How to make the most of a 50k gift
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Do you pay higher rate income tax?Free the dunston one next time too.0
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No, I'm on basic rate0
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I surmised myself that a flat might bring the biggest returns, being that is essentially mostly paid for by someone else, a mortgage covered by rent. We were thinking modestly, just as a way of locking away capital until the kids are at university.
Investing in stocks and shares do interest me but honestly I'm not sure I have the time for it.
Globally diverse tracker funds sound interesting, what are they?0 -
Does your wife have a pension ?Never pay on an estimated bill0
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No, Robin9 not yet.
Audaxer, that's an interesting pov. Have you had experience with such things?
If I was to place a 25% deposit into a flat and sell it 20 years later with rent having covered the mortgage, its value would have hopefully grown with inflation, meaning I've made an asset from just a deposit.
This is my current train of thought, although I will definitely check out the Vanguard option too.0 -
Audaxer, that's an interesting pov. Have you had experience with such things?
There will be equity crashes when the equity part of your investments could fall by up to 50%, but if you have 60% equities and 40% bonds that is a 30% drop overall. The loss only crystallises if you panic and sell when you see the value of your investments falling. If you stay the course, the investments should recover and in the long term your investments will give you better returns than holding it as cash savings, which will depreciate in value due to inflation.
You may do better investing in a buy to let, but you may not, and you could have problems with tenants, repairs, falling house prices etc.0 -
No, Robin9 not yet.
Audaxer, that's an interesting pov. Have you had experience with such things?
If I was to place a 25% deposit into a flat and sell it 20 years later with rent having covered the mortgage, its value would have hopefully grown with inflation, meaning I've made an asset from just a deposit.
This is my current train of thought, although I will definitely check out the Vanguard option too.
You will get hammered for capital gains tax.0 -
Well if the rule is to spread the risk, then perhaps a combination of both is best.
Any links of good posts for vanguard beginners?
Thanks!0 -
If I was to place a 25% deposit into a flat and sell it 20 years later with rent having covered the mortgage, its value would have hopefully grown with inflation, meaning I've made an asset from just a deposit.
Sounds easy in principle. Trouble is the reality isn't for many people. Nor does the value of property have any correlation to inflation. Remember you'll be running a business. Tenants come in all kinds.0 -
Well if the rule is to spread the risk, then perhaps a combination of both is best.
Any links of good posts for vanguard beginners?
Thanks!
There are lots of threads on here discussing Vanguard funds, passive v active investing etc. Just have a read around.
This is not a bad place to start for an explanation of the basics of investing for a novice.
http://monevator.com/category/investing/passive-investing-investing/0
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