New member.Possible windfall.Need advice.

Yeti_Anagram

Hi I'm new to this forum, I'm probably supposed to say hello in the new members section or something I havent' read yet, but anyway, hello.

In the near future, possibly within six months, I will be the grateful recipient of an estimated £50,000 from the sale of a property, a very generous gift from a family member.

I want this money to work for me. Obviously, £50,000 isn't in the "I'll never have to work again" range, and I have debts of around £17,000.

I'd like to invest in my own business (possibly property abroad), but would probably need bank loans, and my credit is blacker than the deepest pits of Hades.

How could I use this money to improve my credit rating to give me a chance of getting business finance etc?

There are four others who will be receiving a similar amount at the same time, but I'm not sure what they want to do with it.

Also, where would I put the money initially? What sort of account?

Many thanks

Yeti

Daniel54

Yeti_Anagram wrote: »

Hi I'm new to this forum, I'm probably supposed to say hello in the new members section or something I havent' read yet, but anyway, hello.

In the near future, possibly within six months, I will be the grateful recipient of an estimated £50,000 from the sale of a property, a very generous gift from a family member.

I want this money to work for me. Obviously, £50,000 isn't in the "I'll never have to work again" range, and I have debts of around £17,000.

I'd like to invest in my own business (possibly property abroad), but would probably need bank loans, and my credit is blacker than the deepest pits of Hades.

How could I use this money to improve my credit rating to give me a chance of getting business finance etc?

There are four others who will be receiving a similar amount at the same time, but I'm not sure what they want to do with it.

Also, where would I put the money initially? What sort of account?

Many thanks

Yeti

Pay off all your debts and then consider your options.That is how you improve your credit rating.Simples.

You have been deep in debt once,Try to consider options that don't get you back there.Overseas property is hugely high risk as an investment.

Are you in a job and earning.?

Yeti_Anagram

Thanks for the reply Daniel 54. I'm not working for an employer, I've worked for myself for a number of years, but it simply isn't paying enough any more. I don't want to have this money just sitting in an account and me chiselling away at it until its all gone in two years, I want it to DO something for me. I'm never going to have my hands on 50k again.

JohnRo

It sounds like the problem you'll face, bearing in mind what you've said, is not where the money is or what it's doing but what steps you're going to take to stop yourself having to "chisel away" at it regardless of where it is?

Realistically any investments require that money allocated isn't needed in the short term and won't be touched for a great number of years, unless you're prepared, as the warnings keep reminding everyone, to accept a significant risk of getting back less than you invested.

If it was me I'd be looking at all the relatively high interest bearing current accounts, as that will possibly/probably prove far more lucrative than investing in the markets in the short term. It's a bit of a faff setting them all up but worthwhile given the sum left after your debts are cleared. Then if you've still got money left after exhausting that option, look at investing.

colsten

You will only have £33K, not £50K, as you have £17K debt. As you are not working, how would you have paid off your debts?

How will the £33K change your life so that you do not end up spending more than you can afford in future? Would it, for instance, pay for getting some qualifications that allow you to apply for better paying jobs?

Yeti_Anagram

Thanks for your replies.

I've already got a shedload of qualifications, and I'm in my late 40's, so it's not really about getting a better paid job. I've been used to working for myself, and to go back to being exploited by someone else doesn't do it for me any more. I'm a bit of a risk taker, if the potential results look good enough, and I'm very independent minded as well.

I shall keep looking and asking advice, and hopefully by the time the money arrives, I will have found something that will work for me.

Thanks again to you all. :beer:

kidmugsy

1) Pay off debts.

2) Put rest into premium bonds.

3) Pray.

xylophone

Pay off debts.

Make a pension contribution.

Try for a couple of high interest current accounts for emergency funds.

Open stocks and shares ISA - spread the £15000 over five well diversified
OEICS/investment trusts using cheapest fund platform.....

atush

I've already got a shedload of qualifications, and I'm in my late 40's, so it's not really about getting a better paid job. I've been used to working for myself, and to go back to being exploited by someone else doesn't do it for me any more.

This does not sound sensible. You can work for someone else w/o being exploited. I can't see you getting anywhere (nor retiring) on your current path as you admit working for youself isn't paying for you.

Not to mention your pension situation- have you been paying voluntary Nics? At least if you workd for someone else you will have a pension.

So for your 33K, look at pension, emergency cash fund, and S&S isa.