Young adults about to inherit...

ClaireE

My 3 sons aged 20, 21 & 22 are about to inherit a substantial amount of money from their late grandmother's estate. They have already inherited from their late father's estate last year. I want to invest as much as possible for them under their individual names and this will be with their blessing. What would be the best way to do this to ensure they have a secure financial future?

Keep_pedalling

At that age I would encourage them to take on their own investments. If none of you have any experience in investing then taking professional advice might be wise. 

Jemma01

I strongly advise you to put them in contact with a reputable financial advisor (a company with a stable history) and let the financial advisor do the work. If god forbid, the investment goes bust (and it happens) you don't want to be blamed for it.

Brie

Jemma01 said:

I strongly advise you to put them in contact with a reputable financial advisor (a company with a stable history) and let the financial advisor do the work. If god forbid, the investment goes bust (and it happens) you don't want to be blamed for it.

Precisely but I would add that it should be an INDEPENDENT financial advisor.  

I think also that it would be a great idea for all 3 of them (& you?) to sit in with the IFA for a session for general information and then they could have separate sessions. 

I would also make suggestions to them about setting up a ISA or similar to put money in to buy a house when they are ready, also a pension plan of some sort so that some of the money is locked away for the future.  Then it will depend on the individuals.  Are they in or planning on further education?  Setting up a business?  Want to travel the world?  Move to somewhere really different?  All of these things will affect what they should do. 

And there's also the issue of how money sensible are they?  One might already be money savvy while another blows every penny and the third just looks confused when confronted by spreadsheets.  

Emmia

They're all adults, so whilst I understand your desire to ensure they invest/use the money wisely, the money is theirs to do with as they wish - you can't/shouldn't invest for them. 

Take them to an IFA, but you should then step back a little to let them make their own choices.

Eyeful

Independent Financial Advisor (IFA) : You expect them to act as your agent. They look at the whole of the market.

Financial Advisor (FA) : They act as the agent of the company they represent. They are restricted advisors & advice only on the products their company deals with. Some consider them financial sales persons. 

https://www.moneysavingexpert.com/savings/best-financial-advisers/
https://www.which.co.uk/money/investing/financial-advice/how-to-find-a-financial-adviser-afZ375F6BIiC
https://www.citizensadvice.org.uk/debt-and-money/financial-advice/getting-financial-advice/#h-how-to-find-a-financial-adviser

Make sure you know which of the two you are dealing with.
Ask at the start " Are you an IFA or a Restricted Advisor".
Suggest you see  at least 3, before choosing one.

Olinda99

also worth having a chat with them about what they wanted to invest for i.e the reason for the investment

Eyeful

For your sons, some simple rules easy to follow.

Remember anything to do with money has risk attached, all that changes is the type & size of the risk

1. Avoid high interest debt.
2. Have any emergency fund to cover things like car/boiler brake downs.
3. Use tax shelters (ISA's & Pensions) were possible.
4. Any money needed within 5 years should be in a bank or building society account covered  up to £85k by the FSCS. https://www.fscs.org.uk/check/check-your-money-is-protected/
https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html
5. Investing in the stock market is for the long term (say at least 10 years).
There are no guarantees you hope you will get more out, than you put in.
https://www.kroijer.com/

theoretica

Very worth while your sons having a think about how they may want to use the money in their life - any investment plan will need to know when they  might want to spend it.  Pilot training school next year?  A home very soon or not until established in a career?  A car?

Zoe02

Get them involved. They can have ISA funds etc.

When older and in a position to buy a property will come in handy. 

propertyrental

It's their money, not yours, so any decisions are theirs to make. But by all means discuss and advise.

But they each need to consider

* Family - are they married? kids? Planned?

* housing - home-owners? Planned?

* health etc - do they have life insurance? Loss of earnings insurance?

* Work - employed? Salary level Vs outgoings?

* future plans - round the world trip planned? new car?

* Pensions - any set up? (pensions are tax efficient)

* savings/investments - how much they already have? How accessible?

Once all those/similar questions are answered, then it's time to see an IFA who should advise based on their needs and expectations.