Best way to invest £1m

[A993LAD]

Looks like I might have sold my house.

Will probably have £1m ish sloshing around for some time whilst making other arrangements for somewhere to live.

Any thoughts or ideas on the best way to utilise this sort of capital gratefully received.

[NickCQ]

If you are buying another place in the near future I don't think there are many sensible alternatives to cash. You may find that £1m more than maxes out certain accounts / rates (off the top of my head Marcus is one example at £250k), so I suppose you'll want to spread it around.

[outnumbered]

Also remember the FSCS limits: https://www.fscs.org.uk/what-we-cover/

Looks like you can avoid the pain of spreading the cash around 13 institutions with the "Temporary High Balance" scheme.

[A993LAD]

Thanks

Should have mentioned that I probably wouldn't need to draw on these funds for at least a year maybe 2 depending on how long it takes to get permission and plans for new project.

[Zoon]

Marcus - Maximum
Premium Bonds - Maximum
123 Account - Maximum

The rest in FOBT at Ladbrokes

[JulianPH]

Cash, index linked UK gilts, house price tracking ETF (perhaps).

Lots of other options too, but some sort of mixture of different defensive assets is what you should probably be looking at.

[moxy89]

1M on a 6 fold both teams to score and result. Your either end up with nothing or around 100million.

take the risk

[Groat]

moxy89 said:

1M on a 6 fold both teams to score and result. Your either end up with nothing or around 100million.

take the risk

More seriously, how about a 4 way of Celtic, PSG, Juve (certainties) and FC Copenhagen (virtual certainty) to win their respective leagues in season 19/20 (plus Barca and Man City (high probability) too to add some risk) ?

Edited by Groat on Friday 9th August 17:20

[NickCQ]

JulianPH said:

house price tracking ETF (perhaps).

I thought about trying to find this correlated exposure when I was saving for my flat deposit, but I didn’t find anything that I was comfortable had a low basis risk versus the house I ended up buying.

This was several years ago - is the current crop of products any good?

[JulianPH]

NickCQ said:

JulianPH said:

house price tracking ETF (perhaps).

I thought about trying to find this correlated exposure when I was saving for my flat deposit, but I didn’t find anything that I was comfortable had a low basis risk versus the house I ended up buying.

This was several years ago - is the current crop of products any good?

Not really, to be honest.

iShares UK Property UCITS ETF is as much as a muchness as you could find. Some great years and some terrible ones. Index Linked Gilts (UK) would have done similar with far less volatility.

[The jiffle king]

If the accounts are joint accounts, I think you can hold double e.g. £165k (Leave a bit for any interest) as long as you are both named on the account

[golf_addict]

JulianPH said:

Cash, index linked UK gilts, house price tracking ETF (perhaps).

Lots of other options too, but some sort of mixture of different defensive assets is what you should probably be looking at.

Really Julian? Locking in negative real yields with an IL Gilt and risking a 'Brexit' property crash with a 1-2-year time horizon?

Not very 'defensive' in practice.

[anonymous-user]

I’d risk a VERY small percentage of it in bitcoin and silver

not advice, nor qualified to advise

[NickCQ]

golf_addict said:

Really Julian? Locking in negative real yields with an IL Gilt and risking a 'Brexit' property crash with a 1-2-year time horizon?

Not very 'defensive' in practice.

If you know you will be using the funds to buy a UK house, you de-risk yourself by buying UK property exposure today.

If you want to invest based on some thesis about where the market will go, that’s a different question.

[NickCQ]

JulianPH said:

Not really, to be honest.

iShares UK Property UCITS ETF is as much as a muchness as you could find. Some great years and some terrible ones. Index Linked Gilts (UK) would have done similar with far less volatility.

Cheers. I actually had (and still have) and index linked gilts exposure and I like the profile as part of a portfolio.

[anonymous-user]

If you have a HL account, you could use their active savings portal to spread it around various 2 year fixed bonds at about 2% An easy way to keep things under the FCA limits.

[Helicopter123]

OP, you should take a look at Flagstone

https://www.flagstoneim.com/

Simple, secure online platform gives you access to hundreds of deposit accounts from 37 banks through a single application, empowering you to earn more interest income and reduce risk.

We use it for business cash and it's fantastic. Maximise your return on cash, and keep deposits within £85k FSCS cover.

We have some cash at 2.4%

[golf_addict]

NickCQ said:

If you know you will be using the funds to buy a UK house, you de-risk yourself by buying UK property exposure today.

If you want to invest based on some thesis about where the market will go, that’s a different question.

An iShares Property ETF (which tracks the performance of listed real estate companies and REITS) is unlikely to be a good hedge for residential property.

[golf_addict]

fesuvious said:

That looks interesting.
Especially if rates were to rise

Minimum investment £250k, I think.

[bitchstewie]

Is that massively different from HL's Active Savings product?