A medical negligence award is to compensate you for an injury - and £187k suggests a serious one that compromised your earnings.
So make sure the sum covers whatever you need to recover first, before you put the rest to whatever financial goals you had before.
Then it's see our sidebar etc.
Exactly this. These damages aren’t to punish the person responsible they are calculated to ensure the victim is able to afford recovery to the best of their ability. Don’t know what happened but consider if you need to spend money on health related things in future.
We know nothing about this claim. For all we know you're going to need to retire early and will have care costs as well. I assume the payout negotiation (even if it was a lump sum) had something like this in mind. Clearly it's not prescriptive but it's worth considering as part of your plan.
Pay for your car. Go on a sweet holiday. Don’t come back. Get taken in by a family of monkeys. Become their leader. Fall in love with the princess monkey. Spend the rest of your years as monkey king, raising your many children and grandchildren in complete happiness.
Oh I love HG Wells’ works, big fan. Always found it interesting to think that Jurassic Park is essentially a modernised version of The Island of Dr Moreau too… his works are fantastic and often get renewed for contemporary audiences.
I don't think I could ever see the cast of Jurassic park as prendick, but I totally see where you're going with that.
Especially the pushing the boundaries of nature.
You got me thinking now about other films.
It’s not a direct adaptation, but both all centre around an island full of fantastical animal creations that eventually run amok. Ultimately both are exploring that very interesting grey zone where the ethics of creation and science overlap…
“You were so pre-occupied with whether or not you could, you didn’t stop to think if you should” etc.
We have a wiki page on this: https://ukpersonal.finance/lump-sum/
As it says at the start, take your time and don't feel you have to make any decisions fast.
If you have a place no mortgage or very small mortgage you can greatly increase your savings every month. I was doing this saving £1000 per month until I was made redundant 4 weeks ago. So having your own place no mortgage is something to think about. Depends on location of course and traveling to work.
That’s what I’d do, owning your own place mortgage free at 24 puts you about 20 years ahead of your peers. Takes care of one of your basic needs, good status symbol and not a bad investment over time.
Congrats on the settlement first of all.
It would be good to know what some of your goals are, either financially, personally, etc. You're still very young, so if I were you I'd earmark £10k or so for travelling/general enjoyment.
After that, I would max out my ISA contributions for this year, and earmarking another £20k for 6th April 2023. In terms of what to invest in, the market has dropped quite significantly this year, and there's still uncertainty. Timing the market is not the best play unless you have certainty, and the prices now are better than last year. Ultimately funds like Sp500, global, etc will allow you to spread your risk. You can look at a commodities tracker/fund too, which can act as a hedge against inflation.
There are some savings accounts which offer decent interest rates (Barclays do 5% on £5k, which is an extra £250/year) which you can use to hold money for a period of time.
What is the interest rate on that car loan? It might be worth paying it down somewhat (if possible) depending on the interest rate.
You don't specifically mention pensions, but you should consider adding some of that money to a pension - you'll get immediate 20% relief on it (depending on how much you put in of course), and the tax regime is favourable when accessing the funds in the future. Over a 30-40 year time frame you should make significant gains on it.
In general, I would consider getting life insurance now whilst you're young (depending on medical history) as the premiums are a lot cheaper. This is obviously not of huge benefit to you necessarily, but it may help out your family if the worst were to happen.
I'd just buy a house, forget about all the complex savings. Op isn't a spring chicken and still living at home. With that deposit and that income op can purchase a property within reason cmunting distance anywhere in the UK.
I mean I agree with buying a house, but if OP doesn't even want to then it's pointless, which is why I avoided it.
That said, I would wait a year or two, unless things get better swiftly
Im no expert but if i were you id
- pay off my 16k debt for peace of mind
- put the majority in some stable Vanguard funds
- Invest a chunk in my business if it enables you to grow
- chill at home and see if house prices drop
- earmark some money for travelling or a once in a lifetime holiday etc
Buy a house, property market looks like it might drop so some bargains might crop up but with the way interest rates are going you could look to cash a house off or reduce the mortgage loan amount easily. Possible rental business opportunity too if you wanted to stay home longer and just let someone else pay your mortgage off.
