£150,000 -best Place To Invest?

DOTTY

HI i'M ABOUT TO RECEIVE AROUND £200,000 IN COMPENSATION FROM AN INJURY SUSATINED IN AN ACCIDENT.
AFTER PAYING OFF DEBTS ETC AND BUYING A FEW THINGS I'VE CALCULATED THAT I WOULD BE ABLE TO INVEST £150-160,000.

I AM NOT WORKING AT THE MOMENT SO RECEIVE INCAPACITY BEENIFT AND HOUSING BENEFIT. i DON'T NOW HOW LIKELY IT IS THAT I WILL GET WORK IN THE FUTURE SO I NEED THIS MONEY TO WORK FOR ME. iDEALLY I NEED A MONTHLY INCOME FROM IT AS IT'S GOING TO HAVE TO LAST ME (I'M ONLY IN MY 3O's)

SEVERAL PEOPLE HAVE SUGGESTED A PERSONAL INJURY TRUST FUND IN PARTICULAR A GROUP CALLED NESTOR -BUT i'VE NEVER HEARD OF THEM AND WOULD LOVE TO HEAR FROM ANYONE WHO HAS.

OTHERS HAVE SUGGESTED NATIONWIDES E-BOND.

ARE THERE ANY OTHER SUGGESTIONS.I WOULD APPRECIATE ANY HELP THANKS

dunstonh

Please dont use caps like that. It indicates you are angry and shouting. Plus it is harder to read.

OTHERS HAVE SUGGESTED NATIONWIDES E-BOND.

Any savings option is going to be the worst possible option. The value of your money will be eroded over the years due to inflation and you will find yourself poor in later life.

i.e. £150k will be worth around £105,000 in your 40s, £73500 in your 50s, £51,450 in your 60s and £36015 in your 70s.

So, not only will the capital be less in real terms but the income from it will be as well. Of course, the statement will still say £150k but the spending power of it will buy you nothing.

brownbabygirl

what about NS and I inflation beating index linked certificate? You can invest up to 15,000 and have it bonded up for 5 years.

if the rest sits in a high interest account, it will generate a good monthly income. Bradford and Bingley 6.4% esaver comes with an option for monthly interest.

i have a feeling this sort of thing may be best later discussing with an IFA to see all your options.

dunstonh you told the OP what NOT to do with it. What CAN the OP do?

dunstonh

dunstonh you told the OP what NOT to do with it. What CAN the OP do?

We dont know any of the facts and information to say what to do. Therefore it is easier to say what not to do.

We dont know the income requirement, the risk profile (although inflation is probably the biggest risk here due to timescale of requirement), the tax position, other funds etc. Plus many of the most logical solutions include regulated financial services products and the board is not authorised to give that sort of recommendation.

zzzLazyDaisy

dunstonh wrote: »

Plus many of the most logical solutions include regulated financial services products and the board is not authorised to give that sort of recommendation.

Could you recommend a site / message board where that sort of investment is discussed? I am in a similar position to OP, and although I have placed money in fixed rate savings bonds to protect the spending power, I have avoided using my S&S ISA allowance as I feel that I need to know more about this form of investment

dunstonh

Could you recommend a site / message board where that sort of investment is discussed?

Its discussed here well enough. However, what you wont get on any site is a recommendation. Discussion, opinion and comment are fine.

EdInvestor

It's obviously silly to suggest that none of the money should be in cash.

Start by keeping it all in cash except for this year's 7k S&S ISA allowance. Open your ISA via a sicount broker such as https://www.h-l.co.uk.
Read this site and also look at H-L's suggestions for funds.

Choose 7 funds @ 1k each from different sectors, invest the money and then watch them perform.In April, add next year's ISA allowance to your account and spread the money around again - perhaps you may want to top up some existing funds or choose new ones.

Continue to do this every year until your confidence and knowledge grows, by which time you will see how to invest direct and also have a better idea of your risk profile. There is no real problem about investing 7k if you have 160k - it's only 4% of your total assets: you have to start somewhere.

[Deleted User]

Buy shares in CGM, you might double your money by 2010

hmmm a 150K buy order on a small cap... ill make loads


ps comedy

Geoffo_M

dunstonh wrote: »

Any savings option is going to be the worst possible option. The value of your money will be eroded over the years due to inflation and you will find yourself poor in later life.

i.e. £150k will be worth around £105,000 in your 40s, £73500 in your 50s, £51,450 in your 60s and £36015 in your 70s.

So, not only will the capital be less in real terms but the income from it will be as well. Of course, the statement will still say £150k but the spending power of it will buy you nothing.

I have never understood this. If your money is earning say 6.5% gross (5.2% net), and inflation is 3%-4%, surely your capital will not be eroded and will slowly increase. There is something I obviously haven't taken into consideration.

dunstonh

I have never understood this. If your money is earning say 6.5% gross (5.2% net), and inflation is 3%-4%, surely your capital will not be eroded and will slowly increase. There is something I obviously haven't taken into consideration.

If you draw the interest to live on then the capital never increases in value. So, each year the capital value is going down 3-4%.

It is one of the most frequent mistakes people living off their capital make. In this case, the capital has to last for 30-50 years.

The_Fiddler_2

dunstonh wrote: »

Please dont use caps like that. It indicates you are angry and shouting. Plus it is harder to read.

OT but if you notice, the start of each sentence and the pronoun Is are in lower case, I don't think the poster has realised that the caps lock was on.

Let the discussion continue