mudshark.. the problem with talking to a big firm like HL is you can't guarantee continuity of adviser... they do leave or get asked to leave if they don't hit their sales targets. Look for an established, local firm IMO, try and get to work with the owner/partner etc so there is a vested interest beyond the mere selling of a product.
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£150K to invest ... what would you do?
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Posted 2 years ago #
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Stock up on Mephedrone
Posted 2 years ago # -
Pay off any debt, including mortgage (at whatever rate he's paying).
Put the rest into a rental house, but must be mortgage free.
Monies previously spent on a mortgage, plus profits from rental - split 50/50 between shares and cash.
The 'problem' (although for some people its a positive) with a pension, is that the money is tied up until retirement - and you've no control over what the government will do in the future...
Posted 2 years ago # -
a quarter in premium bonds
=effectively gambling to try and earn interest on something.
alternatively spread it across a few banks and you are guaranteed interest,
muppetPosted 2 years ago # -
Buy shares in commercial property REITS British Land, Land Securities. no real movement in their shares since the slump, really low PEs.
Posted 2 years ago # -
again - thanks to all - prompted much debate here, and informed us quite a bit.
Posted 2 years ago # -
buy the cheapest, shittiest house in st andrews, and then charge each tennet £400 a month to live in it. easy to earn £1600 pcm, £16000 per year.
Posted 2 years ago # -
I would buy a selection of 1 bed flats or apartments. New ish builds, and definatly not conversions ( houses split into flats) . If you sink all your cash into 1 property you put all your eggs in 1 basket.You have a substantial tax liability as you really want a 75% MTG to offset the taxable income.
More property = more chance that most of it will have tenants most of the time. Invest around £30k in each one, say 1/4 of a £120k flat.
Keep some for contingency money, fridges , washing machines etc.
Alternativley look for small commercial units as these are in demand when we bump out of recession.
Or buy 15 'future classic cars' ?
Buy a night club?
Buy a pub!Posted 2 years ago # -
Jammy111 - Member
a quarter in premium bonds
=effectively gambling to try and earn interest on something.
alternatively spread it across a few banks and you are guaranteed interest,
muppetYes it is gambling - but £35000 in premuim bonds is not really much of a gamble - the money is safe unlike shares or property, bank interest rates are low ad with that amount of premium bonds you will be continually winning something - its not like have £100 worth
A friend of mine put £40 000 into premium bonds for a year and made more than the interest he would have got in a bank.
With that level of investment you will be continually winning the smaller amounts - thats the way the odds go - and that will nearly cover the interest that you would have got - get a big prize and youa re quids in.
so don't go calling people a muppet when you don't understand
Posted 2 years ago # -
I would buy a flat near the Olympics and rent it out during 2012.
I also have money in Premium Bonds - save it for paying tax and other future bills.
Posted 2 years ago # -
With a spare £150K I'd definitely get a buy-to-let property in an area where it could be expected to rent consistently and where you'd be able to sell quickly if required.
I've had a rental property for a few years and, despite the property market issues recently, it's been rented almost 100% of the time as well as increasing in value by about 40%.
Posted 2 years ago # -
maybe your college might like to take a look at buying some shares in the Berkshire Hathaway group.or one of the company s this man owns Warren Buffett.i invested quite a large amount of money around 13yrs ago.after a friend had visited one of his seminars when he was in the states.to say its has been a good thing would be quite an understatement,im 38 this year,and all going well in five yrs. my second house will be mortgage free,this house will then be given to my son,to stop any goverment meddling in my old age.
imo the investment in property ownership has been dramatically reduced due to government/legislation.
shares in. coca cola always do well
Vedanta Resources PLC owners and investors from and for india, which is a massive market for investment,also Kingfisher PLC the new owners of b&q/screw fix who are just about to launch in the chinese markets.(this has the potential to go bonkers as far as sales go)
as someone mentioned above large scale mining is proving to be a good investment as is some Russian energy company s as well.
if your friend has no morals then you could always invest in defence stocks,like GenCorp, the makers of bombs planes and missiles. or Sourcefire the it people who help said bombs planes and missiles work.
to be honest with £150,000 the worlds your oyster.
