How to invest £850k??

[Firefly7]

Hi,

I don't post much so please bear with me.

The proceeds from the sale of our business will give us around £850k, which we will need to invest to provide some sort of income stream. Interest rates at present mean quite a poor return, so I was wondering about property developing (which we've done very small scale a long time ago) or buy-to let maybe or are they both too risky now? Any suggestions? We are mid 40's and our own house is owned outright, so no mortgage to pay off, if that helps.

Thanks

There are no immediate tax benefits to premium Bonds though. With £850k to invest depending on attitude to risk/age etc the primary objectives have to be growth, income & protection against inflation and PBs fulfil none of these. Prizes might be tax free but they are not guaranteed - Money Savings Expert quotes the odds over 5 years of winning enough to beat inflation as 1 in 56 for an investment of £30k. It also quite rightly says hold them for fun, not for serious investments :)

1. Pay off any credit cards/personal loans/store cards: that interest is someone else's return
2. Keep 6 months of your typical monthly costs on a deposit account just in case
3. max out Premium Bonds £30k (each) as per JennyWescott. Any other NS&I product make sure it's inflation linked (not many of those around)
4. max out StocksAndSharesISA £15k pa (each) you can access anytime
5. max out SIPP contribution £40k (each) you can access from 55

(for ISA/SIPP funds choose a cautiously managed fund if you are new to investing, or a Target Date Fund where the target date is the year you expect to take the money out (eg retirement aged ~65))

1. max out kids' (JISA: £4k pa per kid
2. max out kids' Junior SIPP: £2.88k pa per kid
3. max out kids NS&I childrens bonds (check inflation linked)
4. Buy a buy-to-let if you would like, but be conservative eg 25-30% deposit, and overall value not greater than say £250k. Make sure the rent will still cover interest payments on a theoretical rate of 8% x Mortgage. This builds in a safety net re voids, and rates wont be low for ever.

10. Peer-to-peer lending: only an amount you feel you can afford to lose. 11. EIS/VCT: there are funds out there, nice to dampen tax bill, but use well known funds, and remember money is locked up for 3-5 years. 12. Charity: you can open a charity account with Charities Aid Foundation, any money give to your charity account gets income tax relief, you then get charity cheques to give to charities of your choice. AND: Ignore any business in an industry you don't know like family. Ignore offshore - a lot of hassle, a faint whiff for HMRC, and legit allowances in the UK are now big enough (as 1-12 shows) to be not really worth it. Ignore anyone guaranteeing you to get rich quick or minimum 10% return. Professionals assume current real returns on investments are around 3% (that's 5% if you include inflation). Anything in "double digits" - I wd really wonder: if it sounds to good to be true, it usually is too good to be true! Good luck and enjoy the fruits...

We are in a similar position so very interested in this thread. At the moment we are thinking property, possibly the holiday and student markets. We already have one long term rented but to let which ticks over a solid 5% after costs.

I am little experience of stocks and shares and have never bought for dividends. We bought trackers straight after the last crash which have obviously done brilliantly. How do you make money on a booming stock market though?

Oh do fuck off dear.

This is why I sometimes feel that having more money can actually be a burden as you are compelled to not only keep it safe but also to grow it.

GIVE IT TO ME!

Invest in property in central london. Buy outright, and rent it out. The yield will be low but the capital appreciation will be high.

You should certainly see a financial advisor. An ifa preferably, bank advisors or what are known as multi-tie advisors will only advise you on their own in house products and funds. This is not whole of market, you are unlikely to get a broad selection and they are driven by targets so shoehorning/pressure is more likely. You can then get good and bad IFAs. To get the former ask around for a referral from friends family or professional contact such as your accountant or solicitor. Failing that go to unbiased.co.uk to find an ifa local to you. They shouldn't charge you for a first meeting and will hopefully steer you to a sound investment which is appropriate given the entirety of your situation.

You should certainly see a financial advisor. An ifa preferably, bank advisors or what are known as multi-tie advisors will only advise you on their own in house products and funds. This is not whole of market, you are unlikely to get a broad selection and they are driven by targets so shoehorning/pressure is more likely. You can then get good and bad IFAs. To get the former ask around for a referral from friends family or professional contact such as your accountant or solicitor. Failing that go to unbiased.co.uk to find an ifa local to you. They shouldn't charge you for a first meeting and will hopefully steer you to a sound investment which is appropriate given the entirety of your situation.

You should certainly see a financial advisor. An ifa preferably, bank advisors or what are known as multi-tie advisors will only advise you on their own in house products and funds. This is not whole of market, you are unlikely to get a broad selection and they are driven by targets so shoehorning/pressure is more likely. You can then get good and bad IFAs. To get the former ask around for a referral from friends family or professional contact such as your accountant or solicitor. Failing that go to unbiased.co.uk to find an ifa local to you. They shouldn't charge you for a first meeting and will hopefully steer you to a sound investment which is appropriate given the entirety of your situation.

You should certainly see a financial advisor. An ifa preferably, bank advisors or what are known as multi-tie advisors will only advise you on their own in house products and funds. This is not whole of market, you are unlikely to get a broad selection and they are driven by targets so shoehorning/pressure is more likely. You can then get good and bad IFAs. To get the former ask around for a referral from friends family or professional contact such as your accountant or solicitor. Failing that go to unbiased.co.uk to find an ifa local to you. They shouldn't charge you for a first meeting and will hopefully steer you to a sound investment which is appropriate given the entirety of your situation.

You should certainly see a financial advisor. An ifa preferably, bank advisors or what are known as multi-tie advisors will only advise you on their own in house products and funds. This is not whole of market, you are unlikely to get a broad selection and they are driven by targets so shoehorning/pressure is more likely. You can then get good and bad IFAs. To get the former ask around for a referral from friends family or professional contact such as your accountant or solicitor. Failing that go to unbiased.co.uk to find an ifa local to you. They shouldn't charge you for a first meeting and will hopefully steer you to a sound investment which is appropriate given the entirety of your situation.