I've inherited some money, what to do?

[Tarw Coch]

Christ. That’s nuts!

I left uni in 1999 and paid back my debt by 2003, but it was only £15k.

Surely if you leave uni with a debt of £60k that will be wiped in 30 years if you don’t earn much, there’s no incentive to start earning.... or even to go to uni in the first place!

Don’t think they’re leaving uni with a debt of 60k, it’s the compound interest at 6% over the years that gets it up there.
Let it grow to 60k over 30 years then wipe the slate. Seems mad to me but I’m just a ...........oh bugger you’ve got that user name

 

[DRC]

Don’t think they’re leaving uni with a debt of 60k, it’s the compound interest at 6% over the years that gets it up there.
Let it grow to 60k over 30 years then wipe the slate. Seems mad to me but I’m just a ...........oh bugger you’ve got that user name

My daughter has only been left uni two years and it’s already up there . They don’t tell you they start adding the interest from day one, not when you get your degree.

 

[Cowabunga]

Sirius markets its potash as organic so chemicals are a no ,look at the volume that they hope to mine that would be some size of chemical plant and if you remove the trace elements you remove one of its main selling points and what do you do with the removed part which would then probably become waste which would make the product price uncompetitive
I think that Sirius plans to mine more phosphate than the uk uses in 1 year
I’m sure that if I’m wrong on any of my calculations someone on this forum will correct me but I don’t think I am

What they market it as is of no consequence to their industrial bulk customers and processors. How do you think the millions of tons of fertiliser used by farmers globally in granular, compound and liquid form is made other than from processed raw materials? The stuff that comes out of the mine is no good to the end user until it has been processed into an useable consistent form that mostly can be blended with other essential products to provide a balanced end product that people want to use.

 

[Tarw Coch]

My daughter has only been left uni two years and it’s already up there . They don’t tell you they start adding the interest from day one, not when you get your degree.

Heck that’s even worse, compound that over another 28 years and it’s frightening, where’s the incentive to get a half decent job ?
Unless you can get a job that will pay it off easily you’re better off bobbing along just under the threshold, but didn’t I read that 90 odd percent of students won’t Pay it off?

 

[farmerm]

Set up a student loan company.
Loan 2 students 10000 each over 3 years and hope that they earn enough to start paying you back.

So starting with a 30k debt with 30 year payback. Repay 9% of earnings over £21k. to clear the original £30k in 30 years, ignoring interest, will require £1000/year repayments. @9% on earnings over £21k to be liable to repay £1000/year they will be on £32k income. Earn less amd the debt is never paid so the interest has no meaning. If the debt is greater , and it is for many, then the income level you need before you get to a point of paying it off in full is greater still. Those few who do well enough to have paid off in full, but close to the end of 30 years are the real losers. The whole system is bonkers, unfair and bad value for both students and tax payers

 

[davieh3350]

So starting with a 30k debt with 30 year payback. Repay 9% of earnings over £21k. to clear the original £30k in 30 years, ignoring interest, will require £1000/year repayments. @9% on earnings over £21k to be liable to repay £1000/year they will be on £32k income. Earn less amd the debt is never paid so the interest has no meaning. If the debt is greater , and it is for many, then the income level you need before you get to a point of paying it off in full is greater still. Those few who do well enough to have paid off in full, but close to the end of 30 years are the real losers. The whole system is bonkers, unfair and bad value for both students and tax payers

10000 over 3 years 3333.33 per year i meant. He would be receiving the repayments so a good investment for him if they repaid.

it was a stupid post as i wanted to say something but had no ideas of any real use

 

[farmerm]

10000 over 3 years 3333.33 per year i meant. He would be receiving the repayments so a good investment for him if they repaid.

it was a stupid post as i wanted to say something but had no ideas of any real use

Ah so he only has 10k loan? Makes him a loser in this system as unless never over £22k he will pay it off Probably the case that is worth paying off as fast as possible

 

[Lazy Sod]

All this worry about £50,000 of debt is a nonsense, it doesn't matter what the figure builds up to. All the graduates will ever pay is 9% of their annual earnings above £25,000, until 30 years have passed then it stops.
It's not a debt, it's a graduate tax.

