HELP what to do with inherited money??

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whitenight674
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I have inherited a large sum of money (15k) from a great grandparent passing and I'm not sure of what to do with it?? i'm usually hopeless with money so i don't just want to blow it like usual, i want to be sensible and put it to good use. i've asked my family and friends but they have all given different repsonses,
- my uncle told me to put it in a fixed rate ISA : https://www.leedsbuildingsociety.co....ixed-rate-isa/
- my nan (a very pessimistic woman) told me to take out a funeral plan! https://capitallifefuneralplans.co.uk/funeral-plans
and my friend has told me to try with trading as I could basically double my money with the right advice

if anyone has had a similar situation, what have you done? and has it worked?
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Muttley79
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(Original post by whitenight674)
I have inherited a large sum of money (15k) from a great grandparent passing and I'm not sure of what to do with it?? i'm usually hopeless with money so i don't just want to blow it like usual, i want to be sensible and put it to good use. i've asked my family and friends but they have all given different repsonses,
- my uncle told me to put it in a fixed rate ISA : https://www.leedsbuildingsociety.co....ixed-rate-isa/
- my nan (a very pessimistic woman) told me to take out a funeral plan! https://capitallifefuneralplans.co.uk/funeral-plans
and my friend has told me to try with trading as I could basically double my money with the right advice

if anyone has had a similar situation, what have you done? and has it worked?
You don't need an ISA as you won't pay tax on the interest on £15K.

Don't take out a funeral plan!

Don't do trading either as there are sharks out there.

How old are you? If you think you might want to get a house then I'd look at using it towards a deposit. Maybe look into a LISA: https://www.moneysavingexpert.com/sa...lifetime-isas/

Don't listen to randoms on here suggesting 'good ideas' - use an expert like Martin Lewis.
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dani_05
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(Original post by whitenight674)
I have inherited a large sum of money (15k) from a great grandparent passing and I'm not sure of what to do with it?? i'm usually hopeless with money so i don't just want to blow it like usual, i want to be sensible and put it to good use. i've asked my family and friends but they have all given different repsonses,
- my uncle told me to put it in a fixed rate ISA : https://www.leedsbuildingsociety.co....ixed-rate-isa/
- my nan (a very pessimistic woman) told me to take out a funeral plan! https://capitallifefuneralplans.co.uk/funeral-plans
and my friend has told me to try with trading as I could basically double my money with the right advice

if anyone has had a similar situation, what have you done? and has it worked?
Hi whitenight674, I personally don't have any experience with this but I would split the money between fixed rate ISA and trading. You don't want to blow it all on trading because it could be gone in an instant so do make sure to save some. Hope this helps!
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Catherine1973
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I would still it all into a high rate fixed isa for now. Yes you are not currently taxed but as your savings build, best to have it all protected. Save it towards a house deposit. Do not trade it and potentially lose it. Maybe do that later when you have a good income and can afford to maybe lose it.
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whitenight674
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(Original post by Muttley79)
You don't need an ISA as you won't pay tax on the interest on £15K.

Don't take out a funeral plan!

Don't do trading either as there are sharks out there.

How old are you? If you think you might want to get a house then I'd look at using it towards a deposit. Maybe look into a LISA: https://www.moneysavingexpert.com/sa...lifetime-isas/

Don't listen to randoms on here suggesting 'good ideas' - use an expert like Martin Lewis.
i've had a look on money saving expert but i just wanted a human opinion, if anyone had an experience with anything. i'm not really interested in buying a house yet hence why i wanted to put the money in a safe place until i'm ready
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whitenight674
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(Original post by Catherine1973)
I would still it all into a high rate fixed isa for now. Yes you are not currently taxed but as your savings build, best to have it all protected. Save it towards a house deposit. Do not trade it and potentially lose it. Maybe do that later when you have a good income and can afford to maybe lose it.
do you know the criteria of what to look for when picking an ISA?
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SkanPad
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Disclaimer: I'm not a financial adviser, do your own due diligence.

With £15,000, I would invest it into an LISA and regular ISA, preferably the Vanguard LifeStrategy 100% Accumulation Fund.

Put £4,000 into the LISA which can be withdrawn to either put a deposit on a house or for retirement, my favoured investment within is the above fund. I'd put the remaining £11,000 into a regular ISA with Vanguard directly, again into the above fund. I'd then contribute savings towards the regular ISA when possible. The LISA has a yearly cap of £4,000.

If you're in doubt, talk to an independent financial adviser. Do not make investment decisions without doing your own due diligence.
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V℮rsions
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(Original post by Muttley79)
Don't take out a funeral plan!
Can I ask why not?

I have no expertise on the topic or suggestions for OP, just browsing and genuinely wondering why you wouldn't recommend it. Curious for the future I guess
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SkanPad
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(Original post by V℮rsions)
Can I ask why not?

