£150k to invest

JodyBPM

I have £150K to invest. I'm more interested in income than capital growth in the short/medium term as school fees are accounting for a large chunk of our earned income, and extra income would make our day to day lives more comfortable. Of course, I don't want to erode the lump sum if at all possible, and capital gains are always going to be welcome!

We already own our own home outright, and have a couple of years worth of combined salary in cash savings (ISAs each and instant access funds). We both have good pensions and life insurance. So we have all the basics covered. We're comfortable (and careful!) middle earners rather than particularly high earners. We're both 40.

So where should we start? I have been toying with the idea of BTL, but realise there might be other options out there to explore too. Presumably we should see an IFA, but won't they have an interest in steering me towards an investment portfolio and away from property? I'm not sure how one even goes about finding a reputable IFA tbh!

Any advice?

jimjames

What's the problem with them steering you away from BTL to investments if that's the most appropriate option? BTL isn't very flexible.

Check unbiased.co.uk

poolforever

Premium Bonds ......

bigadaj

Buy to let is a biusiness, if you do your research and like the idea and it makes financial sense then by all means do it, but there is risk and work attached to it.

Investments are fairly straightforward if you just do the basics. Do some reading up, monevator website and time hales smarter investing book are oft quoted references. Then either DIY once you get some confidence or see an ifa and let them do the work but at your cost.

marlot

poolforever wrote: »

Premium Bonds ......

WIth the switch to two £1m prizes, I've sold mine. I can't see the monthly income being worth it any more (the total prize fund is unaltered, so the number of smaller prizes must reduce)

bigadaj

marlot wrote: »

WIth the switch to two £1m prizes, I've sold mine. I can't see the monthly income being worth it any more (the total prize fund is unaltered, so the number of smaller prizes must reduce)

No, this is supposedly being pId for by the extra funds that are now allowed from the increased limit. The odds on a win are supposedly staying the same at 26000 to 1.

greenglide

I'm more interested in income than capital growth in the short/medium term as school fees are accounting for a large chunk of our earned income, and extra income would make our day to day lives more comfortable

Send the kids to a state school like the majority of the population then.

Totton

I would work out how much income I wanted from the 150k and then consider if I was prepared to take the risk required to attain that. For example, if you don't need a great deal and place more emphasis on capital protection then you can probably meet the need through a sleet choice of bank and savings accounts. If you need more income then perhaps you'll need to consider placing the capital at risk by going for a BTL or investments. Once you know the amount of income required it may be easier to make a decision on what is best to do.

xylophone

Send the kids to a state school like the majority of the population then.

Rather rude? The OP has a perfect right to make choices for his own children?

With regard to the original question, since it seems that the parents have an adequate cash cushion, they might choose the equity ISA route for each of them - this would account for £30,000 and also a non isa account for each, investing in income producing OEICS/investment trusts.

They could choose to bed and isa in subsequent years.

They could invest through II and pay just the one quarterly fee?

For example, they might look at the likes of Artemis Income, Premier Monthly Income, Threadneedle UK Monthly Income , Axa Framlington Monthly Income, Invesco Perpetual Distribution etc?

Or they might choose half income producing funds, half capital growth?

Or they might choose a portfolio of shares paying high dividends?

An IFA would help if they don't feel confident enough to make their own selection. http://www.unbiased.co.uk/

BLB53

So where should we start? I have been toying with the idea of BTL, but realise there might be other options out there to explore too. Presumably we should see an IFA, but won't they have an interest in steering me towards an investment portfolio and away from property? I'm not sure how one even goes about finding a reputable IFA tbh!

Provided you do not require the capital for the next 5 to 10 years, I would be tempted to look at income from equities - possibly investment trusts and/or some solid ftse 100 blue chip shares.

I have held both for several years and they provide me with a steadily rising tax free income (in ISA) plus some capital growth, particularly over recent years.

Having said that, I have no knowledge of BTL investing but I imagine it could be a lot of hassle if you are both working.

Whether you need an ifa is up to you - I would imagine for a lot of people, it would be fairly straight forward to put together a portfolio of investment trusts - some UK income, some global income, maybe some property, infrastucture etc.

If you want to explore diy a few sites to visit (free!) https://www.fool.co.uk (see discussion boards) also https://www.diyinvestoruk.blogspot.co.uk and also https://www.monevator.com

Good luck!

RickyC_IFSWP

At the end of the day, BTL is an investment too and should be judged in the same vein. However BTLs are typically riskier given the lack of diversification, the borrowing/gearing used (i.e. mortgage), less liquid, requires more hands-on approach from the landlord, etc.

If you do decide to see an IFA, as jimjames rightly said, check out unbiased - it is a directory of IFAs and you can find your local one.