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600K to invest needs some impartial advice

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24

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  • jimjames
    jimjames Posts: 18,662 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 16 May 2011 at 12:47PM
    You seem to assume it's been sitting there for a long time which may or may not be the case. It might have only hit his account from a house sale or legacy on Friday for all we know. I don't think it that sort of pointless sneering helps anyone.

    True although I think most people here would have made some plan in advance of the money arriving in the account.

    £600,000 x 0% interest = £0 per day

    or at 3% = £50 interest per day

    @OP, based on these you'd do well to get the money into a savings account asap so at least it is earning before you make your decision on long term plans, just don't go with the standard one the bank offers and remember you're only covered to £85000 in one bank.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Totton
    Totton Posts: 981 Forumite
    Hello Hibidibi,
    The most important question would be 'what do you want to do with the cash?'. If it is for investing then you need to understand your risk profile. My recommendation for you would be to buy the Tim Hale book, 'Smarter Investing' and then have a further think about what you want to do. http://www.amazon.co.uk/Smarter-Investing-Simpler-Decisions-Results/dp/0273722077/ref=cm_cr_pr_product_top

    At the moment you haven't provided enough information for anyone to know how best to respond, for example your age, is this all of your cash, do you need an income etc. For the moment, pop the money into savings accounts carrying no withdrawal penalty. Read the above book and any others you like and then you will be well informed and more-able to do the right thing.

    HTH,
    Mickey
  • Linton
    Linton Posts: 18,154 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    Agree with Totton that you need to think through what you want from your £600k. And you need to do this before you see an IFA.

    Basically you can spend the capital or you can get a long term income. And then there is the timing - eg do you need the income now or at some point in the future, similarly if you want to spend the money.

    In practice I guess you might want to do a mixture, if so in what proportions? How much income do you want? Should it in increase with inflation?

    These are questions that only you can answer, without an answer neither we nor an IFA can sensibly propose options.
  • Loughton_Monkey
    Loughton_Monkey Posts: 8,913 Forumite
    Part of the Furniture Combo Breaker Hung up my suit!
    You seem to assume it's been sitting there for a long time which may or may not be the case. It might have only hit his account from a house sale or legacy on Friday for all we know. I don't think it that sort of pointless sneering helps anyone.

    I assume nothing.

    As a very minimum, most people would have set up basic 3% accounts to be earning £50 a day while thinking about the longer term.
  • King_Weasel
    King_Weasel Posts: 4,381 Forumite
    Hibidibi wrote: »
    I have 600k currently sat in a current account

    Put 595K into savings accounts asap and earn some interest while you think about it.
    However hard up you are, never accept loans from your friends. Just gifts
  • Rollinghome
    Rollinghome Posts: 2,729 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    jimjames wrote: »
    True although I think most people here would have made some plan in advance of the money arriving in the account.
    I wouldn't disagree and of course he may have had a plan. He posted on Sunday evening that the money was now in his account. It may have arrived on Friday and be waiting to clear. He simply said he wasn't sure of the best direction to take in investing it. I don't think it should automatically be assumed people are fools without any real evidence of that.

    (And a bit cheeky when the suggestion comes from someone who was recently advising, until his misunderstanding was pointed out, that index trackers were rubbish because they only returned the index and no part of the dividends.)

    So I'm sure he also realises that it isn't the best idea to overly rely on advice from strangers on a forum like this where replies may come people who know slightly less than they pretend. He's likely to get better qualified free advice on the first steps from Justin Modray at www.candidmoney.com
  • grumpycrab
    grumpycrab Posts: 5,026 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Bake Off Boss!
    I agree, go and see an IFA. Actually talk to MORE THAN ONE.
    If you put your general location in your Profile, somebody here may be able to come and help you.
  • COOLTRIKERCHICK
    COOLTRIKERCHICK Posts: 10,510 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    It could be that they have won money on a lottery, etc,

    or been paid a cheque which they have put into their regular account a few days ago...

    Now if i had this type of money, i would buy my dream home..lol..

    I think the first thing to do is put it into a savings account where you will get some sort of interest, while deciding on what you would like the money to do for you.

    there have been some really good posts.... basically saying.... do a bit of research and thinking on what you want from the money...

    Also sometimes the best return ( interest) isnt allways the best deal.... and has someone has mentioned... dont put all your money in one basket ( your money is only covered up to 85k per bank... provider.. diff banks can be owned by the same bank)
    Work to live= not live to work
  • Marine_life
    Marine_life Posts: 1,059 Forumite
    Hung up my suit!
    More info needed.

    1. What other assets do you have?
    2. When will you need the cash?
    3. Do you have income or are you looking for this to produce an income for you?
    4. How old are you and what are your plans for retirement?
    Money won't buy you happiness....but I have never been in a situation where more money made things worse!
  • bendix
    bendix Posts: 5,499 Forumite
    This thread is a disaster waiting to happen.
This discussion has been closed.
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