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  • FIRST POST
    • Watchamacallit
    • By Watchamacallit 16th Jun 17, 2:51 AM
    • 8Posts
    • 1Thanks
    Watchamacallit
    95,000 to invest. what do?
    • #1
    • 16th Jun 17, 2:51 AM
    95,000 to invest. what do? 16th Jun 17 at 2:51 AM
    hi guys.

    So a number of years back i made a small investment into various assets (Stocks) and they've grown to a sizeable sum that i think is now worth cashing out on.

    After taxes, i estimate approximately a 95,000 return.

    Im in poor health who's worked most his life on minimum wage jobs, and as i've recently been made redundant the next issue i have is, obviously, a regular income.

    With the funds i've secured through wise investing though, i want it to grow to a point of passive income but i'm honestly out of ideas.

    Now i know 95k isn't really alot to secure you any real passive income, but if anyone can give me ideas where i can invest it wisely -- and securely/with minimal risk -- that can possibly provide me with a monthly income it would be appreciated.

    Due to my poor health, i have my doubts about being able to hold down a job, at least full time and so investing this further to grow it really seems like the best option i've got.

    One option i've been given is to buy part of a family members house. they'd secure about a 50% discount on a council house to which i'd pay the rest. But as i've never done any such thing before, it's all a bit daunting.

    i have no other assets or savings to my name, no properties, and i currently rent.

    So, if you were in my shoes; what would you do?

    Any assistence here is hugely appreciated.
    Last edited by Watchamacallit; 16-06-2017 at 3:02 AM.
Page 1
    • Eco Miser
    • By Eco Miser 16th Jun 17, 8:44 AM
    • 2,889 Posts
    • 2,677 Thanks
    Eco Miser
    • #2
    • 16th Jun 17, 8:44 AM
    • #2
    • 16th Jun 17, 8:44 AM
    Have a read of the articles linked from this page. Start at the bottom and work up.

    Helping to buy your family member's house relies on them having (and keeping) sufficient income to support you via rent, interest and return of capital, as well as themselves.
    Last edited by Eco Miser; 16-06-2017 at 8:51 AM. Reason: added more detail.
    Eco Miser
    Saving money for well over half a century
    • Pixie5740
    • By Pixie5740 16th Jun 17, 9:34 AM
    • 10,591 Posts
    • 14,565 Thanks
    Pixie5740
    • #3
    • 16th Jun 17, 9:34 AM
    • #3
    • 16th Jun 17, 9:34 AM
    How will buying half a house help you or your relative for that matter? Your relative will own 50% of the property through his/her RTB discount and then what? Pay you rent for the rest of their lives? Why would that be any different to continuing to pay the council rent except now your relative would be responsible for their own maintenance and repairs and wouldn't be entitled to HB? Or are you proposing that you would lend them the money and repay you with interest? Either way, you are proposing to tie your money up in an illiquid asset that you won't be able to access if/when you need it without your relative selling or getting a mortgage.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Linton
    • By Linton 16th Jun 17, 9:36 AM
    • 7,958 Posts
    • 7,761 Thanks
    Linton
    • #4
    • 16th Jun 17, 9:36 AM
    • #4
    • 16th Jun 17, 9:36 AM
    I agree with ecomiser that the idea of paying towards your relatives house raises lots of questions as to how it can meet your need for a secure, as high as possible, income.

    With "investing at minimal risk" I cant see you safely getting more than say 2500/year without seriously depleting your capital especially if you want your income to keep up with inflation.

    The highest level of 100% secure lifetime income from a lump sum could come from an annuity at the cost of all the capital. If you were 55 or older, and your ill health was life expectancy shortening, and you had no requirement to leave anything to anyone on your demise it could be worth looking into.

    What sort of income would you want that would make a practical difference?

    For how long would you want this income? For instance if you are eligible for a full state pension then you could aim to have exhausted your 95K by the time you receive it.
    Last edited by Linton; 16-06-2017 at 12:06 PM.
    • badger09
    • By badger09 16th Jun 17, 11:50 AM
    • 5,071 Posts
    • 4,271 Thanks
    badger09
    • #5
    • 16th Jun 17, 11:50 AM
    • #5
    • 16th Jun 17, 11:50 AM
    hi guys.

