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Velgud

Looking For Advice :)

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Hi everyone, I know this isn't a free financial advice forum, but I've been an avid reader of these forums for about 3 years now and I have a great deal of respect for a lot of posters on here. I am firmly of the belief that this country is about to go to pot and share most of the common ideals on here, and thus I am very interested to hear your views.

I've recently inherited £10k from my grandfather and am unsure what to do with it.

I'm a fairly young lad, I have no credit card, loan, store card etc debts. The only debt I have is £24k on an interest only mortgage currently costing about £37 per month (I know what most of you think about IO mortgages, but I'm a freelancer so prefer to keep my monthly expenses to a minimum and then overpay when I complete a job) and I have about £6k in student debt (which I am very keen to drag on for as long as possible due to being rather bitter about it!).

In my humble opinion:

- Savings interest is pathetic and I'm concerned that future inflation will make saving even less worthwhile

- Gold is possibly in a bubble and silver is VAT chargeable (I think)

- Property... well, we all know where that is right now - and I am certainly not going to use it for a deposit on a BTL because I'm not stupid or evil

So the way I see it, the only decent investment right now is in either business or education (i.e. investing in one's self). However, I'm currently working on a dot com startup and about to get around £150k investment for an equity stake, so to invest my grandfather's £10k into that would basically swallow it up and not really add very much extra value. I'm real busy with this startup so investing in education is a no go. Likewise, due to my current work, I don't really have the time to just blow it on travelling.

So, what should I do?

At a guess, I suspect you'll say NS&I or an ISA or something.. but hmmmm.. well basically I have quite a speculative personality and that seems a bit dull, plus I'm expecting/hoping to earn a shedload over the next few years from the success of my new startup so at that point the £10k would be a bit trivial.

Right now, I'm thinking it should be a lifestyle investment, i.e. wait for 12-18 months until Spain really tanks and then use it as a deposit on a nice little home in the sun.

Anyways, very keen to hear your thoughts because like I said, I very much respect the opinions of people on here and (cue the sad story) I don't really have a significant male role model in my life to give me any advice!! (not being sexist or anything, I'm sure females can give great advice too, but my mum isn't Warren Buffet lol)

Thanks in advance :)

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Hi everyone, I know this isn't a free financial advice forum, but I've been an avid reader of these forums for about 3 years now and I have a great deal of respect for a lot of posters on here. I am firmly of the belief that this country is about to go to pot and share most of the common ideals on here, and thus I am very interested to hear your views.

I've recently inherited £10k from my grandfather and am unsure what to do with it.

I'm a fairly young lad, I have no credit card, loan, store card etc debts. The only debt I have is £24k on an interest only mortgage currently costing about £37 per month (I know what most of you think about IO mortgages, but I'm a freelancer so prefer to keep my monthly expenses to a minimum and then overpay when I complete a job) and I have about £6k in student debt (which I am very keen to drag on for as long as possible due to being rather bitter about it!).

In my humble opinion:

- Savings interest is pathetic and I'm concerned that future inflation will make saving even less worthwhile

- Gold is possibly in a bubble and silver is VAT chargeable (I think)

- Property... well, we all know where that is right now - and I am certainly not going to use it for a deposit on a BTL because I'm not stupid or evil

So the way I see it, the only decent investment right now is in either business or education (i.e. investing in one's self). However, I'm currently working on a dot com startup and about to get around £150k investment for an equity stake, so to invest my grandfather's £10k into that would basically swallow it up and not really add very much extra value. I'm real busy with this startup so investing in education is a no go. Likewise, due to my current work, I don't really have the time to just blow it on travelling.

So, what should I do?

At a guess, I suspect you'll say NS&I or an ISA or something.. but hmmmm.. well basically I have quite a speculative personality and that seems a bit dull, plus I'm expecting/hoping to earn a shedload over the next few years from the success of my new startup so at that point the £10k would be a bit trivial.

