Reply With Quotei was reading yesterday that michael burry, the guy who predicted the 2008 crash, just took a big short position on the S&P.
after the runup in markets this year, cash yielding 4%-5% seems not a bad option.
To be clear I don’t have £100k, just musing really.
Some talk in the property thread about landlords exiting the market but it doesn’t sound like exiting landlords know where they’ll put their money.
So what would you do with £100k? Or even £50k.
Dump it into a SS ISA over a few tax years into a couple of funds? Into a private pension? Off the mortgage seems seems shortsighted as the likelihood is you’ll just borrow against it one day to do an extension.
No Pateks, sensible/boring answers only. Presumably with a yield.
i was reading yesterday that michael burry, the guy who predicted the 2008 crash, just took a big short position on the S&P.
after the runup in markets this year, cash yielding 4%-5% seems not a bad option.
I believe there´s 3 yr fixed bonds offering 6 per cent....
We´ve gone larger into US Real Estate...moved from industrial commercial, rolled it all into an affordable homes building project...after all their economy is doing well comparatively, official policy is to build up and out from the bottom and middle classes and because building to meet the latest environmental- climate regs Gov. funding was available...but this is a unique to self opportunity, sorry...also not without risk and not exactly as easy in- out as a sipp, bond or isa...I guess we like, think we understand, bricks n mortar.
Last edited by Passenger; 15th August 2023 at 14:53.
Question, is your £100k fully protected. I understood cover only applies to £85k per establishment bla bla bla.
Then again, if you have a spare £100k would you give a toss anyway.
Split it with 2 separate institutions. Look after the 100k´s AND the millions´ll take care of themselves...Originally Posted by Wallasey Runner
Well I am 69 in April so no long term for me. I have shifted some of mine and wife’s older ISAs to 18 month fixed rates ISAs paying between 4.75% and 5.25% then with this years allowance and again in April in total £150k all tax free
I did transfer some ISAs late last year will leave them and see if rates creep a little higher
Last edited by hilly10; 15th August 2023 at 15:02.
Nice work...We had a couple of 5 year bonds back in 2010 doing 7 per cent, though not tax sheltered.
I just old fashioned saving away to retire early. My government pension pot will be officially free at 67,5 years of age, but that’s madness imho. You can stop working at 60 and start using your pension, but only from 67,5 in my case, you get your old age state benefit. There’s a gap of 7,5 years which you have to pay out of your own pocket. So that’s where my 100k will go to.
But if anyone has a solid idea to make it grow faster….
Last edited by Daddelvirks; 15th August 2023 at 15:07.
Got a new watch, divers watch it is, had to drown the bastard to get it!
Buy 100K in shares in the national grid and prey they hit £12 a piece in the next couple of years
You can't answer this question without having a full view of someone's financial position and attitude to risk.
If I had £100k I'd max my SIPP contributions and then put the rest in stock ISAs. If I had debts I would address those first ... including mortgage ...
With regards to what funds then the simple answer is a range of index funds but many like to be more selective ... then of course you have the other asset classes to consider; some are predicting a new commodities super cycle, some are backing bonds to recover once interest rates start to drop ... there is no shortage of opinion and options.
The only real solution is to diversify your investments and to max you tax fee allowances ... and to consider IHT if that is a concern for you ...
The sensible, mature answer.
Indeed it is.
The correct answer is, however, Stuttgart’s finest!
At my age I'd just buy some nice things that I'd like to have, not need, just like to have. Future monetary value would mean little, you can't take it with you!
Best Regards - Peter
I'd hate to be with you when you're on your own.
I’ve put money in various fixed rate bonds
Some 1 year around 6% area and some 3 years around 5.85%
Finally getting a decent return on cash
Mortgage, 100%. Aim to get it paid off asap. Extension done and we have more space than we need so don’t see a need for borrowing against it in the future. Although on a low fix for another 18 months or so, so in the meantime would stick in cash ISA’s (this is what we have done) and come remortgage time will use it to lower the amount borrowed.
Lose any debts like Mortgage, you wont be extending when you are older you will be wanting less space.
