Best option's for an 18 year old inheriting £6000?

McKneff

I presumed benny was a male, am i wrong.

And well done for being so sensible = your dad And your mum would/should be proud of you.
Good luck,

pink_princess

McKneff wrote: »

I presumed benny was a male, am i wrong.

And well done for being so sensible = your dad And your mum would/should be proud of you.
Good luck,

Maybe and my apologisies if your daddys boy.:o
PP

Gordias

Hi Benny,

I can feel for where you're coming from. When I was 18 (back in 1994 boo hoo!) I wanted nothing more than to blow my Nan's inheritance of £1000 on a black BMW. Cars then were money pits and nothing's changed. I went for laptop and study books.

I'd agree with Opinions4u's advise but go for a longer period. You can elect for a monthly payment, so you could see it as your belated father passing you on pocket money every month. Naturally as it's a fully secured bond the locked up capital will be available for reinvestment at a later date when your desire for your own wheels has died a bit.

If you were to go for Aldermore's 5-year and £5K of your £6K you'd yield £21.96 a month (before tax). Not huge, but your Dad's money would be giving you a little lift every month.

Good luck in whichever avenue you go down

6022tivo

Don't bother with the car. Find a job with a car with insurance.

Oldernotwiser

Will you be going to university or undertaking any education/training for which you might need this money?

Everynamestaken

I inherited a substantial amount, had it in a bond for 2 years, but then just a few month ago it all came into my bank account.
At first, it was great, but easily blew nearly a thousand in 3 months. I used to be very "tight" with money aswell, but it seemed to change when the money came through. I

I have now learnt alot about the value of money, and put most of the money now in an easy access account.

if you really don't think you'll need it, then fixed rate savings is fine or an ISA. Easy access account suits me fine at the moment though as a click of the button soon gets me the money I want/need, but it is further enough not to "throw it around"

Also, my money has gone on tuition fees for University and other "boring" things.

sabretoothtigger

I think you should put as much as possible into a pension like your dad had and pay homage to his good sense and which has benefited you.
A stakeholder one is always limited to max 1% fees, anything more complicated would require you get proper advice away from the forum (not a bank)

Once you do that you cant argue with anyone to get it back for an emergency like paying off a credit card or whatever problem occurs. Also it proves your mom wrong immediately

The compound interest from the age of 18 will be an amazing plus for you in future and will mean you wont have to take as much off any pay packet towards a pension, so a proper long term benefit.
The main reason I suggest this particular action is because like you've already realised money has a way of spending itself just because you know its there

I wouldnt advise anyone to hold the majority of their wealth in cash over the next five or ten years

kimmoss88

sabretoothtigger wrote: »

I think you should put as much as possible into a pension like your dad had and pay homage to his good sense and which has benefited you.
A stakeholder one is always limited to max 1% fees, anything more complicated would require you get proper advice away from the forum (not a bank)

I think this sounds like a brilliant idea - continuing the tradition almost (and very sensible of course)

Edited to add: I 'inherited' £250 when I turned 18. I put the cheque straight into my bank account, and was extremely gutted when I realised a few weeks later that it had disappeared on nights out and a few new tops. This was a tiny amount of money compared to what you're talking about, and I still had the most horrible sinking feeling after it had gone.

And I second what somebody has said earlier in the thread - don't buy a car and pay for a years worth of insurance if you can't afford the second year of insurance, and the running of the car. I saw a friend do this, he ended up having to sell his car for dirt cheap, and a year and a half on, he still hasn't paid off the insurance (which went on his overdraft :eek:)