Investment planning inheritance

[GaiaWise]

Bear with me, it’s a little complicated!

I am in my late forties, DW (Same sex couple), is in her fifties, retired with a decent pension topped up with pt work. I am about to start a new post after closing my business and not working for a year due to poor mental health. I need to be wary in case I become unwell again.

I will then rejoin LG scheme where i have 11years in hand. When I went self employed, I used an IFA to set up a private pension worth circa 80k and currently not going well in current climate.

i am intending to rejoin my LG scheme and overpay as much as i can, as well as paying into the private pension again . My new income should provide is with 1 -:1.5:k per month that we can save/ invest,

we have no mortgage on our modest but big enough family home in a cheap city. No plans to move.

2; children whom currently have 15k each night in trust fund accounts that they can access from 18.

we currently have 20k in virtually no interest bank savings account. Plus 20k in S and S isa. I could double that this tax year and my DW could open her own.

my mother is keen to do drops of money for the children 10k each last tax year, 20 next tax year and 50:k each after April 2023. She is happy for us to spend it as we see fit so could be invested into our names, or she has mentioned BTL. I am not comfortable with thIs due to ethically concerns, however, nor do I want them accessing their pots at 18 . If I’d had that , I would have bought booze, drugs and spent the at Camden market!

we see also due an inheritance of 80 k this year.

it would be amazing if I could have advise on the way forward. I am mindful that I may not be able to manage work and I don’t want to be v poor!

so to summarise - 200k coming this year, 1k minimum amount a month to invert. No mortgage. I will be earnings 35k all being well. Wife pensions 1.5.k. Paid work about 600 pm. 20k in regular saver and 20 I’m stocks and share.my pensions 11;years Lg pension Andrew private pension 80000.

so if you have read all of that you deserve a medal!

moving on, i havre detailed our currently situation .

coming in we have 20:from relatives two kids thins year plus another 100k next year. To ne used as went see fit, plus inheritance of area of 80k.

what is the best way to invest? Pension?

would need to keep someone available due to my health vulnerabilities

would love your thoughts ,

thank you.

LG=Local Government? Is it the LGPS and if so what is the retirement age?

Accessibility of money I think is something you need to look at. Pensions are usually the place to put money for long term but the age restriction on access means that you could have a big pile of money in pension but need the money earlier.

S&S ISA at the moment has £20k... I would add to that. Build up a pot of money which is invested, but which is accessible should the need arise.

I would also be adding to the work pension but try to get some guidance from the pension scheme, or from a work Union, about how you could buy additional years in the defined benefit scheme and if doing so if worthwhile, vs using Additional Voluntary Contributions to build up a defined contribution part of the pension.

DW can also pay in to a defined contribution pension or SIPP. Without an income she can pay in £2880 per year which gets tax relief, meaning it becomes £3600.

Consider cashflow... do you have sufficient instant access savings? Is that parked in as high an interest account as you can get? It won't be much, 1.5% perhaps, so still goes down due to inflation but that cash buffer is like insurance, it is there so you have money should you decide to take some time off work, should an unexpected expense occur.

Thanks NannyNick.

Yes it’s LGPS, standard retirement age is 67 (no doubt 68 by then - I’m 47) but you can request early pension or flexible pension at 55 onwards. I will be maximising what I can pay into it.

i didn’t know that DW can get a SIPP, that’s definitely worth exploring. She is mid fifties so I assume that she would be able to draw down money immediately if needed , the added Government tax relief is better than any savings we can access.

We have 20k in instant access atm, this is about 5 months basic living (bills, food, petrol etc). Once I start work I have decent sick pay benefits if needed. DW’s job doesn’t pay sick leave but she will always have her pension.

You mention ethical concerns about BTL... Just want to say, I'm a lovely landlady, really go the extra mile for my tenants (I always seem to choose more fragile people who would struggle elsewhere).
Providing a safe and secure home for someone who needs one in these difficult times is the most ethical thing I can think of doing with my money! Yes I get money from it (below market rent even before these crazy times) and I certainly have to do quite a bit of work for it (definitely not passive income).
So don't immediately exclude this option from your list - I'm sure you'd be a lovely landlady too!