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£50k @ 18 vs £150k @ 25 vs £1mil @ 30 vs combi.

Which would you choose and why?

Option A : £50k in cash at 18.
Option B : £150k in cash at 25.
Option C : £1mil in cash at 30.
Option D : £200 per month at 16, £1k cash + £300pm at 18, £450pm + £70k at 25 and £900pm + £250k cash at 30, the £900pm will then go up every year at CPI and every 5 years CPI+5%

If you select option D then you can't change it but it doesn't prevent you from taking up any steps to gain more in income.

If you select any other then for as long as you had not taken the money you could opt not to take it and wait till the next option.

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Reply 1
Option B. I could pay off my undergraduate and postgraduate studies in one fell swoop, leaving myself with plenty of money to get myself settled in a life, perhaps abroad.

The £1million at 30 is tempting, but I have my own plans to have more than enough money by then.
Probably option A, invest it during the time I'm at uni then buy a flat when I graduate, or I'd at least be able to put a fairly large deposit down. By the time I reached 25 it would probably be worth the same amount as option B due to savings in rent, if not more if those savings were invested too.
Option E.

Kill all the Palestinians and take their ****.
Reply 4
Original post by Helloworld_95
Probably option A, invest it during the time I'm at uni then buy a flat when I graduate, or I'd at least be able to put a fairly large deposit down. By the time I reached 25 it would probably be worth the same amount as option B due to savings in rent, if not more if those savings were invested too.


Do tell how you could invest with an average of 17% after taxes return per annum.
Skewed way too young in my opinion. Spend twenties studying then working interesting and undemanding if low-paid job. Party and learn skills. Collect £1m payout at 30. Invest wisely, live on interest. Do occasional work and pursue personal projects to remain sharp.

Putting it more simply you are never going to make £850-950k between 18/25 and 30. Work anyway to earn what little extra you can and position yourself with influential contacts.
Original post by Alfissti
Which would you choose and why?

Option A : £50k in cash at 18.
Option B : £150k in cash at 25.
Option C : £1mil in cash at 30.
Option D : £200 per month at 16, £1k cash + £300pm at 18, £450pm + £70k at 25 and £900pm + £250k cash at 30, the £900pm will then go up every year at CPI and every 5 years CPI+5%

If you select option D then you can't change it but it doesn't prevent you from taking up any steps to gain more in income.

If you select any other then for as long as you had not taken the money you could opt not to take it and wait till the next option.


C because i made 50k net in my third year of uni

so im fine
Original post by pane123
Option D. Unless I have I got this completely wrong, it's worth more than any of the other options.


A lot more I expect but unless you have a good career anyway or are very family oriented you want that money fairly early in your life for enjoyment. Also remember you can probably make CPI+5% through own investments anyway unless we have a serious economic shock.
B

So can use that money to start my business:h:
Reply 9
Original post by scrotgrot
A lot more I expect but unless you have a good career anyway or are very family oriented you want that money fairly early in your life for enjoyment. Also remember you can probably make CPI+5% through own investments anyway unless we have a serious economic shock.


Everyone on TSR mentions "investments". I would like to know what these investments are, as they seem to be a sure thing. Option D would mean you had earned almost £400,000 by the time you're 30, which is almost impossible for most people of that age. Also, 30 is still very young and being a bit skint until then is more than worth it.

I actually meant to pick option C, which is why I deleted my original post. I agree with what you said in post #6.
Original post by Alfissti
Do tell how you could invest with an average of 17% after taxes return per annum.


7% return, you also have to consider that the value of the flat will rise and you've saved a bunch on rent which is also invested. Admittedly that probably still puts you at around 70k flat + 50k savings but I'd still rather go for that and start managing my money earlier.
Original post by Alfissti
Which would you choose and why?

Option C, because it seems like the most to me?
Reply 12
Original post by leedswest
Option C, because it seems like the most to me?


It actually is if you take PV and FV into account.
Reply 13
Original post by rickfloss
C because i made 50k net in my third year of uni

so im fine


What did you do to earn that kind of money?
Reply 14
Looking back, I'd have taken D. These days I'd take C.
Id be happy to wait for C...
Only got 8 years to wait, besides.
For me personally I wouldn't go with option A or B. I feel that I would have just wasted the money at 18 whereas option B would have came a bit too late. £100k on graduation (at 21/22) would have been ideal for me so I could have gone to law school, bought a car and moved out of my parents house.

C is very tempting but I think I would go for D. I would save most of it but I would still be able to enjoy my early twenties more. It would also mean I could be more selective when it came to getting a job.


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I would probably pick D but I'd have to estimate how much it was.
Option C.
I'd finish Uni and pursue the career I wanted whilst suffering the repayment of loans, but then when I hit 30 I get the 1 mil payout. Find a good bank to invest it in an account with and live off of the yearly interest whilst I continue to work and earn more as I get older. The more money I have in the bank, the more interest I can live off of :P


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Reply 19
Original post by rickfloss
C because i made 50k net in my third year of uni

so im fine


Hi, I'm Bob from HMRC, 50k you say?

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