where to invest

harrison100

Hi new to this forum.I would be grateful for any responses.ok i am selling my house and the proceeds from the house sale will be about 185 thousand.I am planning on renting for 6 months before i buy another property so i am not sure where the best and safest place would be for me to invest my money.Gary

quotememiserable

Well, safest and best aren't necessarily the same thing. What is your aim for the money over those 6 months.
Safe, liquid..1% interest put it in a building society
almost safe but a little less liquid, 3.5% interest funding circle
footsie tracker fund, 2.5% dividend return, plus or minus 5% on capital, liquid

there's some ideas

harrison100

Thanks for the reply.I just want to earn a bit of interest and have peace of mind knowing that my money is safe.Would the 185000 be ok if i were to just put it into my santander current account.

jimjames

If it is only 6 months then you shouldn't be investing it; you should be putting it in savings account as investments would be too risky.

quotememiserable wrote: »

footsie tracker fund, 2.5% dividend return, plus or minus 5% on capital, liquid

Agree it is liquid but not sure where the claim of +/- 5% for the capital return in a FTSE tracker comes from as it is utter nonsense. The FTSE could grow in 6 months or it could drop 30-40%. Who knows but unless you are prepared to have your £185k drop to below £100k it would be madness to invest it in a tracker for 6 months.

Avoid having more than £85k in any one bank so you are protected in the unlikely event of the bank going bust. If you aren't bothered about making any money from it then leaving it in the current account is fine but you will only be protected for the first £85k

Chrishazle

I was in a similar position when we sold 6 years ago, put the proceeds with my bank on 30 day rolling deposit until we needed it buying a house. Used the monthly interest to pay for the rental house!

I bank with Cater Allen which is part of Santander, and because the monthly interest was above a certain amount (can't remember the exact number) they automatically paid the interest gross, which was handy.

quotememiserable

jimjames wrote: »

Agree it is liquid but not sure where the claim of +/- 5% for the capital return in a FTSE tracker comes from as it is utter nonsense. The FTSE could grow in 6 months or it could drop 30-40%. Who knows but unless you are prepared to have your £185k drop to below £100k it would be madness to invest it in a tracker for 6 months.

That's a very black view point. OK, maybe not 5% and I was illustrating that the capital is at risk. For the last three years the footise has stayed in the 5000 to 6000 band which is +/- 10% around the 5500 mid-point where it more or less is now. 40% is a low probablity (though not impossible of course) scenerio.
As for madness, I often use trackers on a 3 to 6 month horizon and its been very successful, though not recommended unless you follow the markets closely.

jimjames

quotememiserable wrote: »

That's a very black view point. OK, maybe not 5% and I was illustrating that the capital is at risk. For the last three years the footise has stayed in the 5000 to 6000 band which is +/- 10% around the 5500 mid-point where it more or less is now. 40% is a low probablity (though not impossible of course) scenerio.
As for madness, I often use trackers on a 3 to 6 month horizon and its been very successful, though not recommended unless you follow the markets closely.

Not sure if it is black viewpoint or just honest. I'm also a very bullish investor and am normally near 100% invested. My caution is for others who may read such a post and think that all they can ever lose is 5% which is clearly not the case. Even in your quoted scenario it is a near 20% loss to the person who invested at 6000 and had to sell out at 5000. It is no different to the posts about gold or silver that claim they are a one way road to riches.

Someone who invested in a tracker with the FTSE at 6500 in 2008 would have seen their investment drop to 3500 in 2009 and would currently be more than 15% below their original investment. I am fully prepared to take that risk but I want to make sure anyone reading a post is aware of what could happen - although admittedly at this point it seems unlikely to see a 40% drop - it isn't beyond the bounds of possibility if something like a Greek exit happened.

The numbers I quoted are what could have happened if the OP put their money into a tracker in 2008, the £185k would be down to £99k in 2009. Based on the requirement to buy a house in 6 months that seems a risk too far even for me particularly in view of the "safest place" comment.

mania112

For the very best level of protection, you ought to split the money between a couple of institutions.

The compensation scheme (used if a firm go belly-up) is for £85k per person, per institution.

If you're married this doubles, but you'd still have a bit over £170k

EDIT: If you're married and the account is jointly-held.

cos_2

mania112 wrote: »

For the very best level of protection, you ought to split the money between a couple of institutions.

The compensation scheme (used if a firm go belly-up) is for £85k per person, per institution.

If you're married this doubles, but you'd still have a bit over £170k

EDIT: If you're married and the account is jointly-held.

And if you or your spouse isn't using all your tax allowance, fill in your R85 form and get the interest tax-free

leo888

well,my advice should be split your money to 3 parts,the first,most part you can lie it on the bank(the interest is low but safe,if you like to),the second part can be used for some venture investment,it can be have high ROI when you find a good,high reputation,trusted investment group.you can also try hyip with x% of your capital,it's return is so high if you know the right place,but it always have risk.

the third part you can try is to invest the money to financial market such as forex market,as the world's largest financial market,my advice is to use a demo account first and when you ready,open a real account and start as low as few thousand. practice and think.
there are lot of advantages to trade forex such as HIGH LEVELS OF LIQUIDITY or STEADY TRADING PROSPECTS,Hence it does not matter whether the market is rising or falling, there are always opportunities for successful trading. All you need is to have a good trading strategy.of course,we have the place that you can learn good trading strategy.

also,i'm a forex trade/broker,i'd like to help if you have any question about forex trading even you are a beginner.

hope these can help and good luck to you!

xtinataguba

do you really have to invest it? you can save it instead. because a lot can happen in 6 month. either your money will grow or you'll lose your money in an instan. think about it.