Where do I start ??

Jayh90

Good morning

I could do with some help or just genuinely some advice. I’ve just sold my house and I’m back at home and I have got quite comfy now! I have 160k just waiting in my Halifax account doing nothing. currently leaving Halifax and going to Barclays premier for the little perks. I have also got another 130k coming around 4-6 weeks just remortgage one of my BTL. This is all so I can buy a new house in the future the think is I don’t want 290ish just sat doing nothing. I was looking at funds/bonds is this something what it’s straight forward I know they have fees etc

Jamie

eskbanker

If you have multiple BTL properties then this would suggest that you should already have some idea about financial assets and how to manage them (not that BTL is typically seen as optimal on here), but much depends on how far into the future you're thinking.

If you're looking to use the money for another property purchase within say the next five years then you should keep it in cash deposit form, i.e. savings, but if you're thinking of longer term then investing might be appropriate.

It's prudent to keep no more than £85K within any single institution, to avail yourself of FSCS deposit guarantee protection (although proceeds from selling your primary residence benefit from six months temporary cover for up to £1m), so you'll need to look at spreading the cash around multiple places.

http://www.moneysavingexpert.com/savings/which-saving-account
http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

Jayh90

Yes I do have btls I just was interested in going down the wolf of Wall Street route. I reckon I’ll be home for a year no rush to move. Saving rates are second to none Halifax are 0.02 so moving banks. I am interested in funds seen vanguard mentioned a few times??

cloud_dog

Jayh90 wrote: »

Yes I do have btls I just was interested in going down the wolf of Wall Street route. I reckon I’ll be home for a year no rush to move. Saving rates are second to none Halifax are 0.02 so moving banks. I am interested in funds seen vanguard mentioned a few times??

With such a short timescale you are playing with fire if you are considering taking on investment risk.

eskbanker

cloud_dog wrote: »

With such a short timescale you are playing with fire if you are considering taking on investment risk.

Absolutely - it seems that a combination of a long bull run and depressed interest rates has led some to perceive investing as a ready-made suitable alternative to saving regardless of time horizon, which is obviously (to most) both naive and highly risky!

Jayh90

I don’t mind locking about 10/20 away to be fair maybe a little more if it will get my a little income?

Albermarle

I don’t mind locking about 10/20 away to be fair maybe a little more if it will get my a little income?

The historical evidence is that if you invest in shares etc over a 10 year period you have a very good chance of making a better return than just leaving your money in a bank/savings account .
However during that 10 years your investment can/will go up and down unpredictably , so that is why investing is not a short term activity . (People who buy shares/funds for short periods and sell them again quickly are traders /speculators , not investors)
If you want to invest up to £20Kpa then a Stocks and Shares ISA is the best route and invest in a low cost multi asset fund ( like a Vanguard one , or similar )
For the even longer term , investing in a pension is always a good move . Do you have one already ?

Jayh90

No not pension I have too other property’s one is worth around 280 with no mortgage so that’s my pension sort off

grumiofoundation

Jayh90 wrote: »

No not pension I have too other property’s one is worth around 280 with no mortgage so that’s my pension sort off

280000 is not a huge pension, plus the tax relief on pension contributions make this potentially a very good way to save.