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Original poster

What would you do with an unexpected windfall?

54 replies

thebellagio · 03/11/2021 15:08

What would you do if you were to receive an unexpected windfall of money (approx £150k)

I've inherited some money, but I don't really know what to do with it. I know I want to put at least £40k into my house for various home improvements (kitchen, bathroom, extension, boiler, new windows, carpets etc) as that would take it from a doer-upper home into dream home territory but I don't know what to do about the rest.

I feel like I should put some into the mortgage, but it wouldn't pay off the balance, so perhaps it's best to leave it so that we have money for a lifestyle for years to come (although we're not fussed by holidays or cars or anything like that).

I want to put some money away for my child's future (would premium bonds be the best bet?) but I don't know what's best. Ideally, I wouldn't let her have it at 18 because I know from experience, money isn't appreciated and gets wasted. But then, I don't want to tie it up until the age of 21 or 25 incase she wants to go to university/house deposit etc.

I also think I should put a lump sum into my pension, but I don't know how much? Is it best to do a lump sum, or a %? Considering there's another 35-40 years until retirement age, I don't want to put too much focus on saving for the future at the expense of the here and now.

If you were to receive a significant windfall, what would you do with it?

Tell me your wildest fantasies haha

OP posts:
Waxonwaxoff0 · 03/11/2021 15:13

Boring but I'd put £90k into my pension, £50k into an investment account for DS's future and £10k on a once in a lifetime holiday.

SirensofTitan · 03/11/2021 15:16

I'd consult a financial advisor and would recommend you do the same. Please don't rely on internet randoms to make such important decisions. You need someone who will spend time with you to find out what you want and what your views are.

SpinachIsAGatewayDrug · 03/11/2021 15:18

Pension and mortgage.

I'd prioritise future security and comfort via those two.

Cocomarine · 03/11/2021 15:20

My decision would depend on how much savings you have now, and how secure your jobs are, what your career prospects are.

If the answers are none, not very, not great - then I wouldn’t be spending £40K on home improvements.

I personally wouldn’t worry about saving separately for children. Keep control of the money yourself, give it to them later when appropriate.

I would personally put some into a pension, for the tax relief. You can only put in a maximum of £40K or your annual salary. I would only pay in the amount on which I would gain tax relief, and would repeat that in subsequent years.

I’d also get a LISA if young enough - I’m not! (I think these still exist)

I would change to an Offset mortgage and hold the amount that I wanted to keep as easily accessible cash in there. For me that would be at least around £30K.

Original poster
thebellagio · 03/11/2021 15:22

@SirensofTitan

I'd consult a financial advisor and would recommend you do the same. Please don't rely on internet randoms to make such important decisions. You need someone who will spend time with you to find out what you want and what your views are.
Oh, I absolutely agree. I will definitely be seeking the advice of a qualified financial advisor without a doubt.
OP posts:
50ShadesOfCatholic · 03/11/2021 15:23

How fabulous!!

I have received a few windfalls over the years and my best investment has been into property. I have invested in renovations (with you there, so lovely to have your home the way you want it), and on deposits on two rentals, both of which have done extraordinarily well. I also replaced all furniture with high quality items which have stood the test of time.

I am also glad I allowed us some "frivolous" spending, a few very luxurious holidays which meant my children have been able to have experiences that will stay with them (helicopter over mountains, private tropical island etc), certainly not normal for us!

We also bought nearly new cars and that gave us years of minimal expenditure on mechanical issues!

.i do regret not paying off chunks of mortgage or paying more into pension. Then again, the property investment has been invaluable and shortly we will be mortgage free and simply because by buying/selling when the market has been favourable.

Enjoy!!!

notacooldad · 03/11/2021 15:25

*I'd consult a financial advisor and would recommend you do the same. Please don't rely on internet randoms to make such important decisions. You need someone who will spend time with you to find out what you want and what your views are(
I agree with this.
Everyone's needs and wants are different and you already ha e some ideas about how you want to spend it.
Getting advice from a professional is the way forward.

Hetyanni · 03/11/2021 15:29

£11k to pay off credit card and car, then the rest would go on moving house. I would keep about £10k in an accessible savings account.

