Investing inheritance money

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Investing inheritance money

Post by gbuk » Fri Jan 19, 2018 4:12 am


I've been reading the forums here for a while to try and resolve my investment issue, but have still not managed to find a way through it. I'm based in the UK and have opened an ISA account with Vanguard and hold in it the Target Retirement 2030 Fund - Accumulation which I have maxed out for this year (April 6th 2017 - April 6th 2018 and the max UK ISA allowance being £20,000/annum).

I've recently inherited £80,000 so I will max out the ISA for April 6th 2018 - April 6th 2019 by paying in a lump sum of £20,000 on April 6th 2018. My plan is to repeat this on an annual basis until all the £80,000 has been invested in the ISA. However, this'll take me a period of four years before all the £80,000 has been invested into my Vanguard ISA fund.

My problem is I'm not sure if I should invest the remaining £60,000 I will have this year after April 6th? I have a LifeStrategy 60% Equity Fund with Vanguard outside of my ISA so is it worth me putting the remaining £60,000 in there and just transferring £20,000 in lump sums into my ISA on an annual basis?

Best wishes,


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Tyler Aspect
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Re: Investing inheritance money

Post by Tyler Aspect » Mon Jan 22, 2018 8:44 pm

You could invest the money now in the taxable account. An alternative would be to purchase bank deposits with staggered fixed terms that upon maturity you could put into the retirement program each year.
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Re: Investing inheritance money

Post by midagelawyer » Mon Jan 22, 2018 9:12 pm

Under these circumstances, I would invest the other 60K in a taxable account immediately and continue to save the 20K in the ISA account using income, just as you have been doing. If it makes sense to tax-loss harvest and accelerate your ISA savings, go for it. If it means incurring capital gains (especially at, god forbid, short term capital gains rates) then just keep investing at your regular pace.

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