250k To invest

Pincher

Apodemus wrote: »

Well to be fair the OP Does say:
so if they are getting 4,800,000 pension, who cares about a 17k lump sum!

4,800,000, is that in pesos?

I was talking to a full-time civil servant, this year, who just took early retirement, which was voluntary, supposedly. Any way, he took the 25% lump sum, even though he had the choice of just have it all as an index linked annuity, which he could have deferred as well.

Just seems a waste of a good thing on tax payer's expense, that's all.

On the other hand, THANKS A BUNCH for helping to reduce the national debt by taking less.

DrSyn

toffeentom wrote: »

1. I'm 52, only have a small income at the moment of £16k from the company (£11k salary and £5 dividends)

2. I have an interest only mortgage of £25k and repayment of £3k which I have to pay in 8 years.

3. I have no savings/ISA's.

4. Pension will be about 4,800k and a 17k lump sum.

5.My attitude to risk is medium.

came across this https://blackmorebonds.co.uk/?utm_source=BIR&utm_medium=referral

6. 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

1. Improve your arithmetic before you DIY.

2. Have you thought of paying off your mortgage early?

3. (a) Set up a cash fund for emergencies in a building society (b) Start a S&S ISA if you intend to invest for 10 years or more.

4. Civil servants are clearly being pay too much when they are getting a 4800k pension and a 17k lump sum! Still it means you can afford an expensive IFA and do not need to DIY.

5. You say your attitude to risk is medium. The Blackmore Bonds returns start at about 9%. A FTSE 100 ETF yields about 4%. Are you really interested in something which appear to be twice as risky as the FTSE?

6. Hope these might be of help:-

https://www.citizensadvice.org.uk/resources-and-tools/search-navigation-tools/Search/?q=IFA

http://www.moneysavingexpert.com/investments/

http://monevator.com/highlights/

Have you thought of putting the maximum amount into Premium Bonds. You just might win the Big One!

bigfreddiel

Your civil service pension sounds like the classic scheme, so you could take it at 55 but with a 25% reduction, ditto for the lump sum.

Also you would need to reverse commute the lump sum into pension at a rate of 12 to 1, so if you reverses commuted say £12k of your lump sum it would add £1,000 per annum to your pension, index linked.

Cheers fj

toffee'n'tom

4800k. Got that wrong :):) about 5k

chucknorris

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 wouldn't recommend property, although it has been good to me, I've been a landlord for over 25 years, but we have just started to sell. Mainly for lifestyle reasons, but also because I see dividend income as just as good from a purely financial point of view, but when you also consider the hassle that property can be, then equities look a much better prospect to me. We are currently selling one property, and when a tenant vacates next month, we will also put that property on the market too.

Pincher

Sunday Times Money section today has a rather tempting headline story. Up 19% September to September. £28,400 in a Cash ISA last year is now £33,965 in a S&S ISA.

She split it four ways using investment trusts.

With FTSE at 7,000 , whatever you do could be on to a loser, though.

I'm tempted to buy some Standard Chartered, because it just wouldn't stop going up.

talexuser

Pincher wrote: »

She split it four ways using investment trusts.

My Foreign and Colonial is up 21% since April, excluding dividends, so sterling fall has helped boost many in the short term.

ibuypropertyuk

investing in property is good no matter what time as long as you have a good strategy. Whether its buy to let or buy to sell. if you buy to let get a company set up as the tax rules change next year and will diminish your yields. I buy and sell currently but I buy low, add value and make 20% plus profit and use my CGT allowance to reduce tax. Some good ISAs doing over 6% so you could utilize your ISA allowance too. Lots of options to choose but at your age and your risk profile, sensible going down the lower risk approach. Something asset backed or ownership. Diversify!!

jm78

chucknorris wrote: »

Mainly for lifestyle reasons, but also because I see dividend income as just as good from a purely financial point of view

How much dividend income can one reasonably expect from 250k? I'm also debating over whether to put a similar amount into a cash-bought buy-to-let or to invest in equity funds. Are there funds out there that would really pay dividends equal to rent from a property (net agent fees, maintenance, etc.)?

dunstonh

. Are there funds out there that would really pay dividends equal to rent from a property (net agent fees, maintenance, etc.)?

yes there are.