Seem to remember a couple of threads similar to this a while back, but can't find them.
Possible I might have a chunk of money to invest on behalf of my mum at at some point soon - maybe between £50k and £75k. Obviously traditional savings accounts right now aren't looking great and it's not enough to put into a property round here, so appealing to the STW hive mind as to what might be good options?
Looking for a reasonable medium-term return really (5-10 years).
Premium bonds? Zero risk and a small chance of a great return.
A house.
£75k is zero risk in any bank account which will yield far more than Premium Bonds.
Buy a fleet of Landrovers? You then get to control supply as well, you'd be like an agricultural De Beers
For that amount of money, over that term it's probably worth consulting an IFA.
An independent....pah...they don't get to lord it over us, with our quid to invest in the lottery each week by consulting one of them
Ask Charlie Sheen.
Get proper advice, it all depends on her attitude to risk
If she has a mortgage/other debt then consider clearing that first (depends on interest rates, etc)
Forget IFAs - What do they know?
Do your own research - Terry Smith's fund has done very well since launch a few years ago:
www.fundsmith.co.uk
argee with samuri: house
Where can you buy a house for £50k-75k?
You could give it to me, as X% of my house value to use for my new kitchen, garden etc and take that plus any proven % growth over 3 valuations out of it in 10 years, taking the risk of losing the same % if the value drops. You invest £50k into my house, the value rises by 20%, you take £60k out in 10 years.
...is an example. Same with a business if you know a friend who has one.
if she's getting on a bit then also probably a good idea to look at strategies for getting the money out of her name too, otherwise you'll end up pi55ing it all away on nursing care...
Look at a buy to let with 50% LTV - so £150k house/flat if you can find that. Need to look at exposure to interest rates vs rental income.
Aside from that the standard advice would be a diversified portfolio of investments. You probably need to get some IFA advice.
Some cash in a bank account - can be accessed quickly if needed
Some investments in the stock market - either just the UK or an international element say including Asia. These can be made via funds like ETFs
For £50-£75 I do not think you need to worry too much about tax sheltering like ISAs as the investment profits and hence tax liability will not be so great (even if you make 5% on £50k that's £2,500 so probably no tax to pay). If gains on stock market investment start to exceed £10k (annual tax free amount) you can sell and repurchase them to cyrstalise the gain and mean no tax is payable.
For £50-£75 I do not think you need to worry too much about tax sheltering like ISAs as the investment profits and hence tax liability will not be so great (even if you make 5% on £50k that's £2,500 so probably no tax to pay). If gains on stock market investment start to exceed £10k (annual tax free amount) you can sell and repurchase them to cyrstalise the gain and mean no tax is payable.
Of course it depends entirely on OPs current income. They might be paying 50% of that £2.5k in income tax.
Buy some woodland!
I don't really know if it's a good investment but I like the idea of it. I've been browsing woods4sale and day dreaming recently.
A couple of pedigree sports cars - BMW M3 CSL, Porsche 911 GT3 (though the boat may have sailed on that one). You'll definitely not lose money over the long term, plus (provided you don't bin them) you'll have some fun!
Honda NSX as well tipped by Evo to be the next big rise in value.
I'd be tempted to just keep most of it in cash in the bank. Deflation is going to be around for the next five years at least.
I'd maybe put 10 percent in a high risk/reward investment like AIM shares.
10 percent in gold.
But stick to the golden rule, don't put all of it into anything that could be seen as risky (that includes normal share funds I'd argue; one of the best of which as mentioned above is Terry Smith's Fundsmith).
Break the investments down into three parts,ie solid income,growth and dreams!Think I would put a third of your windfall into CF Woodford equity income fund via Hargreaves Lansdowne.Tick the dividend reinvestment box and forget about it.Neil
Where can you buy a house for £50k-75k?
Plenty of places, the question is do you need the hassle of being a landlord or the risk of a loss (unlikely) or little gain?
You could either get somewhere that nobody wants to live (ie. middle of nowhere) and rent it as a holiday cottage or somewhere in town to rent. I regularly see single bedroom flats valued at £18k-35k that, with a bit of work, could be nice and likely to attract a decent tenant.
http://www.futurepropertyauctions.co.uk/catalogue_glasgow.asp
http://www.wilsonsauctions.com/land-property-search/89