£500,000 Investement

YoungBusinessman

Great position to be in, one that could see early retirement if that was a wish?

Dont have much i can add, asides what has already been mentioned, could you keep us informed of what you decide to do and how it performs for you.

steampowered

If possible, find a way to use that gives you enjoyment. Some people like to buy properties and do them up: a hobby that generates good returns at the same time.

If we are just talking money and you are investing for at least 10 years, then a balanced portfolio of quality shares (with dividends reinvested) is a pretty safe bet. No investor has lost money on shares over a ten year period since 1900. Shares do fluctuate but over the long term they invariably perform very well.

ozzage

See more than one IFA and compare their responses.

And yes, travel the world.

Totton

Glen_Clark wrote: »

Why Investment Trusts?
With £500k you could hold 50 shares x £10k each for less charges, and stay in control.
50 shares seems more than enough diversification to me.
More diversification still doesn't stop you losing money if the market falls.

Simply because I don't want to manage 50 shares, I prefer to use a few IT's alongside a LifeStrategy fund, currently split 50/50 and working well.

Regards,
Mickey

marathonic

Totton wrote: »

Simply because I don't want to manage 50 shares, I prefer to use a few IT's alongside a LifeStrategy fund, currently split 50/50 and working well.

Regards,
Mickey

An interesting thought:

Is managing a portfolio of 50 shares much more difficult than managing a portfolio of 10?

If you have 10 shares, each represents 10% of your portfolio so it's extremely important to get the choices right.

With 50 shares, each represents 2% and, instead of closely monitoring all 50, you could sort them by total return over the past day, week and month - investigating the 5 with the greatest and the 5 with the poorest returns.

My thoughts are that, for the 40 shares in between, it's likely that nothing material has changed within the company to put you in a position where you'd want to sell and, in the unlikely event that one of the companies has, it's only 2% of your portfolio and will likely appear in the top or bottom 5 companies the following week.

Don't get me wrong, you could set up the portfolio in the likes of google and review the newsfeed for all - but the more detailed investigation would only be required on those that have over or under performed when compared to the portfolio as a whole.

Glen_Clark

Totton wrote: »

Simply because I don't want to manage 50 shares

What do you need to manage?
Just buy and hold like Warren Buffet.
Dividends either to your bank account, or reinvested.

atush

cepheus wrote: »

It's impossible to provide an informed view without more information. Important factors will be how much you've already got got tied up in property, type of pension contributions if any, your present job security and responsibilities, income and tax situation.

Exactly. We can't take the 500K on it's own, but fit it into all over financial situation.

I would keep 5% in cash, as the BTL will need a cash flow for costs. And so you would not have to sell investments before their time.

atush

lippy1923 wrote: »

Whoa, why has nobody mentioned holidays, exploring the world... Invest a small portion in you! Maybe 5% on luxuries.

I would kick myself if I invested/ saved everything, only to get hit by a bus and not enjoy any of it.

Very nice position to be in. Enjoy it.

yes, Indeed a nice holiday and replacing old cars would be on my list. Nothing too flash though

Wobblydeb

acc2007 wrote: »

What would you do ?

Retire now.

To enable me to do that I would drip feed the cash into high dividend shares, corporate bonds and gilts. The only funds I would use would be where it is more expensive to invest directly - e.g. foreign markets.

Then I would figure out the most fulfilling thing to do with all my extra time, and do it

moneyfoolish

xmodz wrote: »

If i had 500,000
to invest

I would have
£100,000 in buy to let
£300,000 in shares split between 30 companies £10,000 each
£50,000 in corporate bonds between 20 companies £5,000
£30,000 in gold and silver
£20,000 on funds

If I had £500,000, I wouldn't need to invest! That would let me live comfortably for the rest of my life!!!!