100K to invest

panos_k75

I currently have around 100K sitting on various UK high interest rate saving accounts. My plan is to leave UK in about 5 years and move back to my home country. I would like to invest in something that would give me some kind of monthly income when I relocate.

What many people (not IFAs) have advised me, is to leave the cash in the saving accounts, keep topping them up with my future savings and then put that as a deposit to a buy-to-rent property when house prices have bottom out. I was wondering if this is my best choice?

What do you guys think?

isofa

First max out at least your cash ISA with 3600 if you haven't used it already.

IMO property in the long term is always a good investment. So you could switch the money (split it up etc) into a set of fixed "bond" accounts at 7% ish and instant access acounts 6.4%ish, then use it when the see a property you want.

Alternatively, you could talk to a proper IFA, maybe split 50% into more "risky" investments, but it depends on a lot of factors.

panos_k75

Since I am planning to leave the country, do you think think I need to consider off-shore accounts?

dunstonh

First thing that needs clarifying is that you say in the title that you want to invest the money but "many people" have told you to use savings options, not investments. What do you want to do? Invest or Save?

panos_k75

Both are an option for me. The end goal is to maximimize my income in 5 years, when the current plan is relocate to another country. My investment is not going to be any good for me if after 5 years it doesn't produce some kind of income on a monthly or quarter basis.

isofa

panos_k75 wrote: »

Since I am planning to leave the country, do you think think I need to consider off-shore accounts?

Permanently or just temporarily? And where to?

You have to pay UK tax if you are still registered in this country on any off-shore accounts.

Also what about the question and advice you were given last month re investing here: http://forums.moneysavingexpert.com/showthread.html?t=912399

panos_k75

It would be permanently within European Union.

panos_k75

isofa wrote: »

Also what about the question and advice you were given last month re investing here: http://forums.moneysavingexpert.com/showthread.html?t=912399

At that time the advise I was mainly given was to use saving accounts, however the requirements now have slightly changed since I would require a regular type of income from my investments/savings due to my relocation.

cheerfulcat

Panos, as you are planning to move to abroad permanently, it would seem to make more sense to look at investing in the currency of the country you are moving to ( Euros, presumably?).

Also, tax shelters such as ISAs will not protect you from tax liabilities outside the UK so again, it would be worth investigating any tax shelters available in your destination country.

As to regular income - if this is a long-term plan then you will have to look at equities. Returns from cash and fixed interest will be eroded by inflation.

panos_k75

cheerfulcat wrote: »

Panos, as you are planning to move to abroad permanently, it would seem to make more sense to look at investing in the currency of the country you are moving to ( Euros, presumably?).

Also, tax shelters such as ISAs will not protect you from tax liabilities outside the UK so again, it would be worth investigating any tax shelters available in your destination country.

As to regular income - if this is a long-term plan then you will have to look at equities. Returns from cash and fixed interest will be eroded by inflation.

Yeah it would be Euros...however given the current exchange rates I am very sceptical about exchanging pounds to euros at the moment. I am hoping to a stronger pound in the medium term.