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Gifted £50k. Want to do something sensible, but not sure where to go from here watch

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    (Original post by AperfectBalance)
    He knows far more than you considering he knows how bad it is to invest in them.
    Sure you could make a profit but it is a serious risk
    You don't know anything either. I'll post something here in 6 months when the price becomes $2000.
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    (Original post by AperfectBalance)
    He knows far more than you considering he knows how bad it is to invest in them.
    Sure you could make a profit but it is a serious risk
    You don't know anything either. I'll post something here in 6 months when the price becomes $2000.
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    (Original post by AlmostNotable)
    You don't know anything either. I'll post something here in 6 months when the price becomes $2000.
    It is far to volatile to tell or make any real predictions. so no it is a terrible idea.
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    I'd probably do what you're doing now and keep the money in high interest current accounts if you're not keen to take on too much risk. If you've built up a good emergency cash fund and are looking to generate a bit extra, you could also put some money in a S&S ISA with a portfolio that's fairly conservative in nature.

    With the current accounts though, bear in mind that with the recent rate cut by the BoE, everyone is reducing their interest rates. From November, your Santander accounts will have their rates slashed to a flat rate of 1.5%, meaning where you would once have a grand and a bit from your two accounts (assuming maximum utilisation with £20k in each) annually, you'll now only get £600 in interest. That's before the £5/pm fee which will remain despite the rate change. Lloyds are also currently reviewing the rates on their Club Lloyds account.

    (Original post by AlmostNotable)
    Invest in Bitcoins.
    OP is "not a massive risk taker", hence Bitcoins (and Cryptocurrencies in general) really don't fit their risk tolerance.
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    (Original post by SuperHuman98)
    You should definitely spend a good amount of it on traveling to a few countries, you can learn some valuable things.
    Yep - already planning to do a lot of travelling over the next year paid with our surplus cash every month.

    Vienna, Japan, Singapore, Lisbon, Argentina, India and vietnam/Cambodia are scheduled for next year!


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    (Original post by JP298)
    Look into something called peer to peer lending. You could get a return of %10 if you lend to small businesses but if you go for the more well known companies you are looking at a return of 7% each year. Look up rate setter. I wouldn't bother using it to pay off the mortgage as you will be earning more money if you invest it wisely.


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    This looks great thanks, just been reading about P2P lending and it could be right up my street as one of them (Zopa) will be approved by the FCA as an ISA so although more risky than a bank account, a lot safer than other types of investment.



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    (Original post by jamesthehustler)
    if I was you I'd invest in a business maybe not a start up as they can lose everything something running for a few years looking to expand
    or
    invest in a profitable hobby something like car restoration (stick to modern, quality, minor damage (cat c/d) cars and you can make a killing on things like jaguars, Mercedes and Maseratis)
    and
    put some of it into solid investments from legitimate providers so bullion by post for some metals or leibish for some investment diamonds
    Spoiler:
    Show
    PM me and i can find a lot more in quality stones from my provider in the USA hes the reason how i have £100,000 in my safe and a '64 plate mercades on the drive compared to having only about £5,000 and no car this time last year
    Sounds like a lot of work - i'm definitely too lazy for that!


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    (Original post by The Financier)
    I'd probably do what you're doing now and keep the money in high interest current accounts if you're not keen to take on too much risk. If you've built up a good emergency cash fund and are looking to generate a bit extra, you could also put some money in a S&S ISA with a portfolio that's fairly conservative in nature.

    With the current accounts though, bear in mind that with the recent rate cut by the BoE, everyone is reducing their interest rates. From November, your Santander accounts will have their rates slashed to a flat rate of 1.5%, meaning where you would once have a grand and a bit from your two accounts (assuming maximum utilisation with £20k in each) annually, you'll now only get £600 in interest. That's before the £5/pm fee which will remain despite the rate change. Lloyds are also currently reviewing the rates on their Club Lloyds account.



