What would you do?

[LadyFlumpalot]

Hi all, looking for some opinions. I'm about to receive a fairly hefty sum of inheritance and I don't really know what to do with it. (Yes, I know, nice problem to have etc).

I've whittled it down to two options.

A) Chuck it into premium bonds and use it to bolster the equity in our house when we come to move next in about 5 years time (I would have the money ringfenced by a solicitor at that point for my protection). Bonus points if it wins me the million pound jackpot in the meantime.

B) Both husband and I are stressed to fuck with work and struggling badly with mental health. I have been toying with the idea of using the inheritance to fund a 6 month sabbatical for us both so we can relax, have fun, reconnect with each other and the kids and take time for our hobbies. It wouldn't leave us with anything material and I would have lost it in the event of a relationship breakdown BUT it would make a massive difference to our quality of life and our relationship.

This is an unexpected inheritance so it is not money we are depending on for anything. Nor do we have any debt apart from mortgage.

I know what my heart wants to do...But what would you do?

Could you do both? A 3 month sabbatical. Rest in premium bonds.

Personally, I'd worry about the 6 month sabbatical. Firstly, I'm not sure id enjoy it knowing I was 'wasting' the large sum of money. Then I think I'd spend a lot of it stressing about going back to work. Could it be that 6 months full time together could make things worse (I certainly need the structure and work/reward routine to support relationship) Finally, when you go back to work, nothing will have really improved as you'll go back to being stressed but you then won't have the money.

Could you reduce time I.e. spend 6 weeks travelling and then put the rest in premium bonds to reduce mortgage. Does mortgage reduction means earlier retirement therefore reducing stress?

That is obviously just my opinion and I think you should do whatever you both feel is best and don't look back.

Use some of it to fund working part time rather than a sabbatical?

I think the sabbatical would be amazing short term but may feel like a waste of money long term, and you might spend most of that 6 months dreading going back to work.
Is there a way of saving most of it aks using a bit to drop your hours and get a better work life balance?

Can you pay down your mortgage and both go part time, or look for another, less stressful job, as you could afford to take a lesser paid job.

Premium bonds have a limit of £50,000. X2 with your partner of course.

As regards a sebbatical, is now a good time when you can't travel?

Would it make a big difference to mortgage payments (term and or length) so you could both cut hours down?

Apologies all, fell asleep!

The sum isn't enough to pay down our mortgage, or let us go part time for long. It's equivalent to just over a years wage for both of us - hence the sabbatical idea.

I think, however, that your concerns echo my own and I'll stick with the wise decision and keep it back for equity. We are starting to outgrow our starter family home and this sum will allow us to look for an extra bedroom, study and a bigger garden without increasing our mortgage (which was a concern) when we are ready to move. It's a windfall sum (my mum passed away and it's money from some long lost relatives on her side so I never ever expected or even knew about it.)

I've been daydreaming about giving up
work and retraining to turn my hobby into an income (think design studios in the countryside, a wood burner, comfy sofas, a dog sleeping at my feet) and I think coupled with the information about receiving this sum my wishful thinking was getting the better of me. If that makes sense?

Thank you all for your wise words.

Do the sums and work out how much you would actually need for your sabbatical. My husband and I took 6 months out in 2019 and travelled around Europe. We only spent £10k on the travel, plus £3k on bills while we were away. If you have everything you already need for your hobbies and aren't planning travel it won't be as expensive as you think. But 6 months is a long time to be at home doing hobbies, maybe 6 weeks to recharge would be better without too much anxiety about going back

There's not much point in having a sabbatical now, is there? It's not as though you can go anywhere.

Maybe "sabbatical" is the wrong word. We know we can't go anywhere, not that we could travel with the kids anyway even without COVID.

I mean more that we just don't have time or energy for each other or the kids or anything that isn't just surviving one day to the next at the moment. So my idea was to fund a period off work to put that right. To work on the house, finish some maintenance DIY, cook proper meals, spend time with the kids that is focused on them etc.

First of all I'd buy in the maintenance work. It would be done quicker and presumably to a higher standard.

I know you're both under stress but is it necessary for both of you to give up work? Could you reduce your hours temporarily? Do you think there would be a problem with either of you not wanting to return to normal afterwards?

It just seems really drastic for both of you to stop work for a while. What if you couldn't find work to return to? You could find yourselves much worse off financially in a couple of years' time.

You are right. I've been very stressed for a while (I work in logistics and export - you can imagine I'm sure how my job is at the moment) and over the weekend I just thought "what if..." and the thought stuck and niggled.

It's like - my mum died a year before retirement and all the fun stuff she'd been working towards and saving for - she never got to do. I never ever thought I'd be in this position and I'm scared that something similar will happen to me, that I have the chance to make something special for my DC.

But, long term I think lower mortgage payments and more space is by far the most sensible option.

Is it enough so you could both go to a 4 day week?