How would you invest 350K and what sort of return could you expect?

[CooperD1]

Name changed.

Would love to hear your thoughts on the investing of about 350K, maybe 400K . Is it enough to generate any sort of very small income?

I had the idea of about 300k in some sort of portfolio (going to be using a financial advisor) and keeping maybe 80K in a current or easy access account.

Any thoughts?

What is your timescale, your attitude to risk and your capacity for loss? Also depends how old you are, your health and what other assets/income you have. Most important thing is to understand what your priority objective is. What do you mean when you say "small income"?

What is your timescale, your attitude to risk and your capacity for loss? Also depends how old you are, your health and what other assets/income you have. Most important thing is to understand what your priority objective is. What do you mean when you say "small income"?

I'm 47, to my knowledge I'm in good health. One child almost through uni and another potentially to go but some way off as only 12.

Married. I work for myself but don't earn huge amounts - maybe 28k a year. Husband 10k more than me. I have no pension so this money IS my pension if that makes sense.

No mortgage - own our house. My capacity for loss is low I think - it's all I have and there's no more. When I say small income .. hmm. I'd love to take 10k a year from it. Possible?

And thanks for replying!

Ok, so in theory you could take £10kpa out of the capital every year for the next 35/40 years but that would run the pot dry. Investing for growth will help it to last longer. Using tax wrappers such as ISA and pension will help too.

Keeping some in cash as a buffer and to use in short term is good, but not too much as it won't be working (will be losing value against inflation as such low interest rates currently).

It's all do-able. Your financial adviser will suggest the most appropriate tax wrappers and underlying funds to use.

Thanks for that - much appreciated

I’d put the “cash” element into premium bonds up to maximum - safe as houses and you might win £1m!

Would you consider property? Depends on where you live but net income could be upwards of 5% when rented, but not for the faint hearted with considerable possible downsides. Otherwise a good shares portfolio managed by a reputable firm who understand your risk profile

Ooh good idea. We could stick 30k in premium bonds

Did briefly consider a property but I just wouldn't be able to do it. I'd be a terrible landlady - just not able to view the house as 'their home' so probably best I don't dabble there

Personally I would try to feed at least half of that into a pension (SIPP) over the next few years, invested mainly in globally diversified equities. Something like Vanguard life strategy 80 might suit you. I think you can contribute up to the lower of 100% of your salary or 40k every year unless you're a very high earner. You'll need to work out how much you will need before you can access this again at 55 (58?), but the government will add 25p for every £1 you put in which is really worth having. I would use a Marcus account for the cash portion and feed the rest into a stocks and shares isa over 5 years or so, again invested mainly in global equities.

I'd max out on premium bonds,put a chunk into the best savings account i could find ,filter some into ISA and pensions. Plan ahead and ensure you have some to fill ISAs for a few years ahead.

Generating wealth is not just about investment growth,its also about paying as little tax as possible.

I'd invest in good trackers via low cost platforms i.e not HL.

Diversify widely,think global equity trackers,,dont try to be an expert. Multi asset funds also. Keep charges low low low...

I wouldn't bother with PB
www.moneysavingexpert.com/savings/premium-bonds/

I would suggest compound investing. If you are willing to do the hard work there is no reason why you can’t turn a sim like that into a few million to leave your children. It’s all depends on how much effort you are willing to put in and what you actually want. If you want an income then you are looking for high yield investments (basically companies that pay dividends). If you are looking to get rich thenyou are looking for a combination of high growth and high yield with theyeild reinvested. I think you need to have a hard think about what kind of effort you want to put in and what you will be getting ca opportunity cost (ideally you want to balance capital growth with dividends which create a passive income imo).

A definitely avoid bonds/savings accounts. You’re better off paying someone else to manage an investment portfolio.

I echo what pp above says re tax (plan well ahead especially in terms of IHT and also make the most of your exemptions e.g. pensions, entrapeneurs exemption if you are able to start a business etc).

I would definitely go for property, a holiday let somewhere popular year round (preferably somewhere you would like to go too even?). You can pay someone else to manage it.

I echo what pp above says re tax (plan well ahead especially in terms of IHT and also make the most of your exemptions e.g. pensions, entrapeneurs exemption if you are able to start a business etc).

I echo what pp above says re tax (plan well ahead especially in terms of IHT and also make the most of your exemptions e.g. pensions, entrapeneurs exemption if you are able to start a business etc).

For tax reasons, I'd also feed the money into a pension an ISAs gradually. If you don't have a very good understanding of personal finance, then and Independent Financial Adviser would be the best person to speak to. Premium bonds or savings will lose you money unless miraculously you do win that 1M.