What to do with £50.000

Primrose

Please don't make the mistake of thinking this amount of money will transform your life. Inflation will soon start to eat away at it and so could tax on the interest you receive. So see an IFA and don't rush into anything or be persuaded into any investment you don't understand. You can certainly take out a cash ISA every year for a start. A lot will depend on whether you will be able to work and earn again in the future. And as others have advised, don't tell anybody else about your money. You'll soon acquire a lot of fair-weather friends who suddenly need to borrow money from you or turn up with hard-luck stories.

JACKdaLAD

Well today i spoke to my mum on the phone she had a word with her boss who dabbles in big amounts of money! well he thinks he does.

My mum has told him i got a bit of money but obviously hasnt given the big picture. She asked what sort of intrest you can get paid monthly via £50.000. This guy seems to think i could get as much as £500.

I worked out if this is correct i could get a parttime job once im on my feet and could have a £1000 a month income whats £1000 more than im getting a month right now!

is the above possible?

Like i said i want to turn this money in to a life changing situation. Ive owed money out all my life and im only 25 lol So £1000 a month for me looks pretty good right now.

My plan so far

Pay of credit cards and over drafts *DONE*

Booked driving lessons as i havnt driven befor only motorbikes *DONE*

Find my self a part time job what my accident wont effect *almost DONE*

Wait 3 years get a van do some sort of courier work *3 years to go* LOL

Pay my half of mortgage *cant wait*

Invest £50.000 or maybe more in to a hign interest account with a high monthly payout *need you guys here for suggestions*

Also set up some ISAs for the future *also need your suggestions here*


Right if you think im of my head and none of this is possible please say as i need to be brought back from cloud nine if im thinking rubbish.

What do i do about a IFA ive had one guy contact me though this website asking to maybe meet up / talk on the phone / or send him my details so he can send me some onfo.

Straight away i thought *here we go got some dodgey sod contacting me for my details so he is one step closer to my cash *ture?*

Do i find a FREE IFA? do i pay them? If i pay how much. Do i pick someone local or someone from else where. Seee what i mean im cunfuzzled LOOL

sloughflint

I've pmed you.

debbie42

JACKdaLAD wrote: »

She asked what sort of intrest you can get paid monthly via £50.000. This guy seems to think i could get as much as £500.

If you saved £50K in a savings account paying, say, 6.5%, you'd get gross interest of £3250. If you paid tax at a basic rate of 20% it would net down to £2600 p.a.

You'd need a rate of 12% to net £500 p.m., and that is assuming no tax paid. If you did pay tax it would need to be in excess of 15%. Those sort of figures are not currently available in savings accounts on that sort of deposit. If your Mum's boss knows different then please let me know!

JACKdaLAD wrote: »

What do i do about a IFA ive had one guy contact me though this website asking to maybe meet up / talk on the phone / or send him my details so he can send me some onfo.

Straight away i thought *here we go got some dodgey sod contacting me for my details so he is one step closer to my cash *ture?*

Hmmm...I'd be very wary about being approached in such a fashion. I certainly wouldn't provide any details to someone without finding a lot more about them first.

You can find out a list of IFAs from www.unbiased.co.uk.

Jonbvn

JACKdaLAD wrote: »

My mum has told him i got a bit of money but obviously hasnt given the big picture. She asked what sort of intrest you can get paid monthly via £50.000. This guy seems to think i could get as much as £500.

Sorry but the above is incorrect. £500 per month is £6k per year, which on
£50k equates to an interest rate of 12% - nobody offers such a rate!

The best paying savings accounts are offering around 6.5%. Over a year this gives you £3250 gross interest. Assuming 20% tax, leaves you with £2600 which equates to approx. £217 per month.

sloughflint

debbie42 wrote: »

Hmmm...I'd be very wary about being approached in such a fashion. I certainly wouldn't provide any details to someone without finding a lot more about them first.

You can find out a list of IFAs from www.unbiased.co.uk.

Just to be clear as I realise what my post above looks like. I echo what you say and was suggesting pretty much this to OP but via pm.

chesky369

Oh Dear Jack - do be careful (I'd put this in capital letters, but that's shouting). I would be very wary of both the guy on the phone AND your mum's boss. And stress to your mum that she really shouldn't talk about this - she must have mentioned £50,000 to have him estimate the monthly income - which is again very very unlikely.

pandora205

Hi
Congratulations on your claim - it certainly is a big amount but won't make you a millionaire (easily!)
I'm new to all this (saving and investing) but I'm learning so I thought I'd share three very simple things I've learned so far:
1. There is a difference between saving and investing. Investing is when you are willing to risk money - you can lose as well as gain - but you can earn more if you are lucky/well-informed/do your homework or fine a man (or woman!) who can.
2. If you pay tax, take out an ISA. You can put £3600 per year into a cash ISA and the interest is tax free. Over time this can mount up. There are some very good ISAs out there.
3. If you are going to save money (ie put it somewhere pretty safe where it will grow fairly smoothly) there are much better accounts than the high street banks.

Good luck with it all but do keep it to yourself.
There is lots of good advice on this site, not least from Martin!

Guapa1

Not much to add, but well done in your claim, and Jack don't tell people your business!!!

Leave it for a while get as much information as you can and then make informed decisions.

JACKdaLAD

Yeah im not going to jump in to anything and im deffenty not evan speaking to anyone who aproaches me as thats just dodgey.

When i was told i could get £500 i knew it would be to good to be true.

Ide also like to point out for sloughflint case. He wasnt the one who contacted me for my details he purely pointed me to the same place as debbie42 So thankyou to both of you.

When me mum spoke to her boss she said i was in the process of a claim not that i won a claim and just said if he was to win a large sum say £50.000 what sort of monthly withdrawal could he make!

I need a holiday