what would you do?

ReportInvestor

cymro1170 wrote:

When I say family I mean my Mother, Father, Brother and myself

Has the £725K gone to these four people equally?

While I agree that you should bide your time before tieing up the money, if there are 4 x £7K = £28K ISA allowances to be used in this tax year to April 5 2006, then I think they should be used.

4 x £3K Cash ISAs &
4 x £4K Share ISAs into a decent performing income unit trust

Will not do any harm while you work out what else to do.

Even if divided into 4 unequally there are still four x £7K ISA allowances you could use before April 5th

cymro1170

not divided equally - my brother and I each get £150,000
then my parents the rest

anthonymartin

Cymro - i too will be recieving large funds in the next few weeks. As suggested take the caution with your financial advice - i did not apply caution and invested £150k in 2004 and not seen a penny on the investment or have proper documentation to support my claim. I was tricked into the old 'cash' is best routine with a best friend who now says he cant repay the funds. I find myself looking at civil action to recover but with little proof other than friendship will find it hard to get anything back at all.

My friend an Estate Agent was buying and selling props after he persuaded me to sell my four rental investment properties he suggested that i going into partnership with him, 'gotta to buy cash' routine meant that i with drew £150k cash from my sale proceeds and he assured with a handshake that the papaerwork would follow. He never did provide any paperwork and shut the estate agency recentley. Its the friendships where you think it couldn't go wrong because its a family friend that you need the most third party advice. On hindsight, yes i was a fool not check the details but when you go on holiday, your children go to the same school, paly in the same football etc...you dont see it coming.

Fortunaltley its not my entire wealth but it respresented part of the hard work of being a Land lord for 15 years.

I will again in a few weeks have a large sixfigure sum having sold my main residence, i now have the worry of making sound safe decisions.......my confidence is shattered and my trust at an all time low.....

So the lesson be learn't check and check again there are a hudge amount of confidence tricksters out there.

exil

So really it's about how to invest 150k.

You're not working. Spend some money on education/training. If you get a job this will earn you far more than investing the 150k in bank accounts etc.

You might want to buy a house (after you have the job) - the 150 will come in handy for this.

150k sounds a lot, but it is not enough to keep someone at a reasonable standard of living for more than a few years without using up the capital.

intalex

EdInvestor wrote:

Initially, split it up into 4 or 5 bits and place it in high interest deposit accounts.

Then set about learning how to invest money.

Study websites like these and ask questions, by all means see IFAs and other advisors but do nothing at all for at least six months until you feel you have a real grasp on how to make sure this money doesn't just disappear due to ignorance and ineptitude and the actions of people who don't really have your interests at heart.

I'd agree with the general idea of saving it in a high interest account, although rather than splitting it up, I'd put the entire sum in a National Savings & Investments product. I believe your funds are 100% secure with them as they are backed by the Government, and to top it off, the Interest Rates are pretty decent too. Personally, I'd suggest putting it all into an Income Bond - you get your Interest on a monthly basis and you can specify where you want them to pay it (they pay u the interest just like your employer pays you your salary), plus a more recent incentive is that you can now make a withdrawal without giving any notice or paying any penalty. Interest rates may not be market-leading, but they aren't that low either. Definitely worth considering.

baldbloke_2

intalex wrote:

I'd agree with the general idea of saving it in a high interest account, although rather than splitting it up, I'd put the entire sum in a National Savings & Investments product. I believe your funds are 100% secure with them as they are backed by the Government, and to top it off, the Interest Rates are pretty decent too. Personally, I'd suggest putting it all into an Income Bond - you get your Interest on a monthly basis and you can specify where you want them to pay it (they pay u the interest just like your employer pays you your salary), plus a more recent incentive is that you can now make a withdrawal without giving any notice or paying any penalty. Interest rates may not be market-leading, but they aren't that low either. Definitely worth considering.

Having found a safe home for bundles of 25k - high interest savings accounts offering 4.5% plus and monthly interest - I should think it can prove quite a wrench opting for the secure option of 4.28% with NS&I Income Bonds. Yes they are an excellent product but that 1/4% loss of interest on a large sum can be difficult to accept. I imagine being a higher rate tax payer must influence decisions considerably for people with large sums to save/invest..

intalex

baldbloke wrote:

Having found a safe home for bundles of 25k - high interest savings accounts offering 4.5% plus and monthly interest - I should think it can prove quite a wrench opting for the secure option of 4.28% with NS&I Income Bonds. Yes they are an excellent product but that 1/4% loss of interest on a large sum can be difficult to accept. I imagine being a higher rate tax payer must influence decisions considerably for people with large sums to save/invest..

I guess even a small percentage on a large sum is indeed substantial. By the way, why split the funds into several high street accounts? Why not put them all together in one place?

Amba_Gambla

some come on then cymro. What have you decided to do with your 'nestegg'?

EdInvestor

intalex wrote:

I guess even a small percentage on a large sum is indeed substantial. By the way, why split the funds into several high street accounts? Why not put them all together in one place?

For security reasons: compensation in the (unlikely) event that a financial institution goes bust is capped . Not sure of the exact maximum figures, is it about 30k for savings, 40k for investments?

SAP_Saver

It depends on how you guys live already does it not?
4 way split?? dunno.
If all £725000 was put into an NS&I investment bond it would pay out £2,537.50 each month. But this is from the govenrment thus better products are available...

Good luck and sorry to hear about your grandfather.