What would you do with 200k?

[cwdioy]

Early 30s, parents.

Pay off mortgage
Rental property
Something else

I would look if there are any fees with paying off the mortgage and work out best time to pay it off. I would pay a mortgage off before getting a rental property. I would be wary of rental property at the moment, lots of increased requirements.

Other things I would consider as options are putting money in pensions if you can afford to have it tied up until you are at least 55. As through that you will get tax back up to the limits as well as stock market growth. I would also always have some savings available in case you need to do work on house in something like premium bonds or an easy access account - I have one paying 0.5% you can access 3 times a year.

Also if you want to save for children there are better rates on children's accounts though again restricts use and sometimes the child will end up with control.

Pay off half my mortgage 😭😭

I’d move to a bigger house with a smaller mortgage.

How big is your mortgage?

If you use the £200k to pay down the mortgage, how much would you have in savings? No point in paying down the mortgage to then be left with no savings and no ability to face unexpected issues (from redundancy to unexpected repair costs).

Would you like/need a bigger property?

I’d look at over paying your mortgage so that you’re not penalised, but be aware that if you get married your partner can then claim half.

Mortgage is 200k, bigger house would be around 50k more. 25k in separate savings, 20k in savings for daughter and savings that we can't touch until 60.

£100k to pay down your mortgage
£100k as a deposit on a rental property on a 20yr repayment mortgage

That would make me mortgage free!

Pension above all else as for your age group state pension provision will be very limited. Also take up your full ISA entitlement. If your mortgage is on a low rate and affordable then there’s no real benefit of paying it off right now compared with sensibly planning for the future

I’d pay off my mortgage. I’d like knowing that was done and owned outright. But I don’t like the idea of owning a buy to let.

Do not buy property unless your income is sufficient to service it (plus additional tax) without tenants paying the mortgage. Seriously it’s a bad idea now as tax and other rules make it far less attractive (and I say that as a multiple landlord!)

Pay off mortgage
Pay off car loan
Put rest in savings
And do a massive shop in marks 😊

Assuming this is your inheritance. Pay some off mortgage but make sure there is a deed that states you paid this off so you get it back in case of spliting up/sale.

Pay into my pension, put some in investments, put some in DC name.

I would do all this with the thought that if I were to split up with my husband/partner in the future then I have protected my inheritance for me. In the situation that your relationship is strong and lasts the course it isn't a problem because you both gain the benefit from lower mortgage and pension income when you are older.

I'd buy a couple of houses.

I personally wouldn’t put it in pension because you then can’t access your money until a certain age.
You seem to get a better return on property, and you can sell whenever you need to, assuming there’s a buyer.

I'd buy a house to live in. I can get something suitable for £175k where I live so I could then use the rest to do up the place as I want. Or go towards general upkeep of the property

Redecorate the house.

Landscape the garden

Big holiday

New hobby equipment

Invest the rest.

Paying off the mortgage is false economy unless you pay it all off and then work less

What's your mortgage rate? Different figures but I have recently come into enough (6figure) money that I could pay off my mortgage. I'm not doing that, I'm going to extend my home and invest the balance partly in a fully paid for rental and the rest in first stock and share Isa, some in my sipp, some in Premium bonds and the balance in funds (but not tax wrapped).

My mortgage is under 1%. I should be able to significantly out perform that.

Spend it! Give some away. Treat my kids. What a lovely thought!

I'd rather it went to someone younger than me (I'm not old but not far off pensionable age), I have sufficient for my needs but plenty don't.

See an IFA and put as much as possible into your pension (subject to the limits). You'll get tax back and at 5% (moderate risk) Compound growth, that would be expected to be £700k in 25 years.

Run around dancing. Spend a load of dosh. Invest most of it.

Bit more info needed

Other savings?
What other savings do you have? 6 months cash buffer?

Possible options for savings
I'd put £4k each into a LISA for you ad your partner, rest into low cost ISA trackers

Married?

Does your partner have a pension, savings?
Have you made a will?

Kids?
What savings are set aside for them?
Have you looked at pensions for them? Even if they are non-tax payers, you can put £2880 a year in to a pension for them and the government adds £720 ta relief on top, so free cash

Pensions?
What do you have by way of pension provision? Both of you could put a large sum in to a pension, subject to your income each year?

Long term plan?
Kids going to go to uni? When will you nee the money?

Overall, have a think about your priorities for the next 5/10/15/20 years, and work out a plan that meets them. The money isn't enough to stop working now, but could be enough so that you stop working in 20 years time if you wanted to.

Finally, have a bit of a blow out and enjoy some of it, nice holiday etc..

Good luck with it, you are in a lucky postion.