£100k windfall
Discussion
Assuming he currently lives with his parents.
Also assuming he knows the trucking business in UK (I'm in the US)
I know people in the trucking business that carved out niche markets for themselves, drugs (the legal ones) and the rag trade. (and trash, but that's mega bucks)
But it takes a lot of contacts to continually keep the trucks moving and full in both directions, or at least half full if he intends to be a split load carrier.
Alternatively he will be using a coordinator (agent), who he may possibly have to "bung" to get the better loads.
So as a compromise to everyone that wants him to buy a flat, why not buy a flat that he would not hate to live in, and rent it out and remain with his parents.
Use the rent to lease a used lorry.
He should keep back about 20K as his new venture as an owner operator will have very bumpy cash flow for at least six months.
Once cash flow is fully established, he can then re assess his position.
Whether it is to take possession of the flat, or perhaps look at a second lorry with an employee and remain with parents for another year.
It really depends how ambitious he is.
100K, you only get one go, so tell him not to rush, give it some thought.
Also assuming he knows the trucking business in UK (I'm in the US)
I know people in the trucking business that carved out niche markets for themselves, drugs (the legal ones) and the rag trade. (and trash, but that's mega bucks)
But it takes a lot of contacts to continually keep the trucks moving and full in both directions, or at least half full if he intends to be a split load carrier.
Alternatively he will be using a coordinator (agent), who he may possibly have to "bung" to get the better loads.
So as a compromise to everyone that wants him to buy a flat, why not buy a flat that he would not hate to live in, and rent it out and remain with his parents.
Use the rent to lease a used lorry.
He should keep back about 20K as his new venture as an owner operator will have very bumpy cash flow for at least six months.
Once cash flow is fully established, he can then re assess his position.
Whether it is to take possession of the flat, or perhaps look at a second lorry with an employee and remain with parents for another year.
It really depends how ambitious he is.
100K, you only get one go, so tell him not to rush, give it some thought.
They are right about the truck, very low margins in most haulage of circa 2%, unless in a niche. Do it as a job first, study for the CPC for Transport Managers domestic & international & look out for the niche paying lots more than 5%.
With 100k he'd have enough for the money in the bank required of O' licence holders & get matched finance from the bank for the truck. If it all went down as a Ltd Company they wouldn't lose everything.
With 100k he'd have enough for the money in the bank required of O' licence holders & get matched finance from the bank for the truck. If it all went down as a Ltd Company they wouldn't lose everything.
i'd keep the money as liquid as possible. £20k in a Santander 1-2-3 account earning 3%. £15k into an ISA prior to year end, £15k again straight after year end. Pay off all debts. Buy a car. Have a holiday. Put the rest across as many decent return, short notice accounts as you can.
Then leave it just like this for about 3 or 4 years, and see how you feel. I wouldn't want any of it tied up for long at 21. At some point he's going to want somewhere to live, and it could be an advantage to get the cash available as quickly as possible.
Then leave it just like this for about 3 or 4 years, and see how you feel. I wouldn't want any of it tied up for long at 21. At some point he's going to want somewhere to live, and it could be an advantage to get the cash available as quickly as possible.
t Sherlock!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.
Sorry for being too sensible.Your suggestion is much more risk and subject to extensive capital erasure.
I would admit however that person in question would need his profile match the investments. He might be more sensible than you give him credit for
ringram said:
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.
Sorry for being too sensible.Your suggestion is much more risk and subject to extensive capital erasure.
I would admit however that person in question would need his profile match the investments. He might be more sensible than you give him credit for
I disagree, with the exception of blowing £20k on car and holiday, I think this strategy is pretty sound.
The good thing about buying a home is that, even if the market collapses, you still have a home.
TwigtheWonderkid said:
How about buying 100,000 more scratch cards. If he made £100k with one, just think how much he'd make buying 100K.
Ps. I am not an I.F.A.
Seems like a good investment strategy... Although what if the scratch card he bought was £2? Do you think he's better off using the £100k to get loan for another £100k so that he could still buy 100,000 cards? And then would the ROI be x2 Ps. I am not an I.F.A.
Janosh said:
TwigtheWonderkid said:
How about buying 100,000 more scratch cards. If he made £100k with one, just think how much he'd make buying 100K.
Ps. I am not an I.F.A.
Seems like a good investment strategy... Although what if the scratch card he bought was £2? Do you think he's better off using the £100k to get loan for another £100k so that he could still buy 100,000 cards? And then would the ROI be x2 Ps. I am not an I.F.A.
This is pistonheads. I can't believe not one suggestion to buy a brand new Porsche and the change left for insurance and petrol!
Only joking. I would personally buy whatever is cheap ie the euro and then sink it all into euro property ie an apartment in Madrid or Nice without mortgage. Bound to increase by 50% within 5 years when the rents are included as well as euro appreciation most probably.
Only joking. I would personally buy whatever is cheap ie the euro and then sink it all into euro property ie an apartment in Madrid or Nice without mortgage. Bound to increase by 50% within 5 years when the rents are included as well as euro appreciation most probably.
ellroy said:
Ginge R said:
Do absolutely nothing, ideally forget all about it, for at least a month.
+1.Ginge speaks the truth. Sit it in as higher yielding accessible account as he can find and then think long and hard about what he wants it to do for him.
There's no point in rushing the decision.
Won myself recently; card has been sat in my wallet for the past 6 weeks waiting for me to go back to the shop to collect my £2 winnings...
ellroy said:
Ginge R said:
Do absolutely nothing, ideally forget all about it, for at least a month.
+1.Ginge speaks the truth. Sit it in as higher yielding accessible account as he can find and then think long and hard about what he wants it to do for him.
There's no point in rushing the decision.
Won myself recently; card has been sat in my wallet for the past 6 weeks waiting for me to go back to the shop to collect my £2 winnings...
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