M BPosted 2 years ago # -
Aus, I'd suggest a gay marriage then you initiate a messy divorce.
Posted 2 years ago # -
Pay off any debt, including mortgage (at whatever rate he's paying).
Put the rest into a rental house, but must be mortgage free.
Monies previously spent on a mortgage, plus profits from rental - split 50/50 between shares and cash.
The 'problem' (although for some people its a positive) with a pension, is that the money is tied up until retirement - and you've no control over what the government will do in the future...
Nope, you want some form of mortgage on it, this will be used against any CGT it he has to sell. In an ideal world he will clear his present mortgage and then use £50k to buy a property and have a £100k mortgage that is getting paid by a tenant, so when it comes to time to sell he has remortgaged to the max and sells for £250k but has a £240k mortgage so pays tax on the £10k.
Posted 2 years ago # -
I would create a diverse investment strategy made up of:
fixed interest/term deposits
commercial property investments
shares (higher risk = higher return and need active management)
cash slush fund and/or FXThats what i have done, looked at property as well (commercial and resid) and decided that for ballche versus return not worth it just now in such a volatile market. I am seeing about 20% returns PA at the moment
Posted 2 years ago # -
I'l invest in a small freehold business workshop
around a thousand square feet and rent it out.wouldnt invest in houses at the moment very slow return
of cash and near zero profit.Posted 2 years ago # -
I know one guy, who bought some small flats above a parade of shops in N London.
He then let them to mostly immigrants via the local council who needed to house the finflux of people needing a roof over their heads.
Not sure of the details as such but within 5 years he had something like 150 or so properties, all let through the council.
He bought a purlpe Diablo (Lambo) just before his wedding day – because he could.Posted 2 years ago # -
I would go for a balanced approach with short medium and long term investments.
It's all good and well paying of the mortgage but for all we know it could be base + 0.5% which means he'd loose money by paying it off when a a two year Post Office Growth bond will pay 4.05% so I will assume we are not worrying about the mortgage.
I certainly wouldn't pile the lot into property commercial or other wise as it's one sector, with that sort of cash you need to diversify across multple sectors and multiple regions and why risk it all when you get + inflation growth elsewhere.
I would use the ISA allowance cash and stocks/shares as depending on age could cover off 20k but I would use Fidelity for the s/s element and drip the money over 6 months you can do this now and maintain this years ISA allowance and do the same after April 5th.
3600 Cash ISA 2009/2010
5100 Cash ISA 2010/2011
3600 Share ISA 2009/2010
5100 Share ISA 2010/2011
30k premium bonds - ( I would do a year see if works for you) if not sell and do something else don't get attached to them)
35k Post Office Bond - short term 2 years as it's fixed
40k To to invest in managed funds, stuff like JPM Natural Resource, something in the tiger economies, pick high risk but potential growth. Long Term this needs active management to work and make sure you have stop loss in place to protect capital, the up side is potentially rewarding.
25k Pension Over a period of time - Long TermThe investments can change you shouldn't just get straight into it and some need to get used to having the cash and not being scared of it, with the above approach the element at risk is low to begin with but protects to a degree the captial and over time you can change the view to risk once you have some clear goals. What is the right strategy now isn't necessarily the case in future years and it will need an element of management.
I would do the above more from a still working perspective and not near retirement if he were nearing retirement I'd keep out of share/stock and stick to interest bearing and guaranteed investments where the captial is not at ANY risk.
Do you own research the value of shares, property, banks and everything else can go up as well as down. The above doesn't consititute advice and is solely my opinion and what I would do in such a position.
Posted 2 years ago # -
ransom strips.
Posted 2 years ago #
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