Hi all
If you were going to hand over £50k as an inheritance payout to an adult, where would you suggest they put it?
Not interested in high risk. Probably wouldn't want it locked away for long periods (1 or 3 years may be an option). Concerns about Internet security and fraud, but also vulnerable to covid so less inclined to go to bank in person.
Ideas anyone (other than under the matress or in your pocket that is)
Thanks
Phil
I think "under the matress or in your pocket" are probably the best options at the moment given the trivial (to almost non-existent) interest rates being offered at the moment.
Pay off absolutely everything that you owe money to first (mortgage, credit cards, any other loans), then buy something you really, really want. :-)
Thanks Anthony
That looks like an interesting option - do you use it HL yourself?
Phil
Hi Chris
The beneficiary is mid-twenties and does not have property, so his only real debt is a student loan.
It is not possible to pay these off as far as I know and, given that repayment is salary dependent, it may be that it is preferable to leave that one hanging.
Phil
Hi Anthony
I have just seen the thread titled Woodford and Hargreaves Lansdown which doesn't inspire confidence in HL
Phil
If he's in his mid-twenties, he's classed as an adult, and is assumed to be able to manage his own affairs. Unless he's asked you, why do you think it's your businaess to suggest what he does with it?
Complete disaster are student loans, a "heads I win, tails you lose" set up if ever there was one. I wonder what would happen if you took them to the small claims court if/when they refuse to let you pay off what you owe (though I suppose that is a sort of backwards sort of claim).
As regards it being salary dependent that points you more towards earning as little as possible and spending the nest egg! :-)
That has no impact on the savings accounts they are promoting, which you can find yourself independently if you shop around - it's just convenient and saves lots of searching for products I'd struggle to find.
I am a HL customer from several years back though they are no longer my primary investment platform, and if you were looking at investing into funds then they would not be the top of my list simply because at
0.45% platform charges there are better deals.But I have extensively used their Active Savings as it is very convenient, easy and as a product matures it is quite effortless to either withdraw the funds or move into another product. So I have some in the "no notice" savings, some in the 3 and 6 month options. I've not put any into saving longer than that because for further ahead I'd rather put my money into an investment, but then I've been doing that for 20+ years so I'm comfortable with the associated risks.
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