20 years old, accident payout money. How should I save for the future?

I will be receiving money from a motorbike accident that happend in november 2007 in ~3 weeks time, I will be "treating" myself/my gf and my family with a few thousand as i've been in pain everyday since my accident and my family/gf have helped a lot.

I'm currently unemployed and renting a flat with my girl friend who is at uni, I could live on the money for a long time but my plan is to get a full time job that covers the bills and save the money for a house/mortgage, is the best idea or should I get into the property ladder asap?

I will be looking to save around £100k and I don't think I will need instant access so would an ISA be the best option for a some of that money. What do you recommend I do with the rest?

My dad is very keen on shares as he thinks if you sell them at the right time you can normally make the equivalent of 6% interest. I am not too sure though, i'd rather not take a risk of losing any of the money as it will help a lot when it comes to settling down somewhere once my gf finishes uni.

My mum raves about premium bonds, are they worth looking into and if so how much would you put into premium bonds?

I'm reluctant to talk to a financial advisor as I know they will take a huge commission.

So far people on MSE have recommended going for "Index-linked Savings Certificates"(http://www.nsandi.com/products/ilsc) but from what i've read I won't be able to put the entire amount into them. What do you recommend I do with the rest?

Any help would be appreciated.

Thanks.

27 Comments

Banned

just look for a good 3 years savings plan on places like money savving experts site
who wants to have any risk on money that important? regular returns is better

3 years is long enough to tie up for, as the deals change, 3 years i think is the best balance

i dont go much on the banks advice, they only pick their own products, you need to cast wider for better deals

better give the money to your mum or someone you can 100% trust as it will affect your benifits having that much money

Go to Amsterdam and stay as long as the money lasts you :-D

A good financial advisor is worth many more times their commission, that's why people with money use them. Do you really want to ask on this forum how to handle your life savings which you need following the accident?

Banned

spend half on booze and women, and waste the rest

£100k and people wonder why insurance premiums are so high

jubbyme;8197424

spend half on booze and women, and waste the rest



Did you mean "get wasted on the rest"? :?

Banned

StevenA2000_uk;8197445

Did you mean "get wasted on the rest"? :?



no, i was assuming spending half on booze and women wasnt wasting it :-D

Original Poster

jamstaruk1972;8197353

better give the money to your mum or someone you can 100% trust as it … better give the money to your mum or someone you can 100% trust as it will affect your benifits having that much money

the only benefit I'm getting is ni credit and £15/week housing benefit as I've always had money in the bank and my gf has a student loan.

jubbyme;8197239

just look for a good 3 years savings plan on places like money savving … just look for a good 3 years savings plan on places like money savving experts sitewho wants to have any risk on money that important? regular returns is better3 years is long enough to tie up for, as the deals change, 3 years i think is the best balancei dont go much on the banks advice, they only pick their own products, you need to cast wider for better deals



I might do a fixed rate for 1 or possibly 2 years as my gf finishes uni in about 18 months and if everything goes to plan ill be looking for a house then.

pinkleponkle;8197443

£100k and people wonder why insurance premiums are so high



the person who hit me was uninsured with no license. I'll never be able to run, I can't walk very far, I can't stand for very long, I can't sit in some chairs for long periods of time without a lot of pain and I take painkillers everyday, I'll need a 4th operation in 10 years to relieve some of the pain. I'm so sorry your insurance is expensive.

Banned

^^ glad to be of help

Original Poster

whatsThePoint;8197548

House price rises could easily wipe out any gains you get in interest



I understand but I don't think it's sensible to get a house now as my gf may find a good job somewhere else when she finishes uni.

Supermod

pinkleponkle;8197443

£100k and people wonder why insurance premiums are so high



Bit inconsiderate, no?

I would rather have my full health than £100,000.

jubbyme;8197424

spend half on booze and women, and waste the rest



+1 :w00t:

without doubt talk to a financial advisor....well worth their fees. This is too much money to take a risk with....you have a future to look after. Good luck...you obviously deserve the money

there are a couple of bank stocks that wont be a bad investment..........

Houses, investment abroad is massive at the moment, Valencia is excellent, as Spain were one of the last in to the recession they will be one of the last one's out, you are looking at about 16%per anum return, A very tidy sum. Great investment in the city with, Golden cup, Grand Prix Track, new Microsoft investments, etc.

Banned

pinkleponkle;8197443

£100k and people wonder why insurance premiums are so high



why are they?

Banned

rwm24;8197487

the only benefit I'm getting is ni credit and £15/week housing benefit as … the only benefit I'm getting is ni credit and £15/week housing benefit as I've always had money in the bank and my gf has a student loan.


you must ensure that you notify all benefit agencies of your change in circumstances (including local council if you get council tax relief). Otherwise, you could be charged with benefit fraud.

