# What to do with inheritance



## andrew_ (6 Nov 2012)

Good Evening,

I have just received a inheritance cheque for almost 50K and am wondering that my best options are.  

I'm in my early 30's and I have a mortgage which is only 3 years old and had 223K left on it.  It's on SVR with AIB.  I don't really want to plough it in to the mortgage or put it in long term savings/investments as if the Mortgage rates continue to rise it might just go towards that.  even some short term investments/bonds/savings option would more what I am looking for. 

I am currently paying into a BOI Life fund which has about 3 years left on it and it seems to be doing OK.  

I don't just want to lodge it into by bank account or credit union account as i think I'll just spend it!

Any suggestions appreciated.  
Many thanks


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## Dermot (6 Nov 2012)

What is the SVR on your mortgage.


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## andrew_ (6 Nov 2012)

it will be rising to 4% on the 13th November with repayments being 1030 a month.


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## mercman (6 Nov 2012)

andrew_ said:


> I am currently paying into a BOI Life fund which has about 3 years left on it and it seems to be doing OK.



Do yourself a favour and check all is Ok. Never mind what the BoI tell you. It is possible that all is not what it's supposed to be.


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## Dermot (6 Nov 2012)

I would be inclined to agree with "cashier"  and if you can live with it I would continue to pay the €1030p.m. When and if you lodge the €50000 you will get a letter showing the new balance and new repayment amount. I am just saying it might be a good habit to get into and you can revert to the correct monthly payment at any time. Make sure you have no tax due on your inheritance before you lodge it all.


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## andrew_ (6 Nov 2012)

mercman said:


> Do yourself a favour and check all is Ok. Never mind what the BoI tell you. It is possible that all is not what it's supposed to be.



Hi Mercman,  What do you mean about BOI??  I have a Trilogy II Fund S4.  Do you know anything about this fund.


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## Bronte (7 Nov 2012)

What is the remaining term of your mortgage.  Can you handle interest rates hikes?  Are you in negative equity?

I second the advice on the BofI fund.  How long have you been contributing to it, how much do you contribute, and how much is it worth.  And who has told you that fund is doing ok?  Mercman seems to be an expert on all those type of products so I'd listen to any advice he has and he doesn't have any vested interest.  

It's worrying you think you'll just spend the money.  Do you have any other debts.

Is your job secure. 

Are you single etc.  

The questions are designed to find out more about you to see what you should do with the money.


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## andrew_ (7 Nov 2012)

Thanks Bronte, 

Answered your Q's below.

I think i have 32 years left on the Mortgage, I would be in  negative equity but only by a very small amount.  Yes I could handle a slight rise in interest rates but if it goes up too much more I'd be caught out.

I have been contributing for the BOI fund for about 4.  I started out at 350pm but have since reduced to 200 as took out mortgage and could not afford to keep contributing at that level.  Its worth in the region of 12.5K but would have to check how many units I currently have to know for sure.

I have a secure job and am married.  If i was to spend the money it would be on house upgrades eg heating system, small extn etc.  Not just going to **** it against the wall!


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## deeheg (8 Jan 2013)

Hi andrew, I just received my inheritance and paid off my debts loans other than mortgage. I have about 10k left, and maybe you could advise me what to do with that, there is no point off my mortgage as it only makes about €60 per month difference and I will never have a lump sum like this again unless I win the lottery. Was thinking Rabo direct any advice from you are others is appreciated


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## DavidJohn (20 Jan 2013)

Ordinarily, I'd say, tuck the money into savings.  But, realistically what is the use of a small yearly return when you are paying a high percentage rate on the mortgage.  You need to think about reducing that debt first.


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