I have no expertise on the topic or suggestions for OP, just browsing and genuinely wondering why you wouldn't recommend it. Curious for the future I guess
Speaking for myself, the funeral plan that my grandparents used paid for itself thrice. It would've been better putting the money aside separately, adjusting for inflation of course. That said, it depends on the person, for some, they may pay X and the funeral costs Y, or others pay X and the funeral costs X. A funeral plan starting in student years is incredibly stupid mind.
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ROTL94
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Improve your life with it.
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Muttley79
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(Original post by SkanPad)
Speaking for myself, the funeral plan that my grandparents used paid for itself thrice. It would've been better putting the money aside separately, adjusting for inflation of course. That said, it depends on the person, for some, they may pay X and the funeral costs Y, or others pay X and the funeral costs X. A funeral plan starting in student years is incredibly stupid mind.
Funeral plans are a con - you can access the deceased persons account to pay for their funeral - it just comes out of their estate.
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JMo03
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Over the last 100 years, the average returns on the S&P 500 have been 10% a year. Over 10 years, 15 grand becomes almost 39 grand. 15, it becomes almost 63 and 20, it becomes just over a hundred grand. Say you retire in 45 years, you now have 1,093,375 pounds. The stock market, in the long run, is stable and has continued to grow exponentially. So long as you are investing long term and don't want to take risks, this is the best thing to do.
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Muttley79
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(Original post by Jmoore12)
Over the last 100 years, the average returns on the S&P 500 have been 10% a year. Over 10 years, 15 grand becomes almost 39 grand. 15, it becomes almost 63 and 20, it becomes just over a hundred grand. Say you retire in 45 years, you now have 1,093,375 pounds. The stock market, in the long run, is stable and has continued to grow exponentially. So long as you are investing long term and don't want to take risks, this is the best thing to do.
You cannot predict the future and with Brexit and the pandemic/future pandemics - shares are a huge gamble.
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JMo03
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(Original post by Muttley79)
You cannot predict the future and with Brexit and the pandemic/future pandemics - shares are a huge gamble.
The S&P is a US index and therefore is insulated against brexit and has reached all time highs during the pandemic. It's not an individual share, it is an index of the top 500 US firms and is insulated against shocks to any one company. US stocks do well in boom and bust times because the S&P is like gold and is where people put their money during a recession and also grows during a boom phase for obvious reasons.

Given that I explicitly stated that this would be a long term investment, the risk is very low as, despite the last 100 years containing the great depression, the 2008 crash and the pandemic, not to mention numerous other shocks, the US stock market has achieved excellent returns. To call it a huge gamble is just totally untrue.

Especially with Brexit, if the UK economy is harmed, the pound will depreciate relative to the dollar and actually increase the pound value of his investment.
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Muttley79
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(Original post by Jmoore12)
The S&P
The issue is the OP may need the money when prices are low - I trust you realise markets are volatile -

The OP needs EXPERT advice ...
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Reue
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(Original post by Muttley79)
The OP needs EXPERT advice ...
Not worth it on such a small sum of money.

OP needs to decide what they want to achieve. For most people on this forum the answer is one of: study/travel/house

In which case op should spend/spend or LISA most likely.
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username5550558
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(Original post by whitenight674)
I have inherited a large sum of money (15k) from a great grandparent passing and I'm not sure of what to do with it?? i'm usually hopeless with money so i don't just want to blow it like usual, i want to be sensible and put it to good use. i've asked my family and friends but they have all given different repsonses,
- my uncle told me to put it in a fixed rate ISA : https://www.leedsbuildingsociety.co....ixed-rate-isa/
- my nan (a very pessimistic woman) told me to take out a funeral plan! https://capitallifefuneralplans.co.uk/funeral-plans
and my friend has told me to try with trading as I could basically double my money with the right advice

if anyone has had a similar situation, what have you done? and has it worked?
A mutual index fund produces on average 9% return annually. Its averaged that over 50 years and is an extremely safe bet. If you paid a decent financial advisor to help you, that's likely the advice you would get. Compounding interest is a beautiful thing. I recommend the S&P500.

Never go near trading stocks, I believe the statistic is 95% of traders lose money. It won't work. if you want to be smart as you said, do an index fund like the S&P500.
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username5550558
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(Original post by Jmoore12)
The S&P is a US index and therefore is insulated against brexit and has reached all time highs during the pandemic. It's not an individual share, it is an index of the top 500 US firms and is insulated against shocks to any one company. US stocks do well in boom and bust times because the S&P is like gold and is where people put their money during a recession and also grows during a boom phase for obvious reasons.

Given that I explicitly stated that this would be a long term investment, the risk is very low as, despite the last 100 years containing the great depression, the 2008 crash and the pandemic, not to mention numerous other shocks, the US stock market has achieved excellent returns. To call it a huge gamble is just totally untrue.

Especially with Brexit, if the UK economy is harmed, the pound will depreciate relative to the dollar and actually increase the pound value of his investment.
Didn't see ur comment. But I like ur thinking haha
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JMo03
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(Original post by Muttley79)
The issue is the OP may need the money when prices are low - I trust you realise markets are volatile -

The OP needs EXPERT advice ...
Like I said, this would be a long term investment, like a nest egg. OP has never mentioned any need for liquidity and so I clearly qualified my answer with the fact that it would be long term.

I think if OP wanted "EXPERT advice", they wouldn't be asking on a forum for students.
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JMo03
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(Original post by Luxys)
Didn't see ur comment. But I like ur thinking haha
Just saw yours, you've got the exact right thinking too.
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