    So a number of years back i made a small investment into various assets (Stocks) and they've grown to a sizeable sum that i think is now worth cashing out on.
    Originally posted by Watchamacallit
    Why cash it all out at once if it has performed well over a long period? Do you expect it to perform badly in future?
    • jimjames
    • By jimjames 16th Jun 17, 12:54 PM
    • 11,898 Posts
    • 10,282 Thanks
    jimjames
    • #6
    • 16th Jun 17, 12:54 PM
    • #6
    • 16th Jun 17, 12:54 PM
    Why cash it all out at once if it has performed well over a long period? Do you expect it to perform badly in future?
    Originally posted by badger09
    My thoughts too. If it's not producing an income you could move the money into investments that do rather than cashing out where you're unlikely to get much income at all
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Watchamacallit
    • By Watchamacallit 16th Jun 17, 1:29 PM
    • 8 Posts
    • 1 Thanks
    Watchamacallit
    • #7
    • 16th Jun 17, 1:29 PM
    • #7
    • 16th Jun 17, 1:29 PM
    Why cash it all out at once if it has performed well over a long period? Do you expect it to perform badly in future?
    Originally posted by badger09
    in the short term i'm expecting a serious decline yes, long term is anyones guess. but given my current circumstances i think it's wise to perhaps consider cashing out.
    • steampowered
    • By steampowered 16th Jun 17, 3:20 PM
    • 1,394 Posts
    • 1,381 Thanks
    steampowered
    • #8
    • 16th Jun 17, 3:20 PM
    • #8
    • 16th Jun 17, 3:20 PM
    If you were to cash out now, and live for a long time as I hope you will, one of the major risks you will face is "inflation risk".

    If you want that money to last for the long term, you will be able to ride out the fluctuations associated with investments. But you are less able to ride out the poor returns associated with keeping the money in cash. It sounds like it would be sensible to leave most of this money invested.
    • mark5
    • By mark5 16th Jun 17, 5:39 PM
    • 1,145 Posts
    • 767 Thanks
    mark5
    • #9
    • 16th Jun 17, 5:39 PM
    • #9
    • 16th Jun 17, 5:39 PM
    I would move about 80,000 into FTSE 100 high yield shares, BP, Shell, GlaxoSK, Aviva, etc, it should be possible to get 4-5000 each year in dividends. I would keep the other 15,000 in easy access cash accounts.
    • MatthewAinsworth
    • By MatthewAinsworth 16th Jun 17, 5:46 PM
    • 2,691 Posts
    • 1,082 Thanks
    MatthewAinsworth
    Amazing to save that on low pay, well done
    Imho continue with diverse passive investing, it's safer than putting all your eggs in one house

    You don't need immediate access to the lot and should have faith that markets generally grow and businesses make profit, so invest in at least some equities
    • MatthewAinsworth
    • By MatthewAinsworth 16th Jun 17, 5:48 PM
    • 2,691 Posts
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    MatthewAinsworth
    Timing the market usually fails, especially if you can wait it out, it could keep growing for years
    • Watchamacallit
    • By Watchamacallit 16th Jun 17, 10:38 PM
    • 8 Posts
    • 1 Thanks
    Watchamacallit
    i will take into consideration all of your helpful advice. baring in mind your honesty to me, i aught to be straight with you lot.

    if you guys want the truth, it's not in stocks. it is however in an asset, or maybe a currency - so far, nobody is sure, not even governments.

    it's bitcoin.

    now maybe you guys can understand why i'm a bit skeptical considering it's volatility.

    i invested a sum into the currency a number of years back and thats grown to the value you see today. And it initially started with approximately 10, over the years i continued to accumulate and i think all in all i probably invested about 400. i stopped investing then forgot about it. It was purely a skeptical investment and at the time, i was quite desperate for some money considering circumstances. (In fact, if you guys look at my posting history, it was only a year or two before my first post here that i started investing into bitcoin)

    ive looked into taxation and it appears capital gains is in order but i'm still doing my homework on this front.

    i do believe short term the bitcoin markets will decline. i sense its' in a bubble but long term i think the technology can prove useful as it's worked so far since 2008 (Created during the financial crisis - no coincidence, i think).

