Large inheritance due - how best to use it?
Discussion
I'm due to receive a large inheritance in the next few months, in the order of £80,000, possibly more. I have £115,000 outstanding on my mortgage and my gut instinct is to pay a chunk of it off, perhaps £50,000. In the current economic climate, is that the best thing I could do with that amount of money?
Its a difficult one with the upside down economy we have now. You will get buttons if you keep it as cash and if you put in other assets like property or the stock market you could take a bath if interest rates are finally forced up as the govt loses control of inflation. The steam may go out of classic cars as well.
Given the spread between what you willl get on deposit and what you are paying on the mortgage I would pay a chunk of that off. It's a great feeling to get that millstone off you neck. When our deeds arrived in the post we walked up to the pub at 11-30 AM and had a drink to celebrate Chancellor of the exchequer f
you day. Still worth what it cost a decade on.
Given the spread between what you willl get on deposit and what you are paying on the mortgage I would pay a chunk of that off. It's a great feeling to get that millstone off you neck. When our deeds arrived in the post we walked up to the pub at 11-30 AM and had a drink to celebrate Chancellor of the exchequer f
you day. Still worth what it cost a decade on.Everyone says that property is the best investment for cash. I disagree. I can't ever see the days where property prices are double / treble that of today's prices. Certainly not like they have for the generation before me who have basically messed everything up.
Personally I'd pay some off the mortgage to reduce the interest you pay the banks but not too much. As for the rest I'd be putting £20k into an appreciating classic car that you can use and with the rest just enjoy life. Go to Vegas, go traveling, whatever. It's boring just having money sat in account that will ultimately be de-valuing.
Personally I'd pay some off the mortgage to reduce the interest you pay the banks but not too much. As for the rest I'd be putting £20k into an appreciating classic car that you can use and with the rest just enjoy life. Go to Vegas, go traveling, whatever. It's boring just having money sat in account that will ultimately be de-valuing.
KingNothing said:
Riley Blue said:
The mortgage is in my partner's name as she still works but I consider it 'ours'.
[cynical PH'er mode]Don't pay the mortgage off, the house will be in her name, so when she kicks you out and moves in the milk man you've got no recourse.
[/cynical PH'er mode]
Slap an eighty grand second charge on it in your name, and pay seventy nine grand off her mortgage
[/tonker mode]
Invest some for the future
Save some for a rainy day
Spend what you have to spend
and piss a little
so using teh above
buy some shares, supermarkets and utilities are paying good divis at the mo
put some in an account to offset the mortgage
you needn't use any of it for this one
and buy yourself a new toy.
Save some for a rainy day
Spend what you have to spend
and piss a little
so using teh above
buy some shares, supermarkets and utilities are paying good divis at the mo
put some in an account to offset the mortgage
you needn't use any of it for this one
and buy yourself a new toy.
tighnamara said:
Yawn Yawn...
You don't like pensions, think everyone has the picture by now.
Wouldn't mind being a supplier/provider. Probably some good returns to be made there. Not so sure being a customer's got much to commend it, unless, of course, you're great at investment or some santa's putting up the cost.You don't like pensions, think everyone has the picture by now.
As George Best suggested (I think it was him) spend some of it on wine, women and song and waste the rest.
Seriously, life's too short, so enjoy it. Just bought my first TVR at 59 and am doing track days and having a lot of fun polishing it.
The rest of my inheritance is going towards a deposit to buy a bigger house with a grand-dad and granny annexe, so that we can live with the kids and grandkids. That way we all get to enjoy the grandkids' childhoods instead of our daughter and her husband working silly and opposite shifts just to pay the bills, and nobody enjoying the one chance of a life time to watch them grow up.
Seriously, life's too short, so enjoy it. Just bought my first TVR at 59 and am doing track days and having a lot of fun polishing it.
The rest of my inheritance is going towards a deposit to buy a bigger house with a grand-dad and granny annexe, so that we can live with the kids and grandkids. That way we all get to enjoy the grandkids' childhoods instead of our daughter and her husband working silly and opposite shifts just to pay the bills, and nobody enjoying the one chance of a life time to watch them grow up.
burwoodman said:
What is good about them? The sellers make plenty. the buyers make nothing. Actually negative real returns in most cases.
Ah but that's because you don't UNNERSTAN' them. A pension's really just a tax-free wrapper...you're confusing it with the underlying investments it contains....(yap yap yap ad nauseamus...) 
burwoodman said:
tighnamara said:
Yawn Yawn...
You don't like pensions, think everyone has the picture by now.
What is good about them? The sellers make plenty. the buyers make nothing. Actually negative real returns in most cases.You don't like pensions, think everyone has the picture by now.
I've insured my house buildings for 30 yrs. Never had a claim, and know that I probably never will. How many houses burn down? Very few. But...because i have house insurance, I can go out, go on holiday, enjoy my life. Without house insurance, I'd never go out, and have buckets of water in every room, just in case of fire. So, it's money well spent. It buys me security and freedom.
An annuity gives a guaranteed income for the rest of your life. So you don't have to worry about using up all your money. Sure, most people won't reap a financial benefit, and will die before exhausting their input, hence making the insurer money. I realise that. I expect them to make a profit, they wouldn't do it otherwise. But I might just live to 106, and if I do, I won't be potless. It's the reassurance I'm paying for.
Am I the only one who sees this? Sometimes I wonder!
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