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  • FIRST POST
    • Karmo
    • By Karmo 8th Jun 17, 3:44 AM
    • 16Posts
    • 2Thanks
    Karmo
    70,000 Pounds to Invest
    • #1
    • 8th Jun 17, 3:44 AM
    70,000 Pounds to Invest 8th Jun 17 at 3:44 AM
    With banks offering no or very low interest rates for savers I am looking for another safe way to invest about 70,000 pounds . Im a UK citizen ; tax payer too . 70,000 to invest safely as possible . Im no gambler as the money did not come easily .
    I was thinking of buying a flat to rent out but as I live overseas this seems like a fair bit of hassle and I could be faced with big bills for repairs , evictions etc . which would decimate my life savings . Plus I have zero experience in the field .
    How should I invest it? I would like to get as much monthly return as possible and have the lump sum available when Im older . I have contacted IFAs in the UK but they all want to have an in person meeting with me . But Im overseas at the moment
    Thanks for any suggestions .
Page 1
    • Zola.
    • By Zola. 8th Jun 17, 8:59 AM
    • 1,045 Posts
    • 388 Thanks
    Zola.
    • #2
    • 8th Jun 17, 8:59 AM
    • #2
    • 8th Jun 17, 8:59 AM
    If you want good returns you most likely have to be willing to put up with some moderate risk.

    You could max out all the highest % bank accounts available to you and do a money shuffle cycle each month to get the high interest. 5 minutes work a month.

    In addition / alternative to this is investing in a S&S ISA, and being content to let the money sit there over the long term to compound and grow.
    Last edited by Zola.; 08-06-2017 at 9:06 AM.
    • elephantrosie
    • By elephantrosie 8th Jun 17, 9:39 AM
    • 363 Posts
    • 102 Thanks
    elephantrosie
    • #3
    • 8th Jun 17, 9:39 AM
    • #3
    • 8th Jun 17, 9:39 AM
    decide what level of risk to begin with. high returns, high risk. low returns, low risk.

    if you found somehting that is of high returns and low risk, it is likely scam. avoid.
    Another night of thankfulness.
    • ChasingSunshine
    • By ChasingSunshine 8th Jun 17, 9:40 AM
    • 92 Posts
    • 748 Thanks
    ChasingSunshine
    • #4
    • 8th Jun 17, 9:40 AM
    • #4
    • 8th Jun 17, 9:40 AM
    As you are overseas you may not have access to many of the accounts recommended here, can't put money in an ISA etc. Most banks require you to declare you are resident in the UK to open an account, including savings accounts. Same applies to fund platforms if you want to invest.
    Your best option may be to talk to an IFA in the country you are living in who is experienced with helping British ex-pats or you could look at investing it locally.
    • badger09
    • By badger09 8th Jun 17, 12:12 PM
    • 5,129 Posts
    • 4,339 Thanks
    badger09
    • #5
    • 8th Jun 17, 12:12 PM
    • #5
    • 8th Jun 17, 12:12 PM
    Your post suggests you are not resident in UK for tax purposes. You cannot therefore subscribe to any ISA and will struggle to open current accounts.

    If you visit UK regularly, could you meet with an IFA with expertise in investing for Expats?

    Where is your £70k currently held? As a temporary measure you can invest in NS&I products. I can't remember whether all are open to non residents, but the Direct Saver and Income Bonds are.

    https://www.nsandi.com/our-products
    • bostonerimus
    • By bostonerimus 8th Jun 17, 1:05 PM
    • 883 Posts
    • 446 Thanks
    bostonerimus
    • #6
    • 8th Jun 17, 1:05 PM
    • #6
    • 8th Jun 17, 1:05 PM
    If you are living overseas why are you a UK tax payer?

    Where do you live? You will probably have far more options for this money if you invest where you live. It will also greatly simplify your taxes.
    Misanthrope in search of similar for mutual loathing
    • badger09
    • By badger09 8th Jun 17, 3:55 PM
    • 5,129 Posts
    • 4,339 Thanks
    badger09
    • #7
    • 8th Jun 17, 3:55 PM
    • #7
    • 8th Jun 17, 3:55 PM
    If you are living overseas why are you a UK tax payer?

