I've just inherited over fifty thousand pounds
I'm 18 and and am at university, in my first year.
I've just inherited a rather large sum of money. What is the wisest thing I should do with it? (Serious answers please, I don't want to screw this up!)
Thank you.
I've just inherited a rather large sum of money. What is the wisest thing I should do with it? (Serious answers please, I don't want to screw this up!)
Thank you.
Scroll to see replies
Not spend it until you are older and wiser.
put it in a bank account and don't touch it.
High interest bank account, then you can use some of it for a masters at the end of your undergrad if you so desire.
I saved my Inheritance and it's grown vastly...Over the past 3 years lol trust me save it 
put 45K in the a building society so you collect interest and spend the 5k on what you want/need
Stick it in an interest account/bond where you can't touch it for a few years- you are at uni and don't urgently need it, but by all means take 2-3 k out if needs must. Or premium bonds.....you might win something plus you can take it out pretty much freely. Just don't waste it!
First off 50,000 is a small amount of money. Obviously you want more so try an make more using this 50,000. I would say tax free ISA 6,000, 34,000 stock market, 5,000 in a savings account and 5,000 in a current account.
This are your only real options. Unless you want to buy metals or invest in a company. However in your position I would want to have moderate security. Basically go and see a financial adviser. It will cost 500-1000, but it will give you a clear idea of what you can do.
This are your only real options. Unless you want to buy metals or invest in a company. However in your position I would want to have moderate security. Basically go and see a financial adviser. It will cost 500-1000, but it will give you a clear idea of what you can do.
Original post by DailyMailIsALiar
I'm 18 and and am at university, in my first year.
I've just inherited a rather large sum of money. What is the wisest thing I should do with it? (Serious answers please, I don't want to screw this up!)
Thank you.
I've just inherited a rather large sum of money. What is the wisest thing I should do with it? (Serious answers please, I don't want to screw this up!)
Thank you.
Use about £5000 of it to spend on things you want, need etc.
Then save the other £45,000. You can then use it as a deposit or something after uni.
1. Consider how much, by tranches, you can put away over what time frames and will not likely require to access.
2. Having allocated your funds into the time horizons consider appropriate investments for each tranche. The longer you can commit the funds the more investment opportunities should be appropriate for that tranche e,g if say a two year window then shares probably not appropriate, if longer term, and considering current inflation, a bank deposit could in real terms erode your funds.
You need to have a mix, from ready funds, to slightly longer up the time window. e.g. I never buy shares if I think I might need to sell them within seven years, other people might say five years for shares, others maybe ten.
Once you think through your likely needs the investment decisions ought to become more obvious- if in doubt take advice but try to take it from someone you trust who knows what they are doing. ( I had my Dad to initially advise me and have learned from experience thereafter)
Investment is a risk/reward equation, higher returns usually come with higher risk, spreading investment can sometimes mitigate risk, to a degree, but not always; so caveat emptor.
Word of warning- trading in and out of shares, unless you are really good at it/lucky, can seriously damage your wealth. If you are prepared to stick a tranche away in a portfolio of say investment trusts you can get a dividend yield of 4-5% net of tax, albeit with risk of prices falling but also with opportunity for prices to rise. The past figures for say £1,000 invested in shares for 50 years, with dividends reinvested ,is pretty stunning (past performance no guarantee etc)- the secret is never needing to sell into a weak market which means a long term horizon.
2. Having allocated your funds into the time horizons consider appropriate investments for each tranche. The longer you can commit the funds the more investment opportunities should be appropriate for that tranche e,g if say a two year window then shares probably not appropriate, if longer term, and considering current inflation, a bank deposit could in real terms erode your funds.
You need to have a mix, from ready funds, to slightly longer up the time window. e.g. I never buy shares if I think I might need to sell them within seven years, other people might say five years for shares, others maybe ten.
Once you think through your likely needs the investment decisions ought to become more obvious- if in doubt take advice but try to take it from someone you trust who knows what they are doing. ( I had my Dad to initially advise me and have learned from experience thereafter)
Investment is a risk/reward equation, higher returns usually come with higher risk, spreading investment can sometimes mitigate risk, to a degree, but not always; so caveat emptor.
Word of warning- trading in and out of shares, unless you are really good at it/lucky, can seriously damage your wealth. If you are prepared to stick a tranche away in a portfolio of say investment trusts you can get a dividend yield of 4-5% net of tax, albeit with risk of prices falling but also with opportunity for prices to rise. The past figures for say £1,000 invested in shares for 50 years, with dividends reinvested ,is pretty stunning (past performance no guarantee etc)- the secret is never needing to sell into a weak market which means a long term horizon.
Original post by william walker
First off 50,000 is a small amount of money. Obviously you want more so try an make more using this 50,000. I would say tax free ISA 6,000, 34,000 stock market, 5,000 in a savings account and 5,000 in a current account.
This are your only real options. Unless you want to buy metals or invest in a company. However in your position I would want to have moderate security. Basically go and see a financial adviser. It will cost 500-1000, but it will give you a clear idea of what you can do.
This are your only real options. Unless you want to buy metals or invest in a company. However in your position I would want to have moderate security. Basically go and see a financial adviser. It will cost 500-1000, but it will give you a clear idea of what you can do.
You can now invest up to £15k in a cash ISA.
Give some of it to me.
Original post by OU Student
You can now invest up to £15k in a cash ISA.
So, it doesn't mean you should put all you money into one. If you want a good rate of gain on your money the only way to get it is on the stock market. Last year I made 11.8% on 400,000 though the stock market. If you want to add any capital to the 50,000 then you need to put the vast majority where you can make the most interest. You have to hedge your bets though and make sure you can't lose money as well, so you put some where it can't lose, some where you can get easy access and some where the risk is higher but the reward is greater.
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