Best place to invest £75K

[Shropshire Lad]

He wants to make money not lose it. Gold rises vastly in price when there is economic turmoil (look up the prices of the past 7 years) and when the economic becomes calm again they gold price tumbles which it is currently doing , as the worldwide economy recovers gold will continue to fall , so why would he buy gold?

.

I disagree. I don't believe we are seeing a worldwide recovery and we are definitely not seeing 'calm'. We are just seeing economies flooded with fiat currency.

A bit of gold is probably a good idea.

Property is good too. As we've seen in the uk, a government presiding over a housing bust doesn't get re-elected. So, they do anything and everything, no matter how ridiculous, to prop up and bolster prices.

Anyway, its a nice dilema so good luck to you.

[Tahiti]

Boring!!! Buy the watches F430

I've changed that for you

[rehashlyrics]

I've recently inherited half of my Dad's house, I had thought of buying my sisters half and renting it to cover the second mortgage we would need, but I also though about selling and investing the money (£75K) somewhere. I would be happy to lock it away for 10 years, but would like some hints and tips on where I could see a good return over that time period.

As it appears that you already have a mortgage of your own, I would suggest that you clear your own debts before thinking about potential investments or returns etc.
I imagine any gains your dads property MAY acquire (subject to markets varying and ongoing costs) may be wiped out by your existing debt repayments.
I was in a similar situation over the last few years and I sold my mum and dads house and cleared off a big chunk of my mortgage and debts. It means that I will pay off my outstanding mortgage early and I will save A LOT on the compound interest of the mortgage.
I made this decision along with my siblings, and we all agreed that it was the sensible decision at the time as the housing market outlook was not looking good.
Don't forget that ANY investment can go down as well as up at any time, house prices may fall in the future as they did in 2008.

My Dad was as old school as they come. He always told me to clear your most expensive debts first, save for a rainy day (that meant keeping a reserve to cover bills etc for 3 months in case of being out of work or illness), and only then enjoy the fruits of your labour. I miss him.

[Neil.C]

Pay off any debts you have then maximise your ISA allowance (and more) on a portfolio of equity funds based on UK but including a good spread of special situations, European, N.American and Emerging markets (cheap at the mo).

You might lose a bit on some but the gains will more than make up for it IMO.

[tiny73]

as the worldwide economy recovers gold will continue to fall

You think there's a worldwide recovery?? Really???? Sorry Jonny I disagree in the politest but strongest way I suggest you look outside of Bloomberg and CNBC for your data. There's anything but a recovery happening right now (US Q4 GDP is being revised downwards again... not really a surprise is it?). The world is awash with debt. How are you going to grow your way out of all that debt? You're not. You're going to inflate it away. Then tell me gold is not a good way of preserving wealth.

The gold price is currently a function of the paper market, there's approximately 100 claims for every ounce of gold in the COMEX which has a dangerously low 500k ounces of registered gold (deliverable in other words). What happens to the price when that gold is exhausted? And it will be exhausted as China, India and Russia continue to take large percentages of the worldwide production, never to be seen again.

Recovery? Schmecovery...

[Tokyo Tokei]

:-) will you be following this advice yourself?

Just hypothetically, had someone done so, that 75K would today be 85K ...

Paul

again, in case anyone is any doubt: don't do this unless you find russian roulette a bit dull

[jonny]

You think there's a worldwide recovery?? Really???? Sorry Jonny I disagree in the politest but strongest way I suggest you look outside of Bloomberg and CNBC for your data. There's anything but a recovery happening right now (US Q4 GDP is being revised downwards again... not really a surprise is it?). The world is awash with debt. How are you going to grow your way out of all that debt? You're not. You're going to inflate it away. Then tell me gold is not a good way of preserving wealth.

The gold price is currently a function of the paper market, there's approximately 100 claims for every ounce of gold in the COMEX which has a dangerously low 500k ounces of registered gold (deliverable in other words). What happens to the price when that gold is exhausted? And it will be exhausted as China, India and Russia continue to take large percentages of the worldwide production, never to be seen again.

