Does anything out there pay about 10% interest/year?
Discussion
Leicesterdave said:
In conclusion what is the best form of investment?
The one a financial professional with full insight into your circumstances suggests you should consider.There has been some useful advice and interesting options but in your shoes there's nothing that I'd be off to do tomorrow if I had £400k in my bank account based off what I've read here.
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hstewie said:
hstewie said:Leicesterdave said:
In conclusion what is the best form of investment?
There has been some useful advice and interesting options but in your shoes there's nothing that I'd be off to do tomorrow if I had £400k in my bank account based off what I've read here.red_slr said:
Derek Chevalier said:
red_slr said:
The markets return on average 7%. However c.3% of that is eaten away by inflation. So somewhere around 4%, on average.
Over which time period and which markets are you using for your data?From CS annual returns yearbook (but for a US investor)
Over the 118 years from 1900 to 2017, the left-hand chart shows that the real return on the world index was 5.2% per year for equities and 2.0% per year for bonds.
This was from a post from 2014, showing same number
http://monevator.com/world-stock-markets-data/
Barclays shows 5% for a UK investor investing in UK equities since 1900, again from 2014
http://monevator.com/uk-historical-asset-class-ret...
HOWEVER....these are likely to be far higher than the returns that the typical private investor will see (despite taking more risk than the index).
Edited by Derek Chevalier on Monday 2nd April 20:45
Should be planting 100,000 trees on 420 acre plot of land in New Zealand within a few months.
I will then have close to 600 acres in total and 150,000 trees.
From 2023 onwards these will produce around 4000 carbon credits a year, with a value of forty thousand pounds.
Total investment is four hundred thousand.
Even if the carbon credits are valueless, the land will still be there and the trees will keep growing - (but harvesting will be around 2045).
Looks like the least riskiest option to me, with a 10% return.
caziques said:
Should be planting 100,000 trees on 420 acre plot of land in New Zealand within a few months.
I will then have close to 600 acres in total and 150,000 trees.
From 2023 onwards these will produce around 4000 carbon credits a year, with a value of forty thousand pounds.
Total investment is four hundred thousand.
Even if the carbon credits are valueless, the land will still be there and the trees will keep growing - (but harvesting will be around 2045).
Looks like the least riskiest option to me, with a 10% return.
If the carbon credit thing doesn't continue to work out, how does this effect the value of the land? I will then have close to 600 acres in total and 150,000 trees.
From 2023 onwards these will produce around 4000 carbon credits a year, with a value of forty thousand pounds.
Total investment is four hundred thousand.
Even if the carbon credits are valueless, the land will still be there and the trees will keep growing - (but harvesting will be around 2045).
Looks like the least riskiest option to me, with a 10% return.
Leicesterdave said:
In conclusion what is the best form of investment?
IMO, buy property in manchester / leeds / liverpool etc, aim for at least 7% yield, pass off to an agent.Use leverage anywhere from 50-75% LTV.
Return on your cash will be above 10% net.
Take 5-10 year fixed mortgages to lower risk. Should be borrowing at somewhere around 4% and your property is returning 7-12% depending on how well you buy and what "tier" you are buying at.
Use a company as it's more tax efficient. Buy mixed use / commercial if the stamp duty bothers you.
Keep some aside to max your isas / pension contributions as you see fit. Invest that into mixed world equity trackers / bonds etc. Pension could also hold commercial property leveraged at 50% if you fancy.
Update to this is that I've bought my first house. Paid £130k for it and will chuck £10-£15k on it to make it very nice.
Bought a nice motor.... 335d, 2 year old for £20k...
I've now got £200k left and still no idea what to do with it. All I'm reading is that landlords are selling their properties in droves.... Due to new government legislation- meaning as a landlord I'd be taxed to the hilt?
I'm seriously very lost!
Bought a nice motor.... 335d, 2 year old for £20k...
I've now got £200k left and still no idea what to do with it. All I'm reading is that landlords are selling their properties in droves.... Due to new government legislation- meaning as a landlord I'd be taxed to the hilt?
I'm seriously very lost!
Leicesterdave said:
Caddyshack said:
How did you get on with the financial advisor, I saw this advised many times in this thread.
Told me to invest in the stock market essentially....Also, why did you use 5% of your investment fund to buy a depreciating asset? (The 335d)
Muzzer79 said:
Why didn’t you