Finance Help

Do I really need a financial adviser to invest my inheritance, or can I do it myself?

September 7, 2026

Meet Sarah: 54, employed, and recently inherited £120,000

At Talis IFA, we often meet people like Sarah; she’s sensible, organised, and perfectly capable of managing everyday finances. She contributes more than the minimum amount to her workplace pension, avoids expensive debts like credit cards, and saves regularly. But after receiving a £120,000 inheritance from her aunt, she found herself facing a more complicated question:

“Can I invest this money myself, or is it worth paying for professional advice?”

In this article, Talis IFA answers some of the typical questions we hear from people like Sarah, who want to know what a professional financial adviser can do that they can’t do themselves with the help of today’s online investment tools.

I’ve always managed my own money. Why would I need an adviser now?

Many people can manage day-to-day finances perfectly well. But a large, and perhaps unexpected, lump sum changes the picture. Suddenly you’re dealing with tax implications, investment strategy, pension allowances, and long-term planning. These decisions are harder to reverse, and the stakes are higher.

The question isn’t “Can I do this myself?” it’s “Can I afford to get it wrong?”

For someone in their 50s, financial decisions have a shorter time frame in which to achieve their goals, or to correct mistakes. An IFA helps you make decisions that support your financial goals, and avoid knee-jerk reactions that might later turn out to have been costly mistakes.

What’s the biggest risk if I try to invest the inheritance myself?

The most common problems with investing without professional advice aren’t necessarily related to the investment itself. They tend to be around not being able to see the bigger picture, or not fully understanding how different areas of tax interact with each other. For example:

• Putting too much into the wrong type of account, and accidentally triggering avoidable tax.
• Missing out on pension tax relief, especially if you’re a higher-rate taxpayer.
• Conversely, not understanding the annual and lifetime pension allowances, which can lead to unexpected tax charges.
• Investing too cautiously or leaving money in cash for too long, which can erode its value through inflation.
• Taking a higher level of risk than you’re comfortable with, because you relied on generic online guidance rather than a personalised plan.
• Making decisions emotionally, especially after a bereavement.

None of these is dramatic on day one, but over 10, 20 or 30 years, they can add up to become a series of costly mistakes. On the flip side, advice from an IFA may seem to gain you only small benefits initially, but over time, those small changes add up to a big difference when your money has been working at its hardest for you.

I’m thinking of putting most of my inheritance into my pension. Is that sensible?

It could be, but it depends entirely on your personal circumstances, including your tax position, your retirement timeline, and how much you’ve already contributed.

For someone in their mid-50s, pension contributions can be extremely tax-efficient. If you’re a higher-rate taxpayer, every £1,000 you contribute might cost you only £600 after tax relief, making it a powerful way to boost your retirement savings.

But you need to be aware of the bigger picture:

• your annual allowance
• how pension withdrawals will be taxed later
• how you’ll balance pension saving with accessible savings for a decade or more

An IFA can work through models of different scenarios so you can see the long-term impact of each choice.

Can you give me an example of how advice from an IFA might change my decision?

Let’s look at Sarah’s situation as an example.

Sarah told her IFA she wanted to retire at 62, but also scale down her working week in a few years. But she was worried about losing higher-rate tax relief if she reduced her working hours.

Her Talis IFA looked with her at some options:

• Sarah could use £60,000 of her inheritance to maximise pension contributions over the next three years while she’s still earning at a higher rate.

• She could keep £20,000 in accessible investments to support her income once she reduces her hours.
• She could place £40,000 into a diversified investment portfolio to grow over the next decade and supplement her retirement income.

This structure gives her tax efficiency, flexibility, and long-term growth without locking away too much money.

If Sarah had gone for a DIY investment option, she might have put the whole £120,000 straight into her pension. That’s not necessarily wrong, but it wouldn’t have been the most appropriate or optimal solution for helping her to achieve her financial goals whilst also supporting the work-life balance shift she’s looking for.

What problems can an adviser help me avoid?

The problems people encounter, like the solutions, depend on individual circumstances. But here are some common pitfalls that an IFA can help you avoid:

• Overfunding pensions and accidentally breaching allowances
• Triggering the Money Purchase Annual Allowance (MPAA) by making a taxable withdrawal too early
• Holding too much in cash, especially during periods of high inflation
• Investing without a clear strategy, leading to potentially expensive knee-jerk reactions during market dips
• Not planning for the gap years between stopping work or reducing hours and accessing pensions
• Misunderstanding how pension withdrawals are taxed, which can reduce your income unexpectedly
• Creating an unnecessary inheritance tax liability for your estate, because estate planning hasn’t been structured efficiently.

An IFA will look with you at your current overall financial position, and identify the opportunities for your money to be managed in the most tax-efficient way. They’ll also help you to clarify your goals – looking first at how you want your life to be, and what your plans are for leaving a legacy. Only once they understand that will they look at the numbers. At Talis IFA, we call this our ‘life first, money second’ approach, meaning that, while the numbers are important, the most important thing is to understand what you want your money to achieve for you.

What’s the real value of advice from an IFA in a situation like mine?

There are three main things that professional financial advice from an IFA can give you that you can never get from an online platform or AI:

1. Clarity

By working with an IFA you get a clear, personalised plan showing how your capital can support your retirement goals, not just generic guidance. An IFA will also explain everything to you in plain English, so that you fully understand your options and the likely outcomes of your decisions.

2. Confidence

You know you’re using tax allowances properly, investing appropriately, and avoiding common pitfalls. You’ll also become more confident in making financial decisions as you begin to develop your understanding of the financial world. And because an IFA has full market access, you can be confident that they have researched all the options available and tailored their recommendations to your needs. Finally, an IFA will be transparent about their fees, so you know up front exactly what you are paying for their advice, with no hidden extras.

3. Continuity

An IFA will review your plan with you regularly. As tax rules change, markets shift, or your life, finances and goals evolve, they’ll work with you to adapt your strategy.

DIY investing can give you a sense of control. Working with an IFA gives you control, clarity, confidence and continuity.

Is ongoing advice necessary, or can I just get help from an IFA once?

Again, it depends. Some people in your situation only need one-off advice to structure their capital appropriately. Others prefer ongoing support to keep their financial planning on track. At Talis IFA, we usually work with our clients for the long-term, because the better the relationship, the more value we can deliver. Our clients recognise this, and often what began as a one-off request for advice turns into a long-term relationship.

The key is that you choose an adviser who is right for you. Look around, ask for recommendations, and above all, choose an IFA whom you feel comfortable talking to.

Final question: what’s the biggest benefit of speaking to an IFA before making a decision about how to invest an inheritance?

Peace of mind. You’ll know that an experienced professional has understood your circumstances, taken the bigger picture into account and thoroughly researched the markets before making their recommendations. So you’ll be confident that your capital is working hard to support your future, protect you from avoidable tax, and give you the retirement you’ve worked for.

At Talis IFA, while we use all the technology available to us, our role is reassuringly human. We’re here to understand your goals, and help you make confident decisions as you prepare for your financial future – whether that’s retirement, or any of life’s big moments.

Find a Talis IFA.

This article is for information only and does not constitute personal financial advice. Financial decisions should be based on your individual circumstances, and you should seek professional advice before taking action. Tax rules can change and their impact depends on your personal situation.