Telegraph: Ask a money expert-'I've inherited £20000 at 22 – how do I invest it?' | Whitechurch Securities Limited | Redland, Bristol

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Telegraph: Ask a money expert-'I've inherited £20000 at 22 – how do I invest it?'

Ben Willis, of investment manager Whitechurch Securities, said:  “If you are investing for 10 years, or investing for longer, depending on your overall attitude to risk the strategy will be pretty much the same.”

Given the time horizon, Mr Willis suggested investing “all or the majority” of the money in stock markets, but that initially drip feeding the money in across a number of months would be prudent. This would reduce the risk of loss if markets fall sharply soon after you invest.

Alternatively, he said half could be invested now, and further amounts later on if markets do fall - with a deadline to invest everything of, say, one year.

In terms of a portfolio, he suggested an overall mix of exposure to different companies, markets and currencies - as outlined below. Detailed example of actual investments to buy follow. Some of these are low-cost "tracker funds" where stocks are selected automatically based on their inclusion within an index. Other funds are "actively managed" by a fund  manager or team whose job is to select individual stocks.

...“If you are just look for a flexible, long-term and tax efficient investment - rather than to buy a house - just keep the money within a stocks and shares Isa,” said Mr Willis.

Full article available at Telegraph: Ask a money expert- 'I've inherited £20000 at 22 – how do I invest it?'


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