    OP is "not a massive risk taker", hence Bitcoins (and Cryptocurrencies in general) really don't fit their risk tolerance.
    Ah yeah of course, saw that on the news. Shame, would have just probably left it in the Santander account if this hadn't happened! And that's 1.5% before tax.. So 1.2% net which is frankly just rubbish 😔

    Thanks for your advice - think I'll look into S&S ISA perhaps down the P2P route once I've done a bit more Reading around the risks/past performance!


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    to the guy talking about bitcoins please take yourself and your smart ass investing ideas back to 2010 when it was relevant..

    srsly dude invest in a bond or put a down payment on a house - get a mortgage and live off the rent for a few years...
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    (Original post by Pipsico)
    Sounds like a lot of work - i'm definitely too lazy for that!


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    just invest it with me I'll make you a profit
    I'm a luxury asset reseller so I deal in Rolexes and gold that sort of thing and make profit on everything I buy
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    (Original post by jamesthehustler)
    just invest it with me I'll make you a profit
    I'm a luxury asset reseller so I deal in Rolexes and gold that sort of thing and make profit on everything I buy
    Sorry - i think you're probably riskier than an ISA!
    Unless if course you can personally guarantee my money 😋


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    (Original post by Pipsico)
    Sorry - i think you're probably riskier than an ISA 😋


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    well I made 2200% on my money in the past year so don't knock it
    I'll PM you an example of which I deal with so you can see how it works
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    Do something to make you secure (house under 50k in the north of England) or something that will give you amazing lifetime memories.

    I'd be leaning towards the house.
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    I'd bang it in equity funds, no need for portfolio management but obviously there is risk to that as there is risk to anything that will pay more than a couple of percent.
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    (Original post by Pipsico)
    Ah yeah of course, saw that on the news. Shame, would have just probably left it in the Santander account if this hadn't happened! And that's 1.5% before tax.. So 1.2% net which is frankly just rubbish 😔

    Thanks for your advice - think I'll look into S&S ISA perhaps down the P2P route once I've done a bit more Reading around the risks/past performance!

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    Excluding the standard investment risks (you may suffer a loss etc.), if you're going down the P2P route, you should bear in mind that many of the risks with these products remain untested. One of the most noteworthy ones is systemic risk - they have never experienced a financial crisis, or economic crash or whatever so there is no historical data to indicate how they may perform or behave under stress. Whilst they may be FCA approved, they have no FSCS backing so if you do use them you need to remember that no matter what they're sold as on the TV, they're not just another bank account. They're more like a debt asset class and should be treated as such.
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    (Original post by Pipsico)
    Hiya

    A bit about me
    I have a stable well paying job and house with £175k mortgage paying 1.79% on a tracker (will soon go down after these Base rate cuts)
    No debts apart from £1500 on a 0% interest card until 2018.

    I plan to treat myself with £1k of it and then do something smart with it.

    Currently have it stuck in 2x Santander 123 accounts paying 3% pre-tax and the rest in Club Lloyds accounts.

    I know there are a few financially savvy people here so would be good to get your thoughts on what to do? Or is it best left where it is?
    I'm not a massive risk take btw, and don't have time to manage a portfolio of investments. As my mortgage rate is so low, it might not be worthwhile to pay it off.

    Perhaps I could go shared ownership in a house? or?

    Cheers!



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    Do you already have ISAs? they are tax free and you can put upto about £15,500 a year into them. you also will get a pretty good interest rate on it, without having to manage an investment portfolio.

    I would put atleast that £15k away in an ISA because you have no idea what will happen in the future - it may become incredibly handy, eg for a wedding, or baby (very expensive tiny creatures )

    property is also good for buyers right now so that would be good to invest in. maybe buy a flat/ small house so that you have a 1/2 or 2/3 mortgage for the best rates.

    good luck, you lucky bean
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    Put it into a mutual fund that follows the S&P 500. The S&P 500 is the top 500 US companies. The returns on the S&P 500 are usually very good, and make an excellent, low-risk long-term (5 years or more) investment.

