Inheritance question - what to do with the money
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Inheritance question - what to do with the moneyI am currently 16, on my 17th birthday I will inherit some money that was held in trust for me (left for me by several uncles and included in a trust set up by my grandparents) and also start to receive some income from it. The income will be £900 a month to start with and then rising to £1,200 a month initially whilst I am at University (then more later). I will receive a lump sum of £25,000 when I am 17 and about £80,000 when I am 18, then some much larger amounts at the discretion of the Trustees (my grandparents currently) when I am 21, 25 and older.
What do people think would be sensible ways to use the £25K and the £80K? Obviously I have thought about different kinds of savings plans and investments and so on but I am also quite into having nice things and just enjoying myself and maybe going on nice holidays and things. My grandparents say that would be OK to start with but they want me to treat the larger ones more seriously; I kind of feel relaxed about it as I can rely on getting enough later to fund for example a house purchase and to live well.
What would other people do with this money in my situation? I want to live fairly well at college but I don't need to buy a car or need much in the way of clothes or things like that, my parents pay for those.
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Re: Inheritance question - what to do with the moneyWell for a start, why don't you use that money to live more independently, now that you're getting to the age of an adult. I know that if I had that kind of money at that age, I would have used it to help around the house and to be my own person, rather than rely on my parents to pay for everything. So yeah, why not use it as a means to become more mature and self-reliant, while also reducing the strain on your parents (especially if they don't have lots of spare money around).(Original post by SoNottingH)
I am currently 16, on my 17th birthday I will inherit some money that was held in trust for me (left for me by several uncles and included in a trust set up by my grandparents) and also start to receive some income from it. The income will be £900 a month to start with and then rising to £1,200 a month initially whilst I am at University (then more later). I will receive a lump sum of £25,000 when I am 17 and about £80,000 when I am 18, then some much larger amounts at the discretion of the Trustees (my grandparents currently) when I am 21, 25 and older.
What do people think would be sensible ways to use the £25K and the £80K? Obviously I have thought about different kinds of savings plans and investments and so on but I am also quite into having nice things and just enjoying myself and maybe going on nice holidays and things. My grandparents say that would be OK to me to treat the larger ones more seriously; I kind of feel relaxed about it as I start with but they want can rely on getting enough later to fund for example a house purchase and to live well.
What would other people do with this money in my situation? I want to live fairly well at college but I don't need to buy a car or need much in the way of clothes or things like that, my parents pay for those.
Bella
Other than that, I think maybe one nice big treat could be nice, like a holiday and treating a really good friend or family member who has been there a lot for you by taking them on the holiday too. After that, you should probably save it. I know you say that you'll have plenty later to buy a house with and live a good life, but things can change and it's best not to waste money, just to 'live nice' while at college - it's kind of unnecessary and wasteful, especially as your friends won't be able to to the same extent, so could be kind of lonely buying lots of extravagent things which no one else can.
You could also invest the money, so that it actually is doing something and earning you money, so later in life, you'll be more comfortable.
So yeah, if it were me, I'd just use the bare minimum to pay for my living and needs and then save it. The odd treat or two isn't too bad, but don't just blow it. I know of people who have done just that - lived a crazily over-the-top life for a few years and then ended up with nothing but a flat which cost too much and a lifestyle which they couldn't keep up. -
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Re: Inheritance question - what to do with the moneyOoh I wouldn't mind being in your situation! I would probably invest 80% of that money. You sound quite sensible and not frivolous-holidays and living nicely sounds like it'll only make a tiny dent in your finances (after all most students don't spend anywhere NEAR £900 p/m). The money will always be yours so don't be afraid to invest it, put it into an ISA or whatever.(Original post by SoNottingH)
I am currently 16, on my 17th birthday I will inherit some money that was held in trust for me (left for me by several uncles and included in a trust set up by my grandparents) and also start to receive some income from it. The income will be £900 a month to start with and then rising to £1,200 a month initially whilst I am at University (then more later). I will receive a lump sum of £25,000 when I am 17 and about £80,000 when I am 18, then some much larger amounts at the discretion of the Trustees (my grandparents currently) when I am 21, 25 and older.
What do people think would be sensible ways to use the £25K and the £80K? Obviously I have thought about different kinds of savings plans and investments and so on but I am also quite into having nice things and just enjoying myself and maybe going on nice holidays and things. My grandparents say that would be OK to start with but they want me to treat the larger ones more seriously; I kind of feel relaxed about it as I can rely on getting enough later to fund for example a house purchase and to live well.
