Best place for large sum of money?

jude2

Newbie to asking questions so not sure if this is the best place for this? We have just sold our house but not managed to find anywhere to buy yet. The money from the sale will be with us shortly but we're not sure what to do with it. We're likely to have the money for at least a few months, if not longer. Can anyone advise on the best and safest way of managing the money? We would really appreciate your thoughts on this. Thanks

xathras

Hi Jude,
A good way to make a good investment at the moment is with stocks. The prices of shares is low is the current climate and the only way is up.

Two years ago i was in debt, now i've paid of my debt and have 10 grand saved up, ya me. Shares didn't clear my debt, following advise on her did!!!

I started off with 2k and bought in with Llyods, sounds like a risk, but the biggest loss of share value is the banks. I bought in around 50p and the shares have done nothing but rise, the current price of the share is 109.17p

I've managed to pay it well by Day trading and gaining a good tidy profit daily by keeping up with current affairs.

Shares does sound like a risk, but there are many tools provided by your broker to minimise risk e.g. sell your shares automatically at a certain price.

I set mine to sell at 10-15% is they plumit, considering i am up 69p per share, a loss of 10p from its current value is still a profit to me.

This has worked for me, i recommend you read up first before taking the plunge.

All the best

jude2

Thanks, Will start reading up tonight!!

opinions4u

jude2 wrote: »

Newbie to asking questions so not sure if this is the best place for this? We have just sold our house but not managed to find anywhere to buy yet. The money from the sale will be with us shortly but we're not sure what to do with it. We're likely to have the money for at least a few months, if not longer. Can anyone advise on the best and safest way of managing the money? We would really appreciate your thoughts on this. Thanks

You need an easy access savings account.

Here's some to look at:

www.if.com - their iSaver pays 2.85%.

Birmingham Midshires - 3.15%

www.ingdirect.co.uk - their account pays 3.20%

www.moneyfacts.co.uk - use this to compare other providers.


Read this link from MSE about the Financial Services Compensation Scheme.

xathras wrote: »

A good way to make a good investment at the moment is with stocks. The prices of shares is low is the current climate and the only way is up.

This is a ridiculous suggestion. You are suggesting that the OP risks large amounts of their funds which they wish to commit to a property purchase. If an IFA made such a recommendation there's a reasonable chance they would be deauthorised by the FSA, and rightly so.

I started off with 2k and bought in with Llyods, sounds like a risk, but the biggest loss of share value is the banks. I bought in around 50p and the shares have done nothing but rise, the current price of the share is 109.17p

And if LBG had been fully nationalised you could potentially have lost the lot.

OP - do you want to take such risks with your house deposit?

I've managed to pay it well by Day trading and gaining a good tidy profit daily by keeping up with current affairs.

High risk. High potential. Expensive dealing costs. Not right for the OP. I'm delighted you made money. I caught the curve before the bounce and lost a few quid. There is no way in a million years I would have allocated funds set aside for house purchase to share dealing of any sort.

This has worked for me, i recommend you read up first before taking the plunge.

For these circumstances the OP shouldn't waste their time.

YorkshireBoy

Define "large".

Not being nosey, but you may want to consider the FSCS protection limits (although possibly not since you're now considering stocks & shares for such a short timescale!).

Cleaver

xathras wrote: »

A good way to make a good investment at the moment is with stocks. The prices of shares is low is the current climate and the only way is up.

The only way isn't up though, is it? There are three directions shares can go: up, down or nowhere. You can do all the research in a share that you want and, whilst I'm sure that will help, you will always have the risk of external factors influencing the price of a share.

I'm sure someone more qualified than I will come along shortly but if you've sold your house and will need the lump sum in the near future to buy a new place then shares would be the last place I would advise you put your money, especially if you've never dealt before. Divide your money in to £50k blocks, put it in to the highest paying savings accounts you can then use it to buy your new house.

You could always take £10k of it when you move house and play the stock market after doing your research. Apologies xathras, but I think advising someone to gamble all of the money that they have allocated for a house purchase in day trading when they have no experience of it is pretty irresponsible.

jude2

The sum we're talking about is £330000. Is the new safe limit for investing now £50K? Thanks for the advice

Cleaver

Yes, the safe limit is £50k per financial institution. Some banks / building societies are owned by the same company, so check which ones. There is probably a list on here somewhere and I'm sure a less lazy person will post it up.

Just promise us that you won't gamble a third of a million pounds on the stock market Jude. If you fancy a stab at it I would spend £12.99 on the book 'The Naked Trader'. It will tell you in layman's terms what dealing is about and doesn't glamourise it too much. If you still felt like having a try after that, take a few grand and give it a go.

Hope you find a nice house.

YorkshireBoy

jude2 wrote: »

Is the new safe limit for investing now £50K?

It's been £50K for nearly 12 months now, yes.

But that's per person per banking licence/FSA registration number, so £100K in a joint account is OK. Just be careful of licence numbers. You'll find them in the providers' literature.

jem16

xathras wrote: »

A good way to make a good investment at the moment is with stocks. The prices of shares is low is the current climate and the only way is up.

The money is going to be needed for a house purchase in a few months.

What you are suggesting is not investing, it's gambling. You might as well suggest sticking it all on red at roulette!

SilverStandard

Silver bullion.

The best investment for large or small amounts.