    All considered this is why i believe short term bitcoin can see a decline in value, but long term, particularly regarding FIAT inflation rates and economic strife, bitcoin, like precious metals, can really go places.
    Last edited by Watchamacallit; 16-06-2017 at 10:58 PM.
    • MatthewAinsworth
    • By MatthewAinsworth 17th Jun 17, 6:01 AM
    • 2,691 Posts
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    MatthewAinsworth
    Bitcoin is beyond my knowledge, I wouldn't usually touch forex but maybe you're onto something with it

    Anyhow at this point if you do choose to go equities you will make quite a substantial difference to income, especially if you go track the msci world small cap index, some short term cash but mostly invested
    • elephantrosie
    • By elephantrosie 17th Jun 17, 8:40 AM
    • 329 Posts
    • 82 Thanks
    elephantrosie
    while healthcare is covered by NHS, i will still be cautious with money as i aged or with chronic illness.
    it depends on how much you trust the NHS to look after you. are you happy with delayed appointments? how would you feel if you required an urgent treatment, but having to wait for funding approval? would you stick to NHS or go private?

    i personally would always save aside a five figures cash..... just to be on the safer side.

    if you have health insurance, ignore this post.
    Getting bored of my 9 to 5 job.
    • xunil
    • By xunil 17th Jun 17, 3:45 PM
    • 2 Posts
    • 2 Thanks
    xunil
    I know of a few good places to invest for income but I think your biggest problem is cashing out your 95k worth of Bitcoin (unless you already have).
    • Watchamacallit
    • By Watchamacallit 17th Jun 17, 4:41 PM
    • 8 Posts
    • 1 Thanks
    Watchamacallit
    I know of a few good places to invest for income but I think your biggest problem is cashing out your 95k worth of Bitcoin (unless you already have).
    Originally posted by xunil
    A small portion. 13k over the last year -- it's actually surprisingly easy.

    The issue is taxation and the rules (or lack thereof) around it i'm struggling to get my head around.
    • MatthewAinsworth
    • By MatthewAinsworth 17th Jun 17, 6:18 PM
    • 2,691 Posts
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    MatthewAinsworth
    I think that if mining ever gets too expensive or unrewarding (approaching the 21m limit, say) bitcoin will basically seize up - either through higher fees or centralisation as miners drop out

    Gold has at least some utility to underpin at least some value, and native currencies have government backing even if theyre nolonger tied to gold - bitcoin having neither could potentially drop to 0 value eventually

    And being forex there's no dividends, no average expected returns. It all relies on greater fool theory

    I reckon be thankful you came out of it well and get out while you can
    • Watchamacallit
    • By Watchamacallit 17th Jun 17, 9:25 PM
    • 8 Posts
    • 1 Thanks
    Watchamacallit
    I think that if mining ever gets too expensive or unrewarding (approaching the 21m limit, say) bitcoin will basically seize up - either through higher fees or centralisation as miners drop out

    Gold has at least some utility to underpin at least some value, and native currencies have government backing even if theyre nolonger tied to gold - bitcoin having neither could potentially drop to 0 value eventually

    And being forex there's no dividends, no average expected returns. It all relies on greater fool theory

    I reckon be thankful you came out of it well and get out while you can
    Originally posted by MatthewAinsworth
    i agree completely. i do believe bitcoin was the experiment, but there's a whole industry around it and so many alternative currencies that are loosely based on bitcoin or have entirely new technologies.

    at one point or another i do anticipate one of them to exceed bitcoin itself. when that will be, or even if, is anyones guess.

    In the end, if it did go south sure i'd be upset, but it's given me more than i ever anticipated or could've expected, for that reason alone i'm grateful.
    • MatthewAinsworth
    • By MatthewAinsworth 18th Jun 17, 5:28 AM
    • 2,691 Posts
    • 1,082 Thanks
    MatthewAinsworth
    There could be more peaks to come but I think we are at one now - looking at the graphs we'd expect it to revert back to previous value soon

    As for other currencies - I think society would prefer it simple and bitcoin the best known, other currencies may however be more stable - more liquid - it needs a steady value to be a currency rather than speculative tool
    • gallygirl
    • By gallygirl 18th Jun 17, 11:41 AM
    • 16,382 Posts
    • 107,289 Thanks
    gallygirl
    Whereabouts do you live and how much rent do you pay?Do you have any other savings? If you are in a very low cost of living area you may be able to buy a house/flat and save yourself rent - equivalent to generating a monthly income as it's saving you some outgoings. I believe that wouldn't be classed as 'deprivation of capital' if you have to claim benefits, whereas you would be expected to use your savings to live on until they got down to a certain level.

    The maths probably won't work but worth considering as an option.
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = 0
    "Do what others won't early in life so you can do what others can't later in life"
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