I wouldn't - very poor investment - complete gamble tbh....
Get her to use up her ISA allowance (7k each tax year) and stick the rest somewhere safe - i.e. high interest account/bonds etc..
Large sum of money to invest
- Thread starter Jimbeam3678
- Start date
I wouldn't - very poor investment - complete gamble tbh....
Get her to use up her ISA allowance (7k each tax year) and stick the rest somewhere safe - i.e. high interest account/bonds etc..
Associate
£200k eh? I'd probably just put it all on one horse and pray you win.
If it's split across enough companies that are registered with the FSA seperately (eg Natwest and RBS even though RBS own Natwest), then each deposit will be guaranteed up to £35,000.
Spread it across accounts, ISAs etc.
Given the current housing market, if she could buy a couple of properties next to each other for a bargain she might make a fortune once it picks up again.
Have you been on holiday to Venus? Or did you simply not read any news/ignore everything when several banks in America collapsed, and one here had to be bailed out by taxpayers?
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Don
Definitely seek professional advice. Obvious ones I can think of:
- Pay off mortgage!
- Look at fixed deposit accounts,
- Britannica have a 7% 12 month account at the moment, it's not instant access but I imagine with your other accounts you wont need access to this also.
- Read up on the compensation scheme, it varies country to country, over here it's called the Depositors Compensation Scheme, I believe in England it is similar, fortunately a professional should be able to advise you on the situation on the UK.
Finally, take advise from other people, on the internet etc as to what Independent financial advisor to speak to, ensure they don't have alterior motives as they may have a product of their own they want to sell. Cheaper isn't always better. And for what its worth, I'd stick 30k in premium bonds!
- Pay off mortgage!
- Look at fixed deposit accounts,
- Britannica have a 7% 12 month account at the moment, it's not instant access but I imagine with your other accounts you wont need access to this also.
- Read up on the compensation scheme, it varies country to country, over here it's called the Depositors Compensation Scheme, I believe in England it is similar, fortunately a professional should be able to advise you on the situation on the UK.
Finally, take advise from other people, on the internet etc as to what Independent financial advisor to speak to, ensure they don't have alterior motives as they may have a product of their own they want to sell. Cheaper isn't always better. And for what its worth, I'd stick 30k in premium bonds!
Soldato
bank it all with smaller banks. hope they then get bought out by a big bank, then you'll get paid x amount once they get bought out
This would have to be building societies, Portman was one, but now with the Nationwide which is still a building society. But I think they make you sign any rights away to windfalls in the future.
Right balls to this IFA nonsense (they're just salesmen anyway) - what she wants to do is get down to the casino and stick some money on red, if she loses then double the amount and go again (so you always win back what you lost) - with 200 grand to play with she'll easily win loads......
Soldato
She should get professional advice.
If I was in her situation I would probably buy a house or ftse trackers.
If I was in her situation I would probably buy a house or ftse trackers.
Soldato
Advice to go see an independant finance bloke seems the way forward to me to be honest.
I wouldn't go investing in property at the moment the way the market is looking. Houses will always retain some value but you would be annoyed buying a 175k house to find out at the end of this year its worth 150k.
I wouldn't go investing in property at the moment the way the market is looking. Houses will always retain some value but you would be annoyed buying a 175k house to find out at the end of this year its worth 150k.
Associate
Go see a Independant Financial Advisor, someone that will take into account IHT and provide what your mother wants from the capital rather then asking. There are so many questions that need to be answered before any advice can be given. There should be no charge and half decent IFA should be able to advise a suitable course of action that suits your mother.
I'm not a qualified IFA, I'm a mortgage broker who will be a qualifed IFA next year. I am giving no advice here, other then that to find a suitable professional.
I'm not a qualified IFA, I'm a mortgage broker who will be a qualifed IFA next year. I am giving no advice here, other then that to find a suitable professional.
Caporegime
That would be fine I think because in ten years when she retires it'll be worth £350k.
Soldato
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Associate
And would have to pay Capital Gains Tax on the investment.
Not that I necessarily disagree with what you're saying however it's worth noting that only existing deposits are fully guaranteed with Northern Rock, deposits made by new investors would be subject to the same £35k cap as any other institution.
Some would charge an hourly rate however many would do a free initial consulation at least. They make the money in commision from any investment.
Soldato
MC Hammer has gone into banking?
How much interest a month could one expect from £200k?
Caporegime
There's tax on pretty much all financial gains, housing-related or not. You of course pay tax on savings accounts as they often deduct it at source, else you must do it yourself through a tax return, so I'm not sure how capital gains tax on houses makes it any different to any other investment.
Associate
There are much more tax efficent methods then purchasing property. There are methods that would provide her with a nice income that would be completely tax exempt. This is why she should go to an IFA.
If she really wanted to invest 200k in property she would be far better off investing in multiple properties, say for example using 200k as a deposit against 4 flats with a value of 200k each. The should the property market rise by say 25% she would then be left with 4 flats with a value of £250k (50k profit per flat) rather then just the profit on a single dwelling. Yes it wouldn't be 50k profit per flat there are other costs involved. I'm talking in very broad strokes here.