Partner has £60-70k to invest- what to do?
Discussion
My GF's parents both died last year and after selling the estate she got about £140K. She lives in a 50/50 shared ownership with no mortgage, paying rent to the housing association. Her first move was to buy up the remaining 50% which she did for about £85k but now needs some advice on what to do with the remainder for a while.
Obviously, bank rates aren't great but what about ISA's? Are they the best thing to do or would you suggest other ventures?
I suggested the normal - E30 M3/Intergrale/Z3C but she was having none of it...
Obviously, bank rates aren't great but what about ISA's? Are they the best thing to do or would you suggest other ventures?
I suggested the normal - E30 M3/Intergrale/Z3C but she was having none of it...
Edited by Fastchas on Monday 6th March 20:11
It really depends on attitude to risk and how quick you want returns/access to money. I'd probably put some in a shares ISA and trade, and also put a chunk in an SIPP and trade - the government will add 20-40% onto any SIPP investment depending on what tax she pays, not many investments will match that!
Property...I think the boat has largely passed on this, still possible but not as straightforward.
Property...I think the boat has largely passed on this, still possible but not as straightforward.
If this was me, I wouldnt buy any property, it's a right hassle and unless you get it right the profit is minimal and depends on capital growth of the property.
If she invests in a unit trust it can spread the risk across the markets, and be set up as an ISA feeder so she can use her max ISA allowance for the next few years, whilst taking advantage of the markets. So as long as she doesnt take anything out until it's all transferred to ISAs it in effect becomes a totally tax free investment.
I did this when I came into a lump sum (I also bought a buy-2-let).
So far the buy-2-let hasnt shown an income profit, although the capital investment has grown by about 20%.
The remainder went into a market based Unit Trust, currently 60% has transferred into the ISAs, but overall the investment has grown by about 50%.
As long as you get a decent adviser I'd always suggest attacking the markets in this way.
This advice is of course worth exactly what youve paid for it
If she invests in a unit trust it can spread the risk across the markets, and be set up as an ISA feeder so she can use her max ISA allowance for the next few years, whilst taking advantage of the markets. So as long as she doesnt take anything out until it's all transferred to ISAs it in effect becomes a totally tax free investment.
I did this when I came into a lump sum (I also bought a buy-2-let).
So far the buy-2-let hasnt shown an income profit, although the capital investment has grown by about 20%.
The remainder went into a market based Unit Trust, currently 60% has transferred into the ISAs, but overall the investment has grown by about 50%.
As long as you get a decent adviser I'd always suggest attacking the markets in this way.
This advice is of course worth exactly what youve paid for it
keirik said:
If this was me, I wouldnt buy any property, it's a right hassle and unless you get it right the profit is minimal and depends on capital growth of the property.
If she invests in a unit trust it can spread the risk across the markets, and be set up as an ISA feeder so she can use her max ISA allowance for the next few years, whilst taking advantage of the markets. So as long as she doesnt take anything out until it's all transferred to ISAs it in effect becomes a totally tax free investment.
I did this when I came into a lump sum (I also bought a buy-2-let).
So far the buy-2-let hasnt shown an income profit, although the capital investment has grown by about 20%.
The remainder went into a market based Unit Trust, currently 60% has transferred into the ISAs, but overall the investment has grown by about 50%.
As long as you get a decent adviser I'd always suggest attacking the markets in this way.
This advice is of course worth exactly what youve paid for it
I have some Unit Trusts for my pension. I'm sure they've gone from £45k to £57k in 3 years...If she invests in a unit trust it can spread the risk across the markets, and be set up as an ISA feeder so she can use her max ISA allowance for the next few years, whilst taking advantage of the markets. So as long as she doesnt take anything out until it's all transferred to ISAs it in effect becomes a totally tax free investment.
I did this when I came into a lump sum (I also bought a buy-2-let).
So far the buy-2-let hasnt shown an income profit, although the capital investment has grown by about 20%.
The remainder went into a market based Unit Trust, currently 60% has transferred into the ISAs, but overall the investment has grown by about 50%.
As long as you get a decent adviser I'd always suggest attacking the markets in this way.
This advice is of course worth exactly what youve paid for it
Fastchas said:
keirik said:
If this was me, I wouldnt buy any property, it's a right hassle and unless you get it right the profit is minimal and depends on capital growth of the property.
If she invests in a unit trust it can spread the risk across the markets, and be set up as an ISA feeder so she can use her max ISA allowance for the next few years, whilst taking advantage of the markets. So as long as she doesnt take anything out until it's all transferred to ISAs it in effect becomes a totally tax free investment.
I did this when I came into a lump sum (I also bought a buy-2-let).
So far the buy-2-let hasnt shown an income profit, although the capital investment has grown by about 20%.
The remainder went into a market based Unit Trust, currently 60% has transferred into the ISAs, but overall the investment has grown by about 50%.
As long as you get a decent adviser I'd always suggest attacking the markets in this way.
This advice is of course worth exactly what youve paid for it
I have some Unit Trusts for my pension. I'm sure they've gone from £45k to £57k in 3 years...If she invests in a unit trust it can spread the risk across the markets, and be set up as an ISA feeder so she can use her max ISA allowance for the next few years, whilst taking advantage of the markets. So as long as she doesnt take anything out until it's all transferred to ISAs it in effect becomes a totally tax free investment.
I did this when I came into a lump sum (I also bought a buy-2-let).
So far the buy-2-let hasnt shown an income profit, although the capital investment has grown by about 20%.
The remainder went into a market based Unit Trust, currently 60% has transferred into the ISAs, but overall the investment has grown by about 50%.
As long as you get a decent adviser I'd always suggest attacking the markets in this way.
This advice is of course worth exactly what youve paid for it
Craikeybaby said:
Personally, I wouldn't bother with a buy to let, as I don't want the hassle/illiquidity, not to mention the 3% extra stamp duty. I would maximise my ISA for this financial year this month, then same again for next year next month.
ISAs are pretty pointless these days for this sort of amount. On £60K you'd make about £300/year interest - you can earn £1,000 interest these days without paying tax. Even higher rate tax payers get £500 of interest tax free, you wouldn't get anywhere near that in a year.
Craikeybaby said:
Personally, I wouldn't bother with a buy to let, as I don't want the hassle/illiquidity, not to mention the 3% extra stamp duty. I would maximise my ISA for this financial year this month, then same again for next year next month.
I think it depends on how much you're having to borrow for the buy to let. We were going to sell our un-mortgaged property to buy a new place as we were put off by the extra stamp duty. Our advisor told it to think long term as the extra few grand we would pay, was nothing when you look at it over 10 or 20 years.Edited by Craikeybaby on Tuesday 7th March 21:09
We have been lucky so far as we got some excellent tenants and clear a decent amount a month after tax. Had we a mortgage on it, with the new rules it would have been a lot less.
The problem is you always hear of the bad tenants, as it makes good tv, but millions of homes are rented every year with no issue.
Craikeybaby said:
I should have specified S&S ISA, I tend to ignore ash ISAs, as like you say, they are pretty much pointless at the moment.
Given the annual dividend allowance dropped yesterday, and bearing in mind the 17/18 ISA allowance is £20,000, I imagine we'll see renewed interest in them.(Nice to have a pension lite budget for a change)
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