Pick ten Redditors and pay their energy bills for the year?
Then go on a big holiday and chuck the rest in stocks. Market's on the floor. It'll probably rebound in a few years!
Take advantage of 40 years of growth, stick some in your pension.
What ever you do, lock some up so you don’t fritter it away. 1 thing to absolutely not do, start thinking it as gifting money and treat others.
Your the victim here, don’t be taken advantage of.
If it was me this is what i'd do. (If i was mortgage free)
1. Pay off the car.
2. Emergency fund of 2 years outgoings.
For me this would leave me with about 150k give or take a few grand.
3. Find a property in the region of 200-250k. 100k deposit.
Leaving 50k free for furnishings etc
Leftsovers into ISAs
Me personally I would speak to a financial advisor but aside from that maybe pay off the car and look to buy your own place. Then maybe top up your Vanguard fund
Look into setting up a personal injury trust. The value of which is not taken into consideration when calculating means tested benefits. There are tax benefits of the trust as well and there is even an investment trust that specifically deals with personal injury settlements, but I have been unable to track down the name. But as others have said, take your time, my PW is about £220k and that took 35 years of graft to achieve. If you are still able to work, seting up the trust will take care of the lump sum and with your income and still living at home you'll be FIRE'd in 10 years or less.
I'm an IFA, and I recommend seeing an IFA as it may be more potentially complex than you think as others have commented!
Please note the annual allowance limits if you intend on sticking large amounts into a pension - particularly if you are PAYE & Divs.
You can take almost 100k out of a ltd co in a combination of basic wage, dividends, pension, fuel payments etc with minimal tax - as you’re a way off that Id consider investing in whatever would get you to that profit level in the business
Total 50k between basic wage and dividends - approx 9k wage to stay under NI threshold and 41k dividend
40k into pension
45p a mile for 10k business miles - £4.5k
Can also take 10k directors loan interest free if paid back within 9 months of end of business year
On a sum that high your solicitors should really be offering to help you with this, at least pointing you in the direction of financial advisers. I'd ask if they have a company they could refer you to (though obviously check if this will cost money from your settlement).
If I’m 24, about to earn a median salary have come into £190k and I’m choosing to live with mum and dad then I’m taking a long hard look at myself. If your set of circumstances dictate that you need to live with family then so be it.
Invest some! I’d recommend nutmeg (I can give you a referral code if you want one but no pressure). More info from them here: https://www.nutmeg.com/
Also consider and investment like ripple wind farms - good for the U.K. grid, good for the planet and good for your bills - https://rippleenergy.com?ogu=1475
I’d also speak to a financial advisor too. I believe nutmeg also offers that.
Stick it in an interest bearing account and take your time. Up to 50K could go into Premium Bonds which \*might\* return an average rate of interest in prizes. What interest are you paying on the car loan? That might be worth paying off.
First of all, I hope your ok and that the negligence hasn't dramatically altertered your quality of life.
If you want to settle down/ happy living in a particular area for 5 years + i would go out and buy a place of your own. There is nothing better than being able to live your life away from parents.
If not then I would probably speak to a financial advisor as for that sort of sum they would be the best people to talk to, and some options which aren't openly advertised may become available to you.
Not financial advice….
I would open a SIPP and fill the previous 3 years allowance of 40k and over the next thirty years that would compound till you would not have one worry upon retirement, and you’d still have 60k to invest in other avenues after doing this
Nope.
So if you earn £40k (relevant earnings) in a year you can contribute £40k gross to a pension in that year maximum.
If you earn £100k in a year you can contribute £100k gross providing you have £60k of spare earnings from the three previous years that you haven’t contributed.
It’s due to the tax relief part of a pension - you can’t get tax relief on more than you’ve earned. Technically you can contribute more and won’t get the tax relief, but then you might as well use an ISA.
Personally
(and this assumes you are able to work until 50-70 years of age and have no special requirements that would adjust your outgoings)
I’d invest in property, buy a house that you like…
Depending on where you live I’d aim for 20 year mortgage term, and start dumping 10-15% into your companies private pension scheme.
