How To Invest Your Nest Egg Wisely
When you receive an unexpected amount of cash, it can ruffle people’s feathers a little bit as they tend to get excited about what you could spend it on. Typically, large windfalls don’t happen often, but when they do it’s usually down to a death of a relative, a well-earned bonus at work or some shares jumping in price. Once you’ve got over the thrill of not having to worry quite so much about money this month where should you put it? While it’s good to have a couple of treats, a nice dinner out or maybe a fabulous family holiday try not to fritter it away too carelessly or else all too soon the money will be gone.
Buy A Second Property
One of the most popular choices for those who come into some money is to buy out their own, mortgaged home or to invest the money into a second property or holiday home. Think about the location of your second home and whether you’d be more interested in beach villas or an alpine style chalet where there are mountain homes for sale. Whether your purchase at home or abroad remember that you’ll need to recalculate your tax allowance amount, as well as thinking about who’s going to look after the house when you’re not there. Many second home owners employ house managers, whose job it is to keep things ticking over, especially when the house is far away, and who’ll take care of any cleaning or maintenance issues. Others choose to rent it out to bring in some extra income, but it’s worth considering if you want the hassle of becoming a landlord especially if the property is two, or more hours away from your primary residence.
College Tuition
Many parents biggest worry is how to pay for their child’s schooling, and in fact, lots of couples start a college fund as soon as the mother finds out she’s pregnant. Halls of residence, living expenses, books, food, and bills aren’t cheap, and that’s before you add in the thousands of dollars for actual tuition fees. While financial aid, bursaries and scholarships are available wouldn’t it be nice to see your daughter graduate without the stress of having to pay back any loans? Statistics show that those who have received a college degree also start on higher salaries and end up earning more money than those who don’t. Not only is investing in your child’s future showing them how much you care but in the long run, they’ll pay back your generous gift with interest.
Investment Portfolio
While some people consider the idea of stocks and shares quite risky if you’ve sought advice from an expert financial adviser things should be fine. Don’t panic if you don’t reap the rewards straight away as some investments take a long time to mature, not to mention involving several different companies. Look for solid, stable medium risk investments, or you could consider splitting the cash in half and putting a portion into your pension fund. There’s also nothing wrong with starting a rainy day, or emergency fund in case of any unexpected medical bills.
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