Compensation: pleased but worried.

[blackburn]

All, I'm a first time poster in this section and need a few pointers on how to proceed:

A err, friend, will soon recieve a sum of money which is compensation after a road traffic accident some 5 years ago. This 'friend' is not wealthy and as such knows very little about what to do with the money when it arrives. My 'friend' is pleased with the amount of money coming his way but wants it to give him an income to supplement his current wage and also provide for retirement.

The amount is said to be £790,000 and a solicitor involved has instructed a referral to a specialist firm of financial advisors. My 'friend' owns his own modest house (paid for) but will need to move soon 'ish because of a disability (current property not readily adaptable).

Are there, in simple terms, any obvious routes through this maze?

Any sensible opinions or advice would be appreciated.

Thanks.

[bogie]

go with the advice, find a local financial advisor who can get it into some safe, income generating investments ..thats about it really, unless your friend has some specific and knowledgeable ideas of their own

[NoelWatson]

bogie said:

go with the advice, find a local financial advisor who can get it into some safe, income generating investments ..thats about it really, unless your friend has some specific and knowledgeable ideas of their own

As long as the advisors charge by the hour (and take no other forms of commission) and are independent, then that sounds good.

[ringram]

Dont overspend on the new house for starters!
Just get what you need. Keep the rest for investment as per above.
Diversification..

[jshell]

ringram said:

Dont overspend on the new house for starters!
Just get what you need. Keep the rest for investment as per above.
Diversification..

Just the advice a firend of mine could have done with. Used the cash from a similar thing to buy a huge Victorian West End apartment and now can't afford to maintain it or even redecorate. Won't consider downsizing either.

[blackburn]

jshell said:

ringram said:

Dont overspend on the new house for starters!
Just get what you need. Keep the rest for investment as per above.
Diversification..

Just the advice a firend of mine could have done with. Used the cash from a similar thing to buy a huge Victorian West End apartment and now can't afford to maintain it or even redecorate. Won't consider downsizing either.

Certainly, there's no plan to over spend on the house. However the current house will not be suitable long term so will need changing and adapting.

Thanks all for sensible advice so far - much appreciated.

[Tiggsy]

musclecarmad said:

7. essentially off £600,000 or whatever you don't put in cash you could get a tax free income of as much as £30,000 or £2500 per month which is not bad and you can holiday wherever etc.

Tax free income? If you are talking about an investment bond i assume thats not how you'd present it in writing???