100k Inheritance

Electric

Hello, I have seen that that there are numerous posts regarding inheritance and read plenty however most are by individuals with with mortgages, children etc. I am 21 and soon to be graduating from university, I will have around £47,000 in student debt, I will be moving back home and looking for a full time job. Any ideas on how I should invest/make it work for me would be great, thank you.

Linton

The key factor in deciding what you should do with the money is what you intend to use it for and when. I suggest you think about this.

Your 2 main options are investments in shares held in funds or to put the money in a savings account and receive interest, Investments are only suitable for the long term (> 5 years as a minimum and preferably >10) as fluctuations in prices could mean that you lose money over the short/medium term. However investing is the only way you can be reasonably confident of beating inflation and making some extra in real terms.

Savings accounts are suitable for the short term where you need easy access. Sadly the returns may well not match inflation and so you would lose out in the longer term.


One compromise could be to split the £100K into two separate tranches. Perhaps £40K in long term investments and the other £60K in a ladder. This means keeping say £10K in cash, putting £10K in a 1 year fixed term savings account, £10K in a 2 year account...and £10K in a 5 year account. As each £10K matures you either use it or put it in another 5 year account. So, you are getting access to your money at the rate of £10K+ interest/year whilst getting the best interest rates available. Obviously you wont want to do this if you intend to buy a house in the next 5 years.

One thing that is probably not worth doing is paying off your Student Loan assuming this is through the scheme rather than bank overdrafts. Tou only need to pay it back at more than a minimal rate when and if your income reaches a reasonable level say £30K-£40K.

girllikeme1

Talking small quantities of the overall amount but don't forget that you can put £4K per year into a LISA (you can withdraw it when you buy your first property) and the government will top up by £1,000.

Albermarle

To be slightly less sensible . Use a part of it to enjoy a gap year and/or buy a car or something similar. . Then follow the very good advice above with the remainder.
You are only young once !

justme111

Think about the person who's money it used to be - what would they like you to do with it ?
LISA , investments in ISA, buying a house, paying for further career development/study - depends what is your life plan