    If I were you I would probably put £25k in the S&P 500 (I would suggest a more diverse portfolio, but you've said you don't really want to spend time managing something like that), and keep the other £25k in more liquid investments (meaning you can easily turn your investments back into cash-in-hand) than the S&P 500. The reason I wouldn't consider the S&P 500 very liquid is because it is a long-term investment; you have to be willing to wait through a dip in the value till it breaks through and starts making a profit again, which may take 2 years or so. You don't want to be forced to sell your stocks at a low rate when you're strapped for cash. So I would advise putting the other £25k in a mix of current accounts and gilts. Gilts are bonds to the government. A bond is where you loan someone or a company money. Bonds to the government are called 'gilts' because the government has never, ever faulted on any of its bonds. These bonds will return a dividend (payment) at the end of the each year, and can be up to 5%. After the agreed period, (say, 5 years), the government repays all of your money in full. Gilts are sold at £100, meaning after 5 years you will have £25 for every £100 you put in gilts. You don't have to wait that whole time though, and it is more usual to sell your gilts before they mature.

    Don't be a miser and save everything though. There's a reason I said put the other £25k in liquid investments. You need to have quick access to it, because I want you to spend it. You're only young once. Have fun.

    P.S.

    Don't bother with savings accounts, they are a total rip off.
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    (Original post by The Financier)
    Excluding the standard investment risks (you may suffer a loss etc.), if you're going down the P2P route, you should bear in mind that many of the risks with these products remain untested. One of the most noteworthy ones is systemic risk - they have never experienced a financial crisis, or economic crash or whatever so there is no historical data to indicate how they may perform or behave under stress. Whilst they may be FCA approved, they have no FSCS backing so if you do use them you need to remember that no matter what they're sold as on the TV, they're not just another bank account. They're more like a debt asset class and should be treated as such.
    Yeah true about the systemic risk - i guess with Brexit we can't really predict what is round the corner. I get that it's debt financing - cutting out the bank middle man - but i'll face a similar type of risk anyway with S&S ISA presumably? Though it's equity, the risk is the same but I just won't be rewarded as much as debt?


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    (Original post by AsphodelMist)
    Do you already have ISAs? they are tax free and you can put upto about £15,500 a year into them. you also will get a pretty good interest rate on it, without having to manage an investment portfolio.

    I would put atleast that £15k away in an ISA because you have no idea what will happen in the future - it may become incredibly handy, eg for a wedding, or baby (very expensive tiny creatures )

    property is also good for buyers right now so that would be good to invest in. maybe buy a flat/ small house so that you have a 1/2 or 2/3 mortgage for the best rates.

    good luck, you lucky bean
    Thanks!


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    (Original post by Abstract_Prism)
    Put it into a mutual fund that follows the S&P 500. The S&P 500 is the top 500 US companies. The returns on the S&P 500 are usually very good, and make an excellent, low-risk long-term (5 years or more) investment.

    If I were you I would probably put £25k in the S&P 500 (I would suggest a more diverse portfolio, but you've said you don't really want to spend time managing something like that), and keep the other £25k in more liquid investments (meaning you can easily turn your investments back into cash-in-hand) than the S&P 500. The reason I wouldn't consider the S&P 500 very liquid is because it is a long-term investment; you have to be willing to wait through a dip in the value till it breaks through and starts making a profit again, which may take 2 years or so. You don't want to be forced to sell your stocks at a low rate when you're strapped for cash. So I would advise putting the other £25k in a mix of current accounts and gilts. Gilts are bonds to the government. A bond is where you loan someone or a company money. Bonds to the government are called 'gilts' because the government has never, ever faulted on any of its bonds. These bonds will return a dividend (payment) at the end of the each year, and can be up to 5%. After the agreed period, (say, 5 years), the government repays all of your money in full. Gilts are sold at £100, meaning after 5 years you will have £25 for every £100 you put in gilts. You don't have to wait that whole time though, and it is more usual to sell your gilts before they mature.

    Don't be a miser and save everything though. There's a reason I said put the other £25k in liquid investments. You need to have quick access to it, because I want you to spend it. You're only young once. Have fun.

    P.S.

    Don't bother with savings accounts, they are a total rip off.
    Thanks! What would I need to do to invest in the S&P? Is this a tracker fund?

    Haha, I wish I felt young. Don't worry, I definitely plan on spending some of it!


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