Let’s say you’re quite a cautious person, middle-aged with no property or assets, but no debts either. You get a windfall sum into six figures.
How do you best nurture it for reasonable return (up to 40%), and for how long, keeping in mind this current financial climate?

Beer and xmas shopping are not legitimate options, although they would be given strong consideration.

Is that 40% in real terms or nominal?

Id probably look at Retail bonds, maybe a FTSE tracker fund.

Retail bonds ought to get you around 5-6% nominal, so assuming 2.5%ish CPI you might see 3%ish real return pa.

FTSE ought to do a bit better but needs to be in there for 5-10yrs really.

Id allow at least 5 yrs if not 7 to get to 40% real return for reasonable risk.

Go and see a real independent financial advisor, it will cost, but will be worth it.

If it was mine, I’d probably do the following:-

– use some of it as a deposit on property
– put the full allowance in a stocks & shares ISA and buy a spread of funds.
– Put some in a fixed term bond.
– Keep the rest in the highest paying savings account I could find.

But the above wont make 40% return , unless you look at it over 10 years +.

To make 40% in the short term is going to take some serious risk taking,and more likely end up in losing a significant portion of it. how about buying £100k of bitcoins?

Thank you gents.

Peer to peer lending?