How would you invest/save this money right now?

[EatenTooMuchChocolateAgain]

We inherited some money from my parents last year just before Christmas and used most of it to pay off our own mortgage.

Then in March we put £20k each into 2 Cash ISA’s with Trading 212 as they had a good promo rate 4.68%.

We’ve got another £11k leftover from the inheritance which we’re undecided what to do with. We are tempted to put it in a S&S ISA, but the USA/Iran war and Trump are making us unsure if now is a sensible time to do this? The safe thing would be to stick it in a cash ISA but we’d like to maximise our interest.

DH is taking early retirement due to ill health next Easter (age 52), he has a good gov final salary pension. He’s going to take a lump sum approx £250k which we’ll need to invest. He’ll get a pension about £40k too.

What would you do with this £11k now? Would you avoid investing in US companies right now?

I think we will get a financial advisor to advise us on investing the big pension lump sum next year.

We’ve never had spare money like this so it’s all new territory for us!

I have just opened a S and S ISA. If you think about it as long term it may work out ok, I’m thinking of it that way and also putting money into a cash isa as well

I opened a S&S ISA in Febraury, today I'm plus 28p!! . Is this money you'll need short term?, if so then I'd maybe put it in a high interest easy access saving account, but check you'll stay under your annual interest limit. I'd defo see a financial advisor for your DH pension money

Long term investing means there will be periods when the value goes down, but also times when it goes up. You cannot predict when those times happen. Markets are going up and down all the time.

Cash is for short term. If loses money to inflation. Even a cash ISA at the moment is likely to lose money in real terms because your individual rate of inflation is likely higher than the interest. Consider what you spend money on: food, energy, goods/services.

There are podcasts, YouTube channels, books about investing. Learn the basics, so you have more confidence and then give it a try using a Stocks & Shares ISA.

Coming up to retirement is a good time to get advice.
Podcast/YouTube episode about the financial advice process: https://meaningfulmoney.tv/2024/11/20/helpful-basics-the-financial-advice-process/

You have not mentioned your pension… what are you putting into pension?

Unfortunately I have nothing for a pension myself, I’ve been unable to work due to disability after a serious accident since 2009, so a very long time just with ESA benefit which isn’t much. My PIP money goes towards carers and Motability car. We just have my husband’s income and future pension. I know it leaves me vulnerable but I don’t think I can do anything now really.

Thanks we will look at this:)

Now is the ideal time to invest in a S&S isa. Buy when the market is down, reap the benefits when it rebounds.

Markets aren’t down though, they are close to record highs at the moment

Even better

There are a couple of things you can do.

Firstly, check your eligibility for the state pension. This is easy to do online. If you have gaps in your NI contributions given your time out of work, it may be worthwhile 'buying' additional years. Some benefits still provide NI credits so you may have the requisite number of qualifying years, regardless. The link below has details, including when it may not be as relevant.

https://www.moneysavingexpert.com/pensions/voluntary-national-insurance-contributions/

Secondly, although you aren't working you can still add £2,880 into a SIPP and get the government top up to £3,600 each year.

Lastly, you are currently very reliant on your husband's finances. Please ensure you check what survivor protection is included in his scheme should anything happen to him. Typically you would be entitled to a spousal pension under a public sector DB scheme (often 50%) but you need to ensure that you confirm this before relying on it.

I admit that I don't know much about the ESA and PIP impacts. Or pension credits if you needed this. You may want to read up - I'm sure others could advise on good resources.