Recovery? Schmecovery...

I completely agree with you . the OP is looking for a long term investment for his money and the world economy will eventually recover (in the long term), we may not be out the woods yet but it will recover one day and therefore gold is too volatile as along term investment esp as it pays no dividend/rent .

The current recovery in the UK is based on unsustainable increase of debt through zirp, super low rates , government lending schemes and guaranteeing house deposits now it can only end in tears.

[maccer]

Just hypothetically, had someone done so, that 75K would today be 85K ...

Paul

again, in case anyone is any doubt: don't do this unless you find russian roulette a bit dull

It was a genuine question. Where you? I was actually long on them myself - sold out now.

[Dontblowsmoke]

Lol at mutual funds, premium bonds, watches, savings accounts and all the other gay shit in this thread that is suggested by people who don't know how to make money grow at a fast rate.


Take the 75k and double it, double it again and again, only then think about compound interest.


But don't listen to me as i don't have a clue what i am on about.

Really!!

[Omegamanic]

Take the 75k and double it, double it again and again, only then think about compound interest.

But don't listen to me as i don't have a clue what i am on about.

If you could achieve the first line - there would be an awful lot of impressed people. It is unlikely in the extreme.

Whilst it is possible to turn £1k into hundreds of thousands, selling your own services over a number of years - it is a different story placing funds somewhere and hoping they will grow.

I assume the OP has a job already. So using more of your time to work more may not be the best use of time and resource. I'd rather die happy than a busy stressed out man, with an extra £75k to the power of whatever.

Buying a Maccy D's franchise (or almost any other mainstream franchise) does not make as much money as you seem to suggest - very high turn over and very low profit margins, all things considered.

Investing in software start-ups would be one of the last things I'd be doing with my cash, after working with investors who have done similar in the last 5 years and watched millions of £'s disappear in value.

[NORFOLK]

Havent read it all but...

Buy an E type Jaguar. Early Series One or Series 3 roadster. Never going to make any more, increasing demand = rising prices. Simple.

Let me know if you need more information!

[anton863]

Invest it in something that will give you a decent return, like a business.

Lol at mutual funds, premium bonds, watches, savings accounts and all the other gay shit in this thread that is suggested by people who don't know how to make money grow at a fast rate.


Take the 75k and double it, double it again and again, only then think about compound interest.

Start up a business if you have the know how or invest the money in a solid start up, there are plenty of Software start ups. Do not think like a peasant if you don't want to be one.

You could buy into a franchise with a bit more cash. Buy into a food franchise. Krispy Kreme doughnuts, Mcdonalds etc. Find another investor to go in with you. Hire a good accountant

But don't listen to me as i don't have a clue what i am on about.

Did someone have a few too many beers on a school night?

Ignoring the crass homophobia, the actual advice is poor enough. What type of returns do typical franchise owners receive? the few I know certainly aren't doubling or quadrupling their capital in those, it's far from passive and a really tough business to be in as far as I can see. As for software startups, how are you participating directly in the early funding rounds of these companies, or are you waiting until they go public to invest? As with any investment here the risk is what drives the returns so yes a huge gain is possible, but the likely hood of the company not breaking out and ending up bust is much higher. It would depend on a whole host of factors whether this was a decent strategy for the original poster.

[KurtKlaus]

Invest it in something that will give you a decent return, like a business.

Lol at mutual funds, premium bonds, watches, savings accounts and all the other gay shit in this thread that is suggested by people who don't know how to make money grow at a fast rate.


Take the 75k and double it, double it again and again, only then think about compound interest.

Start up a business if you have the know how or invest the money in a solid start up, there are plenty of Software start ups. Do not think like a peasant if you don't want to be one.

You could buy into a franchise with a bit more cash. Buy into a food franchise. Krispy Kreme doughnuts, Mcdonalds etc. Find another investor to go in with you. Hire a good accountant

But don't listen to me as i don't have a clue what i am on about.

