Financial advice.

Nothing quite like the security of not having a mortgage so I would say pay that off assuming she doesn’t have any other debts. After that it all comes down to how risk adverse she is to investing.

Not an expert on this by any means but a good managed fund (unit trusts) with a mixture of stock/shares, cash, bonds, property etc is a safe bet. Fidelity International have always generally performed well and have some of the best fund managers without taking the piss as regards their fees. Never gonna make a fortune from it but returns of 6-9% pa can be made with relatively low risk. You can even get unit trust ISAs which she should look at if she hasn’t already used her allowance for this year.
 
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

Buy lots and lots of spam, candles, paracetamol and oh yes.....build a bunker to ward off the coming zombie apocalypse brought on by Brexit.
 
Please tell her I am second in the queue behind Worsley but can she hurry up as my wife will be along soon.
 
If she can clear the mortgage without penalties I’d do that first.
There is no better feeling than being debt free.

I’d then take professional advice about what to do with the rest.
 
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
You've definitely come to the right place for advice on this.
 
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.

This is true.

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)

Being debt free is over rated. If the mortgage is cheap and affordable from her monthly income, as it’s such a small amount outstanding then leaving it in place is an attractive option.

Whilst paying off a mortgage is great, property is highly illiquid when compared with savings/investments. Proper advice would depend on her capacity and appetite for risk (there’s a risk in involved in everything, from cautious investments having the risk of inflation eroding capital overtime through to systemic and institutional risk in classic direct equity holdings).

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 .

Again her timescales are very important here. If she wants to spend the money in five years, the above here is correct, if she’s retiring in twenty years and funds are there for that time, then Brexit is completely immaterial over the long term. She can also invest in “Brexit risk-free” investments or funds (such as FTSE 100 companies that make their turnover worldwide in the US Dollar trading in oil/gas/tobacco/pharmaceuticals etc) as they’re likely to be largely unaffected by whatever our wanker politicians do at home.

She also has the option of investing in other jurisdictions that are going to be unaffected by Brexit such as emerging markets or North America.

Again, time frame and appetite for risk are the key details that would be needed to give correct advice to her.

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.

This is true of cash on deposit, in reality, after the separation of retail and investment banking post 2008, depositor protection on cash isn’t really needed if she’s with a major high street bank. The government showed they won’t let a major bank fold (not that one would due to the retail/investment separation and liquidity requirements) as it would kill confidence in the industry.

@stonerblue the tax wrapper (ISA/unit trust/bond) would depend on her personal circumstances, aims and goals bud b
 

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