What should i do with £120,000

bigfreddiel

bigfreddiel wrote: »

Okay, my account number is.......... and sort code .............:j

...........its SC: 80-20-45 A/C: 00213765

geordie_joe

Blacksheep1979 wrote: »

Seeing as the current rate of inflation here (http://www.bankofengland.co.uk/) is 3.5% - I'd love to see where people are suggesting to stick his money that will return more than 14%. A rich Nigerian benefactor?

I wasn't suggesting you put your money where it will earn 14% interested.

I gave an example of taking 75% and leaving the other 25% in the bank, to illustrate that you would not have to use all of your interest to live on, you could use part of it and leave the rest to increase your capital.

Also, the interest rate is irrelevant to most people. It is calculated by combining many things that people might pay for, such as mortgages, gas, electricity etc.

If you don't have a mortgage, and don't have gas or electricity, or both, then your inflation rate will be very different from the published "average" inflation rate.

Similarly, if you don't drink, smoke or drive a car your inflation rate will be lower.

You need to look at your own circumstances, not stick rigidly to figures people publish that might not have any bearing on you.

briggzy01

I would spend around 20k - 30k on setting up a business which requires little physical work and gives you a fair income.Without knowing you're illness, i can't come up with any more detailed ideas, my opinion on putting it in the bank is that with inflation, the money is useless, it has to be invested in something which will produce an income.

As for the remaining cash, put 50 in one bank (government funded guarantee if bank goes bust of up to 50k), then the rest into another bank and use this money as a safety buffer, dont do anything with it, just keep it for a while and see what investment opportunities arise.

Also buying a property could give you an extra income of around 300 - 500 per month i'm guessing based on property prices for where i live.

my 2 cents.

Blacksheep1979

geordie_joe wrote: »

I wasn't suggesting you put your money where it will earn 14% interested.

I gave an example of taking 75% and leaving the other 25% in the bank, to illustrate that you would not have to use all of your interest to live on, you could use part of it and leave the rest to increase your capital.

Also, the interest rate is irrelevant to most people. It is calculated by combining many things that people might pay for, such as mortgages, gas, electricity etc.

If you don't have a mortgage, and don't have gas or electricity, or both, then your inflation rate will be very different from the published "average" inflation rate.

Similarly, if you don't drink, smoke or drive a car your inflation rate will be lower.

You need to look at your own circumstances, not stick rigidly to figures people publish that might not have any bearing on you.

Even still you'd be lucky to get 4% which would then be a person inflation rate of 1%.

laurenjs88

How much do you have to invest in Zopa to become a lender?

007tobs

some useful info here thanks. fast car and £££ not needed for loose women diable. there enough of them on plentyoffish.com for free get on there its a great MSE tip - until you meet one that is!

diable

007tobs wrote: »

some useful info here thanks. fast car and £££ not needed for loose women diable. there enough of them on plentyoffish.com for free get on there its a great MSE tip - until you meet one that is!

*writes down plentyoffish.com and goes off to investigate for journalistic purposes*

;p

J-Harrington

I would say spread to money between say 4 or 5 investments, run with them for 2 years, then remove the money from the under performing ones and add to the higher performing ones.

dave4545454

bigfreddiel wrote: »

...........its SC: 80-20-45 A/C: 00213765

i'll put some money in that for you, i've got loads:)

jamesd

laurenjs88 wrote: »

How much do you have to invest in Zopa to become a lender?

£10. If considering it you should start by reading Zopa lending and if you decide to do it, go to the referrer thread to get some more money that way if you end up lending more than a thousand.

Do remember that Zopa is an unregulated investment with no FSCS guarantee. It's not a savings account and your capital is at risk, both from borrowers defaulting and the chance, hopefully gradually decreasing, of trouble if Zopa was to have business trouble. Putting more than 5% of total savings and investment money there would be a high risk thing to do and it's not normally something anyone should really do until they have fully used their ISA allowances.

Now is a fairly good time to be lending there, rates are higher than they have been for a while. This is subject to change since it's a market and they change minute by minute. The main tool for making more money at Zopa than average is patience, lending only at good times and adjusting rates to lend the money slowly, just fast enough to lend at the speed you need to get your target amount lent out.

Declaration of interest: I have both loans via Zopa and lending offers there. There's currently a fair chance that my lending offers might be used.