A young man in possession of a good fortune

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Comments

  • Even the most sensible teenager can go mad when given a lot of money at once.

    Talk to him about budgeting and investing. I don't think he should be looking at stocks and shares as that requires a decent length of time. I would also suggest you maybe talk to him about his plans for the future and how the money will help. I personally would be in favour of putting it into a fixed term bond until he is 18 so 2 years initially. That will give him time to grieve and think about what he wants to. He could then use some to buy a car and driving lessons or help with University.

    Who is living at the house with him? Just his 20 year old siblings? Have they also been left a lot of money as 3 youngsters together with a lot of cash sounds like a recipe for disaster unless all 3 are mature and sensible. Sorry for your loss and well done for looking out for your son.
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  • Thanks, all.

    I'd already concluded that I need to persuade him to see an IFA. He will need some access because my own means are limited (non-wage earner due to disability)

    SunnyCyprus's List idea seems like an especially good one.

    tbh he's more likely to blow it on esoteric electronics components that drink and drugs. :-)
  • enthusiasticsaver
    Who is living at the house with him? Just his 20 year old siblings? Have they also been left a lot of money as 3 youngsters together with a lot of cash sounds like a recipe for disaster unless all 3 are mature and sensible. Sorry for your loss and well done for looking out for your son.

    Well that's another thing. Currently he is, indeed, with his siblings who have also inherited. But my daughter is off to study in Italy in September so this might be reevaluated.

    They are all good children - but I'm acutely conscious of what they are all going through. Financial planning will be furthest from their mind.
  • Kim_13
    Kim_13 Posts: 2,315
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    edited 18 February 2018 at 1:04PM
    He could always split the money, putting some into a fixed term account so that he can't access it right away, and keeping the rest with access.

    For his day to day needs, it's worth looking into the childrens' current accounts available as there are accounts which would allow him to earn interest. See https://www.moneysavingexpert.com/banking/cards-for-under-18s?_ga=2.73790674.1798824297.1513112874-1010848097.1513112873#kidsbanks

    There are also some further accounts in the article on childrens' savings paying decent interest. Some have a maximum age of 17, so would be open to your son. See https://www.moneysavingexpert.com/savings/child-savings-tax-free

    If he is going to spend some money on electronics or similar, then I would sit down with him and try to encourage him to set and keep to a limit that is 'fun money.' I did spend a little when I inherited (albeit less money) and am glad that I managed to keep to this.
  • I would sit down with him and try to encourage him to set and keep to a limit that is 'fun money.'

    Thanks, I shall certainly be doing that. But I shall also be saying that some of it should, under the circumstances, be fun money. That will have the advantage of emphasising the distinction.
  • He's also a young boy who has just lost his mother. Maybe suggest he does something she would have been proud of - maybe set up a standing order to a charity she supported or one researching the illness she had (if she died of a disease)
  • psouth
    psouth Posts: 23
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    Our son was in a similar position. We invested the money with Saint James' Place Bank - not one you see on the High Street. 75K became 125K by the time he left Uni. He has been good, worked his way through uni and saved some himself. When he left he had amassed 50k on his own, took out 20k from SJP and had a mighty deposit on a new home. Eighteen months on, SJP is back up to where it was and covers his mortgage loan so whatever happens in the future he has his own home. Just a word of warning....he has had two girlfriends who did everything they could to get their claws into the money and our daughter has had similar with boyfriends so if you can get it in trust until 25 it would allow him to mature before he gets the money!
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