What should I do with £50K?

seven-day-weekend

Well done, congratulations and Merry Christmas!

Make sure your girlfriend cuts that card up!

bobson_2

seven-day-weekend wrote:

Well done, congratulations and Merry Christmas!

Make sure your girlfriend cuts that card up!

Indeed - but it's how to approach the subject without nuclear war.. as a rule she's excellent with money - miles better than me.. just with Christmas she wants to give people good stuff.. and well.. whats wrong with just giving somoene a token gift?

My sisters have gone overboard.. one is 17, and the other 25. The 17 year old doesnt earn anything, and the other is strapped for cash as she's doing her PHD - so they decided to go joint on buying gifts.. They went a bit mad and spent a stupid amount.. and want me to come in with them on these gifts to bail them out. I also went out last night with some friends - we have no secrets so they know how much I inherited. However, they told their friends (whom I hardly know) who proceeded to order lots of drinks from the bar and told the bar man I was paying.. put me right on the spot. When they tried it the second time I refused. I got a lot of stick for being tight.. one of them even proceeded to tell me how much she hated me.. I'd only just met the woman.

I am very fortunate and very grateful for the money I have inherrited - but it will go very quickly. It's not a lot in the grand scheme of things, but enough to give me that start in life - which is why I've got to use it wisely.

I spent £125 last night - a horrendous amount. Admittedly, I expect to recoup £20 as a mate of mine was stranded having missed the last bus home - so I lent him that for a taxi. I'm not going out with them on new years, nor my birthday.. it's more hassle than its worth.

Merry Christmas to you too :-)

bobson_2

dunstonh wrote:

AMP bought Pearl and then asset stripped it and destroyed it as a viable insurance company before getting into trouble themselves and selling it to the ex-owner of Pizza Express. Any money invested in Pearl is virtually standing still and not making anything.


Dong forget that you will pay tax on rental properties and it could affect your ability to buy your own house later on (i.e. not being lent as much).

If you like the idea of property but dont want the potential hassle there are property investments available within ISA, Unit Trust, IT and Inv Bond tax wrappers. This way you get access to the returns without the physical ownership of the property.

And do remember that a mortgaged buy to let is a high risk transaction. Make sure you have the risk profile to go with that.

Thanks for the advice. I'm not sure what my profile would be - but I imagine not that good. I turn 27 in a couple of days, and have no debts - when I did have debts they were very small. I only have one credit card which I got last, or early this year - but I've not used it for ages, and dont intend to use it.. so there probably isnt enough data on me to quantify the risk. I'm just really cautious..

I'd just like to make the money work for me - I'd like to get a good return on it, so I can use it to it's full potential. I shall read up on ISA, Unit Trust's and Bond tax-wrappers.

Cheers,

Merry Christmas!

Lara

Great friends they are then! Still once fuelled with drink the mouth seems to open and not close:rolleyes: . Fortunately I don't drink:p . I'd get that credit card though and cut it up or explain that you won't be bailing her out again. Leave it till after Christmas though - you don't want fireworks over the festive period!:D

Congratulations btw - buy a property and live in it - you won't regret it providing you have bought within your means. Have a good Christmas!

dealornodeal_3

bobson wrote:

Hi.. I thought I should pop back in here.

In the end I inherited £79,000 - apparently it would have been more but AMP bought Pearl... I dunno what that was all about.

I had to buy a car.. as my other one went bang. I spent 10K on one. I paid my girlfriends credit card off - though she didnt cut it up, and I'm worried she's used it to buy christmas pressies... I also paid my card off. I gave my folks £1000 as when I was really skint in uni my Dad gave me that much - he had written it off, but I felt obliged to pay them back. I've recieved a 2K tax bill, so I'm keeping some back for that too.

So I'm left with £60k.. it's currently sitting in a 3% interest account while I try and get it put into a higher interest account. It's funny how the banks treat you when you have a large sum of money.

I've been looking around at houses.. the 90k ones are in really dodgey areas, but they've dropped in price to around the 85k mark..

So I'm looking at houses around the 120k mark - attempting to find something I can add value too so I can sell it on. The 60k will be used as the deposit.

I'm going to argue for a pay rise in the new year. I always work more hours than I'm paid without complaining, and I've done a fare bit of product development - initially as a freelancer, and now as a member of staff. I've definatly improved the product. The company has a large turnover in proportion to its size.. I love working for them, but as a mate who works in recruitment pointed out to me.. I'm the one with all the skills, and they need me more than I need them.. but I dont know how true that is.

Bobson, you are absolutely right about how Banks treat you when you have money. I had trouble with my Bank just before Xmas with an expecting lump sum. So I opened up a Savings Account in joint Names. The money arrived, and they messed up the New Account. I ended up having an argument with them, and following day I moved the money to a new bank. More Interest for me, and their loss!

Cara79

bobson wrote:

I also went out last night with some friends - we have no secrets so they know how much I inherited. However, they told their friends (whom I hardly know) who proceeded to order lots of drinks from the bar and told the bar man I was paying.. put me right on the spot. When they tried it the second time I refused. I got a lot of stick for being tight.. one of them even proceeded to tell me how much she hated me.. I'd only just met the woman.

I think this is unbelievable! I must admit, I inherited some money and was also saving nearly £800 a month. My friends wouldn't have believed it they'd known, although I saved it all and put it towards buying a house for myself, which was my dream.

It is amazing how some friends can be. Mind you, sounds like it's not the friends, it's the friends of friends that behaved like this - terrible!

Stay true to yourself and like you say, it's a good start to life. Sounds like you've got a good head on your shoulders.

Phoenix79_2

Well i'd stick £3k in an ISA (assuming you don't already have one) and another £3k in one when the new tax year rolls around in April. The rest i would bung in a high interest savings account (Icesave, ICICI etc) while i make my mind up what to do.

If i was in your situation i'd leave six months salary in the savings account and use the rest as a deposit for a house.

Whereabouts in the Midlands are you looking to buy in?

bobson_2

I'm looking to buy anywhere between Nottingham and Boston, Grantham and Lincoln - anywhere in that circle. Ideally I'd be nearer to Wales.. but such is the nature of work that it would be too big a commute hehe..

Eupho

bobson wrote:

This week I also inherit at least £50k - tax free.

What should I do with it?

I'm not married, dont have children, and dont have anyone dependant on me. Thats basically my situation.

Okay.. here's what you should do..

MARRY ME!!!

haha

Eupho

bobson wrote:

I paid my girlfriends credit card off

Ohhh-kaaayy :embarasse

Forget I said that :rotfl: