22 year old investing large amount?

Plus wrote: »

£500K sounds like a lot of money. It isn't. Think about it. If you have average life expectancy you might live another 65-70 years. Assuming you invest it somewhere that keeps pace with inflation (ie the money keeps its value), that gives you £7100 per year (in today's money) to live on. Hardly the lap of luxury.

Well done for getting a nice place to live for £500pm. The way the property market is there, that's quite a bit below market rate. However, even with that it'll eat £6000pa of your income in rent. That leaves £1100 for bills, food, transport and everything else. Per year.

So, two things to think about: how to structure it best to avoid having to pay tax, and how to avoid it interfering with benefits - because everyone else on £7100pa can get that topped up with some kind of benefits. I believe a personal injury trust is one route for that - an IFA can advise.

As for using an IFA, don't be scared of paying someone for advice. It's a bit like learning to drive. While you can teach yourself from first principles, it's a lot easier if you pay a driving instructor to show you the basics. That way you'll have a better understanding and be less likely to kill yourself. If you want to cross-check, pay another IFA for a second opinion.

Once you know the ropes, you can go off and learn on your own. And feel free to come back and discuss the advice here. But bear in mind that IFAs have a responsibility to give advice appropriate for your situation, and you have redress if it was not - random people on the internet have no such responsibilities.

You are right and as a few others have mentioned that figure isn't enough to really secure your future. He is confident that the final settlement value he will get will match what someone should get for a lifelong condition that lead to someone being unable to work. Worked out from my age to retirement based on the 'Ogden Tables' ? I was on a salary of £21k p/a before having to give work up over a year ago. I'm quite advanced in my skills from retail management all the way to computer programming, coding, web design and developer and designer. When he takes into account my past salary, he said they have to take into account what salary I could've achieved in life with my skills. The rate he uses on the Ogden Table is 82.15. So I won't say anymore on the figure and you can work it out if you're that interested!

I think given the value that I will get, it wouldn't hurt to try an 'IFA' and see what they say. I've had some suggestions some involving ISA's, dividends (and dividend compounding?) etc but I'm a sensible person for my age and I know the money that comes will need to last me but I know that there are a few low-risk ways to make a little bit of money over the long term 20-30+ years. Of course people remind me that existing on that money is based on the fact I am single forever (ha!) and have no partner bringing in money but most likely (like now) I will be in a relationship and they'll be bringing in additional income.

I will be sure to keep you guys informed with what advise I have been given and what ventures I look to pursue.

Bazofts_Revenge wrote: »

Would love to know how you go about getting a compensation payout increased. My Girlfriend lost half her leg 22 years ago and is in constant pain still and endures sores and blisters from poorly fitting prosthetic legs. The surgery back then was not as good as today. She only got something like £60k from the Motor Industry Bureau as a Drunk on a Motorbike mowed her down. To protect the money from her then Money grabbing dodgy husband she had bought a house outright there was nothing left to live on (Thankfully she kept it 100% when they divorced). Maybe she should have rented and just invested the money for income who knows. As stated how does she go about getting a review?

Unfortunately I can't help here but I hope someone else can. I was fortunate and did a lot of research on my lawyer to find one who dealt with specific injuries such as mine and he's proved his worth as he has been rinsing them dry! Past and future costs for DIY, gardening, medication, treatment, care, loss of earnings, bits and bobs I would need to make my life easier, loss of enjoyment for past holidays/days out etc, expenses for travelling, having to take morphine/strong drugs for the rest of my life and so on. I've had a couple of interim offers from the defendants as well over the last 3 years to help me. If you are able to get more I would look to finding a lawyer specific to her injury. My injury led to a complex and rare problem developing a few months after injury that affects and exaggerates pain signals from brain>spine>limb etc.