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About to be made redundant.

I'm in my 30's and about to be made redundant.I'll have a lump sum to invest of between 250 and 300k and was wondering the best way to invest to generate an income preferably quarterly.Both my wife and i won't be working for a while so can i split the investment and get tax relief for both of us as this would be our only source of income.Any help would be greatly appreciated as this is all new to me.Great board btw.
Snootchie Bootchies!

Comments

  • dunstonh
    dunstonh Posts: 118,602 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    you need to get advice from an IFA as 300k is too much to get suggestions from a website. There are too many variables to take into account.

    Attitude to risk, timescale, taxation (income, CGT and IHT), accessability.

    You would probably find it takes a range of products to meet your goals.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • If it was me i'd just buy a house (or two!) and let them out - somewhere where the house price inflation hasnt been too bad.

    just my tupence worth

    Neil
    _______________________________

    Formerly known as Gadget Freak!!!
    (oh and i dont know how to change my name...)
  • And here is my shillings worth.
    Look before you leap.
    ...............................I have put my clock back....... Kcolc ym
  • deemy2004
    deemy2004 Posts: 6,201 Forumite
    Hi

    300k is a lot

    To get tax relief at source the total gross interest (including gross pay) needs to be less than your tax free allowance so with 300k that effectively means a 90k cap for the 2005/06 tax year, invested in any one persons name (depending on the rates your invested with). Otherwise the money will have to be taxed and you will have to claim back any tax overpaid using form R40.

    I'd advice to take your time and spend a few months studying up on where to put it all, whilst in the meantime keeping the cash in the higher interest easy access account split between you and your partner for the current tax year.
  • Buy to let is a waste of money now, this isn't just because there has been a little bad press about house price inflation recently. If you look on the internet and study monthly rental rates then you will see that the return monthly is not as good as putting the money in the bank. As such you can only rely upon the possibilty, and it is just a possibility, that house prices will continue to rise, and not just rise but continue to sell for these higher prices. I recently looked into this as I have £250,000 of equity in my house (through not messing about with overstretching myself on the mortgage front) if I was to sell and put this money in the bank it would pay me £15,000 pa in interest, I found a house of a very similar size and quality of location on the internet and the rent was £12,000. So how good is the buy to let market if you can rent a £350,000 house for about the same as a £150,000 mortgage.

    If you look at the loft/flat market then I feel the sheer weight of numbers will completely devalue this market and when the rats start leaving the sinking ship, then they will leave very, very quickly with very little care for your investment.

    Personally I would lock the money up in a bank or put a considerable chunk into something you really want to, and believe you can, do and then put a whole lot of energy into making YOUR investment work.

    P.S. I would have moved to the rented house but I like where I am and I know the person who moved into the rented house (he sold his house for £1.2million, think of the interest, he's going to have fun when the market drops.
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