Advice needed for Investing 100,000

Ronalddonald

Hello everyone!

I am new here, so will introduce myself and my issue.

I am 25 and a graduate student who is still studying. I have been fortunate enough to have inherited £100,000 and i am looking for some advice on how to invest it or any accounts that i can divide it into until i use it for a mortgage in around 5 years.

What are the choices?

I know that banks don't tell you the best option and didn't want to rush this.

Any advice would be greatly appreciated

Thanks!

Delete33

Lend it to me for six months and I will give you it back with interest Ha!!!!!!!! Ha!!!!!!!!!!!!!!

Ronalddonald

Take it for a year!

AlanP_2

Putting the previous post to one side then as you will need it in cash in a relatively short space of time I would look at SAVINGS as opposed to INVESTMENTS.

Investments in Stocks & Shares are volatile, markets go up and markets go down and being reliant on them safeguarding your capital amount over 5 years can't be guaranteed. How would you feel if your £100k of investments could only be sold for 80 or 90K just as you need to put a deposit down?

The best savings rates are on Interest Paying Current & Regular Saver accounts where you could earn 3-6% by spreading the money around a number of them It takes a bit of effort setting the accounts up, setting up monthly SOs to move money between them and potentially some DDs as well to meet the Ts & Cs but you should be able to put £50k plus away at say 4.5% pa average. Lots of threads on here discussing the best deals and how to manage the money-flow processes.

As for the other 50K I would open a Halifax Help To Buy (HTB) ISA (4%) with some of it and top it up monthly to end up with the maximum bonus the government will give you at the point you do buy a house.

That will still leave 40K plus so your options there are Cash ISAs or investments as discussed above.

Would you be prepared to take some risk with some of it by investing in S&S? If yes you could open a S&S ISA and put £15240 in each year with the growth and income tax free and left to compound year on year.

Again lost of discussions on here re best platforms and ideas on what underlying investments to look at.

Once you have done a bit more research and thinking about your attitude to the risk / volatility of S&S shares ask more questions.

Others will be along with ideas I have no doubt but I would at least put £15240 into a Cash ISA before April as that is an annual limit that expires on 5 / April each year.

Make sure you look at threads on HTB ISAs and whether you can open / contribute to one in the same tax year as a standalone Cash or S&S ISA as I am not sure about all the rules in that area and you don't want to come unstuck.

atush

Although I agree with the above, I would, with 5 years before you need it (or more) consider using 10-15K into a S&S isa. You could drip feed it in over time, to protect against volatility. And would be only exposing 10-15% to investment risk, which is fairly safe if you sue finds or investment trusts- ie collective investments and not single shares.

Keep the rest in cash.

Eco_Miser

atush wrote: »

which is fairly safe if you use funds or investment trusts- ie collective investments and not single shares.

I believe the changes in bold are what atush meant to write.