Inheritance at 32

[lucyjane27]

32, married with a 10 month old baby. Both of us self employed. Business has been slow this year.

I’ve inherited a property worth approx 500k and also some cash about 100k. Property is split between me and a sibling who is also getting 100k. Will get the cash once the property sells so all done at same time via solicitor. So all in all, I’ll receive about 300-350k depending whether the house sells for the asking price. Had a lot of viewings but the property needs work (new bathroom and kitchen and general decorating throughout) and seems to be off putting even after dropping the price significantly.

Husband and I have a mortgage with 200k which myself and husband are planning on paying off once the property sells. No other debts.

We both have about 50k each in ISA accounts earning very slightly more than our mortgage interest rate. Baby girl won’t be going into nursery, so we will be sharing care of her between us with occasional grandparents help.

My question is, what would you do with the remaining 100-150k? Invest? Savings account?

Lookup the financial flow chart, i am rubbish at links so can’t link it for you.

It sets out the steps to follow, to be financially healthy.

so sorry for your loss, but take time to decide what to do.

When do you think you would want to access the money?
If <10 years then I wouldn’t invest.
if not until retirement then consider a pension.

Second the financial flow chart.

As self employed people, is there anything you can invest in to improve your business incomes?

Although if your industry isn't doing well, perhaps retraining or another change in direction might be better?

Otherwise pensions, home improvement, sensible car purchase and some on a holiday might all be good uses of the money after making sure you have a decade amount of cash savings.

I’d look at pensions and securing your long term future. I did this in my late teens and early 20s. I’m now in my early 50s, and the money I invested then is making up over half of my pension when I take early retirement in a few years time. Speak to a fa for advice on this

How secure is your marriage……I’d ring fence the money for your child so that if worst happens and you divorced he wouldn’t be entitled to all 50% of it ….

If using a financial adviser be wary of the rates they charge for their services, the charge for the "new money invested" and the annual fee.

Max out isas for you all for the year, then consider premium bonds to hold it until you have a plan, whilst it’s not guaranteed, usually the prizes beat the interest rate!

I've put my money (a little bit more than yours but under £200K) away in a Halifax bank deposit account earning £500 pm which I think is quite generous.

If you’re going to do this, make sure you don’t put more than £85k per account holder with any one bank (unless it’s a very temporary high balance meeting specific criteria), as that’s the maximum FSCS protection so if you put more than that and the bank fails you may not get all your money back

Pensions as it’s tax efficient and will have years to compound. Set aside £40 K for savings of you don’t already have any.

Pension pension pension