Anything that makes a few quid tax free works like ISA or Premium
bonds
What not to do is spunk it on Rolexes hoping they will maintain the over retail nonsense and make you happy.
Another option if the mortgage is paid is spend it! Yes live. You have no idea when itll all end so be happy daily not plan to be happy one day.
RIAC
Oh and I’ve just had an increased sign up bonus for raisin
So anyone who wants a free £50 plus 6% returns on a bond for a year ,or 4.5% easy access savings account
You Need a minimum of 5k to put away though
Give me a shout 😂
We both get free £50
I would buy at BTL if I had a spare 100k. It will remain a good long term bet in my view.
I have checked the back of the sofa, sadly no luck!
The stock market has fallen quite a lot in the past couple of weeks - maybe time to look at a few companies with a reasonable yield if you are after some income producing stocks
(August was not great in 2022 - seems to be following a similar pattern this year)
or if you can find a really good 996 turbo for around £35k I cannot see them ever being any cheaper
so £50k in good dividend producing shares and a nice 996 Turbo
Last edited by BillN; 15th August 2023 at 16:55.
+1
https://oaknorth.co.uk/personal-savings/fixed-term/
There are are quite a few investment trusts paying almost 6% and a few have increased there dividend year on year for the past 20 plus years - they are worth a punt as there will also, (most likely), be capital appreciation over the coming years if you treat them as a longer term investment - plus they are "liquid" if you need the cash in a hurry, (versus 2 year fixed interest products)
Indeed, and then get 20% of total house value back using equity release. You may end up paying off your mortgage and having the 100k in your back pocket.
Two very different products though and both can form part of a diversified strategy.
Agree that IT's have a fair chance of capital appreciation over a long term horizon but equally if the short term prognosis is volatile, there's something to be said for taking the 6% fixed over a shorter time horizon and taking investment risk at a later date. Most of us have plenty of exposure to typical market volatility at the moment through pension holdings.
Lots saying clear your debts, but who knows what the future holds and one thing that is true is that it's always easier to borrow money when you don't need to than when you do!
I'd certainly want to keep a fair amount of it available for emergencies.
M
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Breitling Cosmonaute 809 - What's not to like?
I have a healthy sum from the proceeds of our house sale, I went for a 120 notice account with Cynergy bank. Just over 5% return; no risk no hassle. If the property market tanks, I’ll divert it into another BTL
I’m about to sell my BTL once the tenant leaves (the sums make it clear it’s not worth keeping on in the rental market with higher interest rates, 40% tax before maintenance & allowances. Once I’ve paid CGT and repaid the mortgage I will get around £100K. I will make the maximum reduction to my home mortgage (10%) then put the rest in whatever will give me some interest short term until we can move at which point it will go into a bigger house for my family.
No one mentioned coke and hookers yet? What’s wrong with you lot?
Cheers..
Jase
More pale ale and pornhub for this crowd
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RIAC
That's good financial advice in itself
Coke and Hookers is an expensive business .
I've put a similar amount into a BTL 1 bed apartment in a condominium over looking the sea with a car parking space. So therein lies my answer. . Spare cash from UK house sale and we want some extra income - more admin, but seems the best option for us.
NB - we are mortgage free and debt free so may explain why we are entering the BTL market. (Well wife has one in UK but this will be the first in PT).
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
Circa £100k coming my way soon when the last of my late mum’s estate is settled, finally, no debt, retired from work and an oap soon, reasonable cash savings and income from investments mean I can still put money away every month-not a lot- so we’re planning to upgrade wife’s car and regular holidays, some money invested for child for her retirement recently, planning on spending dining and drinking without worry of cost, no point in having too much money around if one(or both) of us needs to go into care in later life, care home charges will soon eat everything up, vinyl collection increasing though and LPs aren’t £2-3 anymore.
Depends on your age. I have around 13 years until I retire and I'd look at sticking that in an index tracker which based on historical precedent should mean that doubles in 10 years in real terms (10% annual return less 3% inflation and fees (yes I know LOL at that inflation rate but it should settle soon)). £200k would be around 4 years retirement spend for me and would see me retire 3 years early so basically I'd use it to buy time.
Wow the blades on here!
