£100k windfall
Discussion
isee said:
he should not be putting his money into a depreciating asset (lorry).
Agree. He wont get much change out of 100k from one of them not to mention that most are leased/financed anyway.As already stated, his best bet is to put it in savings then sit on it a bit before making any silly decisions.
R11ysf said:
Spend some on some education, if he's not earned more than £20k in his entire life then he needs to figure out a way to up that first otherwise he'll have a mortgage or a buy to let that he may not be able to finance when rates rise.
+1. Unless you've some idea of where you want to settle down, started a career etc. you don't want to tie yourself down with a property.£100k I would stick £80k in savings products that offer the best tax efficient savings that the only risk is inflation risk and then spunk £20k on enjoying myself. Life is for living as well as being sensible.
Its £100k he has never had so £80k he has never had saved is a good thing.
Its £100k he has never had so £80k he has never had saved is a good thing.
Edited by megapixels83 on Monday 9th March 20:03
The most important thing is don't do anything rash, think about it for THREE months.
£100k is not much in the grand scheme of things, (obviously it's a fortune to some)....for example lottery lout Michael Carroll went through 8 MILLION in five years, and is now working as a dustbinman.
A fool and his money are soon parted.
Also anyone who spends 5k on a holiday as a single man has got more money than sense, imo.
£100k is not much in the grand scheme of things, (obviously it's a fortune to some)....for example lottery lout Michael Carroll went through 8 MILLION in five years, and is now working as a dustbinman.
A fool and his money are soon parted.
Also anyone who spends 5k on a holiday as a single man has got more money than sense, imo.
If he wants to run a wagon then he needs to see the real running costs.
A driver wont see them. Speak to some other owner drivers. £20k PA is quite normal to keep an artic on the road, esp when you have to farm out your O/L obligations like TM and inspections.
I would not write it off - but he would need to *want* to be a truck driver for the next 20 years.
Fair enough if he does. A decent tractor unit is £50k. If he wanted to get a decent tipper with a grab similar money is required.
I would probably go down the tipper grab route myself. The big boys will run artics for a loss half the time. The grab tipper can do lots of jobs. He would be doing well to bring in £200-£300 per day. Would need to budget for max EU drivers hours also. Plus being off the road for 2 weeks per year for MOT and random break downs.
A driver wont see them. Speak to some other owner drivers. £20k PA is quite normal to keep an artic on the road, esp when you have to farm out your O/L obligations like TM and inspections.
I would not write it off - but he would need to *want* to be a truck driver for the next 20 years.
Fair enough if he does. A decent tractor unit is £50k. If he wanted to get a decent tipper with a grab similar money is required.
I would probably go down the tipper grab route myself. The big boys will run artics for a loss half the time. The grab tipper can do lots of jobs. He would be doing well to bring in £200-£300 per day. Would need to budget for max EU drivers hours also. Plus being off the road for 2 weeks per year for MOT and random break downs.
House is a liability not an asset. The land however..
House = council tax, insurance, mortgage, maintenance, opportunity cost, lack of flexibility etc, etc
Better to ask what are his long term goals. Funds should be applied in that direction.
Training, study and education are all excellent investments that will pay back many times the cost.
House = council tax, insurance, mortgage, maintenance, opportunity cost, lack of flexibility etc, etc
Better to ask what are his long term goals. Funds should be applied in that direction.
Training, study and education are all excellent investments that will pay back many times the cost.
ringram said:
Chuck most into a SIPP, he will get another 20%+ free from the govt.
If he is working he will pay zero tax this year.
Chuck it into a low risk low cost tracker and forget about it till retirement when it will have magically turned into millions.
No joke.
Why would you get tax relief on winnings?If he is working he will pay zero tax this year.
Chuck it into a low risk low cost tracker and forget about it till retirement when it will have magically turned into millions.
No joke.
If its enough to buy his first flat/house in cash outright (depending on location) then thats the smartest move. at least then he has a debt free asset should his job ever go tits up. if you think about being mortgage free on your first pad off the back of a scratch card (Lucky b
d) that would give me the greatest satisfaction.
Thats only likely to rise in value too over the years and can be remortaged to fund a deposit on the next home if the career takes off and he fancies a move. Rent the first house out after that.
d) that would give me the greatest satisfaction.Thats only likely to rise in value too over the years and can be remortaged to fund a deposit on the next home if the career takes off and he fancies a move. Rent the first house out after that.
gibbon said:
Why would you get tax relief on winnings?
