What would you do with 250k ?

nearlyrich

padington wrote: »

I'm 38, footloose and fancy free. Currently healthy (but not sure the london life will keep me this way). I Currently have a decent 30k job but feel the need to spice up my life a little. I would be very happy teaching English overseas and happy to role the travelling dice for a while and see what happens. I have a hobby arts based business / web site that can bring in money but i've not concentrated enough on making it work, whilst traveling this can also bring in the bacon and maybe really take off with some love.

With a £250k inheritance and an established if not currently bringing in the millions business I would do what you really want to do. In 30 years time don't look back and say what if I had done that, regret what you did not what you didn't do!

padington

jimjames wrote: »

I'm not sure which funds would be a punt on the property market declining other than short selling property companies but the suggestion I made above would give a balanced portfolio generating an income from shares.

All i mean is which investment trusts specifically ? I'm keen to invest in commodities, mining, energy and would be interested in investing in advanced technology firms. Where can you study differences between investment trusts or does anyone know a specific trust that they think might be a wise bet ?

padington

nearlyrich wrote: »

To answer your question I would invest it in bonds etc and give my notice at work then start my lifestyle business that may or may not bring in enough to keep me in shoes. What I don't know is how old you are whether you have a decent career and what your attitude to risk is. IFA means Independent Financial Advisor they are all independent and they will give you advice based on your circumstances which we don't know.

I am very at ease with risk taking, it doesn't stress me too much, although i like taking a wise risk not a foolish one. In my case that means one where i might lose 25% but not much more if it goes tits up whilst there is a better chance it goes plus 25%.

cardsharps

padington wrote: »

If you were left 250k and had no debts but were currently renting in a cheap housing association flat and hoped to buy a place of your own in london but at the same time unsure about the current wisdom of buying into the housing market right now, what would you do with 250k?

Would you take the plunge and buy a property on the basis london will probably not lose too much value if things get bad ? Or would you hold and invest in something else in view of jumping into the property market later hopefully with more capital after a clever investment strategy possibly after property prices have stagnated for a year or two.

I'm particularly keen to know peoples thoughts on a non property investment strategy. What percentages of what would you invest in ?

I appreciate i should speak to an IFA but would like to hear independent opinions also.

£50K each of shares in Shell, Vodafone, Glaxo, United Utilities and BATobacco. Or perhaps £25K into each of 10 hi-yielding Ft-SE 100 companies. It'll give you a decent income even if the share prices doesn't go up. And you've diversified a bit in difference sectors.

padington

cardsharps wrote: »

£50K each of shares in Shell, Vodafone, Glaxo, United Utilities and BATobacco. Or perhaps £25K into each of 10 hi-yielding Ft-SE 100 companies. It'll give you a decent income even if the share prices doesn't go up. And you've diversified a bit in difference sectors.

No gold or silver ?

cardsharps

Not for me personally, the price of Gold and Silver might be a bit toppy. Most observers view the stockmarket as being presently undervalued with alot of hi-yielding shares like the ones I mentioned offering protection against rising inflation.

padington

cardsharps wrote: »

Not for me personally, the price of Gold and Silver might be a bit toppy. Most observers view the stockmarket as being presently undervalued with alot of hi-yielding shares like the ones I mentioned offering protection against rising inflation.

From a rough Guess if the economy plods on in the same way it is doing next year, what returns would those suggested shares make ?

cardsharps

About 5% dividend income after basic rate tax deducted

mike88

You should view this windfall as probably the only opportunity you may ever have of leaving the rented sector. Ask yourself if you are prepared to lose money by investing in shares. You might not of course but you must accept that investing in shares is a lottery. You could just as easily lose money as you could gain. Then consider bank and building society accounts. By putting your money into traditional savings accounts you will actually lose money as inflation is greater than the interest you will receive.

So for me its a no brainer. Don't gamble on your future. Invest in a house, even consider viewing this as a new start in life by moving locations where you might get a really decent property for around £200k. Remember property prices are considered to be low at present so investing at the bottom or near bottom of the market could be a smart move.

bendix

Loughton_Monkey wrote: »

Absolutely excellent slur on IFA's. Well done!

I note that none of them have picked you up on this.

I think by the word independent he actually meant ill-informed and vacuous.