With 500k (拢's) I need help.?

Not help to get this money, rather more help with what to do with it..





First off, I am saddened by the loss of my late grandpa who was a very lovable and friendly man who was very close to me. R.I.P Grandpa Joe '20/4/11' I love you sambo x x





I am unregretably very fortunate to have in the region of 500-510k down-sending.





This is obviously a life changing amount of money, that I never expected to recieve. As for me prior to this I am generally an unmotivated, unhappy, unemployed woman from West Midlands :\ I wasn't always this way, my mother passed away 3 years ago and things just go from bad to worse I guess..





For the last year I have been on JSA (Job Seekers Allowance) living off roughly 拢30 a week after my bills have been paid. So getting by so to speak isn't an issue for me and I'm not stupid enough to be rash and waste this money. I percept the money as a sentimental gift and would give it away in return of my grandpa without hesitation. I don't want to touch the money really.





So what to do with it?- I have heard about savings accounts 5-6% interest rates, but apparently you lose almost half the amount the interest gained in a year, when you take it from the account (in taxes i mean).. (can't complain its generated money, but i hate everything to do with tax :S)





Quick working out..


(eg.) 500k x 0.05


equals 25,000.. when taken out of the account (taxes come into play etc), would leave me roughly 14,000 no?





If thereabouts would be great.. I visualize 500k being in one bank account (savings) and after a year, transferring the interest generated into a next account, with which all my bills will be direct debited to.





Hopefully if I can get the money into a savings account with a 5% rate, then within the next few weeks I can regain motivation to get a job. The 14,000/per year combined with the money I get from a job, not should but, will.. easily be enough to cover all bills. Is this the smart thing to do?





Sorry about the lengthy passage its just most people get silly and off topic replies when they post a quick question! Thanks for reading and please reply :)





Sam x|||Sorry to point this out, but you've been living on taxpayers money for a year. So it isn't unreasonable to expect you to contribute back, now that you've got some money of your own.|||Assuming this isn't some iteration of a 419 scam, I am sorry for your loss.





You would be within the inheritance tax area so will have to pay 40% of the estate. From there, you should get the advise of an accountant, who can give much better advice (it would be definately worth the cost).|||I could go into giving you reams of advice but I dont know your situation.





Go and see an Independant Financial Adviser, DONT go to the bank, with that sort of money 9 out of 10 bank advisers will be way out of their depth when it comes to providing you with a tax efficient strategy.





It may cost you a coupld of thoushand punds for advice and making settign up tax efficient accounts but on that amount of money you will save mor than that every year if you are speaking witha good adviser.





Its definately worth it and a small independant financial adviser will take much better care of you than a big bank as you will be one of his top clients rather than just one of many like you are at the bank.|||Sorry about your grandpa.


Ok, firstly you need to see an independent financial adviser and an accountant. You need to know if you get all the 500 or lose some to tax.


A proper financial adviser will assess your risk tolerance and your investment time frame ie do you want to buy a house in 3 years or 10 years. There are different investments for different time frames and risk profiles. Also, some investments are more tax effective than others.


Always ask up front about any Fees or commissions that the adviser gets when he invests your money, some advisers choose to recommend things that make them the most money.


And you yourself need a will!


And yes, find motivation to get yourself a job, invest in a bit more study to get a better job. With a good job and a good sum of money, you can have a nice life and lifestyle.


This is a lot of money, be wise and prudent with it.|||******* hell! You went from a giro to having 500K!





I understand your predicament but I'd ask someone who knows what they're talking about, somebody reputable. Not the yahoos on yahoo.





Don't let them talk you into anything right away, ask around, make sure you get the lowdown on every possible angle. You may want to consider what your Grandpa had this cash doing before passing. Obviously it was safe.





I am not the man for the task. The only thing that springs to mind is investing this abroad somehow to avoid being fleeced by the dirty, filthy little thieves that run this country. Property seems to be the thing that folk with money use to generate more money.





Whatever you do, don't squander it. That cash could see you through every hard time coming over the course of your entire life which I'm sure was your grandpa's intention.|||hi Samantha


consult with a bank on this investment, like one of the major banks they will be helpful.


the best way to escape some of this tax you think you will incur is to invest some of it in a property like a flat or a bungalow for yourself.


that will take a large proportion of the capital, and buying it now while things are deflated would be the best time.


yes the interest could be as high as 5 % but it is not going to be taxed as much as you think it will.


that was why i suggest a property as you will need to furnish it.


there are just so many options for you to consider here,


the tax minus the personal allowance which accounts for over 5,000 pounds to start with then the rest even at 22% does only remove just over 4000 pounds from 20,000 which means you end up with a total after tax of 20, 000 pounds at least. this would give you a weekly income of approx 400 pounds a week, most monthly bills come to this amount so you would have 700 pounds a month to live on.


you will be financial secure if you are sensible for the rest of your life and have holidays as well.


so go and see a bank and ask for help.


it may work out a lot better than you think.


grandpa was a very generous man who wanted you to have a secure future, so enjoy what he left you.


My mother did the same for me and her best mate my wife.


all the best in the future.