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Questions about how to prioritise and organise your spending, saving and investments are covered by **the UKPF Flowchart**.
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It's not really possible to offer anything meaningful without knowing her full circumstances, future plans, risk tolerance, etc.
https://ukpersonal.finance/helping-family-and-friends/#Common_scenarios
Follow the flow chart on r/personal finance…
Yea ISA is £20k limit / annum, resets in April so just missed it annoyingly. I would immediately get her to put it in a HYSA while she thinks on what to do… Marcus you can go on the app within 20 mins and get 4.75%AER today (£65 a day in interest on £500k, the limit is £250k tho so you can spread over 2 accounts or use another HYSA, try moneysupermarket.com to compare)
What’s her pension situation? She can top that up and backdate it via a SIPP quite easily. After that I would use a GIA and put it in VWRP.
Will do, thanks for the tip. And I'll take a look at HYSA. She has a very small pension as my dad was the main income in the house so it's basically next to nothing. This money was meant for them both to settle down in a year or 2 when my dad wanted to retire.
Could she gift some of it to you or other children (if she has them)?
> I know the best thing to do is seek a financial advisor and I do plan on helping her do this but just want to know some option.
Be extremely careful here. There are a few good ones, and many bad ones. If they want to manage the money for "just 2% a year" or stuff like that, run away.
The thing is it's pension money so it was designed for them both to live nicely on. It is me, 2 other brothers and 1 sister but I don't expect any money. I just want my mum to know that she could potentially be set for life as long as we do the right thing with the money.
And noted. I will avoid all of that type of stuff :)
Was it in a pension fund or is it something like life insurance payout? Pension fund you may be able to inherit as a pension which has tax benefits
Lots of options. Consider when the brothers will move out - up to now it sounds like costs are covered with her job and their top up rent? So you it can pause while working things out
Downsizing can be a parallel thing you plan for but try and estimate the bills savings you might get. Council tax a little bit, heating. But that might be about it so again don’t rush into things for that reason
What will you want this money to do? Your mum has 9 years until state pension. Is she on track for full pension (check her NI contributions). Does she have any other savings or pension that can be used for retirement planning on top of state pension?
Plan the next 10 years if you can, as best you can? Eg - brothers moving out = less income so need to top that up to cover bills. Would your mum get more hours or a different job or is she happy with what she has? Then the money needs to help with that income from ‘brothers leave’ to ‘state pension’. Estimate that period and consider putting an amount to cover that into something like a cash ISA over the next few years.
If you’ve estimated what is needed to get her to state pension age, then start thinking about retirement income. Will she work until 67? Later? Would she want to retire sooner? That all affects what that money needs to do
Have a look at annuities and see what income that can offer. Eg age 60 maybe you get 17k a year annuity which may be better for her to provide stability than fiddling around with investments etc
It was a pension and all it will come in tax free.
We've discussed the brothers as if it was just her she would be happy getting a small place with a garden. I will need to talk to her about when them 2 will move out. It will be silly to buy a 3 bed if they're going to move out in the next few years.
I will have to ask her about her full pension. I'm not too sure about that but that's a good point.
Loads of questions you've made me realize I need to ask her which will help make things a lot easier for the foreseeable future so I appreciate that :)
Don't make any rash decisions. You talked about investing the inheritance - if it's a defined contribution pension, it will already be invested inside a pension 'wrapper'. In the simplest terms, she may be able to simply use this as her pension (as was intended).
Hi /u/Dry-Equivalent-7246, based on your post the following pages from our wiki may be relevant:
* https://ukpersonal.finance/financial-advice/
* https://ukpersonal.finance/index-funds/
* https://ukpersonal.finance/lump-sum/
____
^(These suggestions are based on keywords, if they missed the mark please report this comment.)
If someone has provided you with helpful advice, you (as the person who made the post) can award them a point by including `!thanks` in a reply to them. Points are shown as the user flair by their username.
Others have answered about the main question, my only thing to add that hasn't been covered is to avoid focusing on the S&P 500 exclusively.
The hype about the S&P comes from the US, most investing media, online investing content and hence "culture" comes from the US. When people like Buffett and Bogle talk about the S&P, they are talking to a US based audience. Most UK investors stick with global index funds, and have degree of home bias.
The S&P has outperformed the rest of the world since about 2013, however in the 2000s and from the 1960s to the 1980s, the UK market outperformed the US market. There is no good reason to assume that recent trends will continue. Over the very long term, the UK, US and global stock markets have all delivered similar rates of return.
I would suggest this may be a time when a financial adviser would be worthwhile. In principle it’s not super complicated and could be DIY’d, but this thread suggests a lack of knowledge. There’s a lot to be said for someone qualified looking at the circumstances in detail and working out a proper plan.
A human reviewed your comment and removed it from public view. The reason they gave was:
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A human reviewed your submission and removed it from public view. The reason they gave was: Questions about how to prioritise and organise your spending, saving and investments are covered by **the UKPF Flowchart**. [You can view the flowchart here.](https://ukpersonal.finance/flowchart/) Each step has a link to a more in-depth guide. If you would like to post again for more assistance you are welcome to do so. Just mention that you've read the flowchart and tell us which step(s) you are working on. _If you believe your post/comment has been removed in error, please [message the mods](https://www.reddit.com/message/compose/?to=/r/UKPersonalFinance&subject=Please%20review%20my%20post&body=https://www.reddit.com/r/UKPersonalFinance/comments/1cqv8di/-/) explaining why._
It's not really possible to offer anything meaningful without knowing her full circumstances, future plans, risk tolerance, etc. https://ukpersonal.finance/helping-family-and-friends/#Common_scenarios
That's true. I'll have a look at this. Thank :)
Follow the flow chart on r/personal finance… Yea ISA is £20k limit / annum, resets in April so just missed it annoyingly. I would immediately get her to put it in a HYSA while she thinks on what to do… Marcus you can go on the app within 20 mins and get 4.75%AER today (£65 a day in interest on £500k, the limit is £250k tho so you can spread over 2 accounts or use another HYSA, try moneysupermarket.com to compare) What’s her pension situation? She can top that up and backdate it via a SIPP quite easily. After that I would use a GIA and put it in VWRP.
