What would you do?

What would you do?

Author
Discussion

Diderot

Original Poster:

8,763 posts

207 months

Yesterday (18:59)
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Long story short.

I‘ve inherited my father’s estate and after all is said and done (with IHT) I’ll have about £750k by the Autumn once a property is sold. Our mortgage is roughly £240k (we have a lot of equity in it), so I’m thinking get rid of that (my wife had an inheritance so would not quite go halves but I reckon I’d stump up £140k of it) asap.

I have a very good final salary pension scheme, as does Mrs Diderot. We have a business together too. I’m not thinking of retiring within the next 4 years when I’ll be 62 so will still be earning, paying in, and running our Ltd. .

No other debts.

My instinct is to buy a rental property in the local area (say £350k) and then what? … that’s the question. Is buy to let a good plan given the new regs?

I have no experience in investing, but I’m fairly risk averse. I have been thinking about an investment car (probably not a good idea but could be a bit of fun too). But beyond that, what?

Yes, I’m going to get independent financial advice. I also have an accountant FWIW.

Thanks in advance.

lizardbrain

2,857 posts

52 months

Yesterday (19:16)
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Do you want to be a landlord? Money is supposed to buy freedom to do what you want to do

AndyAudi

3,468 posts

237 months

Yesterday (19:21)
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Do you have family?

If so

Sharing Experiences & making memories
Plan a big holiday or few for the future
Things you & others look back on fondly

(I’ve landed up as a landlord it’s not all it’s cracked up to be)

okgo

40,503 posts

213 months

Yesterday (19:46)
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Ferrari(s).

fourstardan

5,583 posts

159 months

Yesterday (19:52)
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Being mortgage free would be my preference if I could settle the thing.

You'll have early settlement fees of course.

Maybe downsize and invest a bit for the future generation?

I'd quite like a cheapish bolthole abroad if I could.

John D.

19,282 posts

224 months

Yesterday (20:06)
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Pay off mortgage.

Buy a nice car.

JoshSm

1,277 posts

52 months

Yesterday (20:20)
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Depends what your mortgage is costing whether it's worth dumping a lump into that.

Paying it off usually has no real benefit in itself beyond whether it's a better return than putting the same cash elsewhere.


bitchstewie

58,833 posts

225 months

Yesterday (20:30)
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£750K is "never need to work again" money for a lot of people.

I'd take some time and consider your options and think about what you really want and what it could enable either directly or simply having it there if you needed it.

toasty

7,990 posts

235 months

Yesterday (20:35)
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AB

18,404 posts

210 months

Yesterday (20:36)
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On the face of it, mortgage paid off and £500k in the highest interest account you can gives you a decent amount each month more than you have now.

Nice problem to have. I wouldn't be spending it on a BTL, it's a pain in the arse.

Slow down on work a bit and enjoy yourself.

Sheets Tabuer

20,296 posts

230 months

Yesterday (20:41)
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Kids have mortgages?

AndyAudi

3,468 posts

237 months

Yesterday (21:01)
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Sheets Tabuer said:
Kids have mortgages?
This is a good shout, have suggested it to others
Sometimes even an extra £10-20k at remortgage time is enough to drop the loan to value on whatever they’ve left & reduced payments significantly.

NiceCupOfTea

25,413 posts

266 months

Yesterday (21:10)
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What I'd do:

1) pay off mortgage
2) financial advisor - invest the rest, low risk profile, take a monthly payment from it without eating into the capital. If you don't need all the money then reinvest into the capital.

Simpo Two

89,067 posts

280 months

Yesterday (21:20)
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Pay off the mortgage, invest the rest. Being a landlord is a job, a specialist job, and it can easily go wrong. I have absolutely no regrets about selling a rental property and investing the proceeds.

NB I wouldn't choose low risk; I think you'd be better off with medium or above in the long run.

caziques

2,732 posts

183 months

Yesterday (21:32)
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Invest some of it in forestry.

Diderot

Original Poster:

8,763 posts

207 months

Yesterday (21:49)
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Thanks one and all. I should have said, no kids (we married late). In a way it d be much simpler with them. Do have nephews and nieces though, and I plan to help them out where I can obviously.

It s all a bit weird really. I m from working class stock and my parents have imparted an amazing work ethic - they did well in London and as an only child left it all to me. Both of them saw how hard I ve worked to get this far and so I have no guilt on that score thankfully. But I don t want to fritter anything away for obvious reasons.

Yeah being a landlord looks like a pain in the arse, but property should be a safe place to park some of the dosh.

As a mate of mine said recently, that s a life changing amount of money, and now it s about to land it is really beginning to sink in.

Car wise, I already have my pretty modest dream car - 991. But I could be seriously tempted by some other metal!

Thanks again chaps.




okgo

40,503 posts

213 months

Yesterday (21:56)
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The reason I said Ferrari was that it didn’t sound as if you particularly needed the money given the strong pensions (beyond mortgage settlement and now maybe extended family gifts), added to that - you’re not 30 years old so any investment would leave me thinking ‘investing for what?, and with no kids, investing for who?

You’re at the point of life most folk invest for IMO but you’ve already got it sorted, this seems like icing on top, unless there’s some other area we aren’t aware of.

Half of the replies here would be appropriate for someone mid career with kids and no golden pension, BTL would be the very last thing I’d be doing. I make some assumptions that these pensions and business are likely to meet your retirement expectations of living.


Tango13

9,526 posts

191 months

Yesterday (22:45)
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There is no way in heaven or hell that I would buy a BTL if I were in your situation.

The whole idea of money is to make your life easier, less stressfull, fewer things to worry about and a BTL with a wker of a tenant will have the opposite effect.

Remember Michael Gambons' speech in 'Layer Cake' about taking st?

Eddie Temple said:
You're born, you take st. You get out in the world, you take more st. You climb a little higher, you take less st. Till one day you're up in the rarefied atmosphere and you've forgotten what st even looks like.
Swap 'st' for 'stress' and you've got the idea. Basically you've made it to the top of the Layer Cake Son... biggrin

Max out your ISA if you haven't already done so, same for premium bonds and invest the rest in something low risk.

I'd be gifting amounts to nieces and nephews but not huge amounts, just enough to be life enhancing, not life altering, Giving them a hand up, not a hand out.

And for the love of Christ and all that is Holy do not buy a BTL!

Sheets Tabuer

20,296 posts

230 months

Yesterday (23:02)
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Ok in the absence of kids I'd go ARCC, AV, BATS, CCH, LGEN, MNG, PHNX, TW, VOD and LGTXA with some in the S&P, premium bonds and high rate saving accounts. Obviously after maxing ISAs and stuff.

Wouldn't touch a BTL with a barge pole.

ETA know jack st about investing so don't listen to me.

Tango13

9,526 posts

191 months

Yesterday (23:24)
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Diderot said:
WTAF are all those acronyms? ?
Maybe they're those acronyms anoraks use for airports and they're suggesting you go on a round the world trip?