Hey there! Sign in to join this conversationNew here? Join for free

Gifted £50k. Want to do something sensible, but not sure where to go from here

Announcements Posted on
TSR's new app is coming! Sign up here to try it first >> 17-10-2016

    (Original post by Pipsico)

    A bit about me
    I have a stable well paying job and house with £175k mortgage paying 1.79% on a tracker (will soon go down after these Base rate cuts)
    No debts apart from £1500 on a 0% interest card until 2018.

    I plan to treat myself with £1k of it and then do something smart with it.

    Currently have it stuck in 2x Santander 123 accounts paying 3% pre-tax and the rest in Club Lloyds accounts.

    I know there are a few financially savvy people here so would be good to get your thoughts on what to do? Or is it best left where it is?
    I'm not a massive risk take btw, and don't have time to manage a portfolio of investments. As my mortgage rate is so low, it might not be worthwhile to pay it off.

    Perhaps I could go shared ownership in a house? or?

    First, congratulations.

    As wiser people have said: your money should work for you, you're not working for your money - so, what do you want to do (in life)? Before you were gifted this money, you might have had (explicitly or otherwise) a set of goals and pots that you were saving money into, so rather than creating new pots, you now have the flexibility to fill them a little faster.

    Are you saving for retirement, how are your pension pots looking? Does early retirement appeal to you? Moving up the property ladder in the next five years? Starting a collection of classic cars? Around the world cruise? Your personal goals come before the goals that you set for your capital.

    (Original post by Pipsico)
    Yeah true about the systemic risk - i guess with Brexit we can't really predict what is round the corner. I get that it's debt financing - cutting out the bank middle man - but i'll face a similar type of risk anyway with S&S ISA presumably? Though it's equity, the risk is the same but I just won't be rewarded as much as debt?
    The risk isn't the same. If you were to invest in a diversified index fund (personal favourite are the Vanguard LifeStrategy funds), these are pretty resilient - in a recession the value of these equities will fall, and people who sell will realise a loss, but you understand what the value of these shares are at all times. You'll continue to own them regardless of what value they have.

    In a P2P scenario, a not-inconceivable default rate amongst borrowers would eat into the margins of the P2P lender to the point where the might have to fund the consumer interest payments directly from their own contingencies. How long can that go on for? Can they liquidate their assets to keep this going? (Mostly taken from a decent Reddit writeup of the systemic risks in P2P lending.)
Write a reply…


Submit reply


Thanks for posting! You just need to create an account in order to submit the post
  1. this can't be left blank
    that username has been taken, please choose another Forgotten your password?
  2. this can't be left blank
    this email is already registered. Forgotten your password?
  3. this can't be left blank

    6 characters or longer with both numbers and letters is safer

  4. this can't be left empty
    your full birthday is required
  1. Oops, you need to agree to our Ts&Cs to register
  2. Slide to join now Processing…

Updated: August 18, 2016
TSR Support Team

We have a brilliant team of more than 60 Support Team members looking after discussions on The Student Room, helping to make it a fun, safe and useful place to hang out.

This forum is supported by:
Do you like sleeping in a cold room?

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.