Financial advice.

stonerblue

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A member of my family stands to get around 130k for the shares she has in the company she works at. Company is being bought out and all jobs are safe.
She has 18k left on her mortgage plus some savings.

What would be the best and/or worst thing to do with the lump sum? Bung it in the bank, isa's or some other 'bond' type thingy?
No risky or un-ethical investments. Just the best way to keep as much of the original sum as poss'

tia
 
A member of my family stands to get around 130k for the shares she has in the company she works at. Company is being bought out and all jobs are safe.
She has 18k left on her mortgage plus some savings.

What would be the best and/or worst thing to do with the lump sum? Bung it in the bank, isa's or some other 'bond' type thingy?
No risky or un-ethical investments. Just the best way to keep as much of the original sum as poss'

tia


First off .... it would totally depend on how the share plan was structured as she may have a hefty tax bill to pay on any capital gains.


Depends .... can she earn more interest by investing than she pays on the outstanding mortgage .... if she can't I would suggest that she clears that.(and any other debt if she has any)

bearing in mind 'brexit' Id stick it in a investment (such as an ISA) that would give a guaranteed return after a period of time . Also remember that the Financial Services Compensation scheme only guarantees security of your deposit up to £80,000 so she'll need to take out two separate plans to protect her money in case the bank / building society goes bump.

or she could just buy a place abroad.
 
Simple rule to consider nearly all debts incur more interest than any medium low risk investments So my advice is if your paying more than 1.5% interest then get rid of the debt another option to consider if it’s possible is to see if the payment can be put directly into her company pension that way it can’t be taxed and most pension funds are currently growing at about 5 or 6 % so you win all round. Noting there is a limit you can put in a pension each year
 
It’s usually advisable to pay off debts first, although it depends on whether that would incur penalties. Also a good rule of thumb is to keep the equivalent to 6 months salary in an instant access account. And don’t put all your eggs in one basket
 
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