£300k to invest

lagransiete

Hello , my wife and I have recently sold a property and once we completed the CGT obligations, will be in a position to invest the above sum of money.

 We are both pensioners who can manage day to day living expenses reasonably comfortably, so the above sum is really designed for future planning.  We just want to make the best use of it, without squandering needlessly on risky investments. Furthermore, we also have another property we let, which we will probably sell some time in the future, but for now, provides us with useful income . I should also add we don't have a family to consider as far as inheritance is concerned.
 
We do each have 5 low risk multifunds which are mirrored, albeit on different platforms (Quilter & Fidelity). Over the years they performed conservatively with an annualised return of 4.6% although unfortunately, during the last year they have dropped approximately 9% . We still, though, make contributions in the hope they will pick up again.

So the question I have is what our options might be. Equities do not seem to be a good idea at the moment, so we thought of saving the remaining part of our yearly ISA allowance into a 3-year fixed cash ISA and using a savings platform such as Akoni for the bulk of our savings by putting them into 1 year fixed bonds. From them, we would draw out an annual 4 % amount at the end of each term and then reinvest the remainder into further fixed rate ISAS and bonds.

Albermarle

although unfortunately, during the last year they have dropped approximately 9% .

Same for everybody, in fact a 9% drop is not bad for 2022.

So the question I have is what our options might be. Equities do not seem to be a good idea at the moment, 

Your low risk multifunds, will contain a % of equities. You could just as easily argue that now is the time to invest more as nobody knows how the markets will be next year, although you can be reasonably sure that over the next 20 years, you will probably get a similar average return as you had in the past.

Cash savings can play a part in a strategy, but you are losing out to inflation in the long run, so probably best to keep investing.

You do not mention pension provision.?

older_and_no_wiser

Maybe speak to an IFA?

Perksy5

Depending if you have additional monies to round up to 500k, there are larger wealth firms that could benefit you as opposed to IFAs. IFAs often don't have the resources or combined expertise that larger wealth management firms have.
I do agree you should have personal tailored financial advice however for a sum that size. 
If you do prefer the idea of an IFA, unbiased.co.uk is a good place to start and I think you can even filter on location to find one near you.

Band7

Perksy5 said:

Depending if you have additional monies to round up to 500k, there are larger wealth firms that could benefit you as opposed to IFAs. IFAs often don't have the resources or combined expertise that larger wealth management firms have.

I am not an IFA but I am sure that many IFAs will disagree with fervour. Personally, I would avoid Wealth Managers as they will invariably not advise on the whole of the market.

dunstonh

Equities do not seem to be a good idea at the moment,

Why?
Would you have said that had equities gone up 20% in 2022?

Depending if you have additional monies to round up to 500k, there are larger wealth firms that could benefit you as opposed to IFAs. IFAs often don't have the resources or combined expertise that larger wealth management firms have.

That is an utterly bizarre statement to make.   You reckon its better to see sales reps offering restricted and expensive options rather than IFAs, who  typically deal more with higher net worth?

There is a general rule of thumb.   Avoid companies that have wealth management in their name or tag line (there will be exceptions as per any generalisation but its a fair guide).   The choice should be either DIY or use an IFA.    Not an FA. Not a wealth manager.

If you do prefer the idea of an IFA, unbiased.co.uk is a good place to start and I think you can even filter on location to find one near you.

Unbiased is no longer an IFA directory.  They let the sales reps of restricted firms in and it morphed into a lead generation site.   Areas will vary but in our area, you typically find the paid for listings are mostly from the national sales companies.   Most of the local IFAs no longer pay for an unbiased entry.

bostonerimus

With equities off their recent highs it might be a great time to invest in equities, but nothing wrong in using fixed rate saving accounts. I'd ladder them. ie split the money into say 5 parts and buy 1,2,3,4 and 5 year saving bonds. So you have regular access to your money and can take advantage of today's interest rates. When year 1 matures you take the interest and use the principal to buy another 5 year bond and do the same with the rest of the bonds as they mature. Eventually you have 5, 5 year bonds with one maturing every year. Or you might think about buying an annuity, which isn't an investment, but might be a useful income tool.

Perksy5

Band7 said:

Perksy5 said:

Depending if you have additional monies to round up to 500k, there are larger wealth firms that could benefit you as opposed to IFAs. IFAs often don't have the resources or combined expertise that larger wealth management firms have.

I am not an IFA but I am sure that many IFAs will disagree with fervour. Personally, I would avoid Wealth Managers as they will invariably not advise on the whole of the market.

Will have to agree to disagree

Bigwheels1111

I’ve gone with 5 year fixed rate savings, 5%, 4.85% and another in Feb 2023.
Annual payout, gives me a nice income and no tax as I’m a low earner.
Safe as well, next to no risk.

Albermarle

Perksy5 said:

Depending if you have additional monies to round up to 500k, there are larger wealth firms that could benefit you as opposed to IFAs. IFAs often don't have the resources or combined expertise that larger wealth management firms have.
I do agree you should have personal tailored financial advice however for a sum that size. 
If you do prefer the idea of an IFA, unbiased.co.uk is a good place to start and I think you can even filter on location to find one near you.

Your average IFA is quite used to dealing with this level of money and more. Perhaps if it was £5 million, then you might need someone more specialised.

lagransiete

Apologies for taking so long to reply, nevertheless I thank you all for your responses as it gives my wife and i something to think about
As it happens we did use the services of an IFA about ten years ago for a fixed fee we thought was reasonable and since then we have been saving regularly to a point where we feel we have a pot we can use for contingencies. The funds are globally spread (5 each all told) and have an average equity weighting of about 33%( the UK 13.17%). Given their poor performance over the last year, we are reluctant to substantially increase our monthly investment until we reach a point where we feel more confident to do so. 
We did recently contact the same IFA, and he gave us a quote of 1% which would cover the cost of the meetings, the research, his suitability report providing the advice and the implementation of his recommendations. I assume that would be standard market rate, but it being so we would immediately start with a cost of £3k to make up and i cannot think of anything in the area of low risk investment that would do that. It would need a 3% return for the 1st year and then more to counter the effects of inflation