What would you do...

Kai

Kai

That Limey Bastard
Staff member
May 18, 2006
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rationalrecipes.blogspot.com
...if you were given £96,000? ($195,264.83 for you lot)

Cause this just happened to me as a result of an inheritance payment. It's part of a large lump sum left to me after my mother passed away just before christmas a few years back. Now i'm 25, it's being released to me in lumps as well as being given a monthly stipend from a trust. Now, before you start calling me a rich kid (you know who you are!
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), bear in mind, this is a one off, and to be quite honest, i dont like the idea of having this much, i'd much rather have a parent instead.

So - what would you do with the money? It's not enough to buy a house with (yet), but how much interest could you accrue on that if you stuck it in a savings scheme? ISA's? Stocks & Shares? I have no idea what to do with all this and would appreciate suggestions on what do do with it (aside from spending the lot on the supe!) :)

TIA
 
Supracentral

Supracentral

Active Member
Mar 30, 2005
10,542
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Kai said:
...if you were given £96,000? ($195,264.83 for you lot)

Cause this just happened to me as a result of an inheritance payment. It's part of a large lump sum left to me after my mother passed away just before christmas a few years back. Now i'm 25, it's being released to me in lumps as well as being given a monthly stipend from a trust. Now, before you start calling me a rich kid (you know who you are!
action-smiley-042.gif
), bear in mind, this is a one off, and to be quite honest, i dont like the idea of having this much, i'd much rather have a parent instead.

So - what would you do with the money? It's not enough to buy a house with (yet), but how much interest could you accrue on that if you stuck it in a savings scheme? ISA's? Stocks & Shares? I have no idea what to do with all this and would appreciate suggestions on what do do with it (aside from spending the lot on the supe!) :)

TIA
Click to expand...

Two words: Financial Planner

And not one that works on commission. One that YOU pay for financial advice.

Trust me, that's a good enough start to make you fairly well off 25 years from now.
 
Kai

Kai

That Limey Bastard
Staff member
May 18, 2006
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rationalrecipes.blogspot.com
Thing is - the way it works is that 96k is part 1 of 6, one part released every other year from now on. After that, theres still a monthly stipend of just under £1000 a month (£920 or so).

Theres more coming. I had considered trying to invest in property - but that little would maybe get me a shitty bedsit or a garage somewhere - seriously, property prices here are INSAAANE.

I've spoken to an IFA (independant financial advisor) and they all say the same thing - property or government bonds....i dont have enough for the former and the latter is...well...i dont trust the government with my tax money, let alone that much!

Shame i'm not eligible for a mortgage with the stipend :/
 
LilMissMkIII

LilMissMkIII

That Aussie Chick
Aug 18, 2006
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Aussie Land
Definitely go see a financial advisor and get an SoA (Statement of Advice).

Do you have any other income at the moment?

What about expenses?

Based ONLY on the information you have provided, i would suggest investing in a managed fund (or a few managed funds), and also plead you to put a percentage away into a retirement fund also.

Please feel free to pm me with the other info, and i can make a few more suggestions :)

Btw - i am close to be a qualified financial advisor, and deal with advisors' plans all day every day, so i'm not just talking out my arse :)
 
Kai

Kai

That Limey Bastard
Staff member
May 18, 2006
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Portslade, England
rationalrecipes.blogspot.com
Oooh - handy to know K :)

Well, other than the monthly stipend, nope, no other income. I'm not working either (i'm unemployable apparrently - being disabled and intelligent is a bad thing by the looks of it).

Current expenses are....um...£50 a month for food, nothing for petrol, insurance or tax (car is still off road, ed's not fixed it yet). No rent to pay atm.
 
Supracentral

Supracentral

Active Member
Mar 30, 2005
10,542
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My advice still stands Kai. Just do it a bit at a time. Seeing as how your expenses are so low, you should be able to keep a little for yourself (ALWAYS pay Kai first) and then invest the rest.

LilMiss seems to be giving some sane advice. I'd at least give her a listen.
 
Kai

Kai

That Limey Bastard
Staff member
May 18, 2006
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Portslade, England
rationalrecipes.blogspot.com
Well for a retirement fund - i definitely see the point - one of the other lumps can be that (i suggest the last one - should be enough, tacked onto my state pension).

As for percentage rates of interest in most savings account - whats typical? 2.4%? 3%
 
Poodles

Poodles

I play with fire
Jul 22, 2006
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It's compound interest as well... the longer it sits, the larger it gets as you get interest on the interest already earned...

You're set for life if you manage the money properly...
 
Kai

Kai

That Limey Bastard
Staff member
May 18, 2006
3,138
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36
42
Portslade, England
rationalrecipes.blogspot.com
Thats why i was left it. That and my father is such a shit, my brother and i got his share :)

7% sounds like a decent rate - i'll probably end up with 90k in one of those...I'm assuming its APR, so £96,300 at year end - so i end up with 300 more than i was initially given in the first place - which sounds like a good idea...

With 3/4 lumps in there, that would be enough for me to live off. I'd still work - i cant just sit on my arse all the time doing nothing. Even now i'm doing gardening and maintenance to keep mysef feeling useful...
 
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