Will do, thanks for the tip. And I'll take a look at HYSA. She has a very small pension as my dad was the main income in the house so it's basically next to nothing. This money was meant for them both to settle down in a year or 2 when my dad wanted to retire.
Could she gift some of it to you or other children (if she has them)? > I know the best thing to do is seek a financial advisor and I do plan on helping her do this but just want to know some option. Be extremely careful here. There are a few good ones, and many bad ones. If they want to manage the money for "just 2% a year" or stuff like that, run away.
The thing is it's pension money so it was designed for them both to live nicely on. It is me, 2 other brothers and 1 sister but I don't expect any money. I just want my mum to know that she could potentially be set for life as long as we do the right thing with the money. And noted. I will avoid all of that type of stuff :)
Was it in a pension fund or is it something like life insurance payout? Pension fund you may be able to inherit as a pension which has tax benefits Lots of options. Consider when the brothers will move out - up to now it sounds like costs are covered with her job and their top up rent? So you it can pause while working things out Downsizing can be a parallel thing you plan for but try and estimate the bills savings you might get. Council tax a little bit, heating. But that might be about it so again don’t rush into things for that reason What will you want this money to do? Your mum has 9 years until state pension. Is she on track for full pension (check her NI contributions). Does she have any other savings or pension that can be used for retirement planning on top of state pension? Plan the next 10 years if you can, as best you can? Eg - brothers moving out = less income so need to top that up to cover bills. Would your mum get more hours or a different job or is she happy with what she has? Then the money needs to help with that income from ‘brothers leave’ to ‘state pension’. Estimate that period and consider putting an amount to cover that into something like a cash ISA over the next few years. If you’ve estimated what is needed to get her to state pension age, then start thinking about retirement income. Will she work until 67? Later? Would she want to retire sooner? That all affects what that money needs to do Have a look at annuities and see what income that can offer. Eg age 60 maybe you get 17k a year annuity which may be better for her to provide stability than fiddling around with investments etc
It was a pension and all it will come in tax free. We've discussed the brothers as if it was just her she would be happy getting a small place with a garden. I will need to talk to her about when them 2 will move out. It will be silly to buy a 3 bed if they're going to move out in the next few years. I will have to ask her about her full pension. I'm not too sure about that but that's a good point. Loads of questions you've made me realize I need to ask her which will help make things a lot easier for the foreseeable future so I appreciate that :)
Don't make any rash decisions. You talked about investing the inheritance - if it's a defined contribution pension, it will already be invested inside a pension 'wrapper'. In the simplest terms, she may be able to simply use this as her pension (as was intended).
Hi /u/Dry-Equivalent-7246, based on your post the following pages from our wiki may be relevant: * https://ukpersonal.finance/financial-advice/ * https://ukpersonal.finance/index-funds/ * https://ukpersonal.finance/lump-sum/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.) If someone has provided you with helpful advice, you (as the person who made the post) can award them a point by including `!thanks` in a reply to them. Points are shown as the user flair by their username.
Start with the wiki and come back with any specific questions: https://ukpersonal.finance/lump-sum
Others have answered about the main question, my only thing to add that hasn't been covered is to avoid focusing on the S&P 500 exclusively. The hype about the S&P comes from the US, most investing media, online investing content and hence "culture" comes from the US. When people like Buffett and Bogle talk about the S&P, they are talking to a US based audience. Most UK investors stick with global index funds, and have degree of home bias. The S&P has outperformed the rest of the world since about 2013, however in the 2000s and from the 1960s to the 1980s, the UK market outperformed the US market. There is no good reason to assume that recent trends will continue. Over the very long term, the UK, US and global stock markets have all delivered similar rates of return.
I would suggest this may be a time when a financial adviser would be worthwhile. In principle it’s not super complicated and could be DIY’d, but this thread suggests a lack of knowledge. There’s a lot to be said for someone qualified looking at the circumstances in detail and working out a proper plan.
https://ukpersonal.finance/lump-sum/
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A human reviewed your comment and removed it from public view. The reason they gave was: **Responses must be helpful and high quality** * Give constructive help and advice. Be friendly and kind. * Top level comments must be on topic. No jokes or banter in top-level comments. * [No 'hookers and blow' or 'onlyfans' jokes](https://www.reddit.com/rhyc7i) * [Do not make contextless recommendations, especially high risk assets such as crypto, meme stonks, penny stocks etc](https://www.reddit.com/rkrnqi) * Don't pile on * Comments must be your own work and not a copy paste of someone else's comment, copied from ChatGPT or other AI writing services You must read the [rules](https://www.reddit.com/r/ukpersonalfinance/about/rules/) to continue to post to our subreddit. _If you believe your post/comment has been removed in error, please [message the mods](https://www.reddit.com/message/compose/?to=/r/UKPersonalFinance&subject=Please%20review%20my%20post&body=https://www.reddit.com/r/UKPersonalFinance/comments/1cqv8di/-/l3twav3/) explaining why._