£100,000+ inheritance

Dab

I have inherited just over £100K and need advice as to how I might invest this.
I will use some towards house improvements and maybe even a loft extension but there will be a large some to invest.
I would rather not invest in stocks and shares, or anything too risky.
I am 50 years old and have a work pension.
I should be grateful for any help ;:)

Stuart788

After the savings crash I'd (and am) putting the money into a property to let.

bigfreddiel

I would put it into stocks and shares, you say no, but this is the best place for it

Property is hard work and can lose you money by the bucket load if it goes wrong

Cheers fj

dawyldthing

I wouldn't put it into property to let. Watch some of them channel 5 programmes, sure there not the norm but still. Depends how much you want back from it really but I wouldn't do something too risky with it

Stuart788

I am going to say something most people won't like but the more expensive the property the better the tenant and the less likely there is for something to go wrong. Get a good, two bedroom property and aim for rent of £750+ and you won't go far wrong.

Pincher

Are anybody doing With Profit Bonds still?

Poor return, but you don't lose money.

enthusiasticsaver

I would invest at least some of it in a well diversified and balanced multi asset portfolio within an isa wrapper to keep it simple from tax point of view. Look at legal and general multi asset funds, vanguard lifestrategy funds and I think Blackrock Consensus are another option.

I would keep some in high interest current accounts and regular savers.

Another option is fixed term bonds which are safe and give a better than average return 1.5 % or National Income Bonds or Premium Bonds.


You will get the best return in the long run on option one although no guarantees. If you really want no risk then option two or three but be prepared for the return not to be brilliant.

xylophone

For the moment, you could safely hold it all in NS&I income Bonds.

http://www.nsandi.com/income-bonds

"Invest" normally implies using stock market related products - "save" normally indicates deposit accounts of one kind or another.

You will not need telling that interest rates are low.

http://www.thisismoney.co.uk/money/saving/article-3761362/Cash-savers-never-bad-s-turbocharge-hard-earned-cash.html

http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

A portfolio of funds would almost certainly give you a better return but capital is not secure.

http://monevator.com/category/investing/passive-investing-investing/

Otherwise you might consult an Independent Financial Adviser.

https://www.unbiased.co.uk/

chucknorris

bigfreddiel wrote: »

I would put it into stocks and shares, you say no, but this is the best place for it

Property is hard work and can lose you money by the bucket load if it goes wrong

Cheers fj

OP I'd agree with this, I've owned investment property for over 25 years, but due to the recent tax changes (loss of wear and tear allowance, 3% additional stamp duty, phasing in of mortgage interest reduction as an allowance), the current high value of property, the better tax treatment of shares in both income and capital gains tax and the fact that you are not experienced with investment property. I would give property a miss and invest in shares.

atush

I would boost both of your pensions. Ie put more in of your salary and using income from the money to spend day to day.

Do you have cash savings in excess of thw 100K? If not, you need a cash emergency fund of 3-6 months outgoings. If you are isk averse, make this 1 years worth, Use S&S isa allowances, and put in something diversified but not too high a risk such as global trackers (all equity so higher risk) or the vanguard series (20-100% equity, i'd go wth 40-60 in your case).

You could employ the services of an IFA.

teddysmum

You see tv programmes about loss on btl and assume they deliberately find extreme cases, but the lady my son once rented from had to give up her properties.They should have made a lot of money as they were multiple single room lets, but because of vandalism, not from the actual tenants, she lost a lot.