DD's father died in an accident when she was tiny and the compensation has been held in trust by the courts for the past 17 years (we weren't married). She turns 18 in a couple of months and will then get the money which will probably be in the region of £40k (depending on how the financial crisis has dented it).
She is crap with money. How can I influence her management of the money before she blows the lot on dresses and hairslides? Does anyone know how to find a good, trustworthy financial advisor without it costing me a fortune? I worry she will have regrets and would really like her to make a long-term investment which helps her out later in life.
I've posted this on Legal too, but this looks busier.
could you suggest she gets a mortgage on a place then rents it out until she would like to live in it? as she has the funds to secure a good mortgage and it would take advantage of the economic slump, plus would leave her with funds left over for a few frivolous purchases ( a nice hol perhaps?) and that way rent would cover mortgage?? not many people are fortunate enough to have the opition but at 17 she probably wont realise this...
Hunnie, that's what I'd like her to do, but I'm not sure how likely it is that a student can get a mortgage even with a £40k deposit. Live in the SE and property prices still ridiculous. Won't get anything under £150k. We haven't a bean so can't help her out. I'll have a word with a building society/mortgage company i think.
I don't know how fortunate she will feel about it considering the circumstances of her inheritence. It will probably be very exiting now but I think she will have real regrets later in life if she blows it, not just for missed opportunites but because it is all that is left of her dad.
Do you think she would be willing to put most of it in a savings account for which you have to give notice to withdraw from? She could maybe have a few hundred to buy herself something nice immediately and perhaps a holiday. Also perhaps some sort of monument to her dad, in the form of a rose bush or bench or something, if that's something she'd like to do?
My best friend's husband inherited money when he was 18, blew the lot and has been crap with money ever since - so well done you for trying to help her with this.