Right now, I'm thinking it should be a lifestyle investment, i.e. wait for 12-18 months until Spain really tanks and then use it as a deposit on a nice little home in the sun.

Anyways, very keen to hear your thoughts because like I said, I very much respect the opinions of people on here and (cue the sad story) I don't really have a significant male role model in my life to give me any advice!! (not being sexist or anything, I'm sure females can give great advice too, but my mum isn't Warren Buffet lol)

Thanks in advance :)

Try Forex - lots of movement at the moment so plenty to be won or lost. Easy to do from home and if you're as sad as me quite fun.

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Do something your grandad would have wanted you to do with it....

...buy a round the world air-ticket and drink & shag your way round the world.

You won't regret that when you get to your old age.

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Do something your grandad would have wanted you to do with it....

...buy a round the world air-ticket and drink & shag your way round the world.

You won't regret that when you get to your old age.

His grandad may have been afraid of flying.

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> I have about £6k in student debt (which I am very keen to drag on for as long as possible due to being rather bitter about it!).

If the interest rate on this is higher than you can get on savings then pay this one off and dump the bitterness.

Then buy/do something you grandfather would think is a good idea.

Dont p1ss it away on day-to-day expenses.

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Hi!

1. 10k is a very small amount of money and the fact you consider it to be a significant sum leads me to suspect that it represents your only savings. Is that true?

2. Why do you want to string out your student debt?

3. How much do you owe on the property other than your IO mortgage? How were you planning to pay off the lump sum when the IO expires?

4. You need to decide if you are an inflation or deflationista as this would affect your strategy. A deflationary strategy would be to stay in cash, no matter how low the interest rates are.

5. You can spectulate on a variety of things easily by opening a spread betting account. However the fact that you say you enjoy taking a risk may mean you don't have the personality for it. Thrill seekers tend to risk too much and get very burned. Then they blow the lot trying to win it back. If you do think about putting money in the markets, make sure that you read widely on the subject, develop a plan, paper trade, trade using a dummy account before you start sticking any money in.

From what you have said so far I would advise paying off the student debt and then putting the rest into an ISA. You should aim to always have 6 months of living costs as a minimum to live off in emergencies.

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Do something your grandad would have wanted you to do with it....

...buy a round the world air-ticket and drink & shag your way round the world.

You won't regret that when you get to your old age.

lol.. yeah to be honest that would be an option were I not busy with my new business. Plus, fortunately I have a very beautiful girlfriend whom I intend to stay faithful to!

His grandad may have been afraid of flying.

lol, he was :lol:

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extract money from your current pad and use it along with the 10k to fund a deposit on a BTL.... Its not evil, it could be stupid (but it might not if you get a mega discount)

Edited by AteMoose

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...plus I'm expecting/hoping to earn a shedload over the next few years from the success of my new startup so at that point the £10k would be a bit trivial.

Right now, I'm thinking it should be a lifestyle investment, i.e. wait for 12-18 months until Spain really tanks and then use it as a deposit on a nice little home in the sun.

...

It sound like half of you want to make a good return off 10K and the other half can't really be bothered with it as you're going to make 1,000s from your company.

I'd do one of the following:

1. Buy a classic sports car (fun and the right one will hold its value or go up in price) but there is an annual management charge ascociated with this type of investment :P

2. Put it in the best savings account/bond you can find and forget about it.

3. ZOPA is currently returning 8.3% according to their website

4. Do any of the above and cash them in in 3-4 years once the property market has finished tanking and use it as a deposit for a nice little BTL empire!

None of the above is meant to be serious advice.

Seriously, If I was you I'd do No 2 for now just in case your company doesn't perform as you hope. Then if the business makes you rich use the cash to have some well deserved fun.

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Some might say buy gold with it, bury it well, and leave the map to your grandchildren. - carries the spirit of the inheritance and shifts the problem of what to do with it on to them!

Just don't bury it in a spot that looks good for a multistory car park.

I've never forgiven my old grandad for that!

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How old are you? And whats the start up you've got investment for about?

