best way to invest £150k for risk obverse 60 year old

flittermouse

I have received a recent an inheritance and have no mortgage. Apart from ISAs what should I do with this money? Should I buy a property to let our or put in fixed interest savings accounts?:j

dunstonh

Should I buy a property to let

You are happy for those risks?

Which risks are you averse to?
1 - inflation risk
2 - shortfall risk
3 - investment risk
4 - provider risk
5 - liquidity risk
6 - legislative risk

Every option has risk. Especially if you are going to use the income/interest for lifestyle/living purposes.

Other things to consider are your ability to run different types of investment (can you DIY or are you a builder? - do you have experience as a landlord? Is the yield for the type of property worth the risks?). Your taxation (now and future) as well as most obviously your objectives.

flittermouse

I am potentially about to retire so I really need to not risk the capital. We do have a small amount of experience as landlords but have no skills in DIY/building.
So far have used ISA allowance, have maxed premium bonds and are just about to put a fair amount into a fixed bond for 3 years paying 4%gross. Both partner and I are tax payers.
The money needs to help support us in the future along with our pensions when we retire.
Any help or advise will be really appreciated.

dunstonh

have maxed premium bonds

Awful product. Subject to inflation risk and shortfall risk potentially. What made you choose those? (helps us understand your decision making process)

We do have a small amount of experience as landlords but have no skills in DIY/building.

The market today is very different to the market of the credit boom years. The days when anyone could make money have gone. Now it requires knowledge and typically the ability to buy run down and do up cheaply or being able to spot the right deal in the right place.

you do seem to be considering options of risk. That doesnt fit in with your subject title.

MoneySaverLog

flittermouse wrote: »

have maxed premium bonds

dunstonh wrote: »

Awful product. Subject to inflation risk and shortfall risk potentially. What made you choose those? (helps us understand your decision making process)

Still live in hope of Agent Million calling round

opinions4u

Property can go down in value. Why do you think it has no risk?

Glen_Clark

opinions4u wrote: »

Property can go down in value.

The government has continually shown it will do whatever it takes to support house prices. Every Government 'Initiative' under the pretext of making homes more affordable actually increases house prices by throwing more money at the same restricted supply. Its not just the big landlords pulling their strings. House prices are a major source of collateral in bank loans, so a fall in house prices would leave their banker friends even more exposed to bad debts.

cashbackproblems

It can but choose an in demand area/type of property and you will get a good return and prices are at an all time low and might not increase as past decades but will still rise. Iv managed properties and you can find a small letting agent who will deal with contracts/rent/tenant issues for a small fee e.g. i was paying him £50p/m.

Glen_Clark

cashbackproblems wrote: »

and prices are at an all time low .

....... price of what is at 'an all time low' ?

grey_gym_sock

how much income would you like to generate from this £150k? i.e. what would you hope to spend (on top of your expected pensions)?

because if you're aiming for very little income, you can play it safer (e.g. fixed rate deposits for a year or 2). if you aim for more, you'll need to put a larger part of the capital in shares (or perhaps property), which have higher likely returns, but are riskier - or at least more frightening to hold, because they can jump very sharply up and down in value. cash deposits are less frightening, but may be just as dangerous in the longer term, because your capital can be eroded by inflation.

also, are you planning to spend at a relatively steady rate in retirement, or do you e.g. have more/less expensive plans for different stages?

and do you care whether you have capital left over to leave to anybody else (hopefully not for a long time )?

flittermouse

We will not necesarily need a large income as pensions should be sufficient for a modest lifestyle. I would however like to make if possible around £10k pa in order to have a few decent holidays. A steady income would be preferred.

Premium bonds were somewhere to put some (maybe short term??) and so far (only 1 month) have got back 3% (small prizes).

We have previously lost money in zero dividend prference shares (recommended by fiancial advisor) so are a bit share obverse.

Oh, what to do for the best ??



Not too worried about this money as part of left inheritance as children would have exisiting home to share between them.