 

[Kiwi Pete]

Most of my classmates from school went to Uni, then fled the country to avoid paying back their student loans

Great initiative to train people up, so they can benefit other economies

That's why we elect pillocks to mismange our countries?

Anyway, @Sherlock - an interesting OP

Plenty of options but I, for what it's worth, would probably invest it in a bit of a classic car, or something of that ilk, and keep saving hard for that deposit.

Nobody knows what is coming in the next few years but I know plenty of people who would pay plenty for an RS2000, as an example. Or bonds, they have been good to me over the years.

Put a picture of your ideal house on the fridge so you are mindful of your goal the human mind is a powerful thing indeed.

 

[exmoor dave]

Blow it all on cake and biscuits

 

[davieh3350]

How about moving to the prairies of canada. 20k is near half a house out there, good enough wages, plenty of work. Nice people, good weather too (if you like very cold and very hot)​

 

[D14]

I've been lucky enough to recieve some money from a deceased relative, around £20k.
I'd like to invest it wisely
I live in a rented house and have an income to live relatively comfortably.
Ultimately I'd like to buy a property to rent out, but £20k wont pay a deposit.
Any good, serious suggestions please?

£20k would be a deposit if bought off plan on a new estate. We did just that in 2015 and paid £265k for a 4 bed new build with separate garage off plan from Red Row. Once completed the same model house on the same estate were £279k so we made £15k for just buying off plan. Just had it valued and 3 agents are saying £330k which mirrors a neighbour who sold his for £325k 3 months ago. Your £20k will get you a deposit 2/3 bed terraced on a new estate if you go off plan like we did. But chose a decent building company. We went and looked at a few Red Row estates new and old before chosing them. One of the best things we've ever done because we are up by £65k in value today but appreciate it probably won't go up a lot more because it is what it is at the end of the day. Rental income off it is £1100/month less agent fees. it went on the rental market on a monday and was let by tuesday afternoon! You get a 2 year warranty on all white goods in it which has seen us have the dishwasher, washer/drier and fridge freezer replaced in that warranty foc. We've also had some small corrective action done to where the roof meets the wall, again done without any hesitation or quibbles. Just choose your tenants wisely so we went with a family with two older children which is better than youngsters!

 

[joe soapy]

Heck that’s even worse, compound that over another 28 years and it’s frightening, where’s the incentive to get a half decent job ?
Unless you can get a job that will pay it off easily you’re better off bobbing along just under the threshold, but didn’t I read that 90 odd percent of students won’t Pay it off?

you can go abroad, or in farming keep income down or , and i dont know if this is correct , but think income foregone can be used

 

[primmiemoo]

@Sherlock , at risk of being dull and boring, in addition to the LISA mentioned upthread if you qualify by age, you could also sort out a pension, too. Both come withTreasury top ups, afaik.

I know someone who was in a very good agricultural job with tied accommodation who lost both at the whim of their employer's successor. They were so glad they had access to savings and a teeny, tiny holiday let put by!

 

[tommyurray]

What they market it as is of no consequence to their industrial bulk customers and processors. How do you think the millions of tons of fertiliser used by farmers globally in granular, compound and liquid form is made other than from processed raw materials? The stuff that comes out of the mine is no good to the end user until it has been processed into an useable consistent form that mostly can be blended with other essential products to provide a balanced end product that people want to use.

