Guide · Life event
Do you need a financial adviser for a large cash lump sum?
The first decision after receiving a large lump sum does not have to be an investment decision. Work out what the money needs to do first.
You do not have to invest immediately
A large cash balance can create pressure to act quickly. It can be reasonable to separate short-term commitments, tax or known spending from money intended for long-term goals before deciding how much investment risk to take.
Why did the money arrive?
An inheritance, business sale, redundancy payment and property sale can create very different planning needs. The source of the money often changes tax, time horizon and emotional considerations.
When might advice be useful?
Several goalsThe money needs to fund retirement, family support and long-term investing at the same time.
Tax wrappersYou need to understand how pensions, ISAs or taxable investments fit together.
RiskYou are moving from cash into investments and want a personalised recommendation.
SizeSmall percentage differences in ongoing fees become significant on a large portfolio.
Compare service and fee structure carefully
Large portfolios can make percentage-based advice expensive in cash terms. Ask about tiers, caps, fixed-fee alternatives and what ongoing work is actually included.
Sources & further reading