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What to do with a large sum of money....
Pink_butterfly_3
Posts: 1,597 Forumite
Hi all
I would be grateful if anyone could offer me some advice!
I've got £70,000 that I want to save and obviously try to make some interest on.
There is so much on offer that i'm finding it quite difficult to choose.
I have found the Lloyds ebond which is a fixed 3 year deal that pays 4.10%. This ebond pays the interest monthly into a nominated account. My income falls just under the tax allowance bracket so I pay 0% on that.
I can't see any reason that I would need to touch the money within the next 5 years or so.
What would you do with it?
Thanks to anyone that replies :A
I would be grateful if anyone could offer me some advice!
I've got £70,000 that I want to save and obviously try to make some interest on.
There is so much on offer that i'm finding it quite difficult to choose.
I have found the Lloyds ebond which is a fixed 3 year deal that pays 4.10%. This ebond pays the interest monthly into a nominated account. My income falls just under the tax allowance bracket so I pay 0% on that.
I can't see any reason that I would need to touch the money within the next 5 years or so.
What would you do with it?
Thanks to anyone that replies :A
What the Deuce?
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Comments
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If you fix for 5 years, you will get better rates. Nationwide for example offer 4.75% fixed for 5 years, while bank of India and ICICI offer 5%, but they are of course what I would personally class as being more risky, simply being overseas and not knowing much about them!
I wouldn't put all £70k into one bank, you need to put about £45k (to allow for future interest) in one and the remainder in another to cover yourself up to the £50k compensation limit should any bank or BS go bust.
4.10% for 3 years sounds pretty good - matched I think by Nationwide (4.15%). You could open both accounts, £45k in one and £25 in the other.0 -
AA gives 4.1% for 3 years and 4.55% for 5 years.It's your money. Except if it's the governments.0
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You may want to think about investing it in gold and silver, either physical bars or coins from goldline.co.uk or atsbullion.com or coininvestdirect.com, or online using goldmoney.com or bullionvault.com
You've probably noticed that the UK and other governments are 'quantitatively easing' which is another way of describing buying your own debt, monetizing the debt or devaluing the currency. The effect of QE down the road will probably mean a loss of purchasing power of your UK money tokens, sorry I mean pounds. Oh sure the banks will return your paper with numbers and pictures of happy monarchs on it, but it'll buy you less real goods than it can today.
Gold and silver have been real money for 5000 years, there's not much of them around, they can't be printed by governments, so when there's a flight to safety there'll be a shed load of paper chasing small amounts of metal, which will send the price up. And if like me you think this global financial crisis has some way to play out, you should be more concerned with the return of your capital than the return on your capital.
You don't have to go mad like myself and go 'all in', maybe just hedge using half your savings.
There are no easy answers and you need to do your own due diligence. Best of luck.
Oh and in five years if you make a tidy profit I'll expect a pint down your local0 -
I wouldn't invest in 5 year bonds at the moment in case of an economic recovery in a couple of years.
I stick to 3 years max (Derbyshire BS 4.25%)
The gold sounds attractive although I never considered it.
How safe are those websites?0 -
I wouldn't invest in 5 year bonds at the moment in case of an economic recovery in a couple of years.
I stick to 3 years max (Derbyshire BS 4.25%)
The gold sounds attractive although I never considered it.
How safe are those websites?
I wouldn't go on them MeanExpat they are just :spam::T Debt Free 06/05/2010 :T0 -
YorkshireBorn wrote: »I wouldn't go on them MeanExpat they are just :spam:
Numpty.
ATS Bullion for one are 100% reputable. I have personally bought from their Strand offices (next to the Savoy Hotel).
I've also either bought or had discussions with the other bullion dealers mentioned.
Personally I can recommend https://www.bulionuk.com0 -
How long would you need to hold onto gold before selling it and making a profit. 2, 5, 10 years? Am going to have a large sum from house sale £150k and reading here am becoming interested in buying gold but I don't want it to be tied up for longer than 5 years, but I do want to get a good interest on it - around 5%. I would spend upto £50k on it. Would this be wise? Thanks.0
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How long would you need to hold onto gold before selling it and making a profit. 2, 5, 10 years? Am going to have a large sum from house sale £150k and reading here am becoming interested in buying gold but I don't want it to be tied up for longer than 5 years, but I do want to get a good interest on it - around 5%. I would spend upto £50k on it. Would this be wise? Thanks.
Ahhhh, the million dollar question. if I could reliably answer that question then I'd be sitting on the high chair in an ashram, incense burning around me, devotee finger-cymbals chiming, being fanned by scantily clad maidens
Sadly back on planet earth I'm afraid can't tell you how long you'd have to hold on to your gold/silver before you sell. If you spend some time studying previous bubbles (Tulip, South Sea, Internet, and the most recent housing bubble) you'll see a pattern emerging of a mania phase towards the end of the bubble, when everyone and their cat want a piece of the action, and the asset in question is making front page news every night - a sign you're probably close to the peak.
Here's an old mse thread re. gold:
https://forums.moneysavingexpert.com/discussion/147830 -
Apparently you know you are in the gold mania phase when your taxi driver starts recommending it.0
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So... I guess its high risk investment. Better not spend too much on it then. Also looks like there's plenty of places to buy it but where do you sell it when the price goes up?0
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