jfk Posted July 15, 2016 Share Posted July 15, 2016 About to come into some inheritance monies from a close relative - it's going to be split between me and my 2 kids. Children's monies are going to be put into some form of Trust fund (I know they don't exist now but you know what I mean) , I'll be the controller of the monies as don't want them (well one of the kids as the least sensible) to suddenly turn 18 and go 'wow, I can burn through this in a year or two' instead of it being used for their university fees. No idea about how to store my share of the money (which is likely to be in the region of £40k - £80k) - any ideas from the HPC collective? I have bugger all knowledge about this sort of thing ... Quote Link to comment Share on other sites More sharing options...
GreenDevil Posted July 15, 2016 Share Posted July 15, 2016 Deposit on a BTL? Quote Link to comment Share on other sites More sharing options...
Frugal Git Posted July 15, 2016 Share Posted July 15, 2016 I'd drip feed some of the money into SIPPS for the kids. Put 2880 a year in and the kids get 3600 as they still get basic rate tax relief (even though they havent paid any tax). The advantage of a sipp is its a buffer for later on in life, gets them well ahead on pensions etc but they can't easily access it to blown it at 18. I'd do the same for me too. The rest, drip feed full into stocks and shares ISAs, where you buy 50% vanguard lifestyle plus, 10% phpp and 40% direct big boys like rdsb, astrazeneca, barc etc. whilst maxing out on Santander 123 accounts in the meantime. That's what I'd do, but it's just one of many ideas. Alternatively just buy a second hand nissan gtr and a ducati desmosedici. Should come to about 80k. Quote Link to comment Share on other sites More sharing options...
jfk Posted July 15, 2016 Author Share Posted July 15, 2016 Deposit on a BTL? Just rent it out and raise the rents innit???? Quote Link to comment Share on other sites More sharing options...
man o' the year Posted July 15, 2016 Share Posted July 15, 2016 Nationwide have an account paying 2.5% up to £50k if that is any use. Quote Link to comment Share on other sites More sharing options...
GreenDevil Posted July 15, 2016 Share Posted July 15, 2016 Just rent it out and raise the rents innit???? Its so blimmin obvious, can get well over 5% yield on slumlord patch, guaranteed HPI to infinity, bricks n motor whats not to like Quote Link to comment Share on other sites More sharing options...
SE10 Posted July 15, 2016 Share Posted July 15, 2016 If you want to put it away for a long time and weren't struggling along before getting it, how about something like this (Not particularly recommending this fund vs. any other fund or vs. doing it by hand via crowd funding). You'll get a tax refund from the Government for it as well. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted July 15, 2016 Share Posted July 15, 2016 If you want to put it away for a long time and weren't struggling along before getting it, how about something like this (Not particularly recommending this fund vs. any other fund or vs. doing it by hand via crowd funding). You'll get a tax refund from the Government for it as well. That's the extreme end of high-risk investing. Suitable for a small part of a larger portfolio. Oxford Tech also have a family of VCTs investing in similar things. Because VCTs are quoted companies (and lower risk than EIS/SEIS funds), you can check their track records. Not for the faint-hearted. Quote Link to comment Share on other sites More sharing options...
justthisbloke Posted July 15, 2016 Share Posted July 15, 2016 (edited) About to come into some inheritance monies from a close relative - it's going to be split between me and my 2 kids. Children's monies are going to be put into some form of Trust fund (I know they don't exist now but you know what I mean) , I'll be the controller of the monies as don't want them (well one of the kids as the least sensible) to suddenly turn 18 and go 'wow, I can burn through this in a year or two' instead of it being used for their university fees. No idea about how to store my share of the money (which is likely to be in the region of £40k - £80k) - any ideas from the HPC collective? I have bugger all knowledge about this sort of thing ... It's pretty hard to keep adult's hands off their money these days. Trust structures don't help much. Even with a settled trust, they can pitch up at 18 and ask for the cash - the trustees have to oblige. Of course, on the eve of their 18th birthday, the trustees could put it all in a fixed term five year bond! The easiest route is to set up a "bare trust". Set up a bank account in the name of JFK RE JFKJnr. You manage it on their behalf until they're 18. Beware tax. If it's a big sum, it's worth paying for advice. In the case of your money, first decide what you want it for an when. If you want to buy a house, say, sometime over the next five years the investment solution will be different to the case where you want income for the rest of your life. Edited for: PS. Sorry about the loss of your relative. Edited July 15, 2016 by justthisbloke Quote Link to comment Share on other sites More sharing options...
Dorkins Posted July 15, 2016 Share Posted July 15, 2016 Donate it all to the S24 judicial review fund. £80k should buy a week or two of Cherie Blair's time. Quote Link to comment Share on other sites More sharing options...
Venger Posted July 15, 2016 Share Posted July 15, 2016 I'd drip feed some of the money into SIPPS for the kids. Put 2880 a year in and the kids get 3600 as they still get basic rate tax relief (even though they havent paid any tax). The advantage of a sipp is its a buffer for later on in life, gets them well ahead on pensions etc but they can't easily access it to blown it at 18. I'd do the same for me too. The rest, drip feed full into stocks and shares ISAs, where you buy 50% vanguard lifestyle plus, 10% phpp and 40% direct big boys like rdsb, astrazeneca, barc etc. whilst maxing out on Santander 123 accounts in the meantime. That's what I'd do, but it's just one of many ideas. Alternatively just buy a second hand nissan gtr and a ducati desmosedici. Should come to about 80k. Vanguard's growing dominance concerns me, but I don't know that much. Just where they have so much money to invest/track, have to find performance (and with growing market share.. perhaps even be part of making performance at times(?), imo. Jul 9 Retweeted No Sunk Costs Investors typically pile into index funds at precisely the wrong times No Sunk Costs @nosunkcosts Vanguard at 21.6% marketshare is eating the industry whole ---------- Financial Advisor @FAmagazine 3:37 pm - 18 Apr 2016 Vanguard Lures More Fund Deposits Than All U.S. Rivals Combined: The company attracted almost $29 billion to http://www.fa-mag.com/news/vanguard-lures-more-fund-deposits-than-all-u-s--rivals-combined-26366.html Quote Link to comment Share on other sites More sharing options...
