£400,000 to Invest
Discussion
walm said:
To the OP - if you have a business that has generated £400k in excess cash then 1. well done and 2. stick to your knitting.
In other words don't start doing time-intensive risky things such as investing in wine/cars.
Spend your time working on what you are clearly good at - running the business.
In particular look to grow the business with that capital first and foremost.
Now if it is truly not needed then get a professional to advise you.
Lastly, for those morons offering 8%+ "risk free" or the even more laughable 2.5% PER MONTH I personally think you should be banned.
As DoubleSix rightly pointed out those returns aren't possible without significant risk.
Illiquid investements are by definition risky.
Property doesn't "guarantee" your capital.
Lending to businesses that banks won't fund IS f
kING RISKY!!!!!!!
Source: 15 long hard years in finance.
Second Source: I am not a total and utter moron.
In reply to Walm,you did not read the OP,S question.Which was that he wanted a better return. I unlike you, do not have an axe to grind on financial matters.In other words don't start doing time-intensive risky things such as investing in wine/cars.
Spend your time working on what you are clearly good at - running the business.
In particular look to grow the business with that capital first and foremost.
Now if it is truly not needed then get a professional to advise you.
Lastly, for those morons offering 8%+ "risk free" or the even more laughable 2.5% PER MONTH I personally think you should be banned.
As DoubleSix rightly pointed out those returns aren't possible without significant risk.
Illiquid investements are by definition risky.
Property doesn't "guarantee" your capital.
Lending to businesses that banks won't fund IS f
kING RISKY!!!!!!!Source: 15 long hard years in finance.
Second Source: I am not a total and utter moron.
I did say that in my opinion FCA/FSA was not worth bothering with (as it only covers you up to £85k)You will have your own views on this.
Please, as you have done 15 long hard years in finance, share your thoughts on the FCA/FSA compensation scheme?
I personally think you should be banned for suggesting the OP does knitting.How very rude.
I am not in a position to comment on your being a moron,total or utter,nor would I.
I have no axe to grind other than against misleading investment "advice".
For all the reasons already given there is no such thing as a risk free 2.5% per month return. That is a simple fact. It isn't opinion. It isn't open to debate.
To the OP - the better return would be from investing in his own business - not a completely new one he has no experience in (cars/wine/BTL).
I don't know much about the FCA scheme since it isn't relevant to my business.
However, it appears to cover you up to £85k for deposits and £50k on investments.
I suspect it doesn't pay out if you invest in a bunch of equities which subsequently tank.
You knew the risks, you gambled and lost.
If someone is mis-selling a risky investment as risk free then perhaps you might be covered but frankly you shouldn't be if the return offered is 2.5% a month since it is painfully obvious that such a return would require some risk.
In summary the limit is £50k not £85k and I doubt you are covered anyway.
For all the reasons already given there is no such thing as a risk free 2.5% per month return. That is a simple fact. It isn't opinion. It isn't open to debate.
To the OP - the better return would be from investing in his own business - not a completely new one he has no experience in (cars/wine/BTL).
I don't know much about the FCA scheme since it isn't relevant to my business.
However, it appears to cover you up to £85k for deposits and £50k on investments.
I suspect it doesn't pay out if you invest in a bunch of equities which subsequently tank.
You knew the risks, you gambled and lost.
If someone is mis-selling a risky investment as risk free then perhaps you might be covered but frankly you shouldn't be if the return offered is 2.5% a month since it is painfully obvious that such a return would require some risk.
In summary the limit is £50k not £85k and I doubt you are covered anyway.
For years, we have been conditioned to try and beat the market. We all want to come out on top, we all want to get ahead, we all want to end up with more than the next person and above all, we all want to make as much money as possible. To the extent that pragmatism sometimes plays second fiddle to any investor's worse enemy.. fear or greed. The way to do it, we’re told by the investment industry and salesmen flogging high risk and high cost investments, is to choose the latest high cost star fund manager with the expertise to pick the same high cost star stocks. And those star managers are rolled out in the Sunday broadsheets with predictable regularity, I saw some today.
This approach of course, is to be expected – for any investment house or salesman to do otherwise is like a turkey voting for xmas. It is also expensive.
One of the inherent weaknesses in the financial advice process these days is the lack of guarantees when it comes to genuine investment advice. I cannot guarantee investment returns for any of my clients.. there, I've said it. There is more than an element of truth in the saying that a good adviser ‘knows what he doesn’t know’ and a poor adviser pretends he knows more than he does. All too often, clients believe that consulting an adviser means better investment return because the adviser is an ‘investment expert’. Advisers too, can grandstand, to inflate their sense of importance.. to see themselves as 'players', rubbing shoulders with movers and shakers of the money world.
