Im 20 and dno what to do with my inheritance, please help!!!!

Doooford

Doooford wrote: »

27-06-2011, 3:52 PM Stick it on Andy Murray to win Wimbledon. Then you can buy a house if he wins.

Back to my advice quote, back then he was 7-1 so you would be getting a bit nervous now with a semi against an injured Nadal but a potential £320000 return.

Certainly beats a 9% Turkish bank account.

krisknox1

Doooford wrote: »

Back to my advice quote, back then he was 7-1 so you would be getting a bit nervous now with a semi against an injured Nadal but a potential £320000 return.

Certainly beats a 9% Turkish bank account.

good job i didnt put it on Murray to win!!!

blinko

Certainly don't tell your friends you have the money this will cause you alot of problems.

Overall If I were you I would tuck this money away and use it for when you want to buy a flat, there is no point in spending money just because you have the money.

There is alot of good advice in here, and of course it depends on your risk

GL

redbull5

Mate, i would open a normal current account and then a santander first home savers account.

Place 33-35k into the first home savers account and then drip feed £100-£200 into it each month from the remaining 5-7k in the current account.

Save it all for your first house/flat deposit, if you spend it im sure you will regret it

Eco_Miser

krisknox1 wrote: »

your not my spelling teacher, I have asked a question to get some guidance! not for you to start throwing accusations at me! I'm not writing a essay on here it hasn't got to be 100% right.

That's fine if you don't expect our answers to be right either.

krisknox1 wrote: »

get a life! because you obviously don't have one sitting there picking up on people grammar!!!!
:mad:

Noticing bad grammar takes no effort at all. Reading bad grammar can take quite a lot of effort. It's painful.

opinions4u

krisknox1 wrote: »

your not my spelling teacher, I have asked a question to get some guidance! not for you to start throwing accusations at me! I'm not writing a essay on here it hasn't got to be 100% right.
get a life! because you obviously don't have one sitting there picking up on people grammar!!!!

I make the occasional typo. I don't spell everything correctly. I even have a habit of typing too quickly and missing the "ly" off words that were intended to be adverbs. The other day, to my horror, I re-read one of my posts and it said "their" when I should have used "they're". I probably use too many commas and exclamation marks. I even mix up my tenses occasionally. So I'm not perfect.

But one thing I have learned in life is that making the effort to type / write in a clear and grammatically accurate way gets better results.

Beginning a sentence with a capital letter. Understanding the difference between "your" and "you're". They may seem unimportant. But you probably switched off 30% of readers (with a potential response that's better than those you've had) with these simple omissions.

It could have been worse. You could have used text speak. It's more than possible that the capital letters are a laziness brought on by the awkwardness of tpying on a mobile phone.

But using better grammar in an informal environment makes you more likely to get it right when really needed. CV, job application, report for a client etc. If that means you end up earning an extra £10k a year at some point in the future, it's probably worth it.

JaymesKenin_2

If you have an HSBC Advance account, they're offering (I think they still are...) a regular saving account which is 8% APR, you just pay in £250/month.
Realistically that's only 4% for the £3000 you put in, which is still £120 after the year.

NS&I Bonds are a good idea, plus you have the chance to win prizes (every £1 invested = 1 chance to win), and I've won probably about 13 lots of £25 over the last few years, plus it's a decent enough interest rate.

On the slightly riskier side (and I suggest you don't invent more than a few hundred into this to start with), there's P2P lending with companies such as ZOPA. You'll be looking at getting upwards of 6% APR, and risk is spread because you are micro-loaning money (in sets of £10), but your money is tied up for 3 or 5 years depending on the loan, however you do have the choice to continually re-invest the interest and capital returned or take it back. (Example I've invested £130 into ZOPA and I've lent out £160 now).

Jegersmart

Assuming this is a real request and not a troll, I would make the following observations and suggestions:

If you are taking out a student loan in order to save this "fund" then I would say don't - use the inheritance instead of taking on debt. The number of people I know who are paying off their student loands until well into their thirties is staggering. End of story.

If you are NOT needing to take on debt for your studies I would make the following observation. The OP has indicated that he will probably want to invest the money for 2 years or so - but in my experience this could turn out to be much longer depending on the situation. When one is 20, 2 years seems like a lot but by the time you get there and the money may have grown to £55k you may reconsider. All I am saying is not to take the 2 years too literally for all you "2 years is not enough for an equity play" responders. My suggestion if you do not need this money at all is to invest the maximum in an ISA (Stocks and Shares) - the limit this year is 10680gbp. Balance the fund selections between Income and Growth style funds - do lots of research. Stick the rest of the cash in a high interest savings account if you want to play it safe or just invest that part as well outside of an ISA wrapper with some diversity in your fund selections. With inflation running at 4.5% I do not see the point in being too coy - especially if you are not 50+. Most 20 year olds do not have this sort of money at their disposal and certainly do not / will not need it for some time - and you may just be pleasantly surprised at how much it turns out to be worth in 5+ years (if not before).

I was invested in almost entirely bonds-style funds from early 2008 until early 2011 and my ISA's have been earning around 12.xx% annually for the last 3 years - and many have done much better. Sure, with the economy etc probably going to be a bumpy ride for a few years there is some downside risk - one fund you could consider to play it relatively safe would be M&G Optimal Income which is low risk and good track record although I would diversify as a matter of basic risk-management.

Good luck and let us know how you get on.

J

Doooford

krisknox1 wrote: »

good job i didnt put it on Murray to win!!!

Good job I didn't go down the Investment Advisory route after school!

atush

Why just a year? Why not for longer? Why not save some for retirement? Save some for a house deposit in say 5 years? What does you mom think?

Do you pay tax, or are you not working at Uni? If you pay tax I would suggest putting 5300 into a cash Isa. If you will be working in just over a year it might be a good idea to do this anyway before next april, then you can put in another lot after april 6th. That way in the future the money will be there, but you won't pay income tax on the interest. These ISAs can be instant acess or better yet on 1-5 year deposits. If you don't lock some of it away some where, you may find yourself getting the idea to spend it on things that wont last such as cars, clothes, holidays and the like.

Then the rest of the money- I would save some in cash and put some into equtites, esp any that you want to grow over time to be something bigger. Otherwise you will find the buying power of your 35K will reduce each year due to inflation so you will be losing out.

If you have some adults in your family incl your mother and grandparents who are good with money, ask them for advice.