If you are lucky, there will come a time when you come into some money..It might come out of the blue, or more likely you will receive an expected inheritance. For a moment, you will be dumbfounded by the size of the cheque that falls through your letterbox. It doesn’t take long before ideas for how to spend spring to mind, but you must be wise, or you will fritter the money away and have nothing left in the end. That is fine for those who wish to live life to the max and make the most of every moment, but most of us give some thought to our future.
If you seek inspiration for how best to invest your windfall, here are some fantastic suggestions to help you along. Sort out the essential investments first and then blow the balance on a new car or the holiday of a lifetime. You are lucky; there is an exciting time ahead.
Settle Your Mortgage
When you found your home in an estate agents in Derby, Burton, or Matlock, you probably thought you would have a financial chain around your neck for the next quarter of a century. You can now pay that mortgage off and feel secure in your home. Consult a financial adviser first; they might tell you to keep the mortgage because you get a tax allowance on the repayments. I think that the peace of mind you get from owning your home is worth more than money.
Pay Your Debts
After the mortgage, you should pay off all of your credit and store cards. There is no point in paying interest on them any longer than you have to.
Invest In A Pension
Now is an ideal time to think about your future. Put some of your money into a private pension fund. You will be surprised how much it is worth in twenty or thirty years time. Now that you can take thirty thousand pounds without paying tax when you retire, it is a wise investment. You get a tax break on the money you put into a pension pot too, so it is an attractive idea.
Think about your children too. You can put cash into a stakeholder pension for them. The money that goes in is tax free, and they will benefit from it later in life.
Buy Property To let
Money is usually secure in bricks and mortar. Not only will your investment grow, but you can have a regular income from letting the property. That is the gift that keeps on giving. Who knows? You could build a healthy portfolio over time.
Put some money into ISAs and avoid paying tax on it. The individual savings accounts are ideal for investors such as yourself. There are two for you to think about; savings ISAs and stocks and shares ISAs. The latter gives a higher return for your money, but it is best to invest for a long period.
With a bit of luck, you will have plenty of cash left for your dream holiday. While the cards seem to be falling in your favour, why not buy a lottery ticket. That two-pound investment could make your rich once more. These are the headaches we have to put up with, so try to grin and bear them. Enjoy your money, you deserve it!