£100K - Where Do I Put It??!!!

nickjohng1973

I'm shortly to receive around £100K inheritance and dont know the best way to invest it??
Should I pay off some of my existing mortgage or is there a much better "home" for my money??

Any ideas?? - thanks!!!

Meltdown_2

:think:
:idea:
level of risk you are prepared to tolerate?
period you want to invest for?
personal taxation rate?
any other debts to pay off?
pension provision?
children or other dependents?
spouse to split tax liability?

Riq

There is a new fund called, "Riq's Ferrari Investment Hedging Fund".

PM me for details

Ximian

nickjohng1973 wrote: »

I'm shortly to receive around £100K inheritance and dont know the best way to invest it??
Should I pay off some of my existing mortgage or is there a much better "home" for my money??

Any ideas?? - thanks!!!

All depends on your personal circumstances, you won't get many replies with advice on what to do until you provide a bit more details on your personal circumstances.
For example: is it worth paying off your mortgage? That depends on what the interest rate is on your mortgage and if there are any penalties for paying off the mortgage early as opposed to saving the money till the end of your mortgage term and then pay the mortgage off without paying any penalties and having saved or invested that money in the meantime. You also mentioned investing the money, and Meltdown has the right questions regarding investing. Are you looking to have the money accessible at any time and are looking to save rather than invest?

Hopefully the following guide will help you to decide what to do with the money if you have questions about savings vs. mortgage payment: http://www.moneysavingexpert.com/mortgages/mortgages-vs-savings

bargainbird

In my back pocket....

I will keep it very safe :beer:

nickjohng1973

Sorry, you're right, I should have given a bit more detail.....

I'm 34, single, no kids and no other debt other than a mortgage of £215K (where my house is worth £400K).

I'm reluctant to put it in an Account that pays 6-7% - surely I can do better than that with that amount of money??

ryandj

It is very difficult to get returns of greater than 6-7% without taking any risks ie your capital won't be guaranteed!

Rafter

If your mortgage rate is above 4%, then you are unlikely to earn this amount after tax without taking significant risk on such an amount.

I suggest you check the terms of your mortgage, repay as much of that without penalty and then put the rest into ISAs initially then savings for the rest.

With current turmoil in stock markets and currency markets, I wouldn't invest any lump sum in these higher return sectors right now. OK if your drip feeding money into a pension, but investing a big sum risks getting your timing wrong and losing a significant sum in the short term potentially.

R.

nickjohng1973

Thanks Rafter, good advice.

I thought as much, just seemed that 6-7% was a pretty miserly return on 100K - I thought it might be a bit closer to 10% but probably just being hopeful......

I agree with not investing lump sums.....how do you invest in ISA's (plural)??...I thought you could only have one??

Or do you just get all your mates to open one for you??????!!!!!!!

chesky369

I think you should find yourself an IFA immediately, since any advice you receive here is too vague to be of real help with regard to such a large sum of money. A good IFA would judge your own personal attitude to risk and what goals you want long-term, and would then advise you accordingly. I found a wonderful person about 4 years ago and wish I'd known about him 20 years ago.

jem16

nickjohng1973 wrote: »

Thanks Rafter, good advice.

I thought as much, just seemed that 6-7% was a pretty miserly return on 100K - I thought it might be a bit closer to 10% but probably just being hopeful......

Very hopeful I'm afradi.

I agree with not investing lump sums.....how do you invest in ISA's (plural)??...I thought you could only have one??

You can put in £3600 each year so you can have more than one but you can only pay into one each tax year.

Or do you just get all your mates to open one for you??????!!!!!!!

Not unless you plan to gift them the money.

If you plan to invest this money over at least 5 - 10 years then see a good IFA who should be able to make your money work better for you than savings.