£600.000 to invest. what do i do ??

sabretoothtigger

gozomark wrote: »

if it was 600K in cash you inherited, would you put it all into one property ? Probably not, so don't tie yourself to the property - sell it, and diversify your savings and investments

Any good IFA will consider risk before any return imo, in the OP post this aspect was missed so you do need professional advice


Housing is a very safe investment but is now a good time to sell. Might be worth a million in 5 years and what other safe investment could give that kind of return.


Speak to some letting agencies and see what they say about no hassle returns on your house, how much would you get

4 % by letting out the house, is what the banks should give me with say a 2 year fixed deal.

4% interest doesnt include the cost of inflation. The house is safer then cash because it would give a return plus appreciate in value in line with inflation.

If you want a proper comparison in terms of risk vs reward then you should actually be considering index linked gilts or those rpi bonds from the po
The return on those is less then 4% but they are the equal in 'wealth protection' I'd say.
A deposit account or bank 'bond' is less on both counts imo

gozomark

Housing is a very safe investment - really ? so why are property prices down so much ???

The house is safer then cash because it would give a return plus appreciate in value in line with inflation. - it may do, it may not - it can also fall in value, so is not safer than cash

Obi167

michaels wrote: »

Would you like to marry me?

Me too, Male /Female - I don't care !

sabretoothtigger

Cash can fall in value and its been doing this for every year inflation has existed or I'd still be using half pennies and getting my marsbar for 17p
For this amount of money he wants it to be there in ten years and the house is more likely to be worth a similar amount then cash.

If people forgot cash is more risky then land or property then they are in trouble.
Which piece of paper should someones life savings read back as, "I promise to pay you" or "You actually own this"

barnaby-bear

tryingnottobeafool wrote: »

I have a house gifted to me, and after inheritance tax I will have around 600 k . I could hang onto the house and let it out, however I feel I dont want the hassle. It has been suggested to me that the reurn of 4 % by letting out the house, is what the banks should give me with say a 2 year fixed deal.

I feel I am not up to the hassle of renting out any property so what should I do with the money to give me an income ??

USe some of it to pay for professional advice rather than ask a scragbag of nutters, fantasists and total strangers on the internet

jamesd

Visit unbiased.co.uk and see a few IFAs and select one who you get on well with and who comes up with a plan that you like.

The standard approach with this is to invest the money in a wide range of investments from corporate bonds through shares and a bit of cash. If you're not skilled enough to do this yourself an IFA can. Given the sum involved you might look for an IFA who is a Chartered Financial Planner, a higher qualification level than the minimum required to be an IFA.

Using a range of investments you can reasonably expect to take an income of about 6% of the capital plus have that grow with inflation, for a total before inflation level of around 9% without the capital reducing on average over the long term. Cash is not adequate to deliver a proper income and protect you against the long term risk of inflation, though it should be a fair chunk of the total amount invested.

Stavros_3

1) what are your personal circs?
2) Pay off your debts
3) Do you want income or growth from it
4) speak to a truly independant financial advisor (not one from a bank)

mau408

I am surprised but no one yet has mentioned a will. You will have been stinged with inheritance tax and to reduce any further government swipes out of your money I'd write a will. If I were you and had kids or whatever with that amount of money first and foremost write a will! I do not know your circumstances, wife, husband, kids, dependents, etc. a IFA should be able to sort this out. What about solicitor-in-the-house scheme or something where you donate to charity instead of a big fee.

Secondly my opinion would be to diversify your risk, as all others above have previously stated.

DominicBaldwin

Firstly, I must say that I deal with people in your situation all the time.

I am not here to solicit services, I use this site to merely educate its users and hopefully try to give people an insignt into a true financial services company who puts customers first

In relation to your query there are a number of options available to you and most of them will incorporate your goals, objectives, current status.

As someone mentioned earlier, its important to talk this through with someone who knows the right questions to ask and make sure this person is an independent representative.

If you visit a bank they will attempt to flog you their own products. You therefore need to take the following factors into consideration when researching a good IFA :

Are they truly independent- able to offer products from the whole of market
Are they fee based - like the way you would pay for legal or tax advice?
Are they well qualified? - chartered and certified are recognised as the top qualifications within the industry.
Do they have a good repuation - do some research.

There are other factors as well that need to be taken into consideration, however most of it will come down to trust once the above is in place.

Hope this helps. Let me know if you need any more help.

Dominic

joolsybools

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