I’ve just inherited 500K WWYD?

[Rubbishwithmoney]

Name changed and looking for advice. I appreciate this is a lovely financial position to be in but it’s also come with the loss of my parents and I don’t want to be accused of bragging. I’ve also not told many people in RL because of the current situation and I don’t want people to treat me differently.

I’m 30, married with 1 child. My father died a while ago and my mum suddenly died last year. I didn’t expect I would be in this position so young but I’ve inherited just over 500K. I had recently bought a house, so I’ve used 200K to pay off my mortgage and around 50K on some home improvements, paid off the cars and paid off a credit card. I’ve also put some in a child saver account.

My husband and I both have relatively low paying jobs (£25K) but we both really love our work. I’m currently working towards a qualification paid for by my employer and would need to remain in my area for at least 4 more years.

I’ve spoken to a family friend, who works in finance. He thinks I should lock the remaining 250K up in a bank and doesn’t believe in any form of risk.

I went to see a St James Place advisor and that seemed really positive but since reading St James Place reviews online. I’m worried about expensive fees, losing a lot of money in stocks/shares and paying large exiting fees if I want to take the money out.

I’ve also looked at property to buy to let as an investment but family friend and financial advisor both say this is a bad investment.

My main goal is to move away from the area we live and buy a property with land in a much more rural location. However, I would need around 750K to do that. I would be able to transfer my job and husband could either get a new job or work from our property doing holiday lets/Glamping type work. I don’t want to have to take a gigantic mortgage out that our small wages would struggle to pay back.

My mum would normally give me honest advice and I’m really struggling to make decisions without her.

So I’m asking WWYD with the remaining 250K?

AIBU to find a stockbroker to invest it for me? Should I put it in a ISA for 4 years and not touch it?

Thank you for any advice and sorry for long post x

You’re mortgage free. Is it in an area with reliably rising prices? So, can you expect to make a sensible profit on your home in 5 years?

Thanks for reply. Yes it’s in a city suburb that has recently become very trendy. House prices seem to be going up quite rapidly x

Then I’d invest in premium bonds/ISA, with maybe a very small amount of stock market investment, and wait for that money to have a bit more usefulness, added to a profit on your home. Then I’d buy a house with land.

You can 'only' put £20k in an ISA, annually.

£50k max in premium bonds.

NS&I do safe but very low interest options.

I would invest most (80%?) of it in a range of funds - good spread geographically and sectorally. Then don’t look at it too often, just rest assured that over the long term - 5, 10, 20 years - it’ll do way better than cash and is way less stress than landlordery.

I'm so sorry for your loss. So very sorry. If in doubt lock the money away and let things process/settle for a while.

I'd put it in an issue until you've finished your course and then decide. What's the rush?

Issue = isa

I would speak to an independent financial advisor. To an extent it depends what you want the money to do. Grow, stay the same, take risk or not. Personally when Covid is better I would spend some of it on a really lovely holiday.

Oh yeah, GameStop shares tomorrow, 2.30pm GMT ...

Do not go with SJP. Someone else will be along with better proper advice but they’re so expensive and don’t perform all that well v other investment firms. They have nice salespeople who talk a good game but they’re not good when you’ve put your money in.

Look up Bordier - they are a very reputable asset manager and will absolutely be able to help you work out how to invest £250k.

Don’t do anything in a hurry.
Max put your ISA for this year (& after April 5th, next). Stick £50k into premium bonds. Rest - whatever 30 day access accounts give the best rates (remember not more than £80k in one). The take your time to evaluate things - don’t make big decisions so soon after a bereavement. Speak to a few more truly independent asset managers in the meantime (I think at james’ are tied to specific products??). It’s a good position to be in, don’t make it a problem for yourself in the short term x

www.bordieruk.com

You need something like this rather than an independent financial advisor.

First of all use up your ISA allowance and your husbands
Then speak to a Financial Advisor, preferably one not from SJP.
I would probably put £50k+ in shares via the Hargreaves Lansdown platform but you do need to have some interest in trading and keep on top of that so it’s not for everyone.
Just sticking it in a bank won’t increase it much over time but it will be safer

And I’m sorry about your Mum x

If you would like to move away to somewhere more rural, there must be other options which would still leave you mortgage free (your work is transferable and DH could get a new job). Life is short so, if that’s what would make you happy and improve your family’s quality of life, you should do that.

If you want to stick your £ somewhere in the meantime, you can £40k in ISAs now (£20k for each of you and your husband) and another £40k after the start of the new financial year in April. Instant access/short notice access rates are pants at the moment but you need to spread the risk so you aren't exposed to any one institution.

For a short, 4 year plan, I'd put in multiple savings accounts. Your protected in each company (check which banks are linked) for up to £80,000.

Alternatively you can put some in government bonds as they're guaranteed and protected.

The above are low risk.

If your plan was longer term like 10years then I'd say property but your friend was right in the short term the tax and legal fees youll pay may wipe out profit.

What's your pension like?

After paying off any non-mortgage debts that's the very first thing I would look at.

Im fairly risk adverse and wouldn't be putting it in stocks and shares. You could lose significant amounts of it fast.

I wouldnt make any quick decisions. Keep it locked away until you know what you want to do.

How much did you put aside for your child? Personally I'd put aside £50k knowing a deposit in 15-20 years time will likely need to be at least that.

So sorry for the loss of your parents. Such a strange position to be in as you have 'benefited' but through sad circs.

No real advice except do not use SJP.

I have no helpful advice but I'm so sorry for your losses

I'm sorry for your loss and I can understand why you'd want to take advice from family friends at this time, but on this case the advice to 'lock it up in the bank' doesn't come without risk and might not be right for you.

@EuroTrashed

Don’t do anything in a hurry. Max put your ISA for this year (& after April 5th, next). Stick £50k into premium bonds. Rest - whatever 30 day access accounts give the best rates (remember not more than £80k in one). The take your time to evaluate things - don’t make big decisions so soon after a bereavement. Speak to a few more truly independent asset managers in the meantime (I think at james’ are tied to specific products??). It’s a good position to be in, don’t make it a problem for yourself in the short term x

This is very good advice.

No need to rush into anything.

Give yourself time and headspace to research all options carefully. (Sounds like you've got your head screwed on and are asking the right questions).