£800,000 lump sum - what to do

[Lovingthesunshinetoday]

Title says it all really!
money is from an inheritance.
me and DH both mid 40’s
2 kids at primary state school
mortgage Is £350,000 at 1% until end of 2026

Both happily work full time.
Combined salaries of around £150k so day to day we are comfortable.

I will use our ISA allowance and premium bonds for all 4 of us.

Still £600,000 and I don’t know what to do with it to make it work for me.

is property investment a good idea for some of it?

any suggestions very welcome!

I’m aware i might need advice but also don’t know where to start.

SIPPs for you and your husband, and again at the start of the next tax year

I’m not a religious woman, but please lord let my first MN post be similar to this one! 😅

Laughing Boy on the 3.30 at Catford?

The obvious and by far the most trouble free property investment IMHO is to pay off your mortgage

I have no idea where you live BUT you will probably only be able to buy one BTL, many letting agents well, if they were complete crooks and scumbags that would be a major improvement, and you are at the mercy of your tenants financial and personal affairs

Has anyone suggested pensions for your DCs yet?

If you put in £2,880 pa for any non-taxpayer (including children) the govt tops it up to £3,600. Do that every year until they are adults and give it to them as a 18th/21st birthday present! The good news is that they won't be able to touch it until they're 57 or so, by which point it should have grown into a decent sum.

This!

If you're looking for somewhere very safe to park the money with a tax advantage on the gain, have you considered low coupon, short dated gilts?

These are bonds issued and backed by the UK government, and sold on the secondary market, with a set redemption date and a small amount of interest 'the coupon' paid twice a year.

On maturity they are repaid at a set premium, but this capital gain on the gilts is tax exempt. It's become quite a popular investment for those who have used up their ISA allowance.
The advantage is you can calculate exactly what return you will receive before you buy the bonds both for the coupon and the capital gain at maturity. You can buy a series of bonds (a bond ladder) to mature over several years, and then reinvest if it suits you. If you need the money in a hurry you can resell the bonds at the market rate.

(IFAs are unlikely to recommend them as they don't attract any commission).

https://www.moneysavingexpert.com/savings/uk-gilts-lower-tax-savings/