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compensation money

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sjs | 14:04 Sun 07th Oct 2007 | Business & Finance
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Hi my friend is just about to receive a compensation award and is in a quandry about where to put it.

After paying off debts etc she will be left with around �190000.
The problem is she doesn't work and needs some of the money to pay her a wage.Some people have advised her to put it in a personal injusy trust such as one with the company NESTOR.Has anybody heard of them??.

The other option is to divide the money up into high interest bank accounts etc.

Any ideas would be greatly appreciated.

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buy a house and rent it out and use the income as a wage. The house value should go up and you get a regular monthly income. Depending on where and what she buys she could get over �700 per month income before tax.

Not sure if we are qualified to give such mega-big advice as this, as we are not financial advisors. My first reaction to this is that we are seeing a misprint here. Did you say �190,000 or �19,000. If it is the former amount then your friend is lucky to get that amount, what happened to her or should I not ask?

High interest accounts are not really that good for that amount of cash. There is one thing, and one thing only I would do then. If she has not got her own house, then buy a house outright with this amount, but do not get a mortgage, and then let out one or more of the rooms to a lodger. If she already owns her own place then buy somewhere else to let, and live off the money you get for letting it. (www.reedsrains.co.uk) has umpteen buy to let places and for that amount you could buy a small blocks of bedsits and you could get more than one rent in a week. The only investment that has consistently outdone every other is that of property. At the end of this she will still own a second home. That is what I would do anyway. Any building society interest would be swallowed up in inflation, whatever hype they tell you.
Sorry HawkWalk did not see your answer there, was too busy doing my own, that you must have put yours up when I was doing mine. I did not copy you honestly. Well, sjs, that is 2 people now with the same advice so I think your friend should do that. She cannot really go wrong at this.
There are many options, provided the amount you've indicated is correct. (I questioned this too.) A professional financial planner may be able to offer more diverse ideas. However, if I convert the first amount to US Dollars, that would qualify you for a number of combined portfolio investments that would most probably provide you with a minimal income each month. Additionally, as you are not working, it may be beneficial to change your status to 'NOR' or 'not ordinairly resident.' This is for tax purposes. The big three all offer introduction advice to their offshore branches in numerous countries. It may be worthwhile having a chat with more than just one bank. Oh, and please, be skeptical of any advice offered by general reception bank staff. They have not received sufficient training to deal with these issues.


Here in the UK, you've not quite made it to Coutts. However, as I say, in the states, you would qualify for free supported private banking investment advice.

Be well

Fr Bill
NESTOR.

http://www.nestorpartnership.co.uk/pitrusts.as p?nav=32

They certainly seem worth chatting to over your friends compensation. They do not state their 'one off' arrangement fees though. A % maybe to set up a trust.

Other than them? Type in the info to this site and read, read and read........

http://www.moneysupermarket.com/savings/
Question Author
Yes it is correct amount. To be perfectly honest in answer to first reply -she doesn't feel lucky in particular.She lost a leg in an accident where the person got away with it, the police 'mucked up big time , has been through 4 years of hell to get any compensation and consquently ended up in debt because she couldn't work.Like she often says she would rather be poor and have her leg.

Thanks for all your replies -property does seem a good option.

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