300k to invest

Fed

Hey, I have 300k currently sitting in various savings accounts/bonds earning between 0.5-3.11% which will all be freed up within the next couple of months. I'm 24, earn a living through gambling and am currently renting a property with 2 others (foresee myself renting for a while longer in all probability),have no debt and pay the max allowance into my ISA every year. I want to take on some risk in the hope of a better return and im getting tired of tracking 6 different accounts and opening new ones the whole time to transfer money into. But i'm rather clueless when it comes to investing and I don't know what my best move is...

1) Is it worth buying a property outright to rent out or better investing in funds?
2) Should I see an advisor, who and where?
3) Should I start paying national insurance?

I know I should do some reading myself but I just don't know where to start with it, need something that covers the basics? I think the investment option is probably preferable to me given that I can't get mortgage (now or when I come to buy a home for myself unless I get a job or get a parent to get one for me) but then again I could rent out a property for a few years then sell it on.

Cheers, appreciate this stuff has probably been covered numerous times

dunstonh

1) Is it worth buying a property outright to rent out or better investing in funds?

Either option is possibly the best. It depends on what you are looking to do and what you want to get from your money.

2) Should I see an advisor, who and where?

An IFA. The largest database with something like 99% coverage is https://www.unbiased.co.uk

3) Should I start paying national insurance?

It depends on your plans for the future.

atush

Have you got a seperatre amt of capital for your gambling? Ie stake money, or would this 300K inlcude that?

I would prbably pay NI, but I think you need a tax specialist as well as an IFA. It was my understanding that while in general gambling profits are tax free, those engaging in gambling as a profession would have to pay income tax. So look into this. And if so, a pension might be a good idea for part of your money.

I agree, a BTL might work, but it all depends on yield, area, who runs it for you etc.

But I would also keep some cash investments, at least one years worth of living costs in your case. And invest in some funds or better yet Investment trusts as well.

Fed

Cheers for replies

dunstonh wrote: »

Either option is possibly the best. It depends on what you are looking to do and what you want to get from your money.

What do you exactly mean by that? I'm looking for a solid return without excessive risk

dunstonh wrote: »

It depends on your plans for the future.

Well as far as work goes I envisage getting a job at some point but probably not within 3 years, probably buy a house within 5

atush wrote: »

Have you got a seperatre amt of capital for your gambling? Ie stake money, or would this 300K inlcude that?

I would prbably pay NI, but I think you need a tax specialist as well as an IFA. It was my understanding that while in general gambling profits are tax free, those engaging in gambling as a profession would have to pay income tax. So look into this. And if so, a pension might be a good idea for part of your money.

I agree, a BTL might work, but it all depends on yield, area, who runs it for you etc.

But I would also keep some cash investments, at least one years worth of living costs in your case. And invest in some funds or better yet Investment trusts as well.

It's a shady area, not well defined but I know quite a few people in the business and i'm not aware of a single story of a professional gambler (working for themselves) getting called upon for tax.

The 300k is freely available to invest, I have sufficient reserves on top of that. I assume an IFA would advise me on funds and trusts?

Fed

Britishfriend wrote: »

Fed, check your "Private messages (PM)" folder. Not allowed to post here.

As good as it sounds I didn't earn my money by pumping it into things I have no clue about after being messaged on a internet forum by someone who appears to have spammed a lot of places. Sorry, even if it is legitimate

dunstonh

Fed wrote: »

As good as it sounds I didn't earn my money by pumping it into things I have no clue about after being messaged on a internet forum by someone who appears to have spammed a lot of places. Sorry, even if it is legitimate

It wont be legitimate. It is against board rules. It probably falls foul of FSA rules but in reality its probably some non-regulated scumbag trying to scam money off you.

Rollinghome

Fed wrote: »

I know I should do some reading myself but I just don't know where to start with it, need something that covers the basics?

A good place to start would be the Financial Times Guide to Investment - £15 at Amazon http://www.amazon.co.uk/Financial-Times-Guide-Investing-Definitive/dp/027372374X/ref=sr_1_6?s=books&ie=UTF8&qid=1319038457&sr=1-6

In fact, you won't go far wrong with any of the FT publications. There's also a lot of 'get rich quick' tosh out there, both in books and on the internet: often by people who earn money telling others because they can't earn it investing.

Then if you want to seek advice you'll be in a better position to judge whether that advice is good or bad. Always bear in mind that any adviser, quite understandably, will be looking after their own interests first and yours second, so be sceptical and never take advice at face value.

Fed

Rollinghome wrote: »

A good place to start would be the Financial Times Guide to Investment - £15 at Amazon

In fact, you won't go far wrong with any of the FT publications. There's also a lot of 'get rich quick' tosh out there, both in books and on the internet: often by people who earn money telling others because they can't earn it investing.

Then if you want to seek advice you'll be in a better position to judge whether that advice is good or bad. Always bear in mind that any adviser, quite understandably, will be looking after their own interests first and yours second, so be sceptical and never take advice at face value.

Thanks, funnily enough I already have the book i've just been too lazy to make a start on it. I'll make my way through it asap then

Out of interest (obviously it fluctuates and nothing is guaranteed) what would be a solid average return (siding on the low risk side) on 300ks worth of investment pa? 5%? 10%?

Aegis

10% would generally represent pretty high risk investments held for a long time. If you're aiming for low risk, 5% is much closer to where you'd expect to be, though obviously that depending on how your definition of "low risk" stacks up to others.

Fed

Aegis wrote: »

10% would generally represent pretty high risk investments held for a long time. If you're aiming for low risk, 5% is much closer to where you'd expect to be, though obviously that depending on how your definition of "low risk" stacks up to others.

Ok, as far as low risk goes I wouldn't want to be losing more than say 5-8% in any one year over say a 10 year period

jimjames

Fed wrote: »

Ok, as far as low risk goes I wouldn't want to be losing more than say 5-8% in any one year over say a 10 year period

Then share based investments are probably not for you. You can lose 30%-50% over a short period even if diversified with funds. The FTSE for example was nearly 25% down recently compared to earlier in the year. With individual shares you could lose the lot but if you are prepared to gamble surely you are happy with risk?