Large sum of money to invest
- Thread starter Jimbeam3678
- Start date
Soldato
Real intrest rates (minus 3.5% inflation) are at about 2-3% at the moment so
£200,000 * 0.025 = £5000
£5000 / 12 = £416.66
£417 a month, more if she get a higher interest rate but remember she'll have to pay tax out of that as well.
Associate
- Joined
- 6 Feb 2008
- Posts
- 1,750
Spend it all on petrol, your money will grow exponentially 
Without a doubt do the premium bonds, 30k in.
Approach your mam's (
) bank and ask for an appointment!
Soldato
Cool. I wish I had £200,000.
Caporegime
Fine but in today's climate rental is unlikely to entirely cover mortgage costs and having four properties quadruples that risk, so she would need to make sure she could cover mortgages for four properties.
Associate
First thing, go seek out a couple of reputable IFA's, and see what they say. Then go see a couple of banks/building societies, and see what they say. Compare, contrast, and make an informed decision.
The key is what does she want to go for, capital growth, or income? Does she want to have access to some or all of it, or can she leave it sitting for a while? It's all about her current situation, really.
The key is what does she want to go for, capital growth, or income? Does she want to have access to some or all of it, or can she leave it sitting for a while? It's all about her current situation, really.
Soldato
If you're going to make a wish, why stop at £200k?
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Associate
Thats one way of looking at it. I'm not looking to provide a solution for his mother I can't I don't have enough information to advisor her of the best course of action. I don't want to get into an disscussion about if 4 properties or one property is more risk in todays climate.
Caporegime
Of course; nobody should be advising her with such a pitiful amount of information. But it still makes for an interesting debate.
As already said, the only real advice is to consult a professional.
Well she has been to one IFA and from reading between the lines my mam only tells me half stories don't the y all!!!
IFA just pointed her int he direction of moneysupermarket to check the best High interst accounts. My mam would pretty much have to use some of it to live day 2 day as she only works part time.....
At work at moment but will post more details if any isneeded in an hour or so
TIA
IFA just pointed her int he direction of moneysupermarket to check the best High interst accounts. My mam would pretty much have to use some of it to live day 2 day as she only works part time.....
At work at moment but will post more details if any isneeded in an hour or so
TIA
What's she using to live day to day now? Its her money to do what she wants with, but if she's getting by now IMO it'd be silly to whittle it away. Getting a huge lump sum like that is a 1 off for 99% of people and should be invested so as to give maximum returns.
probably the best idea tbh...
If she only works part time & wants to avoid anything with an exposure to the stock market then what is an IFA going to do with her? IFA is just a salesman who sells packaged products and, without any further information, it sounds like the best thing for her to do is deposit it in someway - not much commission in there for the IFA so it sounds like he was being fairly honest with her - she might as well just compare the best deals online, max out here ISA and just deposit the cash.
Bzzt...wrong. The number 0 (the green number) on the roulette wheel tips the odds very much back in favour of the house. You don't think any house games actually have even odds do you - if so I have a bridge for sale/some magic beans (delete as appropriate) you may be intereseted in!
Look at all the truly rich people in the world. Whenever they talk about their wealth they say "oh, I may be worth billions, but actual liquid funds aren't very much at all", they tie them up in bonds, stocks (typically of their own company) and other investment vehicles. They'll keep a certain amount, maybe a few tens of thousands, as readily accessible liquid funds, but any more than that is a waste as liquid funds do not work for you at making more money.
Soldato
As has been said, it depends on the risk she wants to take. And an important factor, her AGE snf requirements. But risk is No.1.
For me, I dont' want any risk whatsoever with my money. So at best you are looking at about 6% returns with No risk. And by that I mean, even if the bank goes belly up, she still gets her money - and the return is there for her (if spread over half a dozen accounts at 6% roughly)
This equates to roughly £12,000 a year on the £200,000 after tax - or £1000 a month for the thick people in here
Quite a lot of cash, for doing nothing, and a lot more safer than buying property or dabling in investments.
What a lot of peple have failed to mention, is that she has ALL her initial money whenever she wants it, and has full access to her funds should she need them in case of emergeny (a very likely possibility in later years -& it's very difficult to sell a house - should she feel the need to purchase property - it is unlikely she will be able to sell quickly & return the initial outlay should she need it in this financial climate)
For me, I dont' want any risk whatsoever with my money. So at best you are looking at about 6% returns with No risk. And by that I mean, even if the bank goes belly up, she still gets her money - and the return is there for her (if spread over half a dozen accounts at 6% roughly)
This equates to roughly £12,000 a year on the £200,000 after tax - or £1000 a month for the thick people in here
Quite a lot of cash, for doing nothing, and a lot more safer than buying property or dabling in investments.
What a lot of peple have failed to mention, is that she has ALL her initial money whenever she wants it, and has full access to her funds should she need them in case of emergeny (a very likely possibility in later years -& it's very difficult to sell a house - should she feel the need to purchase property - it is unlikely she will be able to sell quickly & return the initial outlay should she need it in this financial climate)
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Bzzt...wrong. The number 0 (the green number) on the roulette wheel tips the odds very much back in favour of the house. You don't think any house games actually have even odds do you - if so I have a bridge for sale/some magic beans (delete as appropriate) you may be intereseted in!
no it works honest - just double the amount - with 200 grand you're bound to win......