What to do with £600,000 for a year

blinko

How does someone with so much money appear to be so clueless ? anyway you require a savings account 3% return

gadgetmind

Dave101t wrote: »

a millionaire on a MSE website, asking us for financial advise?

I think the definitions of millionaire and HNWI (High Net Worth Individual) both exclude primary residence, which vastly reduces the number of millionaires etc. in our midst. I guess we maybe need to extend this to include "resting" money between properties.

gadgetmind

blinko wrote: »

How does someone with so much money appear to be so clueless ? anyway you require a savings account 3% return

Ah yes, the nice warm welcome to MSE that the Newbie Alert requests. Sweet.

thelawnet

blinko wrote: »

How does someone with so much money appear to be so clueless ? anyway you require a savings account 3% return

£600k is nothing. I remember looking at an estate agent window in Islington, and there was this tramp-like character commenting on how he was basically a millionaire because of his council flat.

You can get £600k for a 1-bed flat like this: http://www.rightmove.co.uk/property-for-sale/property-30036955.html

plumb1_2

Buy silver bullion.

wriggly

Sceptic001 wrote: »

Seriously though, I agree with wriggly except I would give NS&I fixed rate certificates (2.25% AER) a miss.

This depends on your exact tax situation. If you own a £600,000 house, you probably earn a decent salary.

If you're in the 40% (or 50%) tax bracket, then the fixed-rate NS&I bond is probably a good idea.

If you're just under the 40% bracket, then consider whether the £6000 interest you will each receive might put you into the 40% bracket, especially if you are currently receiving child benefit - http://www.moneysavingexpert.com/news/family/2010/10/higher-rate-tax-payers-to-lose-child-benefits

If you do not fit either of these categories, Sceptic001 is right, you can probably do better adding that £30k to the general savings accounts, and paying the tax.

Sceptic001

wriggly wrote: »

This depends on your exact tax situation. If you own a £600,000 house, you probably earn a decent salary.

If you're in the 40% (or 50%) tax bracket, then the fixed-rate NS&I bond is probably a good idea.

If you're just under the 40% bracket, then consider whether the £6000 interest you will each receive might put you into the 40% bracket, especially if you are currently receiving child benefit - http://www.moneysavingexpert.com/news/family/2010/10/higher-rate-tax-payers-to-lose-child-benefits

If you do not fit either of these categories, Sceptic001 is right, you can probably do better adding that £30k to the general savings accounts, and paying the tax.

Yes, I take your point about higher rate taxpayers, wriggly, but because the 2.25% is stepped and OP may be cashing in early, they are not really worth the extra hassle, even if OP is a higher rate taxpayer.

5-year Fixed Interest Savings Certificates 97th Issue
Year 1 1.85%
Year 2 1.95%
Year 3 2.15%
Year 4 2.45%
Year 5 2.86%
http://www.nsandi.com/savings-current-interest-rates-year-year-rates

blinko

thelawnet wrote: »

£600k is nothing. I remember looking at an estate agent window in Islington, and there was this tramp-like character commenting on how he was basically a millionaire because of his council flat.

You can get £600k for a 1-bed flat like this: http://www.rightmove.co.uk/property-for-sale/property-30036955.html

very nice

Oh and DO NOT get involved with Silver

my advice go and see an IFA

poacherp

blinko wrote: »

very nice

Oh and DO NOT get involved with Silver

my advice go and see an IFA

Absolutely, banks best avoided. It is also worth getting a recommendation from a friend or a work colleague. Failing that, you can have a look here -

http://www.unbiased.co.uk//

blinko

I would recommend dunstoh on here if he allows this or if not i am sure he coudl review a report for you maybe for a price. He is the only IFA I know and he has been on the forum for a long time.

as above unbiased