Investing funds from house sale

a8wrgf

We are in the process of selling our main residence.
We have been in rented accommodation for just under 2 years.

We have tenants in our property, but as the local council wants to force all landlords to make significant and costly changes to fire regs and security rules for landlords - we took the decision to sell.

But we don't want to buy at the moment. And we will be in our rented place for at least a year.

So the question is - what is the best way to invest the funds from the house sale for min of 12 months (possibly much longer)?

[Newbie - both in our 40's with final salary pension schemes - one higher rate tax payer - two kids - one in private education, the other in nursery.]

Archi_Bald

If the horizon is 12 months, you aren't talking about investing, but about saving. Investing needs more like a 5-10 year horizon.

Best you can achieve in 12 months is a bit of interest in savings accounts, or current accounts which pay interest. Plenty of info about these on the forum and on comparison sites.

Totton

Archi_Bald wrote: »

...Best you can achieve in 12 months is a bit of interest in savings accounts, or current accounts which pay interest.

Good advice but not strictly true. If you are happy to put your capital at risk then of course you can invest for as short a period as you wish. What's your view of the world economy, if risky? then stay well away from investment and follow the good advice already given. If you think there is an excellent chance of growth then take a look at the stock market, perhaps a decent fund or Investment Trust takes your eye for a possible 25% gain in the next 12 months.

It really is down to what you are comfortable with, there are a few ISA millionaires because they were willing to risk it all on some higher risk small cap stuff, most of us took the safer route and thought about preserving capital :-)

Archi_Bald

Totton wrote: »

.... there are a few ISA millionaires because they were willing to risk it all on some higher risk small cap stuff....

I would suggest that none of them became millionaires in a year. Or two, or five....all ISA millionaires will have been into it for many years.


I do agree, anyone in for a big gamble on short term profits could throw all their money at the stockmarket and funds.

a8wrgf

Archi_Bald wrote: »

I would suggest that none of them became millionaires in a year. Or two, or five....all ISA millionaires will have been into it for many years.


I do agree, anyone in for a big gamble on short term profits could throw all their money at the stockmarket and funds.

Reading through some of the forums I would sum up the saving advice as - ISA's first (low risk)
- High interest savings accounts tend to be monthly deposits (low)
- transfer money from savings accts to monthly (low)
- consider peer-to-peer (medium)
- bonds (medium)
- shares/funds (higher)

So - is that most of the options?