If you find me to turn 75k into 600k, I'll give you a nice shiny Breitling. Hell, I might even spring fora Hublot.

[Tokyo Tokei]

£75K in AAPL 550 JAN15 Calls

You'd now be at £95K

[Lee A Kada]

My father passed away recently and I always thought I would buy a nice watch in his memory but now reality has hit I have no desire to buy anything. I have his everyday watch which I will never sell but I have the overwhelming desire to sell my other watches.

Not sure why I feel like this. I have always loved watches but no more..........

[baz1]

Bricks and mortar, that'd be my answer. The house is valuable enough/will generate enough to make the possible hassle worthwhile.

Thats what I'm hoping, we are just about to upsize. Hopefully when I reach retirement and we downsize anything left itwill supplement our pensions. I did the buy to let many years ago, it was a pain in the ass.

[Losenotaminute]

Warren Buffett is consistent in his view that gold is not a wise investment - here is an extract from his 2011 letter to shareholders (apologies that it is a bit long but I think it's worth a read):

"The second major category of investments involves assets that will never produce anything, but that are
purchased in the buyer’s hope that someone else – who also knows that the assets will be forever
unproductive – will pay more for them in the future. Tulips, of all things, briefly became a favorite of
such buyers in the 17th century.

This type of investment requires an expanding pool of buyers, who, in turn, are enticed because they
believe the buying pool will expand still further. Owners are not inspired by what the asset itself can
produce – it will remain lifeless forever – but rather by the belief that others will desire it even more
avidly in the future.

The major asset in this category is gold, currently a huge favorite of investors who fear almost all other
assets, especially paper money (of whose value, as noted, they are right to be fearful). Gold, however,
has two significant shortcomings, being neither of much use nor procreative. True, gold has some
industrial and decorative utility, but the demand for these purposes is both limited and incapable of
soaking up new production. Meanwhile, if you own one ounce of gold for an eternity, you will still
own one ounce at its end.

What motivates most gold purchasers is their belief that the ranks of the fearful will grow. During the
past decade that belief has proved correct. Beyond that, the rising price has on its own generated
additional buying enthusiasm, attracting purchasers who see the rise as validating an investment thesis.
As “bandwagon” investors join any party, they create their own truth – for a while.

Over the past 15 years, both Internet stocks and houses have demonstrated the extraordinary excesses
that can be created by combining an initially sensible thesis with well-publicized rising prices. In these
bubbles, an army of originally skeptical investors succumbed to the “proof” delivered by the market,
and the pool of buyers – for a time – expanded sufficiently to keep the bandwagon rolling. But bubbles
blown large enough inevitably pop. And then the old proverb is confirmed once again: “What the wise
man does in the beginning, the fool does in the end.”

Today the world’s gold stock is about 170,000 metric tons. If all of this gold were melded together, it
would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.) At
$1,750 per ounce – gold’s price as I write this – its value would be $9.6 trillion. Call this cube pile A.
Let’s now create a pile B costing an equal amount. For that, we could buy all U.S. cropland (400
million acres with output of about $200 billion annually), plus 16 Exxon Mobils (the world’s most
profitable company, one earning more than $40 billion annually). After these purchases, we would
have about $1 trillion left over for walking-around money (no sense feeling strapped after this buying
binge). Can you imagine an investor with $9.6 trillion selecting pile A over pile B?
Beyond the staggering valuation given the existing stock of gold, current prices make today’s annual
production of gold command about $160 billion. Buyers – whether jewelry and industrial users,
frightened individuals, or speculators – must continually absorb this additional supply to merely
maintain an equilibrium at present prices.

A century from now the 400 million acres of farmland will have produced staggering amounts of corn,
wheat, cotton, and other crops – and will continue to produce that valuable bounty, whatever the
currency may be. Exxon Mobil will probably have delivered trillions of dollars in dividends to its
owners and will also hold assets worth many more trillions (and, remember, you get 16 Exxons). The
170,000 tons of gold will be unchanged in size and still incapable of producing anything. You can
fondle the cube, but it will not respond.

