250k To invest

toffee'n'tom

I currently have £0 but in the next few months I'll be getting a loan backI made to my company together with profits possibly totalling 300k. I'm looking to invest 250k.

I'm 52, only have a small income at the moment of £16k from the company (£11k salary and £5 dividends) but this may end if we decide not to continue. I may look for a part time job

I'm single, I have no dependant children (well two in uni) and have an interest only mortgage of £25k and repayment of £3k which I have to pay in 8 years.

I have no savings/ISA's.

I have a small government pension which I can access at age 55. (I worked at the civil service for 32 years, mainly part time) I gave up this job two months ago. Pension will be about 4,800k and a 17k lump sum.

My attitude to risk is medium. I'm looking to invest between 5 and 10 years.

I've been reading endlessly about stocks and shares ISA's, passiving investing, PtoP lending and also came across this https://blackmorebonds.co.uk/?utm_source=BIR&utm_medium=referral

I am thinking about a financial advisor but I would like to have a go at investing myself. Does anyone have any thoughts at how they would invest this money for a decent return?

Thanks in advance

Pincher

Civil Service pension, index linked, and you are taking a lump sum? :eek:

I assume you meant £5k, not £5, to use up the £5,000 dividend allowance.

Don't forget the £11,100 CGT allowance.

I work it so I use up my tax allowances first.

Won't work for somebody with millions, but £250k is easy to plan.
You can always sell next year if you have too much gains.

Marktheshark

Property, bricks and mortar.
Two rental properties with no mortgage should net £1000 a month with the increase in the value of the property as a bonus.

Nothing can even begin to come close to that return, not even a 20th and you still have the investment capital which can be liquidated by selling .

toffee'n'tom

Marktheshark wrote: »

Property, bricks and mortar.
Two rental properties with no mortgage should net £1000 a month with the increase in the value of the property as a bonus.

Nothing can even begin to come close to that return, not even a 20th and you still have the investment capital which can be liquidated by selling .

I have looked into this but many have advised against becoming a landlord on here if you have no experience? Bad tenants/empty properties?

toffee'n'tom

Pincher wrote: »

Civil Service pension, index linked, and you are taking a lump sum? :eek:

I assume you meant £5k, not £5, to use up the £5,000 dividend allowance.

Don't forget the £11,100 CGT allowance.

I work it so I use up my tax allowances first.

Won't work for somebody with millions, but £250k is easy to plan.
You can always sell next year if you have too much gains.

I think you have to take the minimum lump sum?

coastline

I'm guessing best to see an IFA with the sum of money involved and the value of your home..

http://www.moneysavingexpert.com/family/inheritance-tax-planning-iht

5-10 in the stock market isn't really giving you much time to recover from a possible downturn so you'd need to consider your full position.

Marktheshark

For every horror story they are hundreds of landlords making good hard money each and every month.
Housing is on absolute crisis and demand is outstripping supply, rents are rising fast.
There is simply nowhere that you can put £250k and get back even a 20th of the return of rental property.

You either want to make money or sit it in someone else account so they can make money with it and give you the shavings left over from what they make.

xylophone

I have looked into this but many have advised against becoming a landlord on here if you have no experience? Bad tenants/empty properties?

What you do have is experience of running a business?

If so, then learning the ropes of running a property business might be less onerous.

http://www.landlordlaw.co.uk/new-landlords-guide

However, it seems to me that it is not a business for the faint hearted.

I have a small government pension which I can access at age 55.

Without actuarial reduction?

When you receive the cash, you might consider stashing it in NS&I Income bonds while you think about your options.

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

Do you have other pension provision? If not, a pension contribution might be worth considering.


Had you considered gifting housing deposits to your two children when the time is right?

Or helping them with HTB ISA/LISA?

For readily available cash at a reasonable interest rate you could follow the well trodden higher interest current account route for some portion of the cash.

dunstonh

I have a small government pension which I can access at age 55. (I worked at the civil service for 32 years, mainly part time) I gave up this job two months ago. Pension will be about 4,800k and a 17k lump sum.

Just because you can access at 55 does not mean you should.

I'm looking to invest between 5 and 10 years.

Why that timescale? Are you looking to spend all the money within that time period?

Property is not the big money maker it once was. Anyone could make money on it in the credit boom years. Now, things are not the same. Credit is not as easy. New taxation rules are coming in and you need to look harder for yields. A bit more understanding of the market is required. Would you do it yourself or need an agent? Would you be able to refurb and redecorate yourself or need to pay someone else to do it?

There is simply nowhere that you can put £250k and get back even a 20th of the return of rental property.

Ignore statements like that. They are just plain wrong and misleading. For example, that can easily be matched with conventional investments.

You either want to make money or sit it in someone else account so they can make money with it and give you the shavings left over from what they make.

And statements like that because if you use an agent, they will take money from you. If you use a decorator and/or builder, they will take money from you. Every option sees third parties involved. So, just remember to keep a balanced mind and not be swayed by those with a bias.

Dird

Marktheshark wrote: »

There is simply nowhere that you can put £250k and get back even a 20th of the return of rental property.

£12k/year (as sighted previously) is less than 5% ROI with no compounding effects (many years before you can reach a 3rd property), reduced liquidity and the additional costs of letting agents, house repairs, empty periods, legal action for evictions and if you're lucky, CGT on sale.

I don't see why the only options to you are buy are property or a 0.1% savings account

Apodemus

Pincher wrote: »

Civil Service pension, index linked, and you are taking a lump sum? :eek: .

Well to be fair the OP Does say:

toffeentom wrote:

...pension will be about 4,800k...

so if they are getting 4,800,000 pension, who cares about a 17k lump sum!