Friend has come into a tiny bit of money, what would you do?

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Stiff_Cookie said:
I would not spend it and I would put some of it away in a ROTH IRA and then put the rest in a mutual fund
We don't have Individual Retirement Accounts in this country ;)

If it was me (being risk averse) I would simply save it. Max out his ISA allowance (£3600 07-08) and put the rest in a regular high interest account.
 
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dirtydog said:
If it was me (being risk averse) I would simply save it. Max out his cash ISA allowance (£3600 07-08) and put the rest in a regular high interest account.

The current standard online saver account with no strings attached, with the likes of egg or cahoot is 5.5ish AER, which on 60k, after the 20% tax at source (unless he is not a tax payer which could be true in this situation) would be roughly £200 per month, £260ish gross.
 
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Old Wino said:
My choice would be:

5k pay off debts
3k ISA
2k gadgets
20k uni and deposit on next property afterwards
20k property in Bulgaria and rent it out
10k unit linked pension

One of life's nicer problems :D


I don't know if I personally would do the property abroad as it's something that sounds complex, but that's me. I'd definitely do the pension though and as I'd not buy property in Bulgaria (or where ever) I'd probably chuck £25k on the pension and leave an extra £5k to make life comfortable now :)
Getting a head start on your pension is a very wise move.
 
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The $6m Dan said:
Getting a head start on your pension is a very wise move.

Unless you think pensions are trash and investing your money yourself is a better approach?

With 60k to hand, he has the option of becoming a full time property developer. If he doesnt have the time right now, buy a house and rent it out. With a deposit that size, he should be able to get a low mortgage and make a tody profit on the rent.

When he wants to get into developing, sell up and off he goes. If not, he has a house paying for itself.

He did without that money in his pocket until now, why squander it?

TM
 
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Personally I would pay off debts go for a few luxuries and invest at least 70% Wisely.

A mix of ISA's that are low risk in the long term and maybe one that is medium to high risk such as emerging markets in India & China but the pay off's in the long run would be immense if their economies continue to grow.
 
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I'd stick £40k of it into some form of investment, and keep £20k to live on while at uni, probably in a savings account and transfer say £800-1000 a month max into a current account, but exactly how much would depend on what sort of standard expenses (rent etc) he's got.

If he wants to buy a flash car, I'd suggest only putting a reasonable amount down as a deposit, and taking the rest on a decent finance deal which works well to offset the depreciation with the gain on the assets :)
 
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Spend £20k of it on a nice M5 then use the rest to enjoy 3 years at Uni without having to work and also to run the M5.

Well thats what I'd do :p
 
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happytechie said:
buy a house, rent out some of the rooms downstairs to students, live in the loft apartment himself. make profit and have a house when he leaves university.

easy decision.

Depends on (a) whether he trusts the housing market at the moment and (b) whether he plans on staying in that area long term if the housing market implodes.

Personally, even though I don't think the market will crash right now, I don't trust it enough to put all my cash into it, especially for a relatively short term investment.
 
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[TW]Fox said:
Exactly Dolph, its quite clear that a fast car is the WAY FORWARD.

Only if you ensure you've got the depreciation offset as a car is a rapidly depreciating asset in most cases :)

*looks at the order form for his S3 and laughs maniacally*
 
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