100K to invest. Ideas

Bumbles2

In short I have 100K sitting in my account doing nothing. I don't know much about stocks and shares or many other investments for that matter. I have an isa which is fully stocked and just doing battle with icici bank to open a savings account (although they are being very difficult!). Can anyone make any other suggestions that I should be looking into?

Chrismaths

Lots of options, lots of ideas. However, what is appropriate depends on a) your circumstances (other wealth, age, etc. etc.) b) your attitude to risk c) how long you want to invest for and most importantly d) what you want your money to do for you

bennyvdb

Me too have all the ISAs, Tessas etc retired, 74 have it all in Standerd Life Insant Access at 4.50% . can't be bothered messing about seting up regular savers a/cs. Any better ideas?

Bumbles2

Ok so I am 28 and a 40% tax payer. I have a mortgage but can easily afford the repayments so dont know why I should bother paying any of that off. I'm not interested instock adn shares. Something nice and easy that doesn't involve a lot of work. Also, should I talk to a Financial Advisor? Would it be better to pay a money manager as I have no interest in following stocks and shares. If I go down this road can anybody recommend one? Thank you

Gyarados

buy a house. rent-it. live on a nice regular income for the rest of your life. (house prices will probably rise also through inflation! )

dunstonh

Simcity1984 wrote:

buy a house. rent-it. live on a nice regular income for the rest of your life. (house prices will probably rise also through inflation! )

....which means put your money into a single asset valued at sky high prices and get a rental yield that is low before you pay tax on it, let alone after.

Not exactly very desirable is it.

dunstonh

But you should go and see an independent financial advisor, and preferably one that charges a fee upfront rather than commission (1% of £100,000 is £1,000!).

1% up front is very cheap. One of the major fee based advising firms in Norfolk charges £2400 a transaction on fee terms.

but a tracker fund is probably more straightforward.

a single fund solution (managed or tracker) is rarely the best solution especially for larger amounts. 100k in a FTSE tracker would be an awful way to invest. (unless you have another 900k invested across the sectors

davieb71

In my opinio it seems that are there many options although i only look at property and because i live in the North East and property prices are more realistic then its a better option.
I am thinking of setting up something for people who live down south yet want to buy properties that will give them a good investment plus monthly income.
A flat in this area could go for £80,000 and eyt the same property down south would be £120,00 above.
Try looking around the country, more than happy to give you some info up from up here if you wish.
Property rental is abouts £400 per month so a return of £4,800 per year excluding taxes etc.
£48,000 over 10 years is a much better return.

EdInvestor

Bumbles2 wrote:

In short I have 100K sitting in my account doing nothing. I don't know much about stocks and shares or many other investments for that matter. I have an isa which is fully stocked and just doing battle with icici bank to open a savings account (although they are being very difficult!). Can anyone make any other suggestions that I should be looking into?

Commercial property funds may suit - a different asset class from residential property, not as high risk as stocks and shares, produce an income (if you want it) of 4-6%.

You can choose unit trusts and investment trusts.Look for the funds run by the big insurers which are invested in actual properties, not property shares ( the latter are higher risk). Property funds can now be put in an investment ISA ( 7k a year maxi, 4k a year mini).

Cardew

Bumbles2 wrote:

Ok so I am 28 and a 40% tax payer. I have a mortgage but can easily afford the repayments so dont know why I should bother paying any of that off. I'm not interested instock adn shares. Something nice and easy that doesn't involve a lot of work. Also, should I talk to a Financial Advisor? Would it be better to pay a money manager as I have no interest in following stocks and shares. If I go down this road can anybody recommend one? Thank you

Good advice above. However if you are "not interested in stocks and shares" your choices are much more limited.

Your £100k sitting in a savings account will earn you less than 3% if you are a 40% tax payer. Your mortgage interest is???? So why wouldn't you bother to pay some of that off?

dunstonh

Asset allocation takes away the troughs, but it can also take away the peaks too. It goes to suitability - and all those other things the OP should speak to an IFA about!

Asset allocation should be based on risk. A high risk asset allocation would have a very small amount of low risk sectors but cover a greater range of higher risk areas. Therefore asset allocation applies equally to low risk through to high risk portfolios.

In conclusion though I wish a lot more MSE's thought a lot more about this and a lot less about cash ISA's!

Very true. However, its probably the one area more than any other where a regular forum reader can give some input without fear of posting misplaced investment ideas.

The tracker would likely be FTSE All-Share but even if it was FTSE-100, what's wrong with being overweight commodities in an energy bull market?

Eggs all in one basket approach. Good if it pays off but the odds arent in your favour of picking the best area.

What's wrong with exposure to Russia (through BP) when professional investors are talking about the BRICs (Brazil, Russia, India, China)?

Exposure to Russia through BP on the FTSE tracker is hardly exposure to Russia. Its watered down and doesn't necessarily correlate with direct performance in Russia. BRICs are miles apart from FTSE trackers.