Exciting inheritance! How to hold it?

[Lionessadmirer]

My lovely uncle has left me and my two brothers £450k each after inheritance tax (we have just sent off IHT400).

For my brothers this is life changing. And it means I won’t have to support them financially.

My husband and I have a specific long term financial ambition to do with our house. But until the time comes to action that, we don’t need the money. We are both busy working full time.

my uncle self-invested nearly all his money via hsbc and ii. Given what I say above, is the sensible thing to do the same?

lastly, how should isas be used here please?

thank you and please raise a glass to our uncle who lived well and died content.

It was clear from the original post that she loved her uncle and she is obviously amazed and thrilled to be receiving such a lot of money so why should she not be excited!?

Absolute nonsense. Personal finances are confidential.

My financial advice was to take proper financial advice and not from social media.

@FeelingSoDizzy So £450,000 is modest is it? What rubbish. Plus your idea of investment management is pants too. You don’t use wealth management and you have no idea who is working on investment strategies! I think companies with decades of managing wealth are there because they do a good job. I really don’t want the hassle of tracking and changing my investment portfolio! It’s not my expertise or interest to be honest. So stop telling people they are being fleeced. What is the size of your portfolio by the way?

Plenty of advice to get an IFA who charges one-off fees but I've never found one. It's also useful to have one on hand for tax matters

We used a tax adviser and requested a day rate.

Why are you getting so angry - if you don’t want to divulge info uni one can force you. It’s a discussion, participation is voluntary.

I have never requested your unsolicited “help”. Which seems to consist of browbeating posters with what you heard on YT. I am not ‘nervous’ nor are my my finances ‘uncomplicated’.

Thus you resort to personal insults.

Apparently unaware that a diverse portfolio may contain global index trackers - but they are not the be all and end all you seem to think and you’re apparently unaware of their downsides.

I’m not angry I’m bored, and it’s not a discussion - merely a series of personal attacks by posters trying browbeat others to their way of thinking.

Ah - you sound angry not bored.

No. I am saying that £20k does not mean everything to everyone with £2m. That some will prioritise other areas of their life to spend their time on than infinitely maximising their wealth when they already have enough to live comfortably.

*Every bloody penny is earned."

Like previous posters, you have no idea how the uncle got his money. You're another poster attributing character and worth to the fact he was wealthy. He could have won it on the pools for all you know. He could have been a slum landlord or a drug dealer*.

And then sticking money into an investment portfolio isn't "earning" in any positive sense. Earning suggests effort and work and enterprise. Again, you don't know.

(*And, again, I don't know either. It's pretty unlikely he was a drug dealer! Most likely, he "earned" his wealth by owning property in the late 20th century, sitting on it, and banking the massive rise in property values since then. )

What are their downsides?

You should know..

To be fair, if you choose to put your money into a FTSE100 tracker, it isn't really passive investing is it? You're making an active decision where to allocate your money. Why the FTSE100 and not the FTSE250? Why not the S&P500, DAX, emerging markets, etc.?

The only true passive investing would be a global tracker and, even then, you're making a choice to invest in equities instead of bonds or the debt market.

As my nan used to say, money always goes to money. Sounds like that here.

A friend's father was CEO of an S&P500 company. He told us that 'money always shits on the biggest pile'.

Do Rebel finance school, free on you tube. Both the Donegans are financially independent.

It’s not, be glad for her

exciting - unexpected - smashing - sizeable - doesn't matter really !

You sound a petulant teenager. You’re on an investment board and have stated there are downsides to global index trackers. I was interested to know what they are.

If you choose to put your money in an FTSE100 tracker, it most definitely is passive investing. All trackers are passive as the name suggests. They just track an index and buy/sell according to what’s listed in the index. The only differences between a FTSE100 tracker and a global tracker are difference in performance and fund fees.

Yes, you have to decide where to put your money but that’s not what it means to be actively or passively invested.

@TeenagersAngst

The whole concept of passive investing is that you don't attempt to pick winners and just follow the market. Making a choice to invest all your money in a FTSE100 tracker is an active attempt to pick a winning market, so that defeats the entire concept of passive investing.

The FTSE100 has done well this year, but you'd have done much better over longer periods if you'd invested in a global tracker. My global tracker has almost twice the return of the FTSE100 since inception. It's also comprised of more that 1000 companies across the planet and it's arguably much more diversified across sectors (despite the concentration in USA tech).

So you insult me then want my feedback. What could be more teenage than that?

If you’re extolling the virtues of self money management you must know the downsides of global tracker funds. If not, you can do your own research.

I came here for the OP.

Choosing a FTSE100 tracker is not the same thing as fund picking.

Obviously you have to start somewhere and choose a fund otherwise you'd never invest your money. But trackers are all passive investments. Regardless of which index they track. Some perform better than others but that's determined by the performance of the companies listed on that index. That's why it's passive.

Ok, clearly we're on some AIBU/Investment hybrid thread which no-one told me about.

Usually on this board, people share their knowledge. But if you don't want to, that's fine.

I'm not sure why one poster is getting so angry? Certainly no personal insults were thrown by me. If someone is comfortable with their investment choices and returns then they are free to ignore opinions which seem contrary to theirs. However we seemed to have touched a nerve.

For my own part, I claim no professional financial expertise, just a lifetime as a keen private investor. Sadly my parents died fairly young leaving a sizeable inheritance for my family, which I was designated to manage for my sons, who were minors at the time.
DH and I both have degrees in Economics/Finance and DH ran his own financial services company until retiring a couple of years ago.
DS (26) works in the city as a software developer for a big financial institution.

And I can honestly say I've never watched Rebel Finance or any other finance YouTube videos! I do, however, spend a lot of time reading MoneyWeek, browsing TrustNet and Interactive Investor, which is our chosen platform.