290K to invest - what would you do?

[CherryChapst1ck]

Where can we put this money for the best return? Currently it's sat in a bank account. We are thinking of using Close Brothers as have had dealings with them in the past but I'm just nervous about making the money grow and not losing any.

We have a house we intend to always live in and our mortgage is low so we won't be paying it off as no need to.

Any advice at all? Thank you

When do you anticipate needing to spend the money? If it's less than five years, put most into a low cost short term bond fund. It your time horizon is long, invest some in stock index/tracker funds as well.

There will always be some risk of short term loss, even with bonds. That's why the time horizon is key.

@MissConductUS thank you. Would be looking to put away for 5 years and more so that's useful

You're welcome Cherry. I strongly recommend taking a good look at Vanguard. They invented low cost, low fee index funds and are owned by their investors and have completely changed the investments industry to the benefit of individual investors.

www.vanguardinvestor.co.uk/

One of their Lifestyle funds that hold both stocks and bonds would be a very simple, effective way to invest whatever you don't want to hold in the bank as ready cash.

www.vanguardinvestor.co.uk/what-we-offer/life-strategy-products

I make about 100k per acre with hemp. :) cost me about 20 to set up one acre. I farm many other things and so many investments. Hemp/cannabis and real estate are the only worth while investments

I always am trying new investments, and those make a larger and faster return over anything else. Tea in the states is making a huge comeback as well so I’m putting some sugar cane and tea flowers on some extra acres I have right now as we’re looking at a 60k return per acre..

Breeding exotic animals is a great way to make cash too. One female costs 20k with rare genetics and sperm costing 1,500, and they have five puppies that you can sell for 20k each once (others do twice but I don’t think that’s right personally) a year!

Cannabis will always be the best money maker though as you can sell all byproducts as well as your main crop which can triple your profit if you have extra money to buy processing equipment which runs about 100k

Blimey, @aunaturalmama, is that in the UK?

Speak to Hargreaves Lanadown

No I do overseas investments with hemp :) I have a big ole property in Oregon just for hemp!

I pay somebody 50k a year to run the entire farm for me. Hemp seed to cure (aka start to finish) is a 4 month turn around time. So for 100k an acre 3 times a year not even processing its amazing. You can easily double or even triple that yearly number with certain equipment that turns the hemp into oils.
Worth looking into! For 230k or whatever you said you have to invest you can very easily set yourself up to get your initial investment back and then some the very first year. Next year will be basically all profit for you if you go with hemp. I know a few trusted farm hands for hire and great cheap land to buy in Oregon If you are interested in learning the tricks of the trade!

Bloody hell! Much as I'd love to breed exotic animals and farm hemp I'm not sure if I'm set up for all that I'm all ears though!

Boringly, instead of putting it with Close brother wealth management, we are now considering buying a little 2 bed house? Be about 190k. Ten year project - rent pays it off more or less and we sell after ten years with roughly 100k profit

And even more boringly we have put 100k between us - me and husband- into premium bonds while we think on it

@Aunaturalmama although I'm intrigued that's for sure! You've made yourself sound like Shorty Guzman!

Aunaturalmama What do buyers uses these exotic animals for?

I would look into buying a property outright to rent out. Then save the net income.

Famous folk and the very wealthy and such buy my dogs :) we do 5 females at a time, my friend does 10 but I have other commitments that take up my time and I have a rare genetic hunter so mine are top quality. Still 5 females makes 500k a year at most and if there is low numbers (never Really happens but it’s good to always budget the worst possible outcome) you’re looking at 300k each year! I did mastiffs for a time but honestly large breed dogs are a handful. Small toy breeds are the best as they don’t take up space have small poos etc I currently am working with exotic micro French bulldogs. These are the most expensive dogs on the market currently.
This is my most recent new investment and definitely one of the most profitable ones!

OP, Real estate was my first ever investment! We did a home that we fixed up and then invested our 100k profit. Seems to be the standard amount in flipping homes. I wouldn’t take ten years to do this though. I would buy the home purely as an investment not to live in, flip it, buy a better one...flip that...then keep improving or buy two with the extra profit. Then you have one to rent out and one to live in or you can sell.

With that sort of lump sum which you are looking to invest I would definitely speak to an independent financial adviser (not St James's Place) who can advise you according your investment term and attitude to risk.
They will also advise you on protecting the money about potential IHT and FSCS (financial services compensation scheme) this means splitting the money across different providers and insurers so all of it is protected.
You can find your nearest on unbiased.co.uk

@Aunaturalmama we wouldn't live in the property, no. We have our own house. We'd buy the nicest we could in our area - as we know it well- and then rent it out. I'd absolutely love to just flip it and grade up but with prices what they are, there just isn't the profit to be made in the short term surely?

@kitkat6 thank you for that. Will check out that website. We are trying to put it across four sectors at the moment while we think about it. So it's currently in premium bonds, Lloyds bank and err that's it

I suggest going with a foreclosed home, or a bank owned home! You can get them for much cheaper but they usually need some rehab work. Definitely get the home inspected before purchase so you aren’t stuck with a ton of rehab work. Go for the worst home in the best area available to make the most profit.

You will have to pay the higher stamp on the property purchase and CGT on the sale. There are much more tax efficient options and also a multi-asset portfolio is better diversification than buying another property really close to your primary residence. If you don’t want to maintain the relationship with Close Brothers definitely consider other wealth managers with similar offerings or as someone above mentioned look at unbiased / findawealthmanager website. Agree avoid St James Place! Make a few initial meetings and go and get a feel for different advisers to see who you click with. Get an understanding from them on costs. I would say don’t pay more than 2% all in (including the wealth manager fee, VAT and underlying fund charges). Ask whether they use their own funds or look across the whole market. Check about initial charges and lock in periods (I would avoid companies with these as plenty do not have them!).

Exotic French Bulldogs

I would:
Post this question on money saving expert investment boards.

Get recommendations for an IFA and take advice from them. They will take into account the detail of your personal circumstances to advise you.

Listen to some of the free investing podcasts. I like money to the masses, will give you an understanding of risks of different investments including property.

Really do your sums with property investment, consider capital gains tax, stamp duty, income tax on rental income - maxing our two stocks and shares ISAs before and then in April 2020 would allow you to invest 80k between you and returns would be tax free.

Go and see an independent financial advisor so an initial conversation. I agree with other posters that you need to consider the most tax efficient types of investment, how to spread your risk etc. You need to get professional advice.

Id buy a couple of rental houses near our local university, make them nice and choose mature/graduate students or young staff

Do not use St James’s Place is the best advice I can give.