    Where do you live? You will probably have far more options for this money if you invest where you live. It will also greatly simplify your taxes.
    Originally posted by bostonerimus

    deleted.............
    Last edited by badger09; 08-06-2017 at 4:02 PM. Reason: changed my mind
    • MatthewAinsworth
    • By MatthewAinsworth 8th Jun 17, 4:17 PM
    • 2,840 Posts
    • 1,136 Thanks
    MatthewAinsworth
    • #8
    • 8th Jun 17, 4:17 PM
    • #8
    • 8th Jun 17, 4:17 PM
    Timeshares! (Just kidding )
    • Reaper
    • By Reaper 8th Jun 17, 4:28 PM
    • 6,107 Posts
    • 4,171 Thanks
    Reaper
    • #9
    • 8th Jun 17, 4:28 PM
    • #9
    • 8th Jun 17, 4:28 PM
    If you are living abroad you will find many companies unwilling to deal with you even if you are a UK taxpayer and legally able to. They don't want the complications.

    Beware talking to financial advisers abroad as many other countries don't have the same regulations and advisers turn out to be salesmen simply selling you whatever earns them the most commission. There have been regular complaints here from people falling into that trap.
    • Karmo
    • By Karmo 9th Jun 17, 5:38 AM
    • 16 Posts
    • 2 Thanks
    Karmo
    Thank you for your replies . Yes I am a UK resident and taxpayer on my bank interest which is miniscule . The 70k is invested in UK banks but the interest doesnt even cover inflation
    . Im living in a small corrupt Asian country where I would never ever consider investing .
    Hoping to return home to live in the UK in a few years so was considering buying a flat which i would rent out to pay for it , and all the taxes and costs that go with that . Unfortunately I am not knowledgeable regarding investing or property.
    I may put most of it in Post Office premium bonds 50,000 max I believe and hope for a big win . But there has to be a better more sophisticated idea out there than that .
    • AnotherJoe
    • By AnotherJoe 9th Jun 17, 9:31 AM
    • 7,256 Posts
    • 7,777 Thanks
    AnotherJoe
    Thank you for your replies . Yes I am a UK resident and taxpayer on my bank interest which is miniscule . The 70k is invested in UK banks but the interest doesnt even cover inflation
    . Im living in a small corrupt Asian country where I would never ever consider investing .
    Hoping to return home to live in the UK in a few years so was considering buying a flat which i would rent out to pay for it , and all the taxes and costs that go with that . Unfortunately I am not knowledgeable regarding investing or property.
    I may put most of it in Post Office premium bonds 50,000 max I believe and hope for a big win . But there has to be a better more sophisticated idea out there than that .
    Originally posted by Karmo
    There is, investments, but you have to be willing to take some risk (and arguably less risk and certainly far less hassle, than BTL).

    Indeed whatever you do has some risk. The risk (close to certainty) with PB's is inflation which will definitely reduce the amount you have in real terms. OTOH if you want this money in say 5 years to help buy a house to live in, then thats not necessarily a bad idea.
    • badger09
    • By badger09 9th Jun 17, 10:01 AM
    • 5,129 Posts
    • 4,339 Thanks
    badger09
    Thank you for your replies . Yes I am a UK resident and taxpayer on my bank interest which is miniscule . The 70k is invested in UK banks but the interest doesnt even cover inflation
    . Im living in a small corrupt Asian country where I would never ever consider investing .
    Hoping to return home to live in the UK in a few years so was considering buying a flat which i would rent out to pay for it , and all the taxes and costs that go with that . Unfortunately I am not knowledgeable regarding investing or property.
    I may put most of it in Post Office premium bonds 50,000 max I believe and hope for a big win . But there has to be a better more sophisticated idea out there than that .
    Originally posted by Karmo
    Would you mind explaining how you are a UK resident?