Think I'm with Griswold though. Might be an age thing.
Started out with nothing. Still have most of it left.
At 69 I find I don't need a lot of money so I would give it to my daughter so she could buy a bigger home
Quite odd, for many years the BTL has been the default response for every man and his dog but now not so much and there isn’t a clear cut competitor. 6% on savings is great, but pre-tax (after £500), and inflation is still at 8-9%.
My mum is thinking about exiting her accidental BTL. Was half tempted to buy it off her but going with an interest only mortgage to hedge against a non paying tenant doesn’t make a huge amount of sense with the tax implications. Knowing my luck it would go wrong and cost me my own home.
Interesting replies
Check out your local property auctions, block of garages should net you around 6/7/8 garages for your budget with a return if in London or Greater London of circa 12% roi.
Legal and Rent insurance is reasonable if you fancy the BTL option as it mitigates the risk you highlight.
Plus if you reference and meet prospective tenants you can get a decent feel, add to that the demand for rental is so high you get a choice of tenants and require a guarantor.
I’m surprised cash deposits are so popular on this thread given the rate of inflation.
Just put my allowance into NatWest 2yr cash ISA at 5.9% which feels pretty good on a risk/return basis. The rest I’d diversify across thematic funds.
The 996 turbo is a lot more fun though…
Interesting replies indeed. Personally I’d clear my mortgage 1st and foremost. I have a BTL and in the past seven/eight years it has been awesome; circa 8-9 year yield and virtually doubled in value over the same period; but get that now are more turbulent times. Premium Bonds, I seem to be doing very well somehow with around 15% on my investment. Failing this it will be alcohol and hookers in Thailand I reckon ;-)
Same here. Just exited BTL and put the max limit in both of our ISA’s. £4,425 combined interest for two years.
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I don’t want funds tired up really so split mine between Monzo and chase both around 4% so gets me about £300 in interest monthly as spends
I feel a bit stupid with this after looking at the above financial advice, but I’d give it to a community kitchen project that trains young people whilst feeding communities.
Something like this just in case anyone has some spare cash:
Battersea: Abandoned pub set to get new lease of life https://www.bbc.co.uk/news/uk-england-london-66464052
The best return on investment yet.
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Just read a headline, inflation's down to 6.8 per cent fwiw.
Personally still fairly comfortable with some eggs remaining in the UK BTL basket, purchased at the right prices, lowish original cost of entry/ investment, mortgages at LTV sub 40 percent...PLUS guaranteed tenancies, no voids equals money for old rope.
I always look at comments like this and wonder how to achieve the balance; I'm defiantly on the live for today programme and have cut work right back years ago and enjoy plenty of activities and hobbies but I'm also quite cautious financially and suspect I will die with too much money ... if only I knew when I would die as that would make the decisions so much easier.
I thought it an interesting comment, no criticism implied as each to his own... but it seems to strongly correlate spending money with living and happiness, when surely a healthier outlook would be to find a way to live happy with as little unnecessary financial input as possible...not for a moment suggesting living in a barrel and begging for crusts is the key to happiness but does anyone else get my point...I mean once you own the roof over your head, a vehicle, if you´re lucky possess a loving family, you´re healthy and you know where the next 30, 40 or 50 years worth of meals are coming from...isn´t happiness waking up every day, especially so to sunny, decent weather and then do what you like-love to do...mind you in fairness shopping´s never been my thing, unless it´s for books.
“The secret of happiness, you see, is not found in seeking more, but in developing the capacity to enjoy less.” ― Socrates.
I have been following that mantra for years and cut work back to part time in my early 40s; I live in a modest property, drive a 12 yo car with 150,000 on the clock ...
Money for me isn't about consumerism (watch interest is an aberration) it's about having time to do the things I want to do ... however, given I started part time 15 years ago I have to manage finances to make sure I can still afford to live in 30 years time ...
Reminds me a bit of this
https://youtu.be/uHWX4pG0FNY
I honestly think I now work in order to make my kids life easier for them now and in future.
I could live fairly frugally should the need arise.
I’m sure they appreciate that. We don’t have kids so that’s not a consideration for us.
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