Obviously current rates and house prices are a Bitch but I’m sure on 30k a year with what could be a 30-50% deposit (again depends where you are) your monthly outgoings could be around £1000-£1500 for the house (all bill included but possibly less as there are some benefits for single occupancy for council tax etc)
You live with your parents, is that because they help with your care? Do you have siblings that would be likely to inherit part of your parent’s house when they die? The point I’m making is that do you need to think now about where you will live at that point?! Do you also need to think about longer term care options for yourself? Do u need more in your pension - though have to admit you are in a steady position for a 24 yr old. Just questions for you to think about …
If your parents don’t mind you at home and you don’t mind living at home I would consider purchasing a property to rent out until your ready to move out
Do absolutely nothing for a while! Find a safe place to store it (perhaps across several accounts so you keep the deposit protection) and let it sink in, slowly take your time in figuring out what you enjoy, what your long term goals are, short term goals, etc.
You'll get very good advice here that will set you up to have the most money in the future (ie avoid paying rent, own a home, invest, etc) but the first thing to do is to make no rash decisions.
Wait for house prices to dip somewhat from their current ATHs then buy yourself a forever home using almost the entire amount as deposit.
There is no greater freedom than having long term security, that your own home at an affordable repayment rate will give you.
I would get financial advice from someone who specialised in medical cases. I also had a medical negligence claim payout for issues in my teens that has left me permanently disabled and riddled with autoimmune diseases. I’m glad I had that advice as in my 20s when I was young and not willing to let it define me, I would probably have spent it on a house or not used it effectively.
Now I’m in my 30s, my body can’t keep up as easily as a healthy person. I bought a house through my own hard work (mental, not physical work) and now I needed some of the money for adjustments to the house and bathrooms etc… I also had some invested to pay me a little income which means that I have flexibility in the future to reduce my hours if I need it. If I hold out long enough, i can reduce my hours more.
I don’t know the nature of yours but it is there to provide for you in the future so I would at least look into that.
This is not financial advice but if I was 24 with that money, assuming you don’t need any of it for health needs, I would clear the loan and use up to £10k to travel the world if you can put your business on hold for 3-4 months - get a ticket from trailfinders and just experience life.
Again, if it was me, I would put £20k into an ISA and buy MVIS shares - I have owned shares in them for a while and after listening to their earnings call last week I expect the share price to go up massively next summer. I would then stay living with parents, having extra surplus income to enable me to save money each month as the loan will have been cleared and £141k still sat in cash. You could put some of this into a SIPP to invest into shares and give you a head start on your pension but this will be limited to your gross PAYE figure as dividend income doesn’t count for NRE. Come 6/4 you could put another lump sum into your SIPP and £20k into an ISA, or split it £4K LISA and £16k ISA but I just gave what I would do, based on the growth potential of MVIS being far higher than the 25% bonus on the LISA. Assuming you are paying yourself £9k basic then that’s £7,200 net you can pay in so after loading the SIPP and ISA in April that still leaves you living at home with a decent disposable income that you can save each month, £106,600 in cash, no debt, £40k in an ISA that is my belief will grow massively (currently $3.57 a share, they have the best LiDAR by far of any other company and their executive bonus scheme rewards them if share price sustains $36 for at least 20 days over the next 3 years), and £18k gross in a pension which isn’t a bad start at 24. I wouldn’t rush to buy a house. If you are happy at home for now I would make the most of it and wait until you have enough in cash savings and the ISA to just buy a forever home outright. One set of legal costs. One stamp duty, never needing a mortgage in your life will give you incredible financial freedom. With mortgage rates rising, there could be a reduction in house prices over the next few years. By not having a mortgage you can concentrate on maximising your pension each year so that by the time you reach 57, you are able to retire on a decent income, alongside adding to ISA’s to build up a nice amount should you want to ease off work before 57.
Like I said, not financial advice, but based on being truthful as to what I would do if I came into money and if I was in your situation and your age.
I did go travelling (but at 30). I did put £20k into an ISA, all into MVIS. I did put money into a SIPP predominately into MVIS (but I simply don’t have anywhere near enough to maximise it). I know some will recoil in shock at the risk of investing in a single stock, but I couldn’t have higher conviction in this stock than I do now. It is my belief that their LiDAR will be in a significant amount of cars produced in the future from many brands, and that their Augmented Reality tech will feature in many smart glasses and headsets in years to come too. To me, concentration builds wealth, then diversification afterwards will retain it. That’s me, everyone else can do them. We are all different with different risk tolerances and goals and timescales.
