What to do with £50k

steve_king_3

Hello,
I recently came by a windfall of £50k and wondered how I should invest it?
I don't need it at the moment so I'm looking for a medium term investment. I don't want to bung it in the bank because inflation is likely to eat away any interest.
I quite like the idea of buying tangible things because even if the market crashes, I still have the thing, if that makes sense?
I don't like ISAs and similar - I had one before because everyone said it was the best thing to do and ended up losing money when inflation was taken into account.
I was wondering about buying lock up garages and renting them out as the returns seem good? Or maybe a field which I could use as a pop up campsite once a year? 
Thoughts? I don't mind putting in a bit of legwork.
Steveo 

Thrugelmir

Clear debts, pay down the mortgage, increase your pension contributions.  

Another_Saver

steve_king_3 said:

Hello,
I recently came by a windfall of £50k and wondered how I should invest it?
I don't need it at the moment so I'm looking for a medium term investment. I don't want to bung it in the bank because inflation is likely to eat away any interest.
I quite like the idea of buying tangible things because even if the market crashes, I still have the thing, if that makes sense?
I don't like ISAs and similar - I had one before because everyone said it was the best thing to do and ended up losing money when inflation was taken into account.
I was wondering about buying lock up garages and renting them out as the returns seem good? Or maybe a field which I could use as a pop up campsite once a year? 
Er... Where have you heard about these from? These aren't really conveniental investments these are businesses you would have to run.
Thoughts? I don't mind putting in a bit of legwork.
Steveo 

As Thrugelmir suggests, look at clearing any debts, overpaying the mortgage, up your work pension contributions or put it into a SIPP. In the short term you could max out your £50k premium bonds allowance. Aside from that you could look at a stocks and shares ISA (https://www.moneysavingexpert.com/savings/stocks-shares-isas/).

Alexland

steve_king_3 said:

I quite like the idea of buying tangible things because even if the market crashes, I still have the thing, if that makes sense?

When the stock market crashes you still have your investments in Coca Cola, Google, Tesco, etc it's just that other people are temporarily trading them at a lower value than before. The trick is you don't sell your shares while the prices are low and just sit on your hands, reinvesting dividends into more cheaper units, until the price has recovered or hopefully grown further. Own a diversified mix of nearly all the listed companies in the world and let them do the hard work for you in a tax efficient wrapper.

enthusiasticsaver

I agree that pensions and stocks and shares isas are worth looking at. Do some research on diversified investing and not investing outside your risk profile. As Alex says you don't sell if the stock market is in a slump as that solidifies losses. Our investments were down by about 8% in March/April. Now they are up by 15% average. If we had sold in April we would have lost a packet but the gains we have made since then would pay for several long haul holidays if we were able to go anywhere at the moment. 

BananaRepublic

A muddy field, or an investment that over 10-20 years grows significantly to allow early retirement. A hard  choice. Of course when investing, you have to choose funds sensibly and hold onto them during a crash. I know people who panicked, sold low, and never invested again. 

steampowered

steve_king_3 said:

I quite like the idea of buying tangible things because even if the market crashes, I still have the thing, if that makes sense?

This is a nice thought, but it is also wrong. 

A single company share can go to zero. But the entire stock market is never going to go zero. Think about it: what do you think would happen if all of the banks, the supermarkets, all of the telecommunications companies ... all went bankrupt? Society as we know it would cease to exist and money would be the least of your problems.

Open a stocks & shares ISA, and invest as much as possible into a diversified investment fund. 

Something like the HSBC All Share Index Fund is a great place to start.

Another_Saver

steampowered said:

steve_king_3 said:

I quite like the idea of buying tangible things because even if the market crashes, I still have the thing, if that makes sense?

This is a nice thought, but it is also wrong. 

A single company share can go to zero. But the entire stock market is never going to go zero. Think about it: what do you think would happen if all of the banks, the supermarkets, all of the telecommunications companies ... all went bankrupt? Society as we know it would cease to exist and money would be the least of your problems.

Open a stocks & shares ISA, and invest as much as possible into a diversified investment fund. 

Something like the HSBC All Share Index Fund is a great place to start.

I think what the op means by that is that in that situation they would still have the thing. A field or garage has potential utility in an apocalypse. A stocks and shares ISA doesn't.

steampowered

Another_Saver said:

I think what the op means by that is that in that situation they would still have the thing. A field or garage has potential utility in an apocalypse. A stocks and shares ISA doesn't.

I don't think a garage would have much value in an apocalypse.

A field might, but you would probably need to turn it into farmland, and would need weapons to defend it, like on an episode of the walking dead ... 

Malkytheheed

Thrugelmir said:

Clear debts, pay down the mortgage, increase your pension contributions.  

Paying down your mortgage and increasing your pension contributions is terrible advice on how to invest. Why allocate cash to a debt thats likely around 1.5% interest, when that same cash can be earning you 5-20% interest for you? Overpaying your mortgage is the first finnancial trap of the middle class. It doesnt make sense if you can make more with the same money. 

Malkytheheed

steve_king_3 said:

I quite like the idea of buying tangible things because even if the market crashes, I still have the thing, if that makes sense?

What happens to your tangible property if the property market crashes? It's exactly the same s stocks, but a much bigger headache.