What would other people do with this money in my situation? I want to live fairly well at college but I don't need to buy a car or need much in the way of clothes or things like that, my parents pay for those.
Bella
Personally, I would spend £20k travelling on a post-uni gap year (but this could definitely be done on a lot less, its just if i had this amount of money I wouldn't bother looking for the cheapest flights etc) and then use the rest to buy a flat which I would then rent out so that I could receive a monthly income from that (after all you want to stay rich).
But yea travelling is all I'd spend it on- places like brazil, tanzania, peru, argentina... I don't know how I'm going to fund it (I'm in the red!) but I'm just trusting to fate. -
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Re: Inheritance question - what to do with the moneyWhy not leave the money in trust until you've worked out what you want to do with it? You'll still be able to access it later, and it will give you more chance to think this through.
For instance, you won't want to buy a house at this point in time, because you're about to move away into halls for uni, so you could simply leave that money in there until you graduate and work out where you're going to live post-graduation. -
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Re: Inheritance question - what to do with the moneyThanks for the suggestion.(Original post by Origami Bullets)
Why not leave the money in trust until you've worked out what you want to do with it? You'll still be able to access it later, and it will give you more chance to think this through.
For instance, you won't want to buy a house at this point in time, because you're about to move away into halls for uni, so you could simply leave that money in there until you graduate and work out where you're going to live post-graduation.
My parents and grandparents are still making regular payments into the trust for their children and grandchildren, so they say these lump sums can be spent by us on what we like, but it might be best to save at least some of it. I think they want us to learn about investing as well.
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Re: Inheritance question - what to do with the moneyI'd invest it(Original post by SoNottingH)
Thanks for the suggestion. My parents and grandparents are still making regular payments into the trust for their children and grandchildren, so they say these lump sums can be spent by us on what we like, but it might be best to save at least some of it. I think they want us to learn about investing as well.
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Re: Inheritance question - what to do with the moneyThanks, sage advice.(Original post by As_Dust_Dances_)
Leave it, there may come a time when you need money to fall back on! I think this is less likely for me than for many people due to a trust fund and likely future income and outcomes, so it's more a case that I'm free to spend or save this money.
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Re: Inheritance question - what to do with the moneyHaha, I am going to get a job in my gap year, but I am already a real person.(Original post by CUFCDan)
How about getting a menial job and living like a real person for a year?
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Re: Inheritance question - what to do with the moneyIt wasn't (particularly) a dig at you or your wealth. It was genuine advice.(Original post by SoNottingH)
Haha, I am going to get a job in my gap year, but I am already a real person.
Meet so many people who have been fortunate - and remember it is fortunate - to inherit so much and then have a go at all the poor proletarians and how they're all lazy, without realising just how lucky they are.
Working a year in, say, a supermarket, will open anyone's eyes to how difficult some people have it, and will in the end benefit you and your money. -
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Re: Inheritance question - what to do with the moneyOh, OK, I didn't really think you were having a dig. I do realise I'm very lucky, I appreciate my good situation a lot and I know I have a lot more than many other people.(Original post by CUFCDan)
It wasn't (particularly) a dig at you or your wealth. It was genuine advice.
Meet so many people who have been fortunate - and remember it is fortunate - to inherit so much and then have a go at all the poor proletarians and how they're all lazy, without realising just how lucky they are.
Working a year in, say, a supermarket, will open anyone's eyes to how difficult some people have it, and will in the end benefit you and your money.
Being honest, I wouldn't enjoy the type of job you describe, I suppose it's part of being lucky that I don't have to do things like that. I will work though. -
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Re: Inheritance question - what to do with the moneyYou think we do?(Original post by SoNottingH)
Oh, OK, I didn't really think you were having a dig. I do realise I'm very lucky, I appreciate my good situation a lot and I know I have a lot more than many other people.
Being honest, I wouldn't enjoy the type of job you describe, I suppose it's part of being lucky that I don't have to do things like that. I will work though.
It's the worst thing, but I really believe you should do it. Honestly.
My parents and grandparents are still making regular payments into the trust for their children and grandchildren, so they say these lump sums can be spent by us on what we like, but it might be best to save at least some of it. I think they want us to learn about investing as well.
