Where do I put 500,000.

fpants87

Hi folks my son aged 4 has been awarded 500,000 in compensation where do I put it and how do I go about it please.

Linton

For that amount of money and its importance for your son's future I strongly suggest that you should consult an IFA.  Get initial chats with perhaps 3 local ones, ensure that they are Independent FAs, and choose one you feel most confortable with.  The IFA should be able to identify a set of investments that will meet your son's requirements over what I assume will be a long time period.

In the short term you could put the money into an NS&I account where it is 100% guaranteed by the Government.

fpants87

Thank you Linton what is ns&I ( Mnot good with abreviations)

Linton

fpants87 said:

Thank you Linton what is ns&I ( Mnot good with abreviations)

National Savings: https://www.nsandi.com/

george4064

As @Linton said, definitely seek professional advice on where to invest/store this substantial amount of money.

OldMusicGuy

What kind of compensation? If it's for personal injury, you should probably set up a trust for it. Solicitors involved in these cases usually have someone you can talk to about this (one of my friends has been through this recently).

steampowered

As others have said, it is worth going to see an IFA for advice.

As a 4 year old child, the money needs to be saved for the long term. Presumably it needs to last the child into adulthood and well beyond.

That means the money needs to be invested. The correct answer is almost certainly to put the money into a diversified portfolio of stocks & shares. You won't go far wrong putting the money into a balanced investment fund, such as a Vanguard fund.

Keeping the money in NS&I or in a bank account for an extended period of time would be madness as the child would be losing money every year due to inflation and losing out on investment returns.