My point exactly on 16/16/16 fertiliser you need 16% potash if Sirius potash content is 15% it does not leave any room in the compound for either nitrogen or phosphate and cannot even get to the 16%potash try the figures for 20/10/10 and I think you will even struggle with 25/5/5
Have you ever seen poly4?(Siriuss proposed product ) itis crushed down to granules which will be crushed further then mixed to form a compound tell me how this enriches the potash content .
Then consider that Sirius proposes to dig a tunnel longer than the channel tunnel and shirt all the material on conveyor belts what 22 km underground cannot remember the tonnage per hour but think it was 700t/hour 24/7/365 look at South African mines compare distance/depth and look at the power usage it is ambitious to say the least
Look at the phosphate mine in North Africa worlds biggest phosphate supplier it’s over the surface and fairly flat but I bet it is a bugger when you have a jam /belt failure and it’s on the surface!
No I’ve been in Sirius did nicely out of traveling on the sentiment but in the end it is reality that floats my boat

 

[Ysgythan]

I've been lucky enough to recieve some money from a deceased relative, around £20k.
I'd like to invest it wisely
I live in a rented house and have an income to live relatively comfortably.
Ultimately I'd like to buy a property to rent out, but £20k wont pay a deposit.
Any good, serious suggestions please?

Premium Bonds

 

[Cowabunga]

My point exactly on 16/16/16 fertiliser you need 16% potash if Sirius potash content is 15% it does not leave any room in the compound for either nitrogen or phosphate and cannot even get to the 16%potash try the figures for 20/10/10 and I think you will even struggle with 25/5/5
Have you ever seen poly4?(Siriuss proposed product ) itis crushed down to granules which will be crushed further then mixed to form a compound tell me how this enriches the potash content .
Then consider that Sirius proposes to dig a tunnel longer than the channel tunnel and shirt all the material on conveyor belts what 22 km underground cannot remember the tonnage per hour but think it was 700t/hour 24/7/365 look at South African mines compare distance/depth and look at the power usage it is ambitious to say the least
Look at the phosphate mine in North Africa worlds biggest phosphate supplier it’s over the surface and fairly flat but I bet it is a bugger when you have a jam /belt failure and it’s on the surface!
No I’ve been in Sirius did nicely out of traveling on the sentiment but in the end it is reality that floats my boat

Your idea about how compound fertiliser is made is very far from the actuality. For your 16-16-16, if using your method of calculation, each nutrient will be in as a third of the total, because each constitutes 16% while physically being 33% of the constituents. Baring in mind that the mineral is only 15% Potash, unless processed and concentrated significantly, there is just no room for any other nutrient in the product. It would have to be 0-0-15 to provide that 15% potash in the product, which is not viable.

 

[Exfarmer]

Your son is wise NEVER VOLUNTARILY PAY OFF STUDENT LOANS certainly if they are pre-2012 ones! Its a bit more complicated for the later students but as a rule it is not beneficial to most to overpay unless on track for a high earnings career path. Student loans are unique in that the repayment rate is based on income and more imporatntly they are wiped after 30 years... they do not compare with any other form of debt. I have foolish friends who paid off their low interst pre-2012 student loans and then took out mortgages at muliple times the student loan rate

So! A student loan rate currently of 6.1% is not worth paying off? Your economics is very different to mine!

 

[tommyurray]

Your idea about how compound fertiliser is made is very far from the actuality. For your 16-16-16, if using your method of calculation, each nutrient will be in as a third of the total, because each constitutes 16% while physically being 33% of the constituents. Baring in mind that the mineral is only 15% Potash, unless processed and concentrated significantly, there is just no room for any other nutrient in the product. It would have to be 0-0-15 to provide that 15% potash in the product, which is not viable.

No ammonia nitrate is 34% n so roughly 50% of triple 16
Super phosphate is 46%P so roughly 33%
That leaves 17% of the volume for K 1/5 of 15 is 3% it cannot be done with poly4
Once again tell me how you enrich poly 4 without using mop. Poly 4 can only be a filler for mop in compounds

 

[Exfarmer]

Completely off topic of course, but polyhalite the source of the Potash in the Sirius mine , is actually a very good source of nutrients for far more than Potash, being rich in Sulpher and Magnesium balanced by calcium oxide is ph neutral.