It sounds like you don't need the money right now with your busy life and small outgoings for your mortgage, and it's nice to hear you expect to be making a ton of money soon from this start up, but a lot of the time things don't turn out how you expected them to.

You won't get a decent return on 10k no matter what you do with it, it's not enough, so if I were you Id stick it in an instant access savings account with the least laughable interest rate and forget about it. You might need it if things don't go according to plan. And Im afraid they won't, at least not completely.

Edited by cybernoid

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> I have about £6k in student debt (which I am very keen to drag on for as long as possible due to being rather bitter about it!).

If the interest rate on this is higher than you can get on savings then pay this one off and dump the bitterness.

Then buy/do something you grandfather would think is a good idea.

Dont p1ss it away on day-to-day expenses.

Yep, definitely don't want to p1ss it away on daily expenses, although I do pride myself in having very low fixed outgoings so that shouldn't really be a problem.

Yeah, maybe I should dump the bitterness, you're right there, bitterness doesn't really do any constructive ever does it. I just fr1gging hate the fact I had to pay for my education. I dunno, I guess in the back of my mind I'm thinking that I will leave this country and that debt behind one day, b0llocks to them.

Hi!

1. 10k is a very small amount of money and the fact you consider it to be a significant sum leads me to suspect that it represents your only savings. Is that true?

2. Why do you want to string out your student debt?

3. How much do you owe on the property other than your IO mortgage? How were you planning to pay off the lump sum when the IO expires?

4. You need to decide if you are an inflation or deflationista as this would affect your strategy. A deflationary strategy would be to stay in cash, no matter how low the interest rates are.

5. You can spectulate on a variety of things easily by opening a spread betting account. However the fact that you say you enjoy taking a risk may mean you don't have the personality for it. Thrill seekers tend to risk too much and get very burned. Then they blow the lot trying to win it back. If you do think about putting money in the markets, make sure that you read widely on the subject, develop a plan, paper trade, trade using a dummy account before you start sticking any money in.

From what you have said so far I would advise paying off the student debt and then putting the rest into an ISA. You should aim to always have 6 months of living costs as a minimum to live off in emergencies.

1 - yes it does, I'm an 'Earth Horse' and generally spend what I earn on fun

2 - see above

3 - I have 21 years left on the IO mortgage, I've worked hard to over pay during the last 4 years based on what I've learnt from this forum in the past :) I have £24k outstanding on the balance now.

4 - I'm not exactly educated to make a judgement here, but frankly I can see no way out other than the government inflating away the debt. I understand this will devalue GBP but only if the other countries don't follow suit right (which I'm guessing they would ) - but hey, I have no idea to be perfectly honest!

5 - to clarify, I like calculated risk, moreover, I like good value returns!

Thanks for all the responses so far though people, it is very much appreciated :)

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Hi everyone, I know this isn't a free financial advice forum, but I've been an avid reader of these forums for about 3 years now and I have a great deal of respect for a lot of posters on here. I am firmly of the belief that this country is about to go to pot and share most of the common ideals on here, and thus I am very interested to hear your views.

I've recently inherited £10k from my grandfather and am unsure what to do with it.

I'm a fairly young lad, I have no credit card, loan, store card etc debts. The only debt I have is £24k on an interest only mortgage currently costing about £37 per month (I know what most of you think about IO mortgages, but I'm a freelancer so prefer to keep my monthly expenses to a minimum and then overpay when I complete a job) and I have about £6k in student debt (which I am very keen to drag on for as long as possible due to being rather bitter about it!).

In my humble opinion:

- Savings interest is pathetic and I'm concerned that future inflation will make saving even less worthwhile

- Gold is possibly in a bubble and silver is VAT chargeable (I think)

- Property... well, we all know where that is right now - and I am certainly not going to use it for a deposit on a BTL because I'm not stupid or evil

So the way I see it, the only decent investment right now is in either business or education (i.e. investing in one's self). However, I'm currently working on a dot com startup and about to get around £150k investment for an equity stake, so to invest my grandfather's £10k into that would basically swallow it up and not really add very much extra value. I'm real busy with this startup so investing in education is a no go. Likewise, due to my current work, I don't really have the time to just blow it on travelling.

