Friend Wanting Help

The_Fiddler_2

I have a 30 something friend who has recently "acquired" £100K - they are looking for tips on how to save and invest this money.

What would you do if you had "acquired" this sum of money?

ringers

It depends how I had "Acquired" it

The_Fiddler_2

ringers wrote: »

It depends how I had "Acquired" it

:rolleyes: :eek:





LOL...Legally and above board

Jonbvn

Insufficient information to even consider a response.

Some questions they need to answer.

1. Are they tax payers - what rate?
2. What are they saving for?
3. What time-scale do they want?
4. What is their few on risk?
5. How old are they?
6. What is the situation with their home? Mortgaged, paid off etc...

Looks like an IFA may be the way.......

The_Fiddler_2

Jonbvn wrote: »

1. Are they tax payers - what rate?

- basic

2. What are they saving for?

- nothing planned at moment

3. What time-scale do they want?

- some each of short, mid and long

4. What is their few on risk?

- willing to take some risk - maybe high risk on a few £K

5. How old are they?

- mid 30s

6. What is the situation with their home? Mortgaged, paid off etc...

- no mortgage

isofa

These are my thoughts, obviously splitting the money up.

1. First use the ISA cash allowance if it hasn't been used. (3K)
1a. Then use the remaining 4K allowance for a stocks and shares/fund ISA if you want.

2. Chunk in a fixed rate cash bond, with a guaranteed return, this can be short to mid term investment 1-5 years depending on choices. Zero risk

3. Another chunk in instant access high rate savings account, this is zero risk and no term.

4. National Savings - Savings Certificates, you can put 15K away in each issue, one 3 years, one 5 years, you can open both at once if you like, that's 30K mid (or long) term investment.

5. Rest choose your risk and maybe gamble with a fund, or some stocks and shares.

Vary the amount between these depending on your level of risk.

The_Fiddler_2

Thank you isofa, I will let them know your suggestion.

does anyone else have any suggestions?

Thanks

isofa

You are welcome, hope it helps.

For stocks and shares advice, should you choose that route for some of the money, either research it well and choose yourself or find a good IFA who help you. But never put all your eggs in one basket (especially a risky one!)

(You won't find any recommendations on this site for funds/stocks/shares for various reasons.)