I have inherited £7.4 million and I am panicking on what to do

[jtinc07]

One of my relatives recently passed away and for some reason I was in his will but like I said in the title I have no idea on what to do.

 

[changingtides]

@jtinc07 1, Keep your trap shut until you speak to professional folk.

2, Retire and travel the world.

3, Enjoy the rest of your life.

 

[christiangirl2002]

@jtinc07 Get professional advice not reddit! Tax, financial & accounting..

Enjoy!

 

[oulex44]

@christiangirl2002 Here's a good one, text all of your friends individually with a message to say that you are really stuck and need £300 to clear a debt that is going to spiral out of control if you can't pay it by the end of the week.
The replies will tell you who the friends are and will come in useful when people come knocking with their hands open.

 

[jesusisworthy]

@jtinc07 Okay firstly DO NOT TELL YOUR FRIENDS OR FAMILY, not till you get your head around it first.

Get professional advice (the most important thing)there is an excellent post somewhere on Reddit about what to do if you win the lottery, find it and read it.

Found it below. The first post is why, the second post is what to do. While the scale of money is different the principles are the same. It might not apply to you or be perfect but it raises some interesting ideas for you to consider.

https://reddit.com/r/AskReddit/s/quhcB37QdL

Ultimately don't rush yourself to do anything, once you get the money in some form of savings (an advisor can tell you what), then time is on your side. The money won't go anywhere.

All this said, sorry for your loss. They must have been close to give you such a generous gift.

 

[irenerachel]

@jesusisworthy Came to recommend that post!

Also, OP - DO NOT RESPOND TO ANY DMs ON HERE SAYING THEY CAN ‘HELP’ YOU!

 

[fliphkd06]

@jtinc07 Delete this Reddit account, by all means set up another. Congratulations, your relative meant you only the best when leaving you what is a life changing sum of money.

Don’t do anything immediately, speak to a Financial Adviser and consider which bank you want to use.

Please don’t respond to any DM’s, nobody sending you a message after reading your post and messaging you privately has your best interests at heart.

Do not tell any of your friends at this point. Others here have posted some fantastic links, take some time to read them.

All the best, I hope you are able to relax eventually and remember to enjoy the simple things in life.

 

[jaemelo]

@jtinc07 Don’t tell anyone, hire a legit financial advisor, and don’t listen to anything anyone on Reddit says!

 

[maddleyy]

@jaemelo How do you find a good financial advisor? I see this get recommended but if you’re not financially savvy where do you start? Sorry if this is an obvious question..

 

[mccristin]

@jtinc07 Congrats on the inheritance.

Stay calm and don't mention the money to any friends or relatives.

Get a good accountant and invest in some advice about efficient tax planning.

Then think about your ambitions and lifestyle preferences for the next 1-3 years.

Do you want to keep working or studying?

Do you want to go travelling?

Do you want to buy a property to live in, a boat or a caravan?

What type of hobbies and interests do you have?

Thanks to your relatives good fortune and generosity, you now have the time & money to spend on doing the things that you most enjoy.

Good luck!

 

[tippytip]

@mccristin Thats a very condensed , reasonable , down to the point advise.

I’d suggest to speak to someone about it. reddit is good for anonymity but i wonder if there are specialists whose niche is kind of the subject OP talks abt. I mean psychotherapist, coach, mentor?

 

[pvalencia6]

@jtinc07 Sorry to hear about your relative.

This happened to a mate, he won some money, not 7.5 million, 100K. He told *nobody* in his family, he told me because I've known him 47 years and we trust eachother, so we hatched a plan that gradually, over the next few years, he'd 'be lucky', 'get promoted' etc etc with h igher salaries, stock options from jobs he didn't have etc etc until gradually, after about 3 years, that 100K had 'naturally' worked its way into his life.

In your case, unless it's too late already, TELL NOBODY.

GET SERIOUS FINANCIAL ADVICE from trustworthy sources; presumably your relative would have had such contacts to have amassed that fortune in his lifetime and maintained it. I am not sure how to advise.

DO NOT, under ANY CIRCUMSTANCES trust any offers of help from here or anywhere else online; a fool and his money are soon parted.

And yes, he bought me something nice too!

And when the dust has settled and your head is set straight again, enjoy it, see what good you can do with it!

 

[fshs75]

@pvalencia6 Why do you need to hatch a plan for 100k? He’s not exactly gonna turn up in a Maybach one day after purchasing his new mansion. It couldn’t be easier to pretend the spend is just from savings or an investment that came in.

 

[startemple]

@fshs75 Yeah 100k is not even worth worrying about really,m, I mean it gives you an OK deposit on a cheap property these days. Still a life changing sum for most people, but not like you can start living like a rock star on it

 

[ws82]

@jtinc07 My honest advice would be to set aside £10k and go on an incredible all inclusive two week holiday so that you can get your mind together. Then find a financial advisor and start to work through options

 

[tanjaw]

@ws82 For a second I thought you were suggesting they take a £7.39m vacation and “save” themselves £10k for later!

 

[kimotaku]

@jtinc07

1. Wait. Inheritance can take YEARS to clear.
2. You will likely have to pay A LOT of tax on that, maybe half.
3. When you have it all in a bank, and the tax is paid... then you have X million. Well done.

What to do!?
1. Get a small, but nice place to live in a location you would like to live long term. Now you have no rent. Do not buy a mansion they cost a fortune.
2. Buy a nice (not flashy) car. Now you have transport.
3. Work out the minimum you need to survive (not thrive, just survive .. it won't be much) stick 3 years of it in an account called "emergency"
4. Split the rest of the money into 4. A,b,c,d.
A. Invest in an index fund, sp500, or something. Leave it alone.
B. Invest in an a high yield fund, that yeild is your new income. It's not much but it's probably better than a minimum wage job.
C. With savings accounts giving 5%+ you can stick it in savings for now and the interest is additional wage for you. Don't spend the capital.
D. This is the most interesting lump. It's for you to build a life with. Buy a garage if you want that career, buy a fishing shop and work there, something that will make you money and keep you genuinely happy and interested. Build an app. Don't rush into this bit, and if you can fail on your first few attempts with burning much of this pot the better.

Overall, you probably ended up with 3million, meaning the pots are 750k and each one should be making you 40k per year. One is finding your retirement, one is now, one is fun, and one should give your life a purpose.

You're not going to be buying a mansion, or a new lambo. But you make more than 8/10 people without having to have a job! So relax and find what YOU want to do.

 

[josephz]

@jtinc07 Sorry for your loss.

The biggest problem you'll find here is your emotions. Going from a modest background to being a multimillionaire has funny effects on people.

It's important to take your time making decisions.

You'll be temporarily covered by FSCS protection when it lands in your accounts, so there's no rush to get it all spent or invested on day 1.

Book yourself a holiday somewhere nice. Take a week to just process the inheritance, and also think about your short, medium, and long term goals.

Book an appointment with an independent financial advisor (IFA). Explain to them your short, medium, long term goals. They will likely come up with other propositions to make sure you've thought about different options. They'll help you make savings, investment, spending suggestions and suitable financial vehicles for each.

Do make sure to check their fees before meeting with them. Remember that you don't need any long term relationship with them as well.

Similar to lottery winning advice, as this is lottery level sums of money, don't go round telling people about it. It might be that some family already know or will inevitably find out, which is fine, but you'll be surprised how many problems can arise by telling people you've just come into 70 grand, let alone 7 million.

 

[petrielo]

@jtinc07 Go and look at your bank account balance at an ATM is the first thing I’d do

 

[natasreficul]

@jtinc07 Perhaps hire a professional advisor and don’t rely on people on Reddit