What should I do with £25,000?

[Quanticom]

I’ve just received this legacy from my dm. Please could I have suggestions as to how best to use this?

Im 57 and mortgage free. Unsure of where to put this or how best to use it. I don’t have any savings so this is my only cushion.

Thank you :).

Personally id pop it into Premium Bonds whilst you think it through. They are instant access and you can transfer the money straight to your bank account from your phone.

DS has put £1k in there that he got in similar circumstances and has won 3 x £25 in less than 6 months which was way over the 0.01 % that his bank were offering.

I've just opened a savings account with Zopa (app only) as MoneySavingExpert gave it as a top instant savings account. Very quick and easy to set up and move money into and out of if you have online banking.

I’d open a SIPP. You’ve got ten years to retirement and this could be a nice extra.

I’d open a SIPP. You’ve got ten years to retirement and this could be a nice extra

So you wouldn't recommend that the OP keeps 3-6 months of expenses in an easy access account?

OP is over 55 so can withdraw from a SIPP with no early withdrawal penalty. So if disaster strikes, can take out up to 25% tax free. Any other savings, you’re going to pay tax on all the returns.

So, I’d put in £8k this year, get the free £2k from the Gov. £8k next year, free £2k from the Gov, £8k the 3rd year another free £2k from the Gov. So that’s £24k of the £25k OP has invested and by start of 3rd year, they already have a £30k pension pot (and £1k to keep in savings or whatever).

@PritiPatelsMaker
Or as you say, the OP can put it in premium bonds and hope they get £1,875 (based on your DHs lucky returns of £75 per £1k) instead of a guaranteed £6,000 added to their account via a SIPP. 🤷‍♀️

I’d put 20k in a stocks and shares isa for long term growth and 3k in the highest interest easy access savings account for cash if you need it easily and spend 2k on something beautiful to remind you of your mum.

I wasn't being funny @Discovereads I was genuinely interested in why you gave the advice. I'd never heard of SIPPS till you mentioned them and wondered why you weren't giving the usual advice if having expenses at hand.

And yes, DS has been extremely lucky with the Premium Bonds.

I'd put 20k in an ISA.
2-3 Vanguard trackers - Whole World, Europe and/or UK.

The rest in a savings account or Premium Bonds - for a rainy day.

Use it to pay your energy bill for the next few years.

(Kidding. I hope.)

All the above suggestions are eminently sensible, so bollocks to that. Why not go on a massive sex and drugs bender? You know it makes sense.

I’d go on a nice holiday. Any remaining I’d put in SIPP.

Thanks for all the replies and advice. I forgot I’d posted - will read through now.

I’ve forgotten how to do the sex bit and I’ve never done the drug bit - maybe now’s the time to start!

Sorry for your loss, OP
I would use a small amount for something that will give you pleasure, either an item or an experience, maybe something that will make you think of your mum.
Then invest the rest in a SIPP as PP advised.

Premium Bonds .

Premium bonds.
Or solar panels and a battery.