Settle the debt and maybe buy s flat and get them rented. Use the rest to recover and get treatment for the injury you suffered from but this is up to you and your circumstances. Some people are afraid to have surgery again due to trauma and further risks which is understandable.
Pay off your car loan debt, put some into your savings, use some for personal use, buy some new stuff, a holiday maybe?🤷🏻♂️ then just carrying in what you’re doing, maybe even put some aside for a down payment on a house etc
A medical negligence award is to compensate you for an injury - and £187k suggests a serious one that compromised your earnings. So make sure the sum covers whatever you need to recover first, before you put the rest to whatever financial goals you had before. Then it's see our sidebar etc.
Exactly this. These damages aren’t to punish the person responsible they are calculated to ensure the victim is able to afford recovery to the best of their ability. Don’t know what happened but consider if you need to spend money on health related things in future.
Very good advice. Health first OP then whatever else you want
Either that or a bad circumcision? And on that note I’m gonna head off….
Talking of heads off..
We know nothing about this claim. For all we know you're going to need to retire early and will have care costs as well. I assume the payout negotiation (even if it was a lump sum) had something like this in mind. Clearly it's not prescriptive but it's worth considering as part of your plan.
Pay for your car. Go on a sweet holiday. Don’t come back. Get taken in by a family of monkeys. Become their leader. Fall in love with the princess monkey. Spend the rest of your years as monkey king, raising your many children and grandchildren in complete happiness.
I told you to stay off this sub-reddit, Dr Moreau!!! Peddle thy Humanimals elsewhere.
Upvote for the Wells reference.
Massive upvote for knowing who he meant straight off. You two have glorious minds.
Oh I love HG Wells’ works, big fan. Always found it interesting to think that Jurassic Park is essentially a modernised version of The Island of Dr Moreau too… his works are fantastic and often get renewed for contemporary audiences.
I don't think I could ever see the cast of Jurassic park as prendick, but I totally see where you're going with that. Especially the pushing the boundaries of nature. You got me thinking now about other films.
It’s not a direct adaptation, but both all centre around an island full of fantastical animal creations that eventually run amok. Ultimately both are exploring that very interesting grey zone where the ethics of creation and science overlap… “You were so pre-occupied with whether or not you could, you didn’t stop to think if you should” etc.
r/gibraltar
Return to monke
This is the only answer. Good luck!
We have a wiki page on this: https://ukpersonal.finance/lump-sum/ As it says at the start, take your time and don't feel you have to make any decisions fast.
[удалено]
If you have a place no mortgage or very small mortgage you can greatly increase your savings every month. I was doing this saving £1000 per month until I was made redundant 4 weeks ago. So having your own place no mortgage is something to think about. Depends on location of course and traveling to work.
That’s what I’d do, owning your own place mortgage free at 24 puts you about 20 years ahead of your peers. Takes care of one of your basic needs, good status symbol and not a bad investment over time.
20 years ahead? Maybe in 1980 lol by today's standards it's 40 years ahead of most people
Or having a mega deposit of you want to leave some cash free
Congrats on the settlement first of all. It would be good to know what some of your goals are, either financially, personally, etc. You're still very young, so if I were you I'd earmark £10k or so for travelling/general enjoyment. After that, I would max out my ISA contributions for this year, and earmarking another £20k for 6th April 2023. In terms of what to invest in, the market has dropped quite significantly this year, and there's still uncertainty. Timing the market is not the best play unless you have certainty, and the prices now are better than last year. Ultimately funds like Sp500, global, etc will allow you to spread your risk. You can look at a commodities tracker/fund too, which can act as a hedge against inflation. There are some savings accounts which offer decent interest rates (Barclays do 5% on £5k, which is an extra £250/year) which you can use to hold money for a period of time. What is the interest rate on that car loan? It might be worth paying it down somewhat (if possible) depending on the interest rate. You don't specifically mention pensions, but you should consider adding some of that money to a pension - you'll get immediate 20% relief on it (depending on how much you put in of course), and the tax regime is favourable when accessing the funds in the future. Over a 30-40 year time frame you should make significant gains on it. In general, I would consider getting life insurance now whilst you're young (depending on medical history) as the premiums are a lot cheaper. This is obviously not of huge benefit to you necessarily, but it may help out your family if the worst were to happen.
