Investing £400k for a good return - where to start?

[Maria8092]

Basically, due to a sudden passing I am due to inherit around £400k (after tax).... I'd like to invest this with a view to getting a good return on my investment in as reasonably short a time frame as possible... needless to say I've never had this sort of cash to even think about investing before so I don't really know where to start... what would people recommend? Where would you invest this sort of money if you could and what sort of return would you be looking at? I know its a bit open ended because you could say how long is a piece of string, but I'm just looking for some ideas...

We use nutmeg. Easy to understand for the novice. Actively managed. www.nutmeg.com/fixed-allocation-portfolios

The photo shows performance.

Look at wealth management companies. And aim for around 6% depending on your risk profile. As pp said last year was good with bounce back after the market crash when covid hit. Yield is higher for investing rather than buy to let with less hassle but with property at least you have a safe asset and fixed income monthly. Worth thinking about

Photo would help

@Jaffajiffy

Photo would help

This performance is SIMULATED!!!

Why they have done is the equivalent of standing on the finish line at Newmarket and pick the winners. VERY VERY misleading. Backtesting as ‘proof’ should be illegal. Who the fuck would look back and pick a dud

*what

IFA
my priorities would be: Property, Pension, some kind of trust fund for DC. Whilst not likely to attract high ROI in short time frame as you want, it would make me feel more financially stable knowing these three things were sorted.

Don’t think about short term return.

Do you own property? If not buy property, if you have a mortgage pay it off.

What are your short, medium, long term life goals?

There are lots of investment platforms where you can build your own portfolio of investment funds. I’ve been doing this the last 5 years, the early stuff I invested is up 31%, investments in last two years are up 15%. I personally never invest in bonds as the returns are too low.

If you can put some away long term put it in a SiPP. Also look at putting a bit in crypto, depending on your risk appetite.

If you don’t have the skills to manage your investments there are plenty of people who will do it for you. Actively managed will cost more than passive but in theory the returns should be higher for actively managed funds.

but in theory the returns should be higher for actively managed funds

And yet 50% of the time they are not.

If I had no mortgage to pay ect I'd do jl Collins simple path to wealth and also fire movement stragety (fire = financial independence retire early) and invest in solid index tracker funds meaning your invested in a little of everything and after a while it will start to accumulated
The idea being you don't touch the capital but that capital generates money for you to live off or contributing to your lifestyle.

Don't bother with actively managed funds... Just read Colins, search vanguard Mr money moustache etc.

@Newyearoldyou

Don't bother with actively managed funds... Just read Colins, search vanguard Mr money moustache etc.

I found the book really helpful but it written with a US bias, can anyone recommend a book for UK Investors?

@DillonPanthersTexas

Lucky Jim 4:25 Kempton Park

I think he retired from National Hunt racing in 2019.

Why is your time frame for investing so short? How short is it and why do you need such a large sum of money so quickly.

@Dindundundundeeer

Speak to 3, preferably get a recommendation

DO NOT use St James’s Place (they trade with different names so ask).

Absolutely, do not use SJP. They are very expensive in terms of fees for what they offer.

Many of the responses mentioned IFA. Wonder if anyone is kind enough to recommend a few? Thanks

Vanguard are often recommended and they have a financial advice service. I haven't used them myself but that is an option I'd be looking into in your position.

@DillonPanthersTexas

Lucky Jim 4:25 Kempton Park

🤣

Everyone saying Financial Advisor is hilarious.

Trust me, if Financial Advisors were actually good at their job and knew how to invest, they wouldn't be financial advisors. Think about it....

Personally, I'd just use it to buy a bigger property and/or go mortgage free. Then invest the remainder in a few diversified income funds.

@CocoCookieCream

Everyone saying Financial Advisor is hilarious.

Trust me, if Financial Advisors were actually good at their job and knew how to invest, they wouldn't be financial advisors. Think about it....

I researched heavily… spoke to no less than 5 and was thoroughly unimpressed with all of them.

My money is in vanguard and a j bell now

Before you spend money on an IFA OP, spend a few quid on reading up yourself.

Alvin Hall's "Your money or your life", is a nice lead-in to get you to start thinking about risk and timescales.

Tim Hayle's "Smarter Investing" is then very helpful when it comes to the nitty gritty of what to put where, and when, and WHY. If you have to read 1 book I'd make it that.

The citywire forums are good for getting a range of views and advice. I found out about some (low volatility) investment trusts there, which I hadn't come across before.

And MSE for basics - understanding the rules about the various tax wrappers etc. It is important to understand the tax implications as otherwise you pay more than you need to.

When I say you want to avoid making investments you don't understand - I don't mean "put it all in premium bonds", I mean, do the reading - get an idea of where the return/profit/growth comes from - understand how the charges work - look at the history of the investment - see what "old hands" like Warren Buffett have got to say about it.

I have done OK and did it myself - couldn't find any flat-fee IFA and didn't feel that confident that what they would cost otherwise was a sure enough bet. But that was my personal decision and YMMV.

@whenwilliwillibefamous I’m also coming round to the idea of managing things for myself. Aside from specialist pension advice, I really don’t think that IFAs offer much that can’t be learnt for yourself. And charging £££ in ongoing fees.

[quote chompp]@whenwilliwillibefamous I’m also coming round to the idea of managing things for myself. Aside from specialist pension advice, I really don’t think that IFAs offer much that can’t be learnt for yourself. And charging £££ in ongoing fees.[/quote]
I agree. I think a lot of it is about figuring out your priorities and risk tolerance and the rest can be researched fairly easily