£700k to invest

ooSTEVEoo

Looking for some suggestions on how I can invest and inflation proof the proceeds from the sale of my home. I intended buying a new home but an agreed purchase fell through and I've not found anything else. I will be renting for 6 months minimum and possibly a few years or more. I'm a higher rate tax payer for income tax implications.

Thoughts so far...
1. Max out Premium Bonds (£50k) - I've never rated them but when I have so much to spread around its a safe start.
2. Put around £50k in 3 different P2P lending sites (ratesetter, zopa, Lendingworks - £150k total)
3. Buy some inflation linked ishares and a dividend tracking ishare.
4. Spread the rest over my Santander, nationwide and Natwest current accounts earning almost no interest but safe.

Looking for other ideas or reasons to avoid any of the above.

Thanks

Glen_Clark

All these things have been discussed elsewhere on this forum. Would you like us to duplicate it all here to save you the bother of looking for it?

bigadaj

Default response is ns&i and see no reason to differ here, particularly as the monies could be only in for six months.

Pincher

ooSTEVEoo wrote: »

Looking for other ideas or reasons to avoid any of the above.

I was presented with this problem around March 2016.

I bought some HSBC shares at £4.25.

I now wish I bought £700k worth at £4.25, when the dividend was worth 8.9%. There is a perfect storm brewing around HSBC, and Deutsche Bank has released a crazy target price of £14.

http://www.lse.co.uk/ShareBrokerTips.asp?shareprice=HSBA&share=hsbc_hldgsuk

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/HSBA/12953462.html

The buy back program proceeds apace, and it would appear there will be a further buy-back in USA in 2017.

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/HSBA/12953462.html

If you believe there is a flight of money from low interest rate accounts into tracker funds, where the fund mangers buy index constituents whatever the price, and they just sit on the shares, what will happen? Remember the shares pay dividend, so holding long term works as well.

My fantasy is, HSBC will release the shares they buy back slowly, at £14, and then declare a special dividend in 2018. Turn £700k into £1.5million in two years, plus dividend.

Adding £700k into the pot will drive up the share price for people already in, i.e. me, so it works a bit like a Ponzi scheme. So, are you the smart early bird, or the tardy patsy?

Higher rate tax payer? 20% on capital gains sounds good?

expansion

Pincher wrote: »

I was presented with this problem around March 2016.

I bought some HSBC shares at £4.25.

I now wish I bought £700k worth at £4.25, when the dividend was worth 8.9%. There is a perfect storm brewing around HSBC, and Deutsche Bank has released a crazy target price of £14.

http://www.lse.co.uk/ShareBrokerTips.asp?shareprice=HSBA&share=hsbc_hldgsuk

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/HSBA/12953462.html

The buy back program proceeds apace, and it would appear there will be a further buy-back in USA in 2017.

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/HSBA/12953462.html

If you believe there is a flight of money from low interest rate accounts into tracker funds, where the fund mangers buy index constituents whatever the price, and they just sit on the shares, what will happen? Remember the shares pay dividend, so holding long term works as well.

My fantasy is, HSBC will release the shares they buy back slowly, at £14, and then declare a special dividend in 2018. Turn £700k into £1.5million in two years, plus dividend.

Adding £700k into the pot will drive up the share price for people already in, i.e. me, so it works a bit like a Ponzi scheme. So, are you the smart early bird, or the tardy patsy?

Is this a joke?

planteria

it's an interesting one haha
i don't hold HSBC at the moment, but do have some Standard Chartered.
HSBC are paying 6.6% at the moment, the 5th highest div - on current stats.
they are the largest market cap company in the FTSE100
i do think they are a decent shout - for those looking for an individual company to back.

ooSTEVEoo

Putting it all in one company would be insane. I've invested on and off for years so may well buy some shares in a selection of blue chips but I see no really strong buys just now after recent strong market rises. If the likes of BP, HSBC, BHP happen to fall between now and the money coming through I may be tempted but for now I'm looking for safer investments. With low interest rates and any profit over £500 being taxable it won't be easy keeping pace with inflation. I need to pray for a London house price fall to maintain my buying power whilst out.

Pincher

ooSTEVEoo wrote: »

Putting it all in one company would be insane.

When you ask for "other" ideas, what kind of shape and colour does it look like?

Here's another one. Victorian mass produced furniture is now out of favour, and you can pick them up for peanuts in auctions, according to Radio 4, You & Yours, a few days ago. These things are novelty items in China, and can fetch a pretty penny. See an opportunity?

ooSTEVEoo wrote: »

With low interest rates and any profit over £500 being taxable it won't be easy keeping pace with inflation.

Which is why you should seek to make use of the £11,100 capital gains allowance, and £5,000 dividend allowance.

Pincher

expansion wrote: »

Is this a joke?

I also have a plot to buy, or start a coup d'!tat to take over Siberia.
As global warming continues, Siberia will have the richest farm land in the world, on top of all the mineral deposits, which will be more accessible as it gets warmer. Buy it from Putin cheap, like Alaska, while he's short on cash.

Is it a joke, or is it the kind of thing the East India company gives boardroom approval for?

expansion

What fund do you recommend for Siberian farmland?

Gadfium

expansion wrote: »

What fund do you recommend for Siberian farmland?

With or without frozen mammoths?