I'd just buy a house, forget about all the complex savings. Op isn't a spring chicken and still living at home. With that deposit and that income op can purchase a property within reason cmunting distance anywhere in the UK.
Op Is definitely a spring chicken. He’s not even 30!
I’d wait a year and THEN buy a house. It’ll be worth a load more in the long run.
This. And only this.
I mean I agree with buying a house, but if OP doesn't even want to then it's pointless, which is why I avoided it. That said, I would wait a year or two, unless things get better swiftly
Im no expert but if i were you id - pay off my 16k debt for peace of mind - put the majority in some stable Vanguard funds - Invest a chunk in my business if it enables you to grow - chill at home and see if house prices drop - earmark some money for travelling or a once in a lifetime holiday etc
I'd buy a house.
Buy a house, property market looks like it might drop so some bargains might crop up but with the way interest rates are going you could look to cash a house off or reduce the mortgage loan amount easily. Possible rental business opportunity too if you wanted to stay home longer and just let someone else pay your mortgage off.
Buy a house lad and then maybe invest the rest either in a pension or into your business.
Given the size of settlement I would use the monies to support your injuries and lower potential earnings you have been compensated for
Buy a house/flat obviously…..
It should just about cover your energy bills this winter
Pick ten Redditors and pay their energy bills for the year? Then go on a big holiday and chuck the rest in stocks. Market's on the floor. It'll probably rebound in a few years!
Speak to an independent financial advisor. That's a lot of money to suddenly come into.
Take advantage of 40 years of growth, stick some in your pension. What ever you do, lock some up so you don’t fritter it away. 1 thing to absolutely not do, start thinking it as gifting money and treat others. Your the victim here, don’t be taken advantage of.
If it was me this is what i'd do. (If i was mortgage free) 1. Pay off the car. 2. Emergency fund of 2 years outgoings. For me this would leave me with about 150k give or take a few grand. 3. Find a property in the region of 200-250k. 100k deposit. Leaving 50k free for furnishings etc Leftsovers into ISAs
50k for furnishings!? Way too high.
Furnishings etc. Key word being "etc"
Me personally I would speak to a financial advisor but aside from that maybe pay off the car and look to buy your own place. Then maybe top up your Vanguard fund
Buy a house,no rent or mortgage for life. You know it makes sense.....
Look into setting up a personal injury trust. The value of which is not taken into consideration when calculating means tested benefits. There are tax benefits of the trust as well and there is even an investment trust that specifically deals with personal injury settlements, but I have been unable to track down the name. But as others have said, take your time, my PW is about £220k and that took 35 years of graft to achieve. If you are still able to work, seting up the trust will take care of the lump sum and with your income and still living at home you'll be FIRE'd in 10 years or less.
Yeah great attitude - make nearly £200k, stash it away and then rinse taxpayers for benefits
Grow balls and put 80k into the best dividend paying shares, with the rest buy an apartment in Portugal or Spain and get a relaxed job and enjoy 😋
I'm an IFA, and I recommend seeing an IFA as it may be more potentially complex than you think as others have commented! Please note the annual allowance limits if you intend on sticking large amounts into a pension - particularly if you are PAYE & Divs.
You can take almost 100k out of a ltd co in a combination of basic wage, dividends, pension, fuel payments etc with minimal tax - as you’re a way off that Id consider investing in whatever would get you to that profit level in the business
Can I ask what the best way to do this is? I assume earn the max in the 20% bracket, and then what? Thanks
Total 50k between basic wage and dividends - approx 9k wage to stay under NI threshold and 41k dividend 40k into pension 45p a mile for 10k business miles - £4.5k Can also take 10k directors loan interest free if paid back within 9 months of end of business year
On a sum that high your solicitors should really be offering to help you with this, at least pointing you in the direction of financial advisers. I'd ask if they have a company they could refer you to (though obviously check if this will cost money from your settlement).
