We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Vast sum to invest - advice

24

Comments

  • FatherAbraham
    FatherAbraham Posts: 1,024 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Fed wrote: »
    I have been lucky enough to amass savings of over 500k through gambling. Currently I have it all in saving accounts/bonds at varying interest between 1.5-2.7%. I want to look to other forms of investment in the hope of better returns but im undecided on how to progress.

    The important question is whether you've now stopped gambling. If you can't stop, then you'll need that £500k to pay big losses sometime, I expect, so best keep it as ready cash deposits.

    Warmest regards,
    FA
    Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...
    THE WAY TO WEALTH, Benjamin Franklin, 1758 AD
  • IronWolf
    IronWolf Posts: 6,426 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Come on tell us the story of how you made 500k!

    I wouldn't bother with an IFA. Firstly do a bit of reading into investing, there are numerous books recommended on here but I would start with

    The Intelligent Investor by Ben Graham
    Smarter Investing by Tim Hale

    Then choose where you want to invest money. Paying £15k (3%) to an IFA is a ridiculous sum and you're right to be weary of it. An IFA doesn't do anything that you can't do with a little bit of self-learning.
    Faith, hope, charity, these three; but the greatest of these is charity.
  • Reaper
    Reaper Posts: 7,339 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    My guess is it will be a bot running high volume, small return transactions on BetFair or similar. If so the income will be more regular than you might expect from the term "gambling".
  • Cornucopia
    Cornucopia Posts: 16,373 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I would have thought property was the way to go for at least a proportion of the money.

    For these reasons:-

    - It's simple to understand.
    - It's fate will be linked to the rest of the economy and (probably) underwritten to an extent by Govt.
    - It'll tie up a big chunk of capital to prevent it being re-gambled.
    - It'll give security and diversification for the future.
    - It'll save paying rent.
  • IronWolf
    IronWolf Posts: 6,426 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    BTW, if you haven't already I would spread that 500k over banks to remain below the £85k protection limit.

    If you're over you should put the money into NS&I as it is 100% safe.
    Faith, hope, charity, these three; but the greatest of these is charity.
  • Fed
    Fed Posts: 109 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    innovate wrote: »
    If you are smart enough to make half a mill from gambling, you should be smart enough to figure out how to invest your money / whether & how to trust an IFA. There are plenty of internet sites and books that tell you how to invest - - actively or passively. When you do more research, you will find out the diff between active and passive, and be able to decide what works best for you.

    You'd think so but it hasn't all been about smartness. I'll do some extensive research in the coming month then.
    atush wrote: »
    3% charges on 100-200K is far too high. This IFA is overcharging you (and perhaps your parents).

    Ask for a set fee, but do look at property prices now where you'd like to live. If they are over 300K, then you might not want to invest the money at all (or over 100K of it) as it could fall over your one year time span.

    Personally, I would have bought now, and not waited if you want to live in london, so would not have signed a new tenancy agreement.

    Thanks as I suspected. I'll look to some other IFAs then, I wasn't too keen on property when I met the IFA and when he suggested other avenues would be preferable I ruled the idea out for the immediate term, i'm coming round to buying but would want to get out and get a good feel for the market, my tenancy is up too soon now thoug
  • bluep
    bluep Posts: 1,302 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I would also recommend keeping very clear and demonstrable records as to the source of funds - HMRC will be able to see an increase in investment income earned - it may be enough to raise your risk profile and result in an enquiry a year or two down the line.
  • Fed
    Fed Posts: 109 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    And yes it's mainly through Betfair, no bots, pure manual trading. Before I made it I didn't really believe it could be done but I found a niche and continue to act on it. Even now I struggle to comprehend that people make money using other methods but there's ways. It's like a lot of things, when you don't know you're rather clueless, once you do it seems so simple and easy.
    The important question is whether you've now stopped gambling. If you can't stop, then you'll need that £500k to pay big losses sometime, I expect, so best keep it as ready cash deposits.

    Warmest regards,
    FA

    Thanks for the concern but I continue to profit. There's a reason i've got all my funds in accounts earning peanuts, im actually a risk averse person. I don't gamble for fun, I gamble because it pays me, if the day comes where it stops paying then I pack it in, I never chase losses
  • innovate
    innovate Posts: 16,217 Forumite
    10,000 Posts Combo Breaker
    Fed wrote: »
    ...I found a niche and continue to act on it...

    Well done, and keep it to yourself because you'd just kill the golden goose if you shared your knowledge. But I am sure you know that already :cool:

    Hope your niche will live for a long time yet, and that you will find a way of profitably investing your proceeds.
  • newfoundglory
    newfoundglory Posts: 1,912 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 11 April 2013 at 8:55PM
    Lots of things you could consider:
    - Premium bonds (max £30,000)
    - Peer-to-peer lending (i've recently started lending on Zopa).
    - start a buy-to-let business (not necessarily with London property, you could have a large portfolio for income)

    but half a million, thats impressive! without revealing the "niche" can you tell us what you bet on?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.2K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.3K Spending & Discounts
  • 240.8K Work, Benefits & Business
  • 617K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 254K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.