Legacy

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Lily
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Legacy

Post by Lily »

I have had a small legacy from my grandparents. I opened a Help To Buy ISA about a billion years ago and can only put £200 a month into this (I was going to shove the whole load in). I would like to put most of the money into another savings account where it will garner some interest. Can anyone recommend anything? I am scared of putting it somewhere I can't touch for several years in case I have a disaster of some unidentified description.
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Glint
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Re: Legacy

Post by Glint »

Interest rates are poor, so I'd stick it in premium bonds.

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Tsu
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Re: Legacy

Post by Tsu »

Another vote for premium bonds. Instant access and your money is safe. I win a prize most months - only £25 or £50 but I might win a big prize one day.

Topcat
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Re: Legacy

Post by Topcat »

Right now? I would be all over Stocks & Shares ISAs. Sure there may be further drops in the markets in the coming weeks, but you'll be doing swimmingly this time in a year or so off of the markets being so low.

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Re: Legacy

Post by Wiggle »

I thought the rate of return on premium bonds wasn't that great? I think the rate will be or has been cut again? I would also suggest a stocks and shares isa.
For cash savings it might actually be better to save in a non cash ISA account,. Assuming I've understood things properly you can get the first thousand pounds of interest as tax free.

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Lily
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Re: Legacy

Post by Lily »

Thanks all. Are there any stocks and shares ones you'd recommend? I'll look at premium bonds too.
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Tsu
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Re: Legacy

Post by Tsu »

Topcat wrote:
Mon Mar 09, 2020 5:16 pm
Right now? I would be all over Stocks & Shares ISAs. Sure there may be further drops in the markets in the coming weeks, but you'll be doing swimmingly this time in a year or so off of the markets being so low.
Is your capital at risk with one of these?

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H1ppychick
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Re: Legacy

Post by H1ppychick »

Yes, it’s an investment in stocks and shares, so its value will move with the prices of those underlying investments. It they lost money, so will the ISA investing in them. The advantage over direct investment is that you don’t have to pay income tax on any dividends, nor Capital Gains Tax when you sell.

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Re: Legacy

Post by Topcat »

Capital is at risk pretty much wherever you go.

I will say that values do fluctuate, so in early years if you needed to encash you may not get back what you have invested, but after five years or so history says that you'll be making decent returns.

I've never seen anybody lose an entire investment through one.

Savings accounts and cash ISAs are dead at the moment, inflation means that in real terms, investments left in cash will lose value.

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Lily
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Re: Legacy

Post by Lily »

I wonder if I should see a financial advisor. Do they see people for small amounts?
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H1ppychick
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Re: Legacy

Post by H1ppychick »

I have recently taken a sizeable chunk of money out of my company via a pension contribution. Annoyingly, this got invested about a fortnight ago, immediately before the markets dived. Talk about making an investment at the wrong point in the cycle!

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Re: Legacy

Post by Topcat »

Shit very much does happen H1ppy. :lol: I'm sure you know it will come back though.

An IFA would be the way forward but it does depend on how small or large a sum we're talking I would say. I also appreciate that you may not want to share that information in the public domain.

If you wanted to have a look at what is possible, this link should help with a bit of education and how funds actually work.

https://www.fidelity.co.uk/

But an IFA will assess your attitude to risk and choose an investment solution to match it, which you don't really get from doing it yourself.

That said, doing some homework and looking into the makeup of a fund will enlighten you anyway. If it's invested in China, Poland and India, for instance, then the chances are its going to be high risk etc.

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Lily
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Re: Legacy

Post by Lily »

It's £5k, I don't mind saying. I have mystery-shopped IFAs before but that's been in the realms of £50k. They were all recommending Cape Verde, back then.

It is such a comparatively small amount I don't know if they'd be interested in me and also if any fees I paid to them would be worth it if I have to pay out a percentage for a fund-handler and all that.

My pension fund is quite Asia-based currently (I think from when I spoke to you about it years ago!) which reminds me I need to look at that! It's probably turned into about 76p + a moth by now.
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Topcat
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Re: Legacy

Post by Topcat »

You're right in that 5k may be a little too low but not by much.

If your want to keep costs down then Hargreaves Lansdown are you friend there. They offer a self select service at very cheap cost, we send clients to them quite often.
https://www.hl.co.uk/partners/search/bu ... 0wEALw_wcB

Topcat
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Re: Legacy

Post by Topcat »

Also, I'll help you out with any questions, obvs.

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Lily
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Re: Legacy

Post by Lily »

Thank you v much. That's very kind. x
"You first have to find out who you are. Then you have to be it like mad."

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