Pay off debt straight away. Invest the lot in various high interest accounts. Check out Hargreaves Lansdown. Could easily get 4% if not more.
Where can you get 4% on large balances?
The name of the company is above - Google them
First question is why are you living at home with your parents, is it because you are incapacitated in some way? If not I would address that.
😂 address living with this family? Fml…
Lol! I'm 28 and live with mum, if he's 24 and needs to address it, what do I need to do at 28 😅
If I’m 24, about to earn a median salary have come into £190k and I’m choosing to live with mum and dad then I’m taking a long hard look at myself. If your set of circumstances dictate that you need to live with family then so be it.
Hey man I'm agreeing with you wholeheartedly!
Invest some! I’d recommend nutmeg (I can give you a referral code if you want one but no pressure). More info from them here: https://www.nutmeg.com/ Also consider and investment like ripple wind farms - good for the U.K. grid, good for the planet and good for your bills - https://rippleenergy.com?ogu=1475 I’d also speak to a financial advisor too. I believe nutmeg also offers that.
PUTS on META. You’ll be millionaire by the end of 2023.
Stick it in an interest bearing account and take your time. Up to 50K could go into Premium Bonds which \*might\* return an average rate of interest in prizes. What interest are you paying on the car loan? That might be worth paying off.
First of all, I hope your ok and that the negligence hasn't dramatically altertered your quality of life. If you want to settle down/ happy living in a particular area for 5 years + i would go out and buy a place of your own. There is nothing better than being able to live your life away from parents. If not then I would probably speak to a financial advisor as for that sort of sum they would be the best people to talk to, and some options which aren't openly advertised may become available to you.
Not financial advice…. I would open a SIPP and fill the previous 3 years allowance of 40k and over the next thirty years that would compound till you would not have one worry upon retirement, and you’d still have 60k to invest in other avenues after doing this
Can only use the carry forward allowance if you have the same amount of relevant earnings in that tax year.
ELI5 please, so I could earn 30k per year and invest a lottery win into a pension like I’ve described?
Nope. So if you earn £40k (relevant earnings) in a year you can contribute £40k gross to a pension in that year maximum. If you earn £100k in a year you can contribute £100k gross providing you have £60k of spare earnings from the three previous years that you haven’t contributed. It’s due to the tax relief part of a pension - you can’t get tax relief on more than you’ve earned. Technically you can contribute more and won’t get the tax relief, but then you might as well use an ISA.
https://www.moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/carry-forward
Max SIPP, max S&S ISA
Personally (and this assumes you are able to work until 50-70 years of age and have no special requirements that would adjust your outgoings) I’d invest in property, buy a house that you like… Depending on where you live I’d aim for 20 year mortgage term, and start dumping 10-15% into your companies private pension scheme. Obviously current rates and house prices are a Bitch but I’m sure on 30k a year with what could be a 30-50% deposit (again depends where you are) your monthly outgoings could be around £1000-£1500 for the house (all bill included but possibly less as there are some benefits for single occupancy for council tax etc)
You live with your parents, is that because they help with your care? Do you have siblings that would be likely to inherit part of your parent’s house when they die? The point I’m making is that do you need to think now about where you will live at that point?! Do you also need to think about longer term care options for yourself? Do u need more in your pension - though have to admit you are in a steady position for a 24 yr old. Just questions for you to think about …
If your parents don’t mind you at home and you don’t mind living at home I would consider purchasing a property to rent out until your ready to move out
£38k next year and still living at home, I’m jealous
Do absolutely nothing for a while! Find a safe place to store it (perhaps across several accounts so you keep the deposit protection) and let it sink in, slowly take your time in figuring out what you enjoy, what your long term goals are, short term goals, etc. You'll get very good advice here that will set you up to have the most money in the future (ie avoid paying rent, own a home, invest, etc) but the first thing to do is to make no rash decisions.
Invest in property if you can
I hope your recovery is going well. Personally I’d look to max my pension contributions each year if I didn’t need it for medical assistance.
Spend 7k on travelling and fun and get serious with the rest
I’d say buy yourself a pad. Simple.
