Where would you put 150k in investments now?

Nevbear

For long term not short term use. 

No mortgage. Pensions full and will provide good income. Rental property but selling as it’s a headache/regulations etc. Some money in stocks and shares. Some money in NSI bonds etc. Used ISA allowance. Full PB’s in family. 

I was thinking vanguard S&P 500 ucits etf but don’t know what effect recent volatility would mean for this right now? Would an all world fund be better? 

Many thanks

booneruk

Do you mean 150k in fresh money, or is some of that already in the ISAs you speak of as cash or existing stocks and shares?

Any investments outside an ISA and Pensions will be liable for capital gains and dividend taxes, as well as interest (on interest paying vehicles), although I believe you can buy UK Gilts through certain platforms that will be exempt from the capital gains element. If you believe the rumours, capital gains tax will soon be raised too.

If I were risk averse, I'd look to drip feed fresh money in over a couple of years. This way you can use next year's ISA allowance as part of that. I'd go for a cheap global equity passive fund, of which there are many.

There are also more exotic investments that are tax efficient such as VCTs, although I know very little about those so won't comment.

Hoenir

When you say pensions full. What does this mean?  You've also allowances in the years to come to utilise. 

tacpot12

I've been very pleased with my investment in the iShares UK Dividend EFT (Ticker is IUKD). It's a fund that invests in the top 50 dividend-paying companies in the UK. Yield is around 5% after charges. As you will no longer have your rental income, some regular income might be better than a fund that aims at growth. 

MeteredOut

booneruk said:

Do you mean 150k in fresh money, or is some of that already in the ISAs you speak of as cash or existing stocks and shares?

Any investments outside an ISA and Pensions will be liable for capital gains and dividend taxes, as well as interest (on interest paying vehicles), although I believe you can buy UK Gilts through certain platforms that will be exempt from the capital gains element. If you believe the rumours, capital gains tax will soon be raised too.

If I were risk adverse, I'd look to drip feed fresh money in over a couple of years. This way you can use next year's ISA allowance as part of that. I'd go for a cheap global equity passive fund, of which there are many.

There are also more exotic investments that are tax efficient such as VCTs, although I know very little about those so won't comment.

Historically, investing it all "now" has provided better returns than keeping some in cash and drip feeding investments over a number of months/years.

But, as you say, more risk averse people may choose to do the latter (actually, you said risk adverse )

ColdIron

Nevbear said:

I was thinking vanguard S&P 500 ucits etf but don’t know what effect recent volatility would mean for this right now? Would an all world fund be better?

Why have you excluded the UK, Europe, Japan, Asia Pacific and Emerging Markets? All your money in one country is very high risk. Even if you went for all world that's still 100% equities, much higher than the risk tolerance of most investors. What is your capacity for loss?

Why is 'recent volatility' and 'right now' important 'For long term not short term use'?

What do you mean by 'Pensions full'?

Are you a tax payer and if so what band? Are you in employment?

kempiejon

Given that the USA is about 65% of the global market, depending on where you look and exactly which version of an all world fund you buy the question you could ask yourself is would you prefer to be all USA or only 60% USA.
If you think the USA will beat the rest of the world over the long term you should pick S&P. If not go global.

I know that I cannot know the answer to long term global performance compared to USA. By going global you'll collect whatever the USA market does, gains or not. By going S&P500 you'll miss India, the Baltics and Nordic states, the rest of Europe, Asia, Africa, Australia and so on.

boingy

Stick it in a global tracker and forget about it.

booneruk

MeteredOut said:

Historically, investing it all "now" has provided better returns than keeping some in cash and drip feeding investments over a number of months/years.

But, as you say, more risk averse people may choose to do the latter (actually, you said risk adverse )

DID I NOW!? haha (thanks, edit button)

Yeh, I do realise history proves lump sums are generally the best way to go, but drip feeding will also allow next year's ISA and pension allowances to be tapped. 

OP could do a lot worse than watching a few Youtube videos on the PensionCraft channel.

Nevbear

It’s part of my pension lump sum as I have just retired. I’m currently higher rate tax payer. Husband still working full time. 

I didn’t know if recent US markets would mean it is a good or bad time to buy. 

I’m going to read and digest the replies as I didn’t expect so many so promptly! 

Linton

tacpot12 said:

I've been very pleased with my investment in the iShares UK Dividend EFT (Ticker is IUKD). It's a fund that invests in the top 50 dividend-paying companies in the UK. Yield is around 5% after charges. As you will no longer have your rental income, some regular income might be better than a fund that aims at growth. 

People have such short memories!

In 2007 IUKD fell by 60%, regaining its 2007 value in 2014 with dividends reinvested.  If you were taking dividends the capital value would now, some 17 years later, still be some 40% below its 2007 value.

The problem was that in 2007 the UK banks were the major dividend payers in the market.  Then we had the GFC.

Important lesson: If you are investing for income ensure you are highly diversified in asset type, geography and sector.