I know nothing

lew005

Im am 22 years old and just inherited some money to the sum of 40k.

I was wondering what the hell do you do with a sum of money like that. I don't want to touch it or eat away at it.

Is there somewhere where i can put it where it will earn some money. I dont want to buy a house and rent it out.

Any suggestions would be greatly appreciated.

Lewis

save-a-lot

Hi

Get this years ISA allowance used up now. £3000 into a cash ISA. Then in April put another £3600 in (the tax free allowance is going up) then that £6600 will be earning interest tax free.

The rest, well we have put ours in a one year fixed bond with a good rate. Then intend to max out the ISA's when that bond ends next year. Then keep running that cycle until all of it is in an ISA.

We are doing this cycle with £30K and myself and my wife are using both our allowances, so we can put away £6K per year, then £7.2K when the level you can pay into an ISA goes up.

In an ISA the interest is tax free for the whole time the money is in there.

Aegis

lew005 wrote: »

Im am 22 years old and just inherited some money to the sum of 40k.

I was wondering what the hell do you do with a sum of money like that. I don't want to touch it or eat away at it.

Is there somewhere where i can put it where it will earn some money. I dont want to buy a house and rent it out.

Any suggestions would be greatly appreciated.

Lewis

If you want to do anything more complicated than simple saving of this money, then I suggest you visit an Independent Financial Adviser and get a professional to assess your needs, your attitude to risk and your financial situation. After that he/she can recommend a strategy that will meet your ongoing financial needs in line with your risk profile, and you will probably end up with more in the long run than if you kept the whole lot in cash accounts.

Of course, if your attitude to risk is non existant, you might as well find savings products that you like and dive right in, as they require much less professional input to work out for yourself

tradetime

Kind of depends whether you can be pretty sure you are not going to need it for a while or not. If you can guarantee not needing it for a while then I'd agree with Save-a-lot. Icesave doing decent fixed rate bond at the moment.

claremcv

Martin has some advice on where to put your money when you start saving. I am just new to all this, but it really helped. I have opened my ISA and am waiting on my April 6th for to max out my next isa.

The link is here

clare

dunstonh

Before all the suggestions are given I think we need to clarify if the OP is looking at savings or investments (or combination) and what sort of timescales and risk attitude are invovled as well as tax.

Jonbvn

Investigate the following options:

1. Cash ISA's.
2. Index linked savings certificates.

Both options are tax-free and low risk.

Aegis

dunstonh wrote: »

Before all the suggestions are given I think we need to clarify if the OP is looking at savings or investments (or combination) and what sort of timescales and risk attitude are invovled as well as tax.

I tried... Honest!