Investing Money

[postman44]

Received 150000 from selling my dads home. How is it best to invest the money. As banks only insure you for 85000 pounds.

[237SJ]

You could invest it with NS&I - that's what I did as the whole amount is covered due to it being Government owned. The rate is rubbish though so not a terribly good long term investmant.

[ubasses]

Depends what sort of return you want on it. If you only want to keep it in cash just spread it around two or more banks/building societies ensuring none of them re in the same group. Interest rates are very low at the moment. Otherwise make an appointment to see an IFA. Most Banks do a free first appointment, they will give you all your options after going into your full circumstances.

[237SJ]

*investment*

[woofgang]

be very careful with the banks free advice. They suggested some really dumb stuff to us and if we had let them manage our investments, they would have charged us management fees even if they had lost all our money.

[pixie374]

Tying some up in bonds gets a good return. So do stocks and shares... over the longterm, anyway. My son got a government bond for £250 when he was born, 16 years ago. You could either invest it or put in stocks and shares.
My friend invested for her daughter and now has just under £300. While my son's, in stocks and shares is over £2k.

[pixie374]

Also topping up any Isa you have.

[fiction-factory]

Don't get too concerned by the £85000 figure. The whole lot would be covered for a while as it counts as a major one off event. But it's the government's insurance scheme anyway not the banks. I think if any major bank went bust and the protection figure had to be applied I reckon we'd all be up the creek without a paddle. ANyway, for peace of mind you can split it between 2 or 3 institutions. If you are married your spouse can hold half the money as you each have a separate £85000 allowance.
As to how to invest it, it depends how much you will need to access it or draw down on it regularly. Have a look on the Martin Lewis site for options and guidance. You may need a mixture of instant access, short term notice, longer term notice and maybe some stock market investments. You also need to look at paying off any loans and putting as much as possible into a pension as a lump sum

[Peter Pedant]

that is quite a sum - just to ask a few walk-ins on AB what to do with

Bank accounts are insured but I woiuld nt put there - interest rate dire.
Banks will give advice which is always ; buy their crappy products. uniformly awful - A friend too k abond which paid no interest for ayear

and that leaves paying for advice
from an independent practitioner

ask around and for gods sake find out what their fees are before hand

[KARL]

If you are looking to the long term, find a strong currency and put it in there rather than keeping it in Sterling, then ask the bank or other institution operating in that currency to create an investment portfolio for you.

[fiction-factory]

But beware of people suggesting currency exchanges. Does anyone really knows whether the pound will rise or fall or stay pretty steady following Brexit?

[Maydup]

Take some professional financial advice. In doing so I have invested in a stocks and shares ISA and gained average of 4.5% growth pa. You could do better or worse depending on your attitude to risk. A professional will assess your attitude to risk, and whether or not you require short or long term home for the money, and manage the investment accordingly.

[andy-hughes]

Have you considered property?

Owning is not for everyone, but if you put your buildings in the hands of a reputable management company, you are sure not to lose money.

But as stated, it does depend how much return you actually want, and when, but the advice to speak to a professional is key.

[DocHH]

The best advice I had in 1995 when I inherited about £100k was to do nothing until I was comfortable with having that amount of money.

Then I was advised to pay off all debts, of which I had none, increase pension contributions to maximum, to minimise tax liabilies, and then consider what to do.

Things are rather different now in respect of financial advice, I would suggest you really need to take professional advice. As how you "invest" your money will depend on your age, your aspirations, your attitude to risk and even what other assets you have and what you wish to leave to your dependants. Are you looking for growth or income?

Although cash ISAs are safe, the returns are pathetic.

I am not a financial adviser, but did quite well with my invesrments just by reading the Telegraph financial pages,

[woofgang]

this is not andvice but a place you might look at is M and G. The information they give you about what stuff means is really good and you can access it without signing up for anything.

[Canary42]

Woofgang gives good advice "be very careful with the banks free advice."

My brother made an appointment with a bank "advisor" and after some time listeneing to her, he said,"Basically you're recommending the stuff which will give you the best return". She rather sheepishly concurred.

[KARL]

Regarding relative strengths of currencies, google historical exchange rates - start with looking at the past 40 years or so. The likelihood is that a currency which has held its value against others over that time will continue doing so. In the case of the Euro you only have some 20 years of history but for the purposes of comparison there is already an established trend. There are currencies which consistently compare favourably against the Pound, the evident maintenance/increase of/in value outstrips interest in Sterling so if you additionally get interest on one of these select currencies, or investment gains, the advantage is clear. On historical evidence the Pound is a poor "investment". Obviously the choice is yours and the outcome is yours to accept when it comes.

[Hymie]

Invest some of it in enjoying yourself (take a luxury holiday, by a better car [not new]).

If you want, invest it in moving to a better property/location, but if you are happy with where you are, save it for a rainy day.

In retirement it would get you an extra income of £10k for 15 years (tax free); something to consider if you otherwise don’t have a decent pension plan.

[lloydbautista]

in real state or it depends on you