Ive got £170k and would like to know where to invest it

Apologies as I know similar threads have been made before - however most were already closed so couldnt ask my own questions.
I am 21 years old and will be receiving around £170k and would like some advice/opinions as to what i should do with this money.
I have opened a help to buy ISA and want put some into that and also clear some small debts i have.
I want a car but its not quite a necessity at the moment and would only want to get one when im in a stable job (which I am not at the moment).

I don't want to be that typical young lad who gets this money and blows it on designer clothes, watches, holidays etc and I'm scared I might get ahead of myself.

I think the best thing for me would be something where it can just get locked away so i dont have easy access to it but it isnt going to be eroded by inflation. I also want to have a good return when it comes time to buying a house etc.

Aplogies for the long winded message but any help would be greatly appreciated.


  • A bit difficult to answer this one, have a read of some of the threads on here to get an idea.
    Then think about: when do you want to use this capital, for what.. or do you just want to put it away for a rainy day.. how long?
    If you lost 40% of it tomorrow how would you feel, if that loss of 40% regained itself in 5 years Is that okay?
  • xylophone
    xylophone Forumite Posts: 42,643
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    edited 30 July 2020 at 8:48AM
    I have opened a help to buy ISA 

    Had you looked at LISA?

    For the moment, you could deposit the whole sum in NS and I Income Bonds, moving the interest to an NS&I  Direct Saver https://www.nsandi.com/ while you consider a strategy.

    Once you have secure employment, you can think again.

  • AlanP_2
    AlanP_2 Forumite Posts: 3,193
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    In the short term while you think about how you can best make use of this put it in to National Savings & Investments Premium Bonds (£50k) and the rest in their best savings interest rate offer.

    It may not keep up with inflation over the longer term but it gets it out of your normal bank account and is owned by the government so no danger of it going bust.
  • Albermarle
    Albermarle Forumite Posts: 18,781
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    I think the best thing for me would be something where it can just get locked away so i dont have easy access to it but it isnt going to be eroded by inflation.

    If you have read a few other threads then you will already know that to beat , or even match inflation , you have to take some risk with where you put the money . However risk in this context does not mean risk of losing 100% , but  that the investments can be volatile and can bounce up and down in the short /medium term . The longer you keep the investment the more the risk is minimised.

    Normally with a sum this large , it would be better to think of spreading it around various places, such as easy access savings; premium bonds ;longer term savings ; LISA probably ; some Stocks and shares investments ; add to pension when you are working again etc. You could even spend some of it !

    However no rush so in meantime the advice from previous posters to park it whilst you formulate a plan is the best idea for now. 

  • Sailtheworld
    Sailtheworld Forumite Posts: 1,551
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    I'd clear those small debts, spend a little bit on nice things, put the rest somewhere safe and proritise getting a decent job.

    There's no rush to do anything much at at (other than secure the cash) and it's difficult to plan if you don't know what sort of employment income you can rely upon.
  • Cam93
    Cam93 Forumite Posts: 72
    Third Anniversary 10 Posts
    Clear debts
    Spend 10-20k on treats- lifes for living you may not be in this position again
    20k into S&S isa
    Max out a LISA as part of house deposit 
    50k in premium bonds,
    Rest into the best intrrst rate account you can find, then repeat next year regarding S&S isa abd LISA

    Once you've treated yourself to 10-20k worth, forget about the rest and treat it like you don't have itby that I mean live off your earned income and watch your money (hopfully) grow whilst avoiding tax
  • eskbanker
    eskbanker Forumite Posts: 27,513
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    Cam93 said:
    20k into S&S isa
    Max out a LISA as part of house deposit
    Just to be clear, the aggregate total contribution (of new money) to ISAs during a tax year is capped at £20K, so maxing out a LISA would only leave £16K for S&S, HTB and any others.
  • [Deleted User]
    [Deleted User] Forumite Posts: 0
    10 Posts
    Hi Raffraymon,
    I agree with the suggestion to put it into an NS&I account as soon as possible.
    You could then look into the different types of ISAs (cash, LISA, stocks and shares) and put £20,000 into an ISA each tax year.  If you think you might need the £20,000 within a few years, then you should probably stick to using a cash ISA.
    Look dubiously at any offers for any interest rates (savings accounts, bonds, whatever they're called) that are more than about 1%.
  • [Deleted User]
    [Deleted User] Forumite Posts: 0
    10 Posts
    Also, stick to NS&I, high street banks or well known investment platforms.
  • MaxiRobriguez
    MaxiRobriguez Forumite Posts: 1,780
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    edited 31 July 2020 at 10:28AM
    £170k as a 21 year old must be fairly mindboggling if you were anything like me at that age, driving my dads car and making a fiver an hour working on supermarket tills.

    The best thing to do is don't panic. Do not rush doing anything with the money. Take some time to really think about it - ask for help (like you have done here!), maybe even seek out an IFA. Don't make a rash decision, because this money is setting you up for life.

    That said, if I were in your situation and could relive my early 20's with a tonne of money then with hindsight I would do the following:

    1) Pay all debts off, even cheap ones, including student loan, so you have a completely blank debt slate to start adult life with.
    2) Use £5-10k to travel to a few different places in the world for a bit if you're not yet into a proper "career".
    3) Siphon off £50k-£100k or so for a house to pay the deposit for a mortgage (and get a tenant when you've moved in)
    4) Siphon off £5k as an emergency fund which you keep in an easy access bank account. 
    5) Buy a cheap, reliable car if you really need and want it. (Cheap means £5k max).
    6) Put as much as you can into a Stocks and Shares ISA, buy a cheap global fund and forget about it for now.
    7) Whatever is left, start putting it into a pension, either via a work scheme or set up your own SIPP.

    Most people on here will say 6) and 7) should be higher in the list, which from a purely £numbers point of view is true, but doing the other things first sets you up perfectly to then do 6) and 7) over the long run and be in a great position later down the line. Whacking all the money in investments now and having to leave them for years whilst you're itching to have a (better) house, buy a car or go travelling should you so wish isn't particularly helpful.

    But - take your time to really think about what you want to do. The good thing about this is you have options, you basically get to choose between things like a nicer house now (more money towards deposit) or retiring a couple of years earlier (more money into a pension/ISA).
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