But as our reach and grasp of news and data reaches fever pitch (the learning curve left us all floundering in its wake years ago), one of the flaws in the investment adviser market was expecting very small firms of financial advisers to invest client money on a global scale, with perfect timing and impeccable asset allocation.. and all from the High Street if a local market town (in my case, Rutland - even more parochial!) with a broadband connection. There are many other areas in which advisers excel, such as offering retirement and tax planning, and inheritance tax advice. Or doing what I have been doing at no notice, a very sad probate matter.
Seeking financial advice has a number of benefits and only one of these has the potential for a better than anyone else investment return. Most clients are more than likely mostly concerned about avoiding costly mistakes and getting rich quick is probably not on their minds, and most clients do not need to believe that I am spending 23 hour a day poring over fund price tables on an hourly basis, seeking that extra, elusive, implausibly infinitesimal extra percentage return from Japanese start up biotech companies.
Yes, we can negotiate lower prices with providers, some question whether it is really worth it. I might charge £150 an hour, equivalent to 15bps (basis points) on £100,000. So, if I was to spend an hour on the phone arguing for a 0.15% or £150 discount that has cost me £150 to get, where is the value for the client? Fees and charges are not the be-all-and-end-all although of course, it's important. The level of service and quality also have to be taken into account. Cost only forms one small part of the entire due diligence process and cheapest isn't automatically the best.
I question whether, in today’s market place, advisers need to waste/spend *much* time in negotiating prices with individual firms at all (this week, we saw more fund price drops, it's a genuine marketplace right now and I can pick and choose at will). Clients just want to know the investment and retirement planning, and research is being done properly and that they are being looked after and not ripped off. And they want less of the bullsh*t. All any good adviser can do is be diligent, conscientious, knowledgable and professional.
This approach of course, is to be expected – for any investment house or salesman to do otherwise is like a turkey voting for xmas. It is also expensive.
One of the inherent weaknesses in the financial advice process these days is the lack of guarantees when it comes to genuine investment advice. I cannot guarantee investment returns for any of my clients.. there, I've said it. There is more than an element of truth in the saying that a good adviser ‘knows what he doesn’t know’ and a poor adviser pretends he knows more than he does. All too often, clients believe that consulting an adviser means better investment return because the adviser is an ‘investment expert’. Advisers too, can grandstand, to inflate their sense of importance.. to see themselves as 'players', rubbing shoulders with movers and shakers of the money world.
But as our reach and grasp of news and data reaches fever pitch (the learning curve left us all floundering in its wake years ago), one of the flaws in the investment adviser market was expecting very small firms of financial advisers to invest client money on a global scale, with perfect timing and impeccable asset allocation.. and all from the High Street if a local market town (in my case, Rutland - even more parochial!) with a broadband connection. There are many other areas in which advisers excel, such as offering retirement and tax planning, and inheritance tax advice. Or doing what I have been doing at no notice, a very sad probate matter.
Seeking financial advice has a number of benefits and only one of these has the potential for a better than anyone else investment return. Most clients are more than likely mostly concerned about avoiding costly mistakes and getting rich quick is probably not on their minds, and most clients do not need to believe that I am spending 23 hour a day poring over fund price tables on an hourly basis, seeking that extra, elusive, implausibly infinitesimal extra percentage return from Japanese start up biotech companies.
Yes, we can negotiate lower prices with providers, some question whether it is really worth it. I might charge £150 an hour, equivalent to 15bps (basis points) on £100,000. So, if I was to spend an hour on the phone arguing for a 0.15% or £150 discount that has cost me £150 to get, where is the value for the client? Fees and charges are not the be-all-and-end-all although of course, it's important. The level of service and quality also have to be taken into account. Cost only forms one small part of the entire due diligence process and cheapest isn't automatically the best.
I question whether, in today’s market place, advisers need to waste/spend *much* time in negotiating prices with individual firms at all (this week, we saw more fund price drops, it's a genuine marketplace right now and I can pick and choose at will). Clients just want to know the investment and retirement planning, and research is being done properly and that they are being looked after and not ripped off. And they want less of the bullsh*t. All any good adviser can do is be diligent, conscientious, knowledgable and professional.
pods said:
gregf40 said:
pods said:
How about an FCA approved 2.5% return per month guaranteed????? Following earlier posts guidelines drop me a PM for outline and details.
If it sounds too good to be true...Thanks for your valuable insight,most enlightening!
You would be on an island somewhere with billions in the bank.
I'm guessing you aren't.
pods said:
Oh so now I need to be a post whoooore to be worthwhile, do one please.....
My prime business life is modular building.Look up BRE @ Ravenscraig to get an idea.
