I'm 22 and have £30,000...what should I do?

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marc.not
marc.not Posts: 3 Newbie
in ISAs & tax-free savings
Hi,

I'm lucky enough to have inherited £30,000 and I obviously want to use it to my best ability, whether that be putting it in a bank account and not touching it for years or investing it. Any help is appreciated!

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  • WillPS
    WillPS Posts: 3,469 Forumite
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    How lucky for you!

    Have you owned a home before? Do you have any doubt that you might want to in the future?

    If the answer to both the above is no, you should consider getting a LISA and make sure it's topped up to the full £4000 entitlement each March.

    In general - whether you choose to invest or go for straight forward cash savings is a matter of personal preference. A robo-investor like Nutmeg will create an investment portfolio for you based on a questionnaire, and will aim to move your money about for you to keep it profitable - but investments can go down as well as up, generally the advice is that you need to be prepared to leave it put for 5 years to ride out any sudden variances in the market.

    It might well make sense to split your plot so some goes in long term fixed savings, some in a form of investment and a smaller amount in short term savings.
  • fiisch
    fiisch Posts: 510 Forumite
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    If I were in your shoes, I'd open a Santander Account and stick £20,000 in so you can earn 1.5% while you decide what to do. You can drip feed the regular saver (need to check maximum monthly amount) for 5%, and I'd maybe have a little dabble with either a robo investor or Stocks and Shares ISA (by little, I mean a smallish amount that you'd be comfortable - or as comfortable as anyone can be - if you lost half).

    It depends what your circumstances are, and how likely you are to need the money in the shortish term. I am 30 and the next few years can be very expensive depending where you are in life e.g.: buying a home, getting married, nest-egg for kids etc....

    I suppose what I'm saying is keep it flexible and think about your savings goals before committing to anything too long term.
  • marc.not
    marc.not Posts: 3 Newbie
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    Hi thanks for the advice, I have to admit I'm clueless when it comes to banks so I don't know anything about a LISA or anything else for that matter! A bit about me, i've finished uni and just gotten back from travelling. I don't have any financial commitments at the moment and my plan now is to get a good job! I'm not a home owner but living in Edinburgh, houses are expensive and as I don't have a full-time job at the moment I wouldn't want to commit to buying a house or flat!

    Depending on my options, I would be happy to put it in a savings account of some kind and just completely forget about it for a few years!
  • jimjames
    jimjames Posts: 17,619 Forumite
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    marc.not wrote: »
    Depending on my options, I would be happy to put it in a savings account of some kind and just completely forget about it for a few years!

    Depending how many years you're prepared to forget about it then you might be better off putting it (or at least £20k of it) in a S&S ISA rather than a bank account. You're likely to have a pleasant surprise compared to a bank account if you can just leave it to grow
    Remember the saying: if it looks too good to be true it almost certainly is.
  • marc.not
    marc.not Posts: 3 Newbie
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    Okay, and see with regards to that..Is there rules or certain shares I should invest in?
  • dunstonh
    dunstonh Posts: 116,371 Forumite
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    Is there rules or certain shares I should invest in?

    Dont try investing in a way that is above your knowledge and understanding. Stick to regulated investments (unless you know what you are doing and can afford to take the extra risks)

    Look at your objectives and use tax wrappers and investments that fit your objectives. Until you know your objectives, you cannot know what are suitable options.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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