How to invest £280,000

[user0507]

We are very lucky to have received an inheritance from a relative. It's £280,000 so a good sum of money.

We are also in a fortunate position in that we own our own house and the mortgage is paid off. My pension is good. DH's is fairly good but he is currently (short term only) a top rate tax payer and so he can't stick extra into his pension due to the pension tapering rules. We are both mid 50s aiming to retire at 60.

What would you do with it? I think we probably need to see a financial adviser but I'm not entirely convinced that they're worth the percentage they take.

I'd look to upgrading your house fully - best investment is still property but the expensive parts are energy costs from poor insulation or upgrading to solar/air source heat pump, electric car with car charger etc. Any adaptions so you can stay in your home for longer; widen doors for wheelchair access, ramps to doors, etc.

After that have some set aside for care in the future, look at costs and likely needs from any health issues you know about.

Thirdly I'd gift as much as I could - no one wants IHT to take the lions share if anything should happen to both of you. Personally I'll be giving what I can to DC because I want to see them happy in their prime and with kids rather than struggling until I pop my clogs!

Sorry but I think putting money into house improvements is terrible advice, esp if it’s big house. Downsize and give away and/or spend is a much better idea. Who wants to give all their money to greedy care home owners? Besides upgrading property could push you into a higher council tax band is revaluation is done then you’re just giving more to the council to spaff up the wall.

Invest in the most tax efficient way possible, enjoy your life whilst you’re still young enough to. Invest more in DCs.

The point was so they can stay at home rather than having to pay for a care or nursing home. Having carers coming in is far cheaper and less stressful than a move. Making sure all roofs are not leaking and everything works while you have the money rather than being stuck with a bust boiler or roof because you've given it all away makes sense to me!

@user0507 if you do get professional advice, will you come back and share your experience?

All too often on here the advice is to speak to an IFA or similar when it doesn't make sense to do so. I thought the post from @AlastheDaffodils made a lot of sense however given your particular situation. Especially with your IHT position.

I am not convinced by someone managing my investments for me but I definitely see that a one-off "check up" or "MOT" may help clarify overall financial goals and ensure I'm not missing a trick. So it would be great to hear how it went if you do go down that road, including the type of adviser, e.g. IFA, tax specialist, financial planner etc.