I am not connected with any investment company in any way shape or form.
Oh right...so you don't run Berkshire Hathaway?My prime business life is modular building.Look up BRE @ Ravenscraig to get an idea.
I am not connected with any investment company in any way shape or form.
gregf40 said:
If you could get 2.5% return a month you wouldn't be on here telling us how to do it!
You would be on an island somewhere with billions in the bank.
I'm guessing you aren't.
Oh piffle, dear boy!You would be on an island somewhere with billions in the bank.
I'm guessing you aren't.
After all, if the OP invested his £400k at 2.5% per month, it wouldn't even be worth £8 million in 10 years from now, and I think we can agree that's just pocket change to some on this thread!
To the OP,
Have you considered crowd funding sites? The stronger the business case, the more people want to invest which dictates the overall interest rate which is paid.
Thresholds for investment differ with the platform you use. I prefer the ones that have sponsors which pull together the proposal and look after the relationship while the individual investors to do their own due diligence during a set period. There are a multitude of crowd funding sites and the security is usually asset based plus PG's but in the case of You can sell your individual investments on but liquidating like this can cost.
Everything is flexible, term, amount as is the type of business applying for the funding.
Another plus is you get to see and assist other business owners in building a company which provides an extra dimension of excitement ( sorry i don't get out much) that other investments simply fall short and you feel as if you are doing a bit of good.
Have you considered crowd funding sites? The stronger the business case, the more people want to invest which dictates the overall interest rate which is paid.
Thresholds for investment differ with the platform you use. I prefer the ones that have sponsors which pull together the proposal and look after the relationship while the individual investors to do their own due diligence during a set period. There are a multitude of crowd funding sites and the security is usually asset based plus PG's but in the case of You can sell your individual investments on but liquidating like this can cost.
Everything is flexible, term, amount as is the type of business applying for the funding.
Another plus is you get to see and assist other business owners in building a company which provides an extra dimension of excitement ( sorry i don't get out much) that other investments simply fall short and you feel as if you are doing a bit of good.
I`ve borrowed funds from a few PH guys and can confirm I`ve given them a secured (on property) a 1% per month return. They`ve all been paid back, with interest and their money didn`t even go into my account. It went direct to solicitors.
I`m even setting up a few Joint Venture deals at the moment where I source and provide the discounted deal, they bring in the funds, then we split the profits on resale. Again, all funds are secured. I`ve done this for years and only to the right people, but always looking to expand in a safe manner.
Happy to provide examples but not on an open forum due to discretion.
I`m even setting up a few Joint Venture deals at the moment where I source and provide the discounted deal, they bring in the funds, then we split the profits on resale. Again, all funds are secured. I`ve done this for years and only to the right people, but always looking to expand in a safe manner.
Happy to provide examples but not on an open forum due to discretion.
cerberaperv said:
I`ve given them a secured (on property)...
Again, all funds are secured...
I take it all back.Again, all funds are secured...
A non FSA-registered investment run by an estate agent (no offence but they don't have the greatest rep!) and secured on "property".
Sounds totally risk-free to me.
Particularly considering that property has never gone down in value.
This is like Triple-A PLUS!
Neil, don't get me wrong - I am sure you have done what you have said and I am sure that those benefiting to the tune of 1% a month would be very happy, it is just that this is by no means risk free.
cerberaperv said:
I`ve borrowed funds from a few PH guys and can confirm I`ve given them a secured (on property) a 1% per month return. They`ve all been paid back, with interest and their money didn`t even go into my account. It went direct to solicitors.
I`m even setting up a few Joint Venture deals at the moment where I source and provide the discounted deal, they bring in the funds, then we split the profits on resale. Again, all funds are secured. I`ve done this for years and only to the right people, but always looking to expand in a safe manner.
Happy to provide examples but not on an open forum due to discretion.
Interesting. Do your company account put anyone off? I know it's your first year etc so lots of reasons to have made a loss but just interested if it deterred anyone. I`m even setting up a few Joint Venture deals at the moment where I source and provide the discounted deal, they bring in the funds, then we split the profits on resale. Again, all funds are secured. I`ve done this for years and only to the right people, but always looking to expand in a safe manner.
Happy to provide examples but not on an open forum due to discretion.
pods said:
Not a promise, a guarantee from a FCA regulated company(for what that's worth)
Ok, enjoy your retirement....
Yes it exists.
The capital is protected.
If I had to guess, I'd say the money was involved in commercial bridging? Am I close? I'm interested so please PM me the details.Ok, enjoy your retirement....
Yes it exists.
The capital is protected.
Gassing Station | Business | Top of Page | What's New | My Stuff