18 year old with 70k to invest, help / advice

datacat

Hi, basicly i have got £70,000 to invest and i need as much help and advice as i can get, i am wiling to have it long term.

thanks

dunstonh

Need to know the following:
timescale, accessibility, future aims and objectives, tax position now and in future, risk profile, knowledge and experience of investments, how you would purchase investments, what sort of investments (funds, shares, other...) will do for starters.

datacat

i will be going to going to uni son, and want to start of with a 5 year plan. cautious profile and have no experience of investments, also want to make user of my anual ISA entitlement, minimal access, minimal / no risk

hope that answers your questions, if not just ask again and ill try and give as close an aswer as i can

[Deleted User]

Hi,

I'm not sure about investing however if you're considernig saving a portion of the money then I'd suggest the following:

1. Generally ISA's are a good place to start:

http://www.moneysavingexpert.com/sav...gs-without-tax
and http://forums.moneysavingexpert.com/....html?t=401374

2. Regular savings accounts are good too:

http://www.moneysavingexpert.com/sav...vings-accounts
and http://forums.moneysavingexpert.com/....html?t=608697

Regular savings accounts are generally a good place for new money e.g. monthly pay cheques, however if for example you have £3k in a 6% high-interest bank account drip-feeding into a 10% regular savings account then you're essentially getting 8% interest on average for your £3k which beats most fixed rate products - albeit with a bit more work.

3. If you want something with a little less work then fixed rate savings accounts are a good option:

http://www.moneysavingexpert.com/sav...interest#fixed
and http://www.thisismoney.co.uk/saving-...&in_page_id=50

4. One other thing you might like to consider is getting a decent instant access savings account:

http://www.moneysavingexpert.com/sav...st#topaccounts
and http://www.thisismoney.co.uk/saving-...&in_page_id=50

5. Finally if you're a higher rate tax payer then NS&I's 3 and 5 year Index Linked Savings (http://www.nsandi.com/products/ilsc/index.jsp) look good, paying 1% above the RPI inflation rate. Currently this is 5.0% so that’s a rate of 6.0% overall.

The attractiveness of these is that the savings are tax-free meaning it's better for higher-rate taxpayers. Basic rate taxpayers would need to earn 7.5% in a normal savings account to match this, while higher rate taxpayers would need a 10%.

One thing to note is if inflation drops then so does the rate for these savings. It'll always be higher than inflation and tax free though.

Lokolo

Send some to me?

Walshyboy84

Talk to your bank's IFA, they might be able to put some of it into a one year or 3 year bond at 8 or 9% interest. You won't be able to access it (therefore making it soooo much easier not to spend during uni!)

If that is your actual income then you have to declare it to the student loans people which means you might need to use a big portion of that on fees, rent, course aids etc etc... My total uni experience cost me £20,000 (up to 2006). This was at Kent in Canterbury so not exactly the cheapest of places to live!

Put as much as you can in to tax efficient savings and then enjoy some of it!

The markets are volatile but a long term investment in stocks and shares might be good for you! But people like Nationwide and Allied Irish Bank will be more than happy to help...

Allied Irish in Bank have a good fixed term bond thing going as I used to work there but do not take that as a product placement as I'm sure other banks have equally good packages!

datacat

thanks for all the information so far, althugh i have the 70 k im not using it fer uni, im goan get a student loan but will come to about 13-15 k whe im finished, so not overly bad, i shall go into my bank and have a talk with the advisor, any other advice from anyone?

[Deleted User]

datacat wrote: »

thanks for all the information so far, althugh i have the 70 k im not using it fer uni, im goan get a student loan but will come to about 13-15 k whe im finished, so not overly bad, i shall go into my bank and have a talk with the advisor, any other advice from anyone?

My advice in addition to the above would be not to listen to any "IFA" from a bank. They're not actually IFAs just sales reps with a substandard minimal selection of products and not a lot more!

datacat

ok thanks, i did notice wen i went in breifly b4 to spak to him he was going on about the products his bank ffered although he copuld get things from other banks etc

Valley_Bluenose

datacat wrote: »

ok thanks, i did notice wen i went in breifly b4 to spak to him he was going on about the products his bank ffered although he copuld get things from other banks etc

The Spelling Police will be out to get you if you do your dissertations like that!;)

I'd suggest sticking to savings at the moment, as advised by davidmt83, rather than investments. I'd virtually guarantee you won't get through university without dipping into this money.

datacat

ok i supose it should b said that the full amount is actualy 118k im puting 30k into bonds doing something with 70k (hence the post) and keeping the 18k for stuffs (i.e may need a mac pro for uni etc)