So, what should I do?

At a guess, I suspect you'll say NS&I or an ISA or something.. but hmmmm.. well basically I have quite a speculative personality and that seems a bit dull, plus I'm expecting/hoping to earn a shedload over the next few years from the success of my new startup so at that point the £10k would be a bit trivial.

Right now, I'm thinking it should be a lifestyle investment, i.e. wait for 12-18 months until Spain really tanks and then use it as a deposit on a nice little home in the sun.

Anyways, very keen to hear your thoughts because like I said, I very much respect the opinions of people on here and (cue the sad story) I don't really have a significant male role model in my life to give me any advice!! (not being sexist or anything, I'm sure females can give great advice too, but my mum isn't Warren Buffet lol)

Thanks in advance :)

Surely the matter of the 150k is the main point here. Is it a grant, a loan, or are you selling the equities. if you are selling them you have 160k? if you are borrowing 150k it a bit more complicated.

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1 - yes it does, I'm an 'Earth Horse' and generally spend what I earn on fun

2 - see above

3 - I have 21 years left on the IO mortgage, I've worked hard to over pay during the last 4 years based on what I've learnt from this forum in the past :) I have £24k outstanding on the balance now.

4 - I'm not exactly educated to make a judgement here, but frankly I can see no way out other than the government inflating away the debt. I understand this will devalue GBP but only if the other countries don't follow suit right (which I'm guessing they would ) - but hey, I have no idea to be perfectly honest!

5 - to clarify, I like calculated risk, moreover, I like good value returns!

Earth Horse means you were born in 1978. I'd start saving if I were you.

Best of luck with the business venture

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extract money from your current pad and use it along with the 10k to fund a deposit on a BTL.... Its not evil, it could be stupid (but it might not if you get a mega discount)

I will presume you're joking, but given the "mega discount" remark, perhaps you're not! Thanks for the advice, but frankly I value integrity far higher than profit and I will never have anything to do with destroying communities for personal gain in my life. IMHO BTL is one of the most selfish forms of business to go in to.

No offence meant though, that's just my opinion.

It sound like half of you want to make a good return off 10K and the other half can't really be bothered with it as you're going to make 1,000s from your company.

I'd do one of the following:

1. Buy a classic sports car (fun and the right one will hold its value or go up in price) but there is an annual management charge ascociated with this type of investment :P

2. Put it in the best savings account/bond you can find and forget about it.

3. ZOPA is currently returning 8.3% according to their website

4. Do any of the above and cash them in in 3-4 years once the property market has finished tanking and use it as a deposit for a nice little BTL empire!

None of the above is meant to be serious advice.

Seriously, If I was you I'd do No 2 for now just in case your company doesn't perform as you hope. Then if the business makes you rich use the cash to have some well deserved fun.

Yep, you're pretty much spot on with that. I have actually been considering point 1, but not a sports car but a boat as my grandfather was very much into boating. I figured that could mean I inherit a lifestyle trait from him rather than a digital number that means very little. I've had one eye on a Regal 2150 (I've been researching this for a week or two now so am clearly an 'expert' lol) but I figure that this would significantly up my monthly expense which isn't a very good idea when starting a new business!! Plus, again it's the time issue.

To save it for a rainy day in case the business doesn't work out is very good advice indeed and frankly something I haven't even considered such is my blind confidence. Hmmm...

Once again, thank you all for your comments so far. I bl00dy love this forum :)

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...and I have about £6k in student debt (which I am very keen to drag on for as long as possible due to being rather bitter about it!)...

Hi Velgud,

Sounds like you're taking something personally here - which is a bad idea. No matter what happened, you're just a number to them. Get rid of that £6k debt and move on, life is too short to hold grudges against faceless corporate entities.

That leaves you with £4k.

