Investing 250k inheritance post Brexit -advice needed

DiggerUK

Moe_The_Bartender said:

If the OP'S objective is a 3% yield, how does investing in gold achieve that?

You misunderstand how a return on gold is made, it is only  by capital appreciation you get a 'return' and is  realised when you sell it. Digger Mansions 'yield' has been far greater than 3%.

Any suggestions given here that the OP accepts will come with a financial health warning "you may not get back all you invest" etc., etc., so  nothing will guarantee 3%. As our returns are well in excess of 3% it is something for longleggings  to consider, but our experience shows it best if longleggings has funds that  could be left untouched for approximately  ten years..._

Frozen_up_north

I have around £100K invested in a mixture of shares, 3/4 is in a "money builder" managed fund that comprises shares/bonds of a similar bundle to those that pension funds invest in. The rest is in a FTSE "tracker" fund. The manged funds have a higher annual management fee and typically less return, circa 3% return at the moment. Overall return is just under £4K per annum.

Don't forget that in order to keep your investments growing, you should consider topping them up with some of the returns, some funds allow you do automatically do that.

I have transferred all of my investments into ISA ones, be aware that in order to do you you need to sell "non ISA" shares, putting the money into a holding fund, then buy them again. There are charges associated with the process.

Moe_The_Bartender

DiggerUK said:

Moe_The_Bartender said:

If the OP'S objective is a 3% yield, how does investing in gold achieve that?

You misunderstand how a return on gold is made, it is only  by capital appreciation you get a 'return' and is  realised when you sell it. Digger Mansions 'yield' has been far greater than 3%.

Any suggestions given here that the OP accepts will come with a financial health warning "you may not get back all you invest" etc., etc., so  nothing will guarantee 3%. As our returns are well in excess of 3% it is something for longleggings  to consider, but our experience shows it best if longleggings has funds that  could be left untouched for approximately  ten years..._

I don’t misunderstand gold at all. As you mentioned leaving things untouched for ten years, here's the chart.
https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

Depending on the timing of your investment, you might have made some money or you might have lost some. There are much better places to put your money if you’re searching for yield. I don’t mean company dividends which are basically a partial liquidation of the business but real income from rents, contracts or debt.

SonOf

Thanks to all for your thoughts - sounds like Brexit should not get in the way and that investment bonds may be an answer.
It is unlikely that an investment bond is going to be suitable.  It is a niche investment wrapper nowadays thanks to the increased ISA allowance and changes in dividend tax and flexibility in pensions that made investment bonds less suitable.   With annual bed & ISA, bed & pension and CGT allowance use, it should be possible to avoid taxation and that would be more tax efficient than an investment bond in most scenarios (but not all)

 I will get onto the Monevator site and have a look at Multi asset funds.
I am not sure a high yielding multi-asset fund would be a good idea.   I have never really found one that is consistently worth it at a good cost.    I would more likely go for a portfolio of single sector funds to build the yield.   However, that is just down to experience and not really suitable for you if you plan to DIY.

DiggerUK

Moe_The_Bartender 

I don’t misunderstand gold at all........Depending on the timing of your investment.

It seems you also misunderstand a wise strategy to invest in the market, if not you don't make it clear that it is accepted wisdom to  invest over a period of time by what is known as"averaging in" not going all in with everything you've got.  

Whatever longleggings decides to do I hope that is how they invest, that way the market fluctuations can be avearaged out in your favour..._

Moe_The_Bartender

DiggerUK said:

Moe_The_Bartender 

I don’t misunderstand gold at all........Depending on the timing of your investment.

It seems you also misunderstand a wise strategy to invest in the market, if not you don't make it clear that it is accepted wisdom to  invest over a period of time by what is known as"averaging in" not going all in with everything you've got.  

Whatever longleggings decides to do I hope that is how they invest, that way the market fluctuations can be avearaged out in your favour..._

You think that putting 100% in gold is wise? Sheeesh.

DiggerUK

Moe_The_Bartender You think that putting 100% in gold is wise? Sheeesh.

You seem to misunderstand what I suggested to longleggings. 

All I proposed was that any funds not needed for ten years could be considered for investing in gold. I'm sure if that was acceptable to longleggings, or indeed if longleggings had any questions to ask me then longleggings would have done so. As it is I don't believe longleggings is too interested in my suggestion. 

I do welcome your anxiety to do well for a poster seeking an answer however and applaud your concerns in that direction..._

Moe_The_Bartender

DiggerUK said:

Moe_The_Bartender You think that putting 100% in gold is wise? Sheeesh.

You seem to misunderstand what I suggested to longleggings. 

All I proposed was that any funds not needed for ten years could be considered for investing in gold. I'm sure if that was acceptable to longleggings, or indeed if longleggings had any questions to ask me then longleggings would have done so. As it is I don't believe longleggings is too interested in my suggestion. 

I do welcome your anxiety to do well for a poster seeking an answer however and applaud your concerns in that direction..._

Thanks for clarifying. Your initial post implied you put all your money into gold and that the OP should do the same.

atush

longleggings said:

Have explored the possibility of putting a lump some into an additional pension - i am with the teachers pension scheme
Does anyone have any experience of this scheme ? and is it worth putting money into an additional pension - i hear it may take along time to get a return

I would do this, incl using up any past allowances if your salary is large enough.  Otherwise, put in enough to use all of this and next years allowances (based on your income and what goes into your work pension).  if you are married, boost your partners pension and fill their S&S isa allowances as well.

DiggerUK

You won't be putting money in your superman scheme, it will more than likely be an AVC or similar that is recommended by the pension scheme.._