Admittedly, when people a century from now are fearful, it’s likely many will still rush to gold. I’m
confident, however, that the $9.6 trillion current valuation of pile A will compound over the century at
a rate far inferior to that achieved by pile B."

Lawrence

[ArcofZen]

Bricks and mortar, that'd be my answer. The house is valuable enough/will generate enough to make the possible hassle worthwhile.

I'd agree with this, imo the best place got your 75k.

I bought my first rental property in 2000 for £43k. It is now worth ~£130k and has been paying me rent pretty much every month since then. In England at least, we just don't have enough homes, and some people will pretty much always rent which makes property very safe as an investment.
Of course you may not always get amazing returns but you're also very unlikely to lose this way.

[Tokyo Tokei]

Tempting to use the rear view mirror when recommending property. The example above is a compound annual growth rate of about 8.8%, before tax and maintenance, minus income. That's quite good, and above inflation, but there is no way of knowing if similar returns will happen in the future. The historical time period in question saw an enormous increase in credit and mortgage availability, which as we know, ended badly. London looks like it has a chance to escape house price deflation, as it is economically decoupled from the rest of the UK ( London accounts for 20-25% of UK GDP, largely due to financial services ) but I wouldn't bet large amounts on anywhere else. Just my opinion.

Paul ( homeowner in Tokyo, one of the most crowded and land restricted cities in the world, in the worlds 3rd largest economy, Tokyo alone having a GDP greater than Canada. After the Japan credit bubble of the 1980s, Tokyo house prices have declined by around 80 to 90 percent. Be careful )

[Tokyo Tokei]

£75K in AAPL 550 JAN15 Calls

You're welcome

You'd have £110K now, not bad in less than a week

<see previous disclaimers>

Paul

[ArcofZen]

You'd have £110K now, not bad in less than a week

<see previous disclaimers>

Paul

I did say say you'd be unlikely to lose money, and I stand by that over the long term. However I'm wondering if the OP (and myself!) wish we'd taken your advice! ;-)

[Courboy]

Put £15k in Oxus Gold (OXS). It's a bit of a risk as essentially you're gambling on the outcome of their court case, but it's got upside of around 20-30x over the next 6 months. Use the rest for more sensible/fun investments.

[jonny]

William hill is offering 1/4 on Scotland saying no to independence (thats a 25% return).I think its pretty much guaranteed Scots wont want independence.

(disclaimer I wont bet your 75k on this lol)

[daveyw]

Warren Buffett is consistent in his view that gold is not a wise investment - here is an extract from his 2011 letter to shareholders (apologies that it is a bit long but I think it's worth a read):

"The second major category of investments involves assets that will never produce anything, but that are
purchased in the buyer’s hope that someone else – who also knows that the assets will be forever
unproductive – will pay more for them in the future. Tulips, of all things, briefly became a favorite of
such buyers in the 17th century.

This type of investment requires an expanding pool of buyers, who, in turn, are enticed because they
believe the buying pool will expand still further. Owners are not inspired by what the asset itself can
produce – it will remain lifeless forever – but rather by the belief that others will desire it even more
avidly in the future.

The major asset in this category is gold, currently a huge favorite of investors who fear almost all other
assets, especially paper money (of whose value, as noted, they are right to be fearful). Gold, however,
has two significant shortcomings, being neither of much use nor procreative. True, gold has some
industrial and decorative utility, but the demand for these purposes is both limited and incapable of
soaking up new production. Meanwhile, if you own one ounce of gold for an eternity, you will still
own one ounce at its end.

What motivates most gold purchasers is their belief that the ranks of the fearful will grow. During the
past decade that belief has proved correct. Beyond that, the rising price has on its own generated
additional buying enthusiasm, attracting purchasers who see the rise as validating an investment thesis.
As “bandwagon” investors join any party, they create their own truth – for a while.