To be fair, it's only fraud if you intentionally don't tell them of a change of circumstances knowing it will affect your benefits. No evidence that the OP is doing this, based on the fact we don't know the timescales involved (i.e. when he has got the money, factoring in the 28 days you have to notify of a change of circs, etc)

Banned

TUSSFC;8198935

To be fair, it's only fraud if you intentionally don't tell them of a … To be fair, it's only fraud if you intentionally don't tell them of a change of circumstances knowing it will affect your benefits. No evidence that the OP is doing this, based on the fact we don't know the timescales involved (i.e. when he has got the money, factoring in the 28 days you have to notify of a change of circs, etc)


to be fair, receiving a sum of £100K should be pretty obvious to anyone that it will affect benefit entitlement :thumbsup:

Original Poster

csiman;8198926

you must ensure that you notify all benefit agencies of your change in … you must ensure that you notify all benefit agencies of your change in circumstances (including local council if you get council tax relief). Otherwise, you could be charged with benefit fraud.



I've already told everyone when i'm getting the money, I know what needs to be done :P

whatsThePoint;8197665

you could always sell the house or its even possible you might break up … you could always sell the house or its even possible you might break up with herThere will be a lot of repo houses on the market at the moment that you could make a tidy profit on in 2 years



I've just been looking at houses on rightmove.co.uk and i'm suprised at what I could get at ~£100k :O Something worth thinking about

rwm24;8200464

I've already told everyone when i'm getting the money, I know what needs … I've already told everyone when i'm getting the money, I know what needs to be done :PI've just been looking at houses on rightmove.co.uk and i'm suprised at what I could get at ~£100k :O Something worth thinking about



If indeed you can buy something for £100k in your area, I would immediately get on the housing ladder. This should be your best investment for the future both in terms of return and also security. However as both of you don't have a fixed income at the moment, I'd only do it if the 100k cover the entire project, i.e. cost of the house, all fees, potential renovation needs etc.

PS: ignore idiots who complain about their insurance quote, I am sure you'd happily exchange the cash for making the accident and your pain unhappen.

Original Poster

MarvinHC;8201714

If indeed you can buy something for £100k in your area, I would … If indeed you can buy something for £100k in your area, I would immediately get on the housing ladder. This should be your best investment for the future both in terms of return and also security. However as both of you don't have a fixed income at the moment, I'd only do it if the 100k cover the entire project, i.e. cost of the house, all fees, potential renovation needs etc.PS: ignore idiots who complain about their insurance quote, I am sure you'd happily exchange the cash for making the accident and your pain unhappen.



The actual money i'm getting is £165k but I owe various people ~ £37k leaving me with £28k that I was going to treat myself/my family with and live on until I get a job. If I bought a house I wouldn't mind spending a bit more than £100k if it's something we really love.

I would happily trade every penny for my health and the job I was about to start before the accident.

csiman;8199130

to be fair, receiving a sum of £100K should be pretty obvious to anyone … to be fair, receiving a sum of £100K should be pretty obvious to anyone that it will affect benefit entitlement :thumbsup:



My sister's father-in-law finally got paid out on an accident claim for around £20k - told the benefits office and they promptly clawed back what they had paid him over the months in incapacity/unemployment benefit. Think he was left with peanuts at the end.

Buy a house now, dont wait for 2 years time. Last year was the best time to buy really but its not much worse now. With the money made from rent pay ur bills/rent and enjoy the rest. House prices go up in a few years time hopefully and your jobs a gooden.

rwm24;8201950

The actual money i'm getting is £165k but I owe various people ~ £37k l … The actual money i'm getting is £165k but I owe various people ~ £37k leaving me with £28k that I was going to treat myself/my family with and live on until I get a job. If I bought a house I wouldn't mind spending a bit more than £100k if it's something we really love.I would happily trade every penny for my health and the job I was about to start before the accident.



Without sounding too nosey, but what was the accident, and the effects of it. Sucks to hear it though, and sounds like quite a drawn out injury.

PS: How have u managed to be 37k in debt? Did u go to uni?

Original Poster

JohnBall;8202072

Without sounding too nosey, but what was the accident, and the effects of … Without sounding too nosey, but what was the accident, and the effects of it. Sucks to hear it though, and sounds like quite a drawn out injury.PS: How have u managed to be 37k in debt? Did u go to uni?



A ford galaxy went directly into the side of me while I was riding a motorbike. I broke my thigh, dislocated/crushed my foot between the car's bumper and the bike's engine I had nerve damage in my leg which caused "drop foot" and needed an operation to fix (£10k) and winged scapula which has healed by itself and nobody really knows why it's caused. The long lasting effects are i'll never be able to run, I can't walk very far, I can't stand for very long, I can't sit in some chairs for long periods of time without a lot of pain and I take painkillers everyday, I'll need a 4th operation in 10 years to relieve some of the pain.

I owe my parents ~£11k, I had £10k to pay for a 3rd operation, i've had ~£15k "interim" which is basically a part of the final payout but I received it about 14 months ago.

I've been living with my gf for 18 months (with no job) and paying for pretty much everything as well as a car/car insurance and lots of deals from here :P
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