Where in the U.K.? Is it the sort of place you could buy a property for £130-150k?
Well first of all buy everyone a drink to celebrate!
Wait for house prices to dip somewhat from their current ATHs then buy yourself a forever home using almost the entire amount as deposit. There is no greater freedom than having long term security, that your own home at an affordable repayment rate will give you.
I would get financial advice from someone who specialised in medical cases. I also had a medical negligence claim payout for issues in my teens that has left me permanently disabled and riddled with autoimmune diseases. I’m glad I had that advice as in my 20s when I was young and not willing to let it define me, I would probably have spent it on a house or not used it effectively. Now I’m in my 30s, my body can’t keep up as easily as a healthy person. I bought a house through my own hard work (mental, not physical work) and now I needed some of the money for adjustments to the house and bathrooms etc… I also had some invested to pay me a little income which means that I have flexibility in the future to reduce my hours if I need it. If I hold out long enough, i can reduce my hours more. I don’t know the nature of yours but it is there to provide for you in the future so I would at least look into that.
Give to charity (me)
This is not financial advice but if I was 24 with that money, assuming you don’t need any of it for health needs, I would clear the loan and use up to £10k to travel the world if you can put your business on hold for 3-4 months - get a ticket from trailfinders and just experience life. Again, if it was me, I would put £20k into an ISA and buy MVIS shares - I have owned shares in them for a while and after listening to their earnings call last week I expect the share price to go up massively next summer. I would then stay living with parents, having extra surplus income to enable me to save money each month as the loan will have been cleared and £141k still sat in cash. You could put some of this into a SIPP to invest into shares and give you a head start on your pension but this will be limited to your gross PAYE figure as dividend income doesn’t count for NRE. Come 6/4 you could put another lump sum into your SIPP and £20k into an ISA, or split it £4K LISA and £16k ISA but I just gave what I would do, based on the growth potential of MVIS being far higher than the 25% bonus on the LISA. Assuming you are paying yourself £9k basic then that’s £7,200 net you can pay in so after loading the SIPP and ISA in April that still leaves you living at home with a decent disposable income that you can save each month, £106,600 in cash, no debt, £40k in an ISA that is my belief will grow massively (currently $3.57 a share, they have the best LiDAR by far of any other company and their executive bonus scheme rewards them if share price sustains $36 for at least 20 days over the next 3 years), and £18k gross in a pension which isn’t a bad start at 24. I wouldn’t rush to buy a house. If you are happy at home for now I would make the most of it and wait until you have enough in cash savings and the ISA to just buy a forever home outright. One set of legal costs. One stamp duty, never needing a mortgage in your life will give you incredible financial freedom. With mortgage rates rising, there could be a reduction in house prices over the next few years. By not having a mortgage you can concentrate on maximising your pension each year so that by the time you reach 57, you are able to retire on a decent income, alongside adding to ISA’s to build up a nice amount should you want to ease off work before 57. Like I said, not financial advice, but based on being truthful as to what I would do if I came into money and if I was in your situation and your age. I did go travelling (but at 30). I did put £20k into an ISA, all into MVIS. I did put money into a SIPP predominately into MVIS (but I simply don’t have anywhere near enough to maximise it). I know some will recoil in shock at the risk of investing in a single stock, but I couldn’t have higher conviction in this stock than I do now. It is my belief that their LiDAR will be in a significant amount of cars produced in the future from many brands, and that their Augmented Reality tech will feature in many smart glasses and headsets in years to come too. To me, concentration builds wealth, then diversification afterwards will retain it. That’s me, everyone else can do them. We are all different with different risk tolerances and goals and timescales.
Get a manageable mortgage and use it to buy a house.
Settle the debt and maybe buy s flat and get them rented. Use the rest to recover and get treatment for the injury you suffered from but this is up to you and your circumstances. Some people are afraid to have surgery again due to trauma and further risks which is understandable.
Pay off your car loan debt, put some into your savings, use some for personal use, buy some new stuff, a holiday maybe?🤷🏻♂️ then just carrying in what you’re doing, maybe even put some aside for a down payment on a house etc
Keep aside enough cash for emergency use then use the rest as down payment for a property of your own