Do I need to talk to a financial advisor?
Discussion
Hi
I am in the fortunate position to be coming into some money approx 265k, which handily coincides with me giving up work and going back to uni (so no buying a ridiculous car for me
)
I plan to buy a house to live in while at uni (prob circa 150k) and rent the spare room to pay the bills, so after fees and furniture that may about 100k. Its what to do with said money that i'm at a bit of a loss.
It's a five year course so I'll need a lot of it to live off so putting it away for 10 years isnt an option.
So do I need to see a FA? or any suggestions? or just split it between a few accounts and concentrate on doing well at the studies?
I am in the fortunate position to be coming into some money approx 265k, which handily coincides with me giving up work and going back to uni (so no buying a ridiculous car for me
) I plan to buy a house to live in while at uni (prob circa 150k) and rent the spare room to pay the bills, so after fees and furniture that may about 100k. Its what to do with said money that i'm at a bit of a loss.
It's a five year course so I'll need a lot of it to live off so putting it away for 10 years isnt an option.
So do I need to see a FA? or any suggestions? or just split it between a few accounts and concentrate on doing well at the studies?
An initial meeting with an IFA is generally without obligation.
Why not go and see 2 or 3 and put your situation to them, see what they have to say and if you don't like it, walk away ?
Seems like a no-brainer, unless you are absolutely sure of what you are doing and are happy to go it alone.
Why not go and see 2 or 3 and put your situation to them, see what they have to say and if you don't like it, walk away ?
Seems like a no-brainer, unless you are absolutely sure of what you are doing and are happy to go it alone.
You really need an IFA, and unless you can get a rock-solid referral to one from friends or family you need to try a few as suggested, most do offer a free meeting.
I was in a similar position to you a way back - and the advice available at the time was very sales oriented. You need a strategy and it may not involve much in the way of conventional investments, so you should expect a charge from an IFA for providing that strategy in full and in writing (they should tell you at the first meeting how much that will cost).
The tax implications are just as important to understand fully as where the money will sit - for this reason alone a few hundred quid on getting the right advice will be money extremely well spent.
One of the reasons I am now an IFA is I saw how badly the bank administered the estate I inherited from, also how complex the financial products were that were available, and had to teach myself how it all works. After that it made sense to carry on!
I was in a similar position to you a way back - and the advice available at the time was very sales oriented. You need a strategy and it may not involve much in the way of conventional investments, so you should expect a charge from an IFA for providing that strategy in full and in writing (they should tell you at the first meeting how much that will cost).
The tax implications are just as important to understand fully as where the money will sit - for this reason alone a few hundred quid on getting the right advice will be money extremely well spent.
One of the reasons I am now an IFA is I saw how badly the bank administered the estate I inherited from, also how complex the financial products were that were available, and had to teach myself how it all works. After that it made sense to carry on!
If you posted here, then you need help
Something to consider is that a 4% draw down on 265K would give you 880/month before tax. (if set up correctly it should maintain its value too.
This would involve not purchasing a house for a five year stint at Uni.
But it would save you 15K repairing it for re-sale after a few parties
See a few FAs, keep an open mind.
PS There is also the possibility that you don't complete 5 years.
Something to consider is that a 4% draw down on 265K would give you 880/month before tax. (if set up correctly it should maintain its value too.
This would involve not purchasing a house for a five year stint at Uni.
But it would save you 15K repairing it for re-sale after a few parties
See a few FAs, keep an open mind.
PS There is also the possibility that you don't complete 5 years.
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