£95,000 to invest. what do?

Watchamacallit · 16 June 2017 at 10:38PM

i will take into consideration all of your helpful advice. baring in mind your honesty to me, i aught to be straight with you lot.

if you guys want the truth, it's not in stocks. it is however in an asset, or maybe a currency - so far, nobody is sure, not even governments.

it's bitcoin.

now maybe you guys can understand why i'm a bit skeptical considering it's volatility.

i invested a sum into the currency a number of years back and thats grown to the value you see today. And it initially started with approximately £10, over the years i continued to accumulate and i think all in all i probably invested about £400. i stopped investing then forgot about it. It was purely a skeptical investment and at the time, i was quite desperate for some money considering circumstances. (In fact, if you guys look at my posting history, it was only a year or two before my first post here that i started investing into bitcoin)

ive looked into taxation and it appears capital gains is in order but i'm still doing my homework on this front.

i do believe short term the bitcoin markets will decline. i sense its' in a bubble but long term i think the technology can prove useful as it's worked so far since 2008 (Created during the financial crisis - no coincidence, i think).

All considered this is why i believe short term bitcoin can see a decline in value, but long term, particularly regarding FIAT inflation rates and economic strife, bitcoin, like precious metals, can really go places.

System · 17 June 2017 at 6:01AM

Bitcoin is beyond my knowledge, I wouldn't usually touch forex but maybe you're onto something with it

Anyhow at this point if you do choose to go equities you will make quite a substantial difference to income, especially if you go track the msci world small cap index, some short term cash but mostly invested

elephantrosie · 17 June 2017 at 8:40AM

while healthcare is covered by NHS, i will still be cautious with money as i aged or with chronic illness.
it depends on how much you trust the NHS to look after you. are you happy with delayed appointments? how would you feel if you required an urgent treatment, but having to wait for funding approval? would you stick to NHS or go private?

i personally would always save aside a five figures cash..... just to be on the safer side.

if you have health insurance, ignore this post.

xunil · 17 June 2017 at 3:45PM

I know of a few good places to invest for income but I think your biggest problem is cashing out your 95k worth of Bitcoin (unless you already have).

Watchamacallit · 17 June 2017 at 4:41PM

xunil wrote: »

I know of a few good places to invest for income but I think your biggest problem is cashing out your 95k worth of Bitcoin (unless you already have).

A small portion. 13k over the last year -- it's actually surprisingly easy.

The issue is taxation and the rules (or lack thereof) around it i'm struggling to get my head around.

System · 17 June 2017 at 6:18PM

I think that if mining ever gets too expensive or unrewarding (approaching the 21m limit, say) bitcoin will basically seize up - either through higher fees or centralisation as miners drop out

Gold has at least some utility to underpin at least some value, and native currencies have government backing even if theyre nolonger tied to gold - bitcoin having neither could potentially drop to 0 value eventually

And being forex there's no dividends, no average expected returns. It all relies on greater fool theory

I reckon be thankful you came out of it well and get out while you can

Watchamacallit · 17 June 2017 at 9:25PM

MatthewAinsworth wrote: »

I think that if mining ever gets too expensive or unrewarding (approaching the 21m limit, say) bitcoin will basically seize up - either through higher fees or centralisation as miners drop out

Gold has at least some utility to underpin at least some value, and native currencies have government backing even if theyre nolonger tied to gold - bitcoin having neither could potentially drop to 0 value eventually

And being forex there's no dividends, no average expected returns. It all relies on greater fool theory

I reckon be thankful you came out of it well and get out while you can

i agree completely. i do believe bitcoin was the experiment, but there's a whole industry around it and so many alternative currencies that are loosely based on bitcoin or have entirely new technologies.

at one point or another i do anticipate one of them to exceed bitcoin itself. when that will be, or even if, is anyones guess.

In the end, if it did go south sure i'd be upset, but it's given me more than i ever anticipated or could've expected, for that reason alone i'm grateful.

System · 18 June 2017 at 5:28AM

There could be more peaks to come but I think we are at one now - looking at the graphs we'd expect it to revert back to previous value soon

As for other currencies - I think society would prefer it simple and bitcoin the best known, other currencies may however be more stable - more liquid - it needs a steady value to be a currency rather than speculative tool

gallygirl · 18 June 2017 at 11:41AM

Whereabouts do you live and how much rent do you pay?Do you have any other savings? If you are in a very low cost of living area you may be able to buy a house/flat and save yourself rent - equivalent to generating a monthly income as it's saving you some outgoings. I believe that wouldn't be classed as 'deprivation of capital' if you have to claim benefits, whereas you would be expected to use your savings to live on until they got down to a certain level.

The maths probably won't work but worth considering as an option.

£95,000 to invest. what do?

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