How would you spend this money?

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Looking for genuine insight. We have quite a lot of money saved. Combination of living below our incomes for many years, a small inheritance from a great aunt I helped care for and a property windfall. We have two young kids

Three options for what to do with it…

1. Retrain - partner and I both work in fairly high level corporate / third sector office jobs, but after around 15 / 20 years we’re a bit fed up of them and yearn to do something different. More meaningful careers that benefit the world and where you can see the real impact of what you’re doing at first hand. To retrain though we’d both need to have between one and four years of earning either no money, or much less, and then once established we’d earn decent money but might never get back to where we were. Cons are less money, new jobs wouldn’t be as flexible or WFH and we might never be able to build up a big savings cushion again so less money for ever.
2. Extension - self evident really. We live in a tatty three bed with a big garden in catchment for a great primary school. We have two kids so the house is just about okay, but no separate space to work (we both WFH more than half the week), no storage space at all and a tiny kitchen. We could spend the money on an extension up and out and have all the space we need and a lovely big family kitchen. Cons, no real guarantee we’d get the money back when selling in ten years as the housing market is weird. We’d have to stay in our lacklustre jobs but this would mean being able to build up a savings cushion again.
3. Hoard / spend it - essentially just up our quality of living a little bit. More holidays, more threaten trips, tennis lessons for the kids etc. put some away to help the kids when they’re older. Loan some to a family member who needs help with a deposit.

So what would you do? Spend it on retraining but then be poorer and have less flexi careers. Spend it on a big swish extension and have a lovely house but soulless careers. Or have a slightly fancier lifestyle and also put some away for the kids and help family out…

If you're not happy with your careers I'd prioritize that, and maybe instead of a big extension you could have a garden office?

Is it enough for you both to go part time in your existing careers? If that's possible...an extra couple of days in the week to do as you will would go a long way towards making those dreary jobs palatable.

I'd do a combination of 2 and 3. I'd wants a decent lifestyle, I wouldn't want the house tatty when I'm sat on money. I dont know anyone who loves their job so for me I'd put up with the soulless career (like I do), but have amazing memories of holidays, trips with the kids, the kids do the things they are interested in and the house looks decent.

I think for me I'd be more down living in an environment that I hate, never going anywhere or doing anything but enjoying my job. My job comes last in my list of priorities, I dont expect to enjoy it. However I expect to enjoy numbers 2 and 3.

Mixture of 2 and 3

I would extend enough to get home offices.

then put the rest away in your pensions so it can earn money and help you retire as early as possible.

I would extend and spend

My answer would totally depend on how old you are. I hit 50 this year and my priorities have shifted. If you are younger than that, then I would prioritise career - it's a long time to be unhappy in a job.

I'd have a serious think about what you'd retrain as...and whether you both want to. One might just want to work flexibly say ....

Personally I'm mid 50s, so I'd be looking at dropping a couple of days a week....

Do you actively hate your jobs? Just a heads up that retraining doesn’t always result in a new career and you have to start at the bottom and get to know the procedures which can be unsettling.

Do you really need an extension? Do you feel squashed in?

Is there anything you really want to buy?

What are the secondary schools like where you live, this would influence my decision?

I wouldn’t loan it to other family members.

How are the local secondary schools? If you are definetly staying put throughout the dc teen years, then extension (is going into the loft an option?)

And some nice holidays / paying down the mortgage when on a fair rate etc.

Depends what age you are and how much it is, but if your jobs are well paying I would put most of it in pensions so you can retire earlier. Gives you the option to retrain if you want at a later stage.

I wouldn't loan it to anyone.

I'm not sure about retraining - it would take a hell of a long time to reach a level where you're earning a decent income again.

I think I'd move house rather than extend if there's a possibility that you wouldn't get your money back on resale.