Over the past 15 years, both Internet stocks and houses have demonstrated the extraordinary excesses
that can be created by combining an initially sensible thesis with well-publicized rising prices. In these
bubbles, an army of originally skeptical investors succumbed to the “proof” delivered by the market,
and the pool of buyers – for a time – expanded sufficiently to keep the bandwagon rolling. But bubbles
blown large enough inevitably pop. And then the old proverb is confirmed once again: “What the wise
man does in the beginning, the fool does in the end.”

Today the world’s gold stock is about 170,000 metric tons. If all of this gold were melded together, it
would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.) At
$1,750 per ounce – gold’s price as I write this – its value would be $9.6 trillion. Call this cube pile A.
Let’s now create a pile B costing an equal amount. For that, we could buy all U.S. cropland (400
million acres with output of about $200 billion annually), plus 16 Exxon Mobils (the world’s most
profitable company, one earning more than $40 billion annually). After these purchases, we would
have about $1 trillion left over for walking-around money (no sense feeling strapped after this buying
binge). Can you imagine an investor with $9.6 trillion selecting pile A over pile B?
Beyond the staggering valuation given the existing stock of gold, current prices make today’s annual
production of gold command about $160 billion. Buyers – whether jewelry and industrial users,
frightened individuals, or speculators – must continually absorb this additional supply to merely
maintain an equilibrium at present prices.

A century from now the 400 million acres of farmland will have produced staggering amounts of corn,
wheat, cotton, and other crops – and will continue to produce that valuable bounty, whatever the
currency may be. Exxon Mobil will probably have delivered trillions of dollars in dividends to its
owners and will also hold assets worth many more trillions (and, remember, you get 16 Exxons). The
170,000 tons of gold will be unchanged in size and still incapable of producing anything. You can
fondle the cube, but it will not respond.

Admittedly, when people a century from now are fearful, it’s likely many will still rush to gold. I’m
confident, however, that the $9.6 trillion current valuation of pile A will compound over the century at
a rate far inferior to that achieved by pile B."

Lawrence

That's a good article. thanks for reproducing

[Fschwep]

Apparently you don't really need the money or you would have asked your sister to buy you out instead of the other way around...
If the house is solid and in a good spot (eh, right now I'd say be very certain it can't be flooded, ever, even if all the flood defenses in the whole country break down; or swept into the sea etc... AND in an area where the oil industry is not likely to frack the place to hell), and especially if it has some space around it, I'd say hold on to the house, either with your sister or by yourself, and rent it out. Get a mortgage that doesn't run too long and fix the interest rate for the whole duration. There are about as low as they can get. The economic recovery (such as there is) will not last long and the next recession will be worse. In the long run you may have a nice house to live in (assuming you have some emotional attachment also to the family home), or some additional income from the rent. 75K is not enough to invest in any get-rich scheme anyway.
It's especially worthwile to hold on to the house if it's a better place than your own, even if you are not able to move into it at present.
By contrast, if you have little attachment to the house as such you could just sell it and use most of the 75K to make a huge dent in the mortgage of your own place, maybe to get mostly out of debt if you still have any. Very old fashioned, I know.

[jwg663]

300,000 shares in The Rangers Intergalactic Football Clumpany. Change for a pie & Bovril as well

[Losenotaminute]

That's a good article. thanks for reproducing

They don't call him "the sage of Omaha" for nothing :-)

All of his letters are very well written so if you have any interest in investing it's a good way to spend a few hours. I've always kept way from gold, because I want a dividend from my investments....

Lawrence

[Jeff_Vader]

I'd agree with this, imo the best place got your 75k.

I bought my first rental property in 2000 for £43k. It is now worth ~£130k and has been paying me rent pretty much every month since then. In England at least, we just don't have enough homes, and some people will pretty much always rent which makes property very safe as an investment.
Of course you may not always get amazing returns but you're also very unlikely to lose this way.

This gets my vote.

[Raffe]

TQR !

-3.7% just today! Ace! How about black! No red! No black!

