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Discuss investments with other users on our Investment forum. For more advice read our tips for saving for your child's future.

Original poster

What would you do with 200k?

16 replies

DoodleLovin · 09/05/2021 10:01

How would you spend 200k?

Invest it in property? Shares? Split it in different savings account?

And if you could spend a bit of that money to treat yo’self, what would you get? New car? New jewellery?

OP posts:
EnglishRain · 09/05/2021 10:07

If I had a mortgage that would be my first port or call. If no debts etc then I would stick a chunk in savings for a rainy day and invest the rest on stocks snd shares.

EnglishRain · 09/05/2021 10:09

Treating is so subjective isn't it? We've got a new car on PCP but I wouldn't want to upgrade our other (12 year old) car I don't think. Maybe plan a post covid trip to New York or something in the future, do some bits to the house ie. I want a self cleaning oven and an induction hob. Do they count as treats Hmm

Original poster
DoodleLovin · 09/05/2021 11:28

Investing in property seems like the wise thing to do? I don’t own property and rent atm but my family thinks buying a small property and renting it out seems like the sound thing to do. If I bought an investment property id be able to use that to have a bigger mortgage from the bank for my second property and use the rent money to pay a deposit?

OP posts:
Original poster
DoodleLovin · 09/05/2021 11:38

@EnglishRain I want a Roomba vacuum and mop on both floors of the house. Might finally invest 😂

OP posts:
user648482729 · 09/05/2021 11:46

I’d buy a second property although if you don’t currently own why don’t you buy with it and have a very small mortgage? It’d take a long time to save for a deposit from rent money and you may find that you need to use the rent money to fix problems, update it etc.
I’d buy a new car (not necessarily brand new but new to us) and go on holiday. Also I’d treat myself to a few expensive bits of clothing - a really good coat and pair of boots.

YankeeDad · 09/05/2021 12:31

If you are in the UK, then if you are happy to stay in the same location for at least a few years, buying and living in your own home is one of the most tax-efficient ways to invest, especially if you don't need a large mortgage.

If you have a high enough income to be a higher rate taxpayer then you might also want to consider using some of it to increase your pension contributions and investing that into stocks and shares within the pension wrapper, but only if you can afford to lock up the money until retirement age.

Original poster
DoodleLovin · 09/05/2021 12:35

@YankeeDad I’m in Ireland but from Australia and not too sure where I want to settle yet hence why my family is suggesting buying an investment property rather than a personal one.
I’m a bit nervous about investing in shares- wouldn’t be too happy with losing that money!

OP posts:
Original poster
DoodleLovin · 09/05/2021 12:37

@user648482729

I’d buy a second property although if you don’t currently own why don’t you buy with it and have a very small mortgage? It’d take a long time to save for a deposit from rent money and you may find that you need to use the rent money to fix problems, update it etc. I’d buy a new car (not necessarily brand new but new to us) and go on holiday. Also I’d treat myself to a few expensive bits of clothing - a really good coat and pair of boots.
Buying a property and having a small mortgage was my original plan. Until my family and partner pointed out that I have no idea where I want to put roots down...

And I think I’ll definitely buy a new car. We only have one and are planning on expanding the family so a new car will be a must very soon!

OP posts:
Flaunch · 09/05/2021 12:38

I’d pay off my mortgage and buy a camper van.

rarzy · 09/05/2021 12:40

Talk to an advisor as stocks/shares can be a better investment vs property.

Liliolla · 09/05/2021 13:01

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Original poster
DoodleLovin · 09/05/2021 13:24

@rarzy

Talk to an advisor as stocks/shares can be a better investment vs property.
Yes that’s a wise idea. I have no idea what I’m doing 😂
OP posts:
rarzy · 09/05/2021 13:36

As you don't own I would say buy but if you have no idea where you will end up it might be a pain.

YankeeDad · 09/05/2021 14:25

On stocks and shares though, there are also a few simple principles that will, if followed, serve you better than any advisor:

  1. find out what all the fees are and don't accept an investment where the fees are too high. Fees can include: fees "paid by the fund" (because as a fund owner you pay those), fees charged by the platform, transaction fees, and fees charged by the advisor. You should be able to get total fees no more than about 1.5%, (including the advisor), and ideally below 1%. DIY investors using trackers can get the fees below 0.5%.

  2. buy something globally diversified. With stocks-and-shares, there are UK indices listed in GBP like the FTSE100, but their currency risk is just as high as with global shares, because the companies in the FTSE100 earn more in USD than in GBP anyway.

3)Only put money into stocks and shares that you are willing to keep invested there for at least 5-7 years, and that you will not need for something else over that period.

  1. buy-and-hold. Whatever you put in to the markets, do so with a commitment to yourself that if the market falls a lot, you will tell after that - you will either hold on or buy more.

A good advisor will ensure that all of these points are respected, and also help with the practicalities and let you delegate the worrying to her or to him.

Original poster
DoodleLovin · 09/05/2021 15:50

thank you @YankeeDad! That's all very interesting and useful info! Definitely food for thoughts :)

OP posts:
Figgygal · 09/05/2021 17:23

I’d get proper financial advice first
Pay off any debts
Keep some in bank invest the rest

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