Save or Invest?

Legacy_user

I am preparing to emigrate in roughly a year's time for family reasons. From the sale of my property at current house prices (taking into account all associated costs such as sale of property, purchase of another property, moving etc) I will have a spare £175k. The average cost of living where I am going is around £1k a month for a family of 4. I have 2 children.

I would like this money to last me a while without worrying too much about eating into the capital. I am prepared to put larger amounts away for, say, 5 years at a time for it to work harder! I'm not planning to be in full time employment but how much I will need to work will depend on how much the money is working for me.

Any savings or investment advice or tips would be very appreciated!

Leia_Stephens

If I were you I would recommend saving and investing:

perhaps putting 20k in an N S & I Index-Linked 3 or 5 year bond, this bond earns interest and also should get a rate of growth which equals inflation

saving 100k in ING, which gives a high-rate of interest - currently 4.60 gross - and can give you a monthly income from monthly interest payments.

saving the other 55k with Cahoot for six months to get their introductory bonus interest rate

Please remember that this is not proper financial advice, these are merely thoughts and suggestions.

Leia

BULLNOTBEAR

I can't see any investments mentioned in the last post.

That is all savings/ deposit based.

You might prefer the above if you need access/ low risk. National Savings is treasury backed so very safe but Indexed linked savings bond are not very competitive in low-inflation environment. Better off going for 3 year Fixed Rate from another product provider. NS & I are not very competitive.

Have you used your ISA allowances this year. You and your Partners? That's a good start. You could use both Cash Isa allowances for tax free returns on £3K each and work from there.

Are you willing to accept any risk with any of this capital?- if not then your options are restricted to Deposit based accounts. With this much capital and if it is not needed for 5 years then some Equity Investments would be advisable. Investing in Income based Equity funds could produce income. Also consider commercial property/ Bonds Funds. These would obviously be more risky. The more risk the more reward but values can fall as well as rise. You should take professional advice if you are not comfortable with choosing specific equity related funds.

Leia has mentioned a couple of the best paying accounts above. Check https://www.moneyfacts.co.uk for best paying accounts.

DiggingOut

Not directly related to your question, but when you move money overseas, be sure to use a currency broker rather than a bank, it will save possible 2-2.5% of your money.

System

i have some much needed research to get along with for now. thanks very much for the leads. i will be taking professional opinion nearer the time but i need to do some homework first.

thanks again.

StockTrader6080

Many U.S. Stocks are at an all-time low and now might be a good like to get in at rock bottom prices with a lot of short-term upside potential.

I use CoolTrade robotic traders to find stocks that are 90% lower now than they were 1 year ago. Most of these stocks bounce up any time the market has a few up days in a row.

I prefer the robotic traders, because I can learn to take control of my own trades, instead of dumping it into mutual funds where I don't learn anything and can only sit back and pray that the fund managers know what they are doing. Based on the fact that many funds dropped 50% least year, makes me very suspect of whose side those guys are on.

Keith

agsnu

I smell astroturfing.

sandsy

Bear in mind that once you're resident overseas, you won't be able to take out ISAs.

Also, depending on what country you're going to, the tax regime in that country could have an impact. For example, in some countries, the increase in value of life assurance investments is taken into account in each year's tax return rather than being ignored or taken into account at the end of the term, as here.

In other countries, there might be a tax free allowance for the first x of equity dividends. I suggest you famliarise yourself with the tax regime of wherever you're going as most advisers here will not be aware of overseas tax regimes.