My post wasn't meant to be serious advice. It is a very high risk equity, which has the potential to tenfold in value, but that outcome is highly speculative and doubtful. Obviously the way between the current state and $20 will not be a straight line, it has a very high beta versus the market as a whole and will be very volatile. Given the bloodshedding expected for today, it will quite likely be down even more today.

Such are the risks of investing into high risk securities: no pain, no gain. Important is what comes out in the end.

Oh yes, before I forget: this is not advice, do you own due diligence. Start here: http://www.riotintomongolia.com/ENG/oyutolgoi/881.asp and here: http://ftalphaville.ft.com/2014/01/3...lia-turquoise/.

Couldn't help it:

4.01 0.05(1.14%) 9:55AM EST - Nasdaq Real Time Price

[Mouse]

I'm afraid I cannot offer any advice......but I wish I had your problem :-)

[Tomw2000]

I am woeful with money. So don't listen to me.

Time, buy time. I don't know how old you are or how much travel you've done. But you're a long time dead.
I've just had a month off work and went to NZ - best thing (and best use of money) the wife and I have ever done. We're deffo going back. Permanently if I have anything to do with it.

If you want to be sensible - do something with property/renting as folk have detailed above.

[Tokyo Tokei]

You'd now be at £95K

And by today, you'd have doubled your £75K

[daveyw]

out of interest - did you?

[jayleb]

Four letters: TSLA

[Tokyo Tokei]

Four letters: TSLA

One word: "short"

[jayleb]

One word: "short"

It was apparently a bear market for TSLA back when it was at $30. My analysis convinced me otherwise and I bought in riding the short squeeze all the way up to $80. My only wish is that I rode it longer!

I just think there are a lot of indicators that Tesla's market cap will be vastly higher than $25B in 10 years, IMHO.

That said, there is no such thing as a sure bet :)

[Chinnock]

Bricks & mortar would be the most sensible option, but blowing the lot on Rolex Sports would be a hell of a lot more fun

[jayleb]

Bricks & mortar would be the most sensible option, but blowing the lot on Rolex Sports would be a hell of a lot more fun

Carefully selected *vintage* rolex sports (or other brands for that matter) would probably be worth more than most investments after 10 years :)

[maccer]

One word: "short"

What are you the Oracle down 2.5% so far today!! Think you need to start an investment thread, are you as good at picking horses

[unclealec]

I would invest the lot in secondhand Riley car spares.
And as it happens..........

[kultschar]

The Platinum Daytona and a Sky Dweller - sorted!!

...only kidding!

[nickspitfire]

invest it....on red

[Tokyo Tokei]

One word: "short"

25th April : TSLA @ $206
8th May : TSLA @ $178

£75K in AAPL 550 JAN15 Calls

You're welcome

4th Feb : AAPL 550 JAN15 Calls @ $27
8th May : AAPL 550 JAN15 Calls @ $60

Maybe I should start a hedge fund

Paul

[Raffe]

Well done. If you need an AIFM, PM me. 😜

[Tokyo Tokei]

Well done. If you need an AIFM, PM me. 

I suspect my "record" may not be as consistent in the future

( not that that stops hedge funds from taking peoples money ! )

Paul

[Raffe]

You'd be surprised what crap sells for 2/20.

[JNH]

I see some people suggesting paying off your mortgage. What about paying off a chunk and using the rest as a sizeable deposit on a property to rent? If you can bring both payments down enough the rent should pay for both mortgages?

I'm no money expert so I'm presenting these more as questions for people with knowledge on this sort of stuff.

[DB9yeti]

Sister in law just bought two little terraced houses in Derby for 80k each, one for each kid (for the future, they are 3 and 1). Spent about 1500 on doing them up and now they're renting nicely and appreciating in value slowly.

Can't really lose at that level and 75k will buy you something outright.

[jayleb]

25th April : TSLA @ $206
8th May : TSLA @ $178

I like to cruise over longer time horizons, lets doublecheck this post a year from today :) Oh the folly of trading!

[Hubs]

An old acquaintance invests in garage blocks: cheap to buy, cheap to maintain, steady returns. They also do capital increases quite nicely.