Now you say you're involved in a internet startup. High risk of failure there, high risk of ending up with nothing. So I'd put the remaining £4k into a cash ISA and a few gold coins, and keep it as an emergency if-everything-fails insurance fund. You'll sleep a lot better at night if you know that no matter what happens, you can still pay the bills for several months.

PS Good luck with the startup.

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I'm going to second the Student Loan clearing option.

Even if you don't pay it all off, at the very least, pay off the interest (on a monthly basis - similar to your interest only mortgage), so the amount owed doesn't get any bigger.

Seeing as the loan amount is only £6k, I'd pay it off - you seem to agree that £10k isn't a huge amount (although to some people, it's a year's wages...) so being left with £4k isn't going to be the end of the world for you. Shove the rest in premium bonds and hope ERNIE picks one of your numbers. If he does, then you've got some extra pennies to put towards your Spanish property, if he doesn't you've not lost anything.

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How old are you? And whats the start up you've got investment for about?

It sounds like you don't need the money right now with your busy life and small outgoings for your mortgage, and it's nice to hear you expect to be making a ton of money soon from this start up, but a lot of the time things don't turn out how you expected them to.

You won't get a decent return on 10k no matter what you do with it, it's not enough, so if I were you Id stick it in an instant access savings account with the least laughable interest rate and forget about it. You might need it if things don't go according to plan. And Im afraid they won't, at least not completely.

31 - but an extremely young and immature 31 ! I've never done the 9-5 lifestyle to fit in and thus still a bit 'lost' and naive to be honest.

Surely the matter of the 150k is the main point here. Is it a grant, a loan, or are you selling the equities. if you are selling them you have 160k? if you are borrowing 150k it a bit more complicated.

23% equity but with massive added value from a highly experienced investor team - it was the people more than the money that sold me

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Actually it sounds like you want the money to mean something because of where it came from, so if that is the case it might be a good idea to pay off that student loan. 6k is not a lot of money for an education that will allow you to make a lot more, and paying for an education for a grandchild is probably the sort of thing a grandparent would be more enthusiastic about.

Then you can put the remainder in a savings account as 'just in case' money.

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Hi Velgud,

Sounds like you're taking something personally here - which is a bad idea. No matter what happened, you're just a number to them. Get rid of that £6k debt and move on, life is too short to hold grudges against faceless corporate entities.

That leaves you with £4k.

Now you say you're involved in a internet startup. High risk of failure there, high risk of ending up with nothing. So I'd put the remaining £4k into a cash ISA and a few gold coins, and keep it as an emergency if-everything-fails insurance fund. You'll sleep a lot better at night if you know that no matter what happens, you can still pay the bills for several months.

PS Good luck with the startup.

I'm going to second the Student Loan clearing option.

Even if you don't pay it all off, at the very least, pay off the interest (on a monthly basis - similar to your interest only mortgage), so the amount owed doesn't get any bigger.

Seeing as the loan amount is only £6k, I'd pay it off - you seem to agree that £10k isn't a huge amount (although to some people, it's a year's wages...) so being left with £4k isn't going to be the end of the world for you. Shove the rest in premium bonds and hope ERNIE picks one of your numbers. If he does, then you've got some extra pennies to put towards your Spanish property, if he doesn't you've not lost anything.

You know what guys, I think this is what I'm going to do. Call me impressionable lol but I wouldn't of even considered this an hour ago, but you are right.

If I pay off that loan, aside from the mortgage, I am entirely debt free and with a little savings left over. And you are 100% right when you say that would help me sleep better at night.

I think my grandad would also appreciate that prudence and also I could then basically say that he paid for my education and that my education got me to start this business, so I could (kinda) logically attribute it all to him and that'd be a really nice positive thought :)

Yep, that's definitely the best option so far.

Regarding comments on the startup, yes, dot com is most definitely high risk for sure, but I'm feeling pretty confident in my ability on that one ;) I'm gonna resurrect this thread the day I launch the private test so you can get a sneak preview if anyone's interested :)

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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