£450k investment

ALr66

Hi all,

I have £450k to invest for an income and am not sure whether to purchase a buy to let property or put the money in something like an NS&I Bond.

What are people thoughts?

Thanks

grumpy_codger

Regarding buy to let it's better to ask on House buying, renting & selling   board. I guess most there will advise you against.

masonic

Both seem like odd choices. But knowing nothing about your financial objectives, investment horizon, and attitude to risk, there's no way of knowing what would be a good fit.

Albermarle

ALr66 said:

Hi all,

I have £450k to invest for an income and am not sure whether to purchase a buy to let property or put the money in something like an NS&I Bond.

What are people thoughts?

Thanks

If you want some good feedback, you need to supply a lot more info about yourself. For example;
Age? 
How much income do you want and for how long ?
Current earnings ?
Pension provision?
Mortgage?
Experience as a landlord?
Risk tolerance ( for investing in Stocks and shares)?
Thoughts about paying for financial advice ( £450K is a lot of money )
Etc
Most likely the best course of action, will not be either/or, but a mix of things.

ALr66

Based on  @Albermarle advice here is some further context.

Age 52 
How much income do you want and for how long? As much as possible for as long as possible.
Pension provision? No pension at all.
Mortgage? No mortgage. 
Experience as a landlord? No experience as a landlord.
Risk tolerance (for investing in Stocks and shares)? As lower risk as possible.
Thoughts about paying for financial advice (£450K is a lot of money)

dunstonh

ALr66 said:

Hi all,

I have £450k to invest for an income and am not sure whether to purchase a buy to let property or put the money in something like an NS&I Bond.

What are people thoughts?

Thanks

What about all the other options? The two you have selected are very different.

Bigwheels1111

The basics are needed.

Age, single, married,kids etc.

House, own or mortgage.

Debt, Job, tax band.

I sold my house and stuck the cash in 5 and 7 year fixed rate accounts for a nice income, but was a carer for the wife.

So only had 4k coming in + interest, No tax to pay.

No job gives you £18,570 of interest tax free a year.

If you have a job you will be paying tax in a big way on that figure.

Do not put more than 80k in any one bank, 85k is covered by FSCS, but interest over 85k is not.

Things changed, I was left homeless and no access to the funds for 3 and 5 more years.

Not without begging for them to cash me out. At their discretion.

Have a large emergency fund just in case.

ALr66

dunstonh said:

ALr66 said:

Hi all,

I have £450k to invest for an income and am not sure whether to purchase a buy to let property or put the money in something like an NS&I Bond.

What are people thoughts?

Thanks

What about all the other options? The two you have selected are very different.

I'm open to suggestions 

masonic

ALr66 said:
How much income do you want and for how long? As much as possible for as long as possible.
Risk tolerance (for investing in Stocks and shares)? As lower risk as possible.

You are going to have to compromise on at least one of the above, because the investments producing the highest income will tend to also have the highest risk.

I think this is an instance where financial advice would be helpful. The cost of making a bad decision based on what strangers on an internet forum interpret would be best for you is likely to be higher than the cost of advice.

vacheron

£450k in a 5% cash savings account will give you £1,875 per month before tax with virtually zero effort.

Not sure how much more a £450K BTL would give you in your area, but after all of the deductions and BTL risks, plus the awful tax treatment for non-business BTL income, is it worth the extra hassle for the extra you might make? We recently did some back of napkin calculations and categorically decided it wasn't!

Eyeful

Your post suggests you do not have experience in handling large amounts of money.
For this amount of money, give some thought to consulting an Independent Financial Advisor (IFA), 
Just make sure they are an IFA, who are supposed to work for you.
While Financial Advisors (FA) are basically salespersons who work for their employers. 
https://www.moneysavingexpert.com/savings/best-financial-advisers/