    Do you have a formal ruling on your residency status from HMRC?
    • Karmo
    • By Karmo 10th Jun 17, 6:53 AM
    • 16 Posts
    • 2 Thanks
    Karmo
    Im a UK resident because I was born and bred in the UK and hold a uk passport and spend some time in the UK every year . Why would I not be a UK resident ?
    • nonolerigolo
    • By nonolerigolo 10th Jun 17, 9:01 AM
    • 235 Posts
    • 60 Thanks
    nonolerigolo
    You are a UK national, but not necessarly a UK resident. This is two totally different thing on a tax purpose. In order to be a UK resident you need to spend something like 6 month in the UK. I am not sure about the time. I suspect that you are not a UK resident. If you are not a UK reisdent in the UK, that is what follows

    you are tax on the global income on the country you live in. By that I mean in your tax on saving should be taxed in Asia. There should be agreeemnet in the UK and Asian country you live in. In order to stop you overpaying, but they may also be no agrrement.
    • badger09
    • By badger09 10th Jun 17, 11:06 AM
    • 5,129 Posts
    • 4,339 Thanks
    badger09
    Im a UK resident because I was born and bred in the UK and hold a uk passport and spend some time in the UK every year . Why would I not be a UK resident ?
    Originally posted by Karmo
    Because whether or not you are UK resident for tax purposes is a question of fact, rather than something you can choose


    https://www.gov.uk/tax-foreign-income/residence
    • bostonerimus
    • By bostonerimus 10th Jun 17, 2:57 PM
    • 883 Posts
    • 446 Thanks
    bostonerimus
    Im a UK resident because I was born and bred in the UK and hold a uk passport and spend some time in the UK every year . Why would I not be a UK resident ?
    Originally posted by Karmo
    I have the same circumstances. I have not been a UK tax resident for over 30 years.
    You might be liable to UK tax on UK source income, but I doubt you are a UK tax resident.
    Misanthrope in search of similar for mutual loathing
    • ValueHunter
    • By ValueHunter 10th Jun 17, 4:14 PM
    • 2 Posts
    • 0 Thanks
    ValueHunter
    With banks offering no or very low interest rates for savers I am looking for another safe way to invest about 70,000 pounds . Im a UK citizen ; tax payer too . 70,000 to invest safely as possible . Im no gambler as the money did not come easily .
    I was thinking of buying a flat to rent out but as I live overseas this seems like a fair bit of hassle and I could be faced with big bills for repairs , evictions etc . which would decimate my life savings . Plus I have zero experience in the field .
    How should I invest it? I would like to get as much monthly return as possible and have the lump sum available when Im older . I have contacted IFAs in the UK but they all want to have an in person meeting with me . But Im overseas at the moment
    Thanks for any suggestions .
    Originally posted by Karmo
    The bold statements simply don't work together. If you're looking for complete safety then max it all in high interest current accounts then put the extra in the best savings account you can find. Even then you'll still lose to inflation but this can make sense if you're planning on using the money in the short term for a house purchase or retirement or w/e

    If you're looking to access the cash far into the future (10+ years) then leaving it in cash is madness imo...you take a guaranteed loss to inflation and the opportunity cost is ginormous.

    I'd take a look at the vanguard life strategy products. There is risk in the short term but If you're investing for the long term it shouldn't be a major concern. Based on the last 100 years+ the stock market has shown decent returns and these products allow the novice investor to access it in a diversified hands off way.

    good luck with whatever you decide!
    • Pincher
    • By Pincher 11th Jun 17, 8:42 AM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    NS&I actually allows sending money abroad, so you should check out what they mean by that. Maybe they expect to serve OAPs who live in Spain, but Thailand (just for example) is going too far.

    £50k in Premium Bonds, and maybe £3k in Growth Bond

    https://www.nsandi.com/investment-guaranteed-growth-bonds

    is pretty "safe".

    Premium Bond prizes are tax free, and the 2.2% for the growth bond is paid gross, so if it all comes under £1,000 , also tax free.
    • JessaEra
    • By JessaEra 13th Jun 17, 7:57 AM
    • 10 Posts
    • 40 Thanks
    JessaEra
    If I were you, I will not invest all my money. You can keep some in your bank and then invest the other. But be sure enough where to invest it as scams rampant nowadays specially online. Good luck!
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