Teenager with £30k to invest over 2 years

Tripleeagle

Hello!

I'm 15 years old and will [hopefully] be going to University in just over 2 years. I currently have about £14,000 in a standard bank account making pretty much !!!!!!-all. My parents are going to give me another £16,000 for University as well, as soon as I am ready to invest it.

I would like to invest this £30,000 and make sure it is available to me in 2 years. I've been looking into savings accounts, shares, gold, forestry, agriculture, art and wine (yep!) but am wondering what you - the experts - think I should do? I wouldn't mind taking low-ish spread risks and I wouldn't mind having to move money around over the next two years but would like to have a bit more for when I'm off to higher education

Alex

PS: I think there's a MoneyWatch programme on BBC2 tomorrow, about investing savings - looking forward to that

alanq

Tripleeagle wrote: »

would like to have a bit more for when I'm off to higher education

But how would you feel about having a lot less?

Increased return means increased risk and if investments are performing badly at the time that you need your money you won't have the option of waiting for better times to cash in. There are often fees for investing and withdrawing which will eat into returns.

You will have enough stress to face in the next few years so go for the best boring safe accounts that you can find.

evenasus

SPAMMER charissewilliams reported.

amcluesent

Your parents seem to be loaded. Why not ask their accoutant's advice?

Tripleeagle

alanq wrote: »

But how would you feel about having a lot less?

Increased return means increased risk and if investments are performing badly at the time that you need your money you won't have the option of waiting for better times to cash in. There are often fees for investing and withdrawing which will eat into returns.

You will have enough stress to face in the next few years so go for the best boring safe accounts that you can find.

Not all investments are extremely risky. Granted, these are difficult times but if I spread my money over a variety of places, there wouldn't be as much of a risk - no? I mean, even if I put my money in 6 different places and one investment becomes valueless, I'll still have £25k which is enough to get to get me through Uni.

However, I've got to admit that you're probably right - this year may not be the best time, with the threat of a double-dip recession looming and everything...but still, there are some 100% safe investments like putting the money in savings accounts, right?

magpiecottage

The timescale you are looking at is too short to make it sensible to take a risk.

If you were looking for a nest egg when you finished I might say you could take a punt with some of it but I had far greater fortune at your age than you do because I had all my tuition fees paid and a grant to live on. As I remember I had about £14 left over at the end.

Uni may give you knowledge but I wisdom is, in the end, more valuable.

Tripleeagle

amcluesent wrote: »

Your parents seem to be loaded. Why not ask their accoutant's advice?

haha well my father worked hard and he's been good with his money all his life. However, he's not a big spender, and we unfortunately don't have an accountant

The reason I get the second lot of money (£18,000) is because I've been in private schools all my life...but, for the next two years I've decided to go to a state school which will save my parents about £3,000 per term.

The first lot is because they're nice people

ehlo

With that much money you'll probably have far more than anyone else at university. Why not lock some of it away for longer and use it for a house deposit once you've finished?

Tripleeagle

magpiecottage wrote: »

The timescale you are looking at is too short to make it sensible to take a risk.

Thanks for the advice...I guess you guys are all probably right. If I take any risks, they'll be with a very small share of the money.

magpiecottage wrote: »

I had far greater fortune at your age than you do because I had all my tuition fees paid and a grant to live on.

Actually, if I go to the University of Edinburgh, then as a non-UK EU citizen (French nationality), I won't have to pay for tuition fees (yet another reason to hate the EC)...although that's obviously not the point...

- - - - -

Thanks everybody

KingL

Tripleeagle wrote: »

but still, there are some 100% safe investments like putting the money in savings accounts, right?

Just to note that, technically, savings accounts are savings, not investments. By asking about investing £30k, you might be inadvertantly telling people that you aren't interested in safe, boring things like savings accounts....

Tripleeagle

KingL wrote: »

Just to note that, technically, savings accounts are savings, not investments. By asking about investing £30k, you might be inadvertantly telling people that you aren't interested in safe, boring things like savings accounts....

Oh riiight - thanks for the info
I basically assumed that anything making money from putting money somewhere is an investment!