If you were 23 and had £230k, what would you do?

ViolaLass

makeyourdaddyproud wrote: »

What an absolute load of rubbish that is.

Ever heard of the minimum income guarantee?

https://www.gov.uk/new-state-pension/your-national-insurance-record-and-your-state-pension

is where I looked although you're right, a minimum income is mentioned elsewhere https://www.gov.uk/pension-credit/what-youll-get. I'm not sure which page to believe since my link says that without a certain numbers of years contributions, you won't get the State Pension. The second link also suggests that the OP will need to have spent as much of their £230k as possible first.

It's not how I'd choose to spend my life - I'd get bored - but each to their own.

gozaimasu

innovate wrote: »

The £230K won't do that for you, even if you find the best possible investment.

I dunno, maybe it will. On its own, £230k could get you:

• Rent + bills paid for 5 years @ £750 a month all inclusive = £45k
• Monthly spend for 5 years of £300 (Groceries, social etc) = £18k

So that's 63k for 5 years, living fairly decently. If £100k was spent on a house, there might be £30k living costs.


In any situation, the rest of the money might be sitting in the bank earning interest (or locked up in those investments...), while the OP can take the time to think about re-training, getting back into education or finding the perfect job, setting up a business.


I wouldn't be rushing about to get a crappy job when I had that kind of money! Not enough to quit an existing job though, especially if you didn't hate your job too much and wouldn't be able to get the same kind of role at the same level of pay elsewhere.

It's a shame when £1million is no longer enough to quit your job and live comfortably for the rest of your life.

edinburgher

I would buy my Mum a nice bunch of flowers.

planteria

botkin wrote: »

I think this is actually a pretty good plan, but I'll go ahead and flesh it out a bit.

Buy a 4 bed house for 100k yourself up north, somewhere like Manchester or Liverpool. Let out the other 3 rooms.

Buy another 4 bed house for 100k nearby and let it out. Manage the property yourself to save on agency fees.

Invest 15k in a stocks and shares NISA (the new ISA, available from July). I would adopt a dividend growth strategy, so buy the likes of Unilever, Tesco, etc.

Top up your NISA to 30k next year.

So overall you have 200k in property and 30k in shares. Should be enough to live on, just about.

i like standinman's sentiments, in terms of 'live a bit', but the money here is potentially going to set our friend up nicely for the future. blowing it is the last thing i think they should.

and i am interested in the idea that this lump sum is sufficient for such a plan botkin. i reckon 4 or more such houses would really be required to live off.

planteria

gozaimasu wrote: »

I wouldn't be rushing about to get a crappy job when I had that kind of money!...

again, i like the sentiment. but a job in a supermarket, for example, would be ok, imo, and would enable someone to at least cover their outgoings, enabling them to retain their lump sum, even if not producing enough income to allow them to significantly add to it.

sitting at home doesnt lead to good ideas for the future. working, even at a short-term job, could well lead to a better job, or get someone into the environment where ideas appear.

makeyourdaddyproud

planteria wrote: »

...sitting at home doesnt lead to good ideas for the future. working, even at a short-term job, could well lead to a better job, or get someone into the environment where ideas appear.

Jesus, what ever happened to remedial hobby pursuits? Why has everyone on here so fixated with having to make someone rich?


What about personal contentment with the endowment and using it to enjoying the rich tapestry of life, personal enhancement and interests?


I don't feel I need to exist just to make a minority of plutocrats rich so that THEY can enjoy the fruits of what I said above.


If you really want to make a difference with part of your working day then volunteer. A paid job is just that, and will serve no other purpose other than feed the avarice of a privileged few.

planteria

i like your response mydp..
i am coming from the angle that i wouldnt mind doing what some might consider to be an 'undesirable' job...if it covered my living costs and enabled me to leave my nest egg untouched.
if, for example, working in McDonalds covers the costs, i would do that without any shame, and without any worry about supporting a big, nasty multinational:)

Ken68

Go self sufficient, Berba, cheap bungalow with some land, plant a few trees for the woodburner, grow your own food. Plus go self employed as a handyman or smallholder for the tax breaks and allowable expenses.
You could of course, give your money to someone else, like a bank, stockbroker,or wife to look after lol.
Same with your time.

planteria

a cheap bungalow with enough land to set up a smallholding? where?

Ken68

Probably up North but five acres minimum.
But at age 23, you would not have the life experience to know if you have made the right choice, but you would be a free man.
No shortage of mentors. Skills can be learnt from the internet, even doing you own tax.


OR take a punt, rent a shop and sell something that everyone needs.