people plan all sorts for a lovely retirement and then drop dead suddenly of a heart attack before they get the chance to fulfill their retirement dreams. A bit of fun and a bit of sensible saving is probably a good middle ground.

That’s assuming a person is already a home owner or uses some of the money to pay off the rest of their mortgage.

“I'd quit my job and do some travelling for year and use the time to work on my writing. “

Really? You would quit a job? And after the year’s travelling is up (and that will go extremely fast) do you think you’d be able to walk back into another job at the same level you had? You might be able to in some sectors eg nursing but for others in the public sector this isn’t so easy.

I think we all have a fantasy spending plan, but the reality is quite different. Just don’t rush into anything, OP.

One of my dreams is to take a year off and go traveling, with my family. I could home school the kids for the year, and they could see the world. I think I would only do it while they are in primary school though, so probably not a useful idea for you!

A bit of fun and a bit of sensible saving is probably a good middle ground.

I definitely do agree with you there CurlyhairedAssassin. And to be fair, it's a pretty substantial sum of money so it's perfectly possible to use some of it to have fun and save/invest the rest very wisely indeed.

Re the quitting my job, I can only speak for myself but I am in my early 20s with no dependants or responsibilities other than myself. I work an entry level job in an industry I don't particularly want to work in and am grossly underpaid for the amount of work I do and the amount of responsibility I have. My job is a direct contributor to making my mental unfortunately quite bad lately. Unfortunately there's also a ridiculously long notice period which makes it harder to find another job that is willing to wait for me to work a notice period. For me personally, I want to see the world and if I received a substantial enough sum of money that meant I could do something sensible like buy a house/invest and could also do something great for my wellbeing like quit my job and see some of the places I want to see then I'd absolutely go for it.

I would never suggest someone else just ups and quits their job and throws away all their money though, especially not on an internet forum where I don't know any of their circumstances. I gave an answer as to what I would do if I received that much money tomorrow, and then a more serious answer which is that I think OP should ask a financial advisor whose job it is to know about investments and to make suggestions on what to do with windfalls. In all likelihood if I ever were to get a large sum of money tomorrow I would also seek professional advice on it before doing anything. But sometimes it's nice to dream

I love reading about others good fortune on here while I suffer in silence in my private life.

TheEternalForever: and now you’ve got my mind working overtime imagining what job you do where the notice period is very long but it is also entry level.

Something where staffing numbers are crucial? Prison officer? Do they have long notice periods?

I can understand quitting a job if you hate it, it’s entry level and you could get another the same easily enough, and have no dependents or mortgage

In the vast majority of cases inheriting money is not a time of "good fortune". It's not winning the lottery.

Teaching has ridiculous notice periods. To leave on 31st August, you must hand in your notice on 31st of May. There are only three leave dates a year.

Entry level teaching jobs are dead easy to come by if you’re in the right geographical area and subject (secondary).

Agreee. But this isn’t one of those cases. OP hadn’t seen the relative since they were young and wasnt expecting to receive it, so I assume OP and relative were not at all close. Of course it is sad that the relative had died, but presumably this means that there are no closer relatives who are really grieving.

Charity starts at home! (I only need 4K by the way😉😉😉)

@Queenie8 lifecraft have a look, you might be surprised if you do a little digging.

Why don't you stop being so cryptic and just tell the account us where we can get 5% interest on £20K+? You said Santander were doing it last year, which is total nonsense. So spill the beans and share the benefit of your financial wisdom.

life last year being the most important part of my sentence. I don't need to look for an account now.

flirtygirl if that is the only source of income as per your post re: income tax, don't you feel it is a high risk strategy to have 100% of your income dependent on the good faith of one, maybe 2 tenants? What if you have to take legal action to get them out after 2 years on non-payment?

I know that certain agencies offer 'guaranteed rent' but by using them you are significantly reducing the yield.

I know some people have done well from BTL, but most of that is pot luck rather than 'knowledge'. It can be a decent earner for those who have a good understanding of the market and a trade level experience in renovation etc. but for the lay person with no diversification it is, or at least should be, a massive non-starter.

"Charity begins at home" has to be one of my most detested sayings. It also has had its original meaning distorted in an extremely ugly way.

melindacousins.com/2014/01/29/can-we-please-stop-saying-charity-begins-at-home/