Because its the law is the short answer.He also pays tax on his income I assume, that is where the tax relief comes from not the winnings!
So as I said he can zero out his tax for the year. If he works fast he can zero this tax year's and if he puts more in after the 6th April he might be able to zero next years out too.
Not sure why you would buy a house when you can zero out your tax for the last few years and get all capital gains and income free of tax, or at least tax deferred.
http://www.hl.co.uk/pensions/sipp/tax-benefits-of-...
You can roll up the past few years contributions too http://www.hl.co.uk/pensions/sipp/how-much-can-i-i...
Pretty much all other ideas will see the value of the £100k fall immediately. SIPP is guaranteed uplift from tax relief off the cuff.
Be sensible with the rest and with a 6% nominal return after 40 years he will have over £1M even with no other contribution.
Dont take it from me, take it from the worlds best investor. "My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard's.) I believe the trust's long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers." Warren Buffet
ringram said:
Chuck most into a SIPP, he will get another 20%+ free from the govt.
If he is working he will pay zero tax this year.
Chuck it into a low risk low cost tracker and forget about it till retirement when it will have magically turned into millions.
No joke.
What a load of rubbish. To tell a 21 year old who has no savings, no house/assets and (relatively) low income to put most of it into a pension is madness! He should buy a house (deposit) with say £60k. Save £20k into ISA's and blow £20k on a car, holiday and items for the house.If he is working he will pay zero tax this year.
Chuck it into a low risk low cost tracker and forget about it till retirement when it will have magically turned into millions.
No joke.
audi321 said:
What a load of rubbish. To tell a 21 year old who has no savings, no house/assets and (relatively) low income to put most of it into a pension is madness! He should buy a house (deposit) with say £60k. Save £20k into ISA's and blow £20k on a car, holiday and items for the house.
+1, almost. How can you tell someone to prepare for a life in 40 years time?! The next 40 years are not a dress rehersal, you only get one shot, your here for a good time not a long time, etc, etc, etc.I'd suggest a 60k deposit, 20k into savings, 10k on a car, 2k on a nice holiday and 8k 'spending' cash in bank. Then find something you enjoy doing and hopefully the fact that you enoying doing your job means you'll be good at your job which might even lead to earning a decent income...
OP - has the lucky windfallee done anything yet?
Janosh said:
+1, almost. How can you tell someone to prepare for a life in 40 years time?! The next 40 years are not a dress rehersal, you only get one shot, your here for a good time not a long time, etc, etc, etc.
I'd suggest a 60k deposit, 20k into savings, 10k on a car, 2k on a nice holiday and 8k 'spending' cash in bank. Then find something you enjoy doing and hopefully the fact that you enoying doing your job means you'll be good at your job which might even lead to earning a decent income...
OP - has the lucky windfallee done anything yet?
I agree with this. Just thought I'd pop back here in hope the outcome was not that he went and bought a bloody lorry !!I'd suggest a 60k deposit, 20k into savings, 10k on a car, 2k on a nice holiday and 8k 'spending' cash in bank. Then find something you enjoy doing and hopefully the fact that you enoying doing your job means you'll be good at your job which might even lead to earning a decent income...
OP - has the lucky windfallee done anything yet?
Vixpy1 said:
Whole lot into a deposit on a flat or house, while interest rates are low
So, why are low interest rates a good time to buy property - wont the value of houses drop when interest rates rise?Arent interest rates are only going to go up, so isn't the trajectory for house prices therefore down?
We've got low inflation, so any debt we have today will be just as large in the future so therefore how can there be a "property ladder" when the thing that pays mortages i.e wages are static too?
Theres a real danger that if you buy a flat today, you'll still be in that flat in 20 years.
May be I'm being pessimistic.
I think it's not so much the value of the house so much as the cost of ownership. The ticket price is largely illusory in the long term - if the value of your house goes down, then all things being equal the value of the one you want to buy goes down too. And vice versa - wow, your £100K house is now worth £200K - but the £150K one you really wanted at the outset is now £300K. So you can be on a down escalator or an up escalator; what actually counts is 'Can you afford to keep it?'
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