Inheritance - UPDATE

Shodan6920

Short summary of what I have done with the windfall I have received in reference to the "500k inheritance at young age" post, a few months ago.


After consulting an IFA who works with two family members I have decided to go ahead and invest with him. After a lot of thinking I feel that the initial costs [3.8%] and ongoing cost of 0.5% may provide me with a better return than if I had simply invested with the bank.

This means I now have £81770 invested between Prudential, LV, and Nucleus (also maxed my ISA with Nucleus). I have also set up a monthly direct debit of £100 to go into an adventurous portfolio.

I have also joined my company pension scheme to which £50 per month goes into, and the remainder goes into a standard saver with Nationwide.

Hopefully this will grow in value, and build a pension pot for the future, as I am not planning to retire until I am around 55 (33 years). Hopefully this length of time will also diminish risk and ride out any downturns in the market.

My current income supports my current lifestyle, which has enabled me to invest the majority of liquid cash available and also set up an emergency fund of £10,000.

Any thoughts on this? What would you have done in my situation?


Shodan6920

kidmugsy

Three point eight bleeding percent? Oof.

Whether I'd have been any wiser at your tender age is another question.

Shodan6920

kidmugsy wrote: »

Three point eight bleeding percent? Oof.

My thoughts exactly. However, With the duration of the investment and salary i will make this figure back in time.

masonic

Expensive IFA is definitely better than free bank salesperson. I think you could have done a lot better by shopping around, but as you say, over your investment horizon, that figure will become insignificant in time.

Shodan6920

Granted I may have got a better price by shopping around. However the fact that he currently manages two of my family member's pensions swayed me to pay more. I'd sooner have someone that is known and trusted by close relatives than not whilst dealing with my parent's money.

Thrugelmir

Shodan6920 wrote: »

Granted I may have got a better price by shopping around. However the fact that he currently manages two of my family member's pensions swayed me to pay more. I'd sooner have someone that is known and trusted by close relatives than not whilst dealing with my parent's money.

Sorry but that fee rate is unjustified. There's only one guaranteed winner. If your investments fail to perform then you may well regret your decision.

Why only £50 into the pension scheme? What was your advisers recommendation in this regard?