TracyLords · 03/11/2021 15:52

I’d put some of it into home improvements.
20k into an emergency fund and then the rest into paying off the mortgage

PaintedDaisy · 03/11/2021 15:54

Just speak to the adviser. No point getting advice from others about what they would do as their values and lifestyle will vary.

SandandSplashes · 03/11/2021 15:55

I'd put £120k into my pension. £10k on a holiday. £10k decorating. £10k for Rainy day savings.

MusingOnStarlight · 03/11/2021 15:57

@PaintedDaisy

Just speak to the adviser. No point getting advice from others about what they would do as their values and lifestyle will vary.
Plenty of point in asking people - they might have new ideas
girlmom21 · 03/11/2021 16:00

I'd get married (this is the plan in the next couple of years anyway but it'd make it easy), buy a new car (could do with a bigger one) and put the rest towards a deposit for a new house.

gogohm · 03/11/2021 16:04

If I were you I would set money aside for dc but not in their name, keeps it flexible - university is expensive! Pay down the mortgage the max you can within penalty this year (usually 10%) and save everything else for home improvements or a car etc

Firesidefox · 03/11/2021 16:08

@PaintedDaisy

Just speak to the adviser. No point getting advice from others about what they would do as their values and lifestyle will vary.
yes there is, it makes for a fun escapist thread.

I thoroughly enjoy such threads, and take it as a given that the OP will seek proper advice.

If I ever have such a windfall, I shall be straight on here asking the same, just for the fun of it.

Blossomtoes · 03/11/2021 16:11

I’d pay as much off the mortgage as the lender will allow and put the money saved in monthly repayments into my pension - that way you get the tax free benefit. I’m all about being sensible with it. Presumably it’s once in a life time.

allofthecheese · 03/11/2021 16:14

Deposit for a house.

notacooldad · 03/11/2021 16:14

Just speak to the adviser. No point getting advice from others about what they would do as their values and lifestyle will vary

yes there is, it makes for a fun escapist thread

Well we were asked what we would do with windfall. 🤣

Firesidefox · 03/11/2021 16:16

I would put £60k into the mortgage, £70k into my pension, and £20k on an amazing holiday or two.

NotMyCat · 03/11/2021 16:16

I would
Pay off my mortgage
Stick 15k in savings
Use the rest to do home improvement
Then pay the equivalent to my mortgage payments into pension monthly

TeacupDrama · 03/11/2021 16:16
  1. pay off debts apart from mortgage
  2. rainy day fund 6 months of basic living expenses 12 months if job particularily insecure
  3. Money for your renovations
  4. check you have full NI for all years since 18 to make sure you get full state pension you can buy any missing years
  5. Money for holidays Christmas new car etc
after this almost all money saved in a child's name is avaialbe to them at 18, I suggest you open an account with them in mind but money remains yours so no obligation to give at 18 unless ready or need it. Also it would be awful if you lost your job or got ill and you needed the money to live but it was in your kids accounts so you had to downsize etc better a roof over their heads now than a windfall in their 20's check pension, maybe pay off some mortgage so you can get a better rate if you have 25% equity you get much better deal and at 50% even better, and I think mortgage rates will go up . There are so many options you can't do them all, it is your priorities and needs and long term financial security and that needs a discussion with an IFA
Youdoyoutoday · 03/11/2021 16:16

Pension, mortgage, once in lifetime holiday, saving for the kids, spoil myself with a tummy tuck and boob job!

NeverTheHootenanny · 03/11/2021 16:17

Ooh, I love these threads.

We’re planning to move house next year anyway, so I would put £100k towards the deposit which would helpfully bring the mortgage payments down. I’d use £30k to fully kit out the new house and the remaining £20k would be used for a few really nice holidays over the next few years.

Tal45 · 03/11/2021 16:17

Personally I'd put zero of it into my pension. I have no idea if I'll even live till 65. I'd pay off a huge chunk of the mortgage and so be paying much less each month and increase my monthly pension contribution instead.

So I'd pay 100k off the mortgage, 20k for dd and 30k for doing up the house and a holiday.

Chocolatewheatos · 03/11/2021 16:18

I'd get an extension on the house and a new kitchen. And go on a few once in a lifetime holidays