Venger Posted July 15, 2016 Share Posted July 15, 2016 I looked into Child Sipps a while ago. Was surprised so few children have one... (Telegraph article). 03 Mar 2015 ..HMRC figures show 60,000 lucky children have some sort of pension set up in this way. http://www.telegraph.co.uk/finance/personalfinance/special-reports/11437077/Turn-2000-into-500000-the-pros-and-cons-of-starting-a-Sipp-for-your-child.html Other article has an IFA preferring Junior ISAs to Sipps because... 'Money is held away for decades-and-decades-and decades' - although obviously upsides (imo) for compounding growth, and very fact can't be cashed in. Worst enemy of power of compounding is spending savings. My own hesitation, and I didn't look much further into it, was SIPP account administration charges. £100 per year for some Child Sipps (although realise others are lower-cost). Which suggested to me it means you have to keep paying a bit into Child Sipp each year, (and get the relief top-up), to keep pace with some fees. Quote Link to comment Share on other sites More sharing options...
jfk Posted July 15, 2016 Author Share Posted July 15, 2016 It's pretty hard to keep adult's hands off their money these days. Trust structures don't help much. Even with a settled trust, they can pitch up at 18 and ask for the cash - the trustees have to oblige. Of course, on the eve of their 18th birthday, the trustees could put it all in a fixed term five year bond! The easiest route is to set up a "bare trust". Set up a bank account in the name of JFK RE JFKJnr. You manage it on their behalf until they're 18. Beware tax. If it's a big sum, it's worth paying for advice. In the case of your money, first decide what you want it for an when. If you want to buy a house, say, sometime over the next five years the investment solution will be different to the case where you want income for the rest of your life. Edited for: PS. Sorry about the loss of your relative. Cheers for the advice, I'm thinking of just keeping it quiet so they don't know about the dosh, daughter 1 is getting a lesson in how to spend cash like there's no tomorrow from my ex so there's no way I want her to have access to it. It will just get burnt through, rather than paying her uni fees. Daughter 2 (with Mrs JFK) is much more sensible (at 8 years old!) and saves everything, she's a true HPCer refusing to pay full price. Regarding my dosh, I've taken a small advance on it to completely clear the decks of personal debt, I will have zero debt to give to these f*cker banks their fees. The rest ... I may want to keep a 10k or so 'to hand' in a cash ISA of some sorts, the rest could do with locking up in low-risk investment/interest paying account. I'm not too bothered about playing the stock market as work full-time, have a pretty busy personal life and may wish to do a part-time distance learning MSc to improve further my (fairly decent) job prospects, possibly emigration is a possibility too in medium term. Not really bothered about buying a house, current housing is Mrs JFK and we all know how the current housing 'market' is, so leaving that for a few years at least. Will definitely invest the money in taking financial advise from an IFA on the way forward ... Thank you. He was my favourite Uncle, much loved and missed, it was a year ago he died now Quote Link to comment Share on other sites More sharing options...
jfk Posted July 15, 2016 Author Share Posted July 15, 2016 Donate it all to the S24 judicial review fund. £80k should buy a week or two of Cherie Blair's time. INNIT Quote Link to comment Share on other sites More sharing options...
man o' the year Posted July 15, 2016 Share Posted July 15, 2016 Link ? Nationwide Smart Ltd access Quote Link to comment Share on other sites More sharing options...
man o' the year Posted July 15, 2016 Share Posted July 15, 2016 Cheers for the advice, I'm thinking of just keeping it quiet so they don't know about the dosh, daughter 1 is getting a lesson in how to spend cash like there's no tomorrow from my ex so there's no way I want her to have access to it. It will just get burnt through, rather than paying her uni fees. Daughter 2 (with Mrs JFK) is much more sensible (at 8 years old!) and saves everything, she's a true HPCer refusing to pay full price. Regarding my dosh, I've taken a small advance on it to completely clear the decks of personal debt, I will have zero debt to give to these f*cker banks their fees. The rest ... I may want to keep a 10k or so 'to hand' in a cash ISA of some sorts, the rest could do with locking up in low-risk investment/interest paying account. I'm not too bothered about playing the stock market as work full-time, have a pretty busy personal life and may wish to do a part-time distance learning MSc to improve further my (fairly decent) job prospects, possibly emigration is a possibility too in medium term. Not really bothered about buying a house, current housing is Mrs JFK and we all know how the current housing 'market' is, so leaving that for a few years at least. Will definitely invest the money in taking financial advise from an IFA on the way forward ... Thank you. He was my favourite Uncle, much loved and missed, it was a year ago he died now You/they should consider whether paying uni fees is most effective use in the future. MSE has good analysis of this here. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted July 21, 2016 Share Posted July 21, 2016 Donate it all to the S24 judicial review fund. £80k should buy a weekhour or two of Cherie Blair's time. Fixed for you. Quote Link to comment Share on other sites More sharing options...
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