Inherited a large sum of money, what do I do next?

gadgetmind

middlepuss wrote: »

That money should more than keep up with inflation

A sensible portfolio (global equities, plus bonds and rebalanced) should manage inflation+4% BUT only over the long term, by which I mean 10 years plus.

xylophone

The pension could wait until you have a job.
The important thing is not to act hastily but to get the money earning while you think.
Once you have the money safely ensconced in your savings accounts, (don't forget to fill up a cash ISA for the new tax year on April 6) concentrate on getting a good degree and finding a job.
You might then want to consider buying a flat - at all events you'll have accommodation to pay for unless you live at home.
You might need to buy a car. This brings other expenses in its train.

If a new issue of National Savings index linked bonds becomes available, you might want to consider £15000 in the five year version.

As a start to your investing, you might want to consider having a look on the Hargreaves Lansdown site and perhaps investing the stocks and shares ISA allowance for this year and next (at the appropriate date) in a Distribution Fund- a young person of my acquaintance uses Invesco Perpetual Distribution Acc units and has the tax rebates automatically reinvested.

GeorgeHowell

If you have not already bought a property then buy one. Get on the ladder. For someone young who does not necessarily need all or most of the money to live on (to supplement a meagre pension etc) property is still probably the best long-term investment prospect in terms of protection of capital value over a long period.

king_walnut

Thanks for the replies. I'm going to stick it in that Santander saver account I think whilst I decide where to go from here.


Anyone know anything about property investments? Or can someone point me to the right place to talk about that? Thanks.

gadgetmind

king_walnut wrote: »

Anyone know anything about property investments? Or can someone point me to the right place to talk about that? Thanks.

To live in or to rent out? Totally different kettles of fish!

jimofwales

...............

brasso

I'll give you some advice.

If I came into nearly £300K at age 22, the very last thing I would do is advertise the fact on an internet forum and ask for help, admitting "I haven't got a clue what to do".

Look, listen to me. You need proper advice. You need to go at least 2 or 3 (perhaps more) IFAs and compare what they tell you. You can usually get a free initial consultation to very quickly run through your situation. On no account go with the first one you see, and on no account ask random members of the public you don't know.

Most of all - get a grip. I don't mean to be unkind but you sound worried, rather than appreciating the fact that you can set yourself up for life -- something that only a tiny minority are lucky enough to do. It might be daunting, but take control of the situation - right away. If you're at Uni you must be reasonably bright, so wise up! Don't pose such a stupid question as "Anyone know anything about property investments?" If you're asking such a question, you sound extremely unprepared to have reached a decision that you want to be a property developer.

Don't broadcast your news to all and sundry, and don't panic. Take a deep breath, smile, and get on the phone to at least 3 IFAs in the next few days and go and get some proper advice. And apart from putting it in a deposit account, don't rush into anything for at least a few weeks while you do your research.

I hope you use the money wisely, and end up happy.

SliAbhaile

king_walnut wrote: »

I haven't got a clue what to do in the way of fund investments. I am a serious novice here when it comes to money .. treat me like I'm completely stupid

You have just acquired a new job: taking care of your finances. And believe me it is a full time job.

The first thing to do is start learning the terminology. You've come to a good place.

Buy "The Financial Times Guide to Investing" which is an excellent guide to investing and is easy to read. Read it several times to allow it sink in.

The more you understand yourself the more you will get out of professionals such as IFAs and accountants. I wouldn't even speak to an IFA until you've digested this book otherwise you will just glaze over when they start offering different products.

You are in a great position to set yourself up for life. Pause, do your research and take active control. I inherited a healthy sum from my late mother many years ago, I too knew nothing and just slung it into a deposit account. The banking crisis forced me to take control of that money and now it's invested in a spread of funds, corporate bonds, and some fixed deposits. I wish I had educated myself sooner. You have made the first step and are to be congratulated for that.

Good luck in your new career.

CKhalvashi

king_walnut wrote: »

This is my first post so if I've got it in the wrong section then apologies.

I have recently inherited a fair bit of money, I have £130,000 sitting in my current account right now and I'm due to get about £160,000 more at the end of April.


My question is, what the hell do I do with it? As in, where's the best place to put it? I know it's totally wrong to have that sort of money just sitting dormant in a bank account and not gaining interest but I know basically nothing about money.

Can someone who knows what's what tell me what the best options for me would be? Thanks in advance.

Property investment isn’t the easiest way to go, but it could be a good one for you.

We’re lucky enough to be right under the nose of a large airport, and I’ve got a 5 bed (paid £200k, bills approx. £400/mth) that we’re letting 4/5 rooms for £125/wk each on the training courses. That’s a nice earner of £1k-£1.6k/month that I wouldn’t have had before.

You may have money left for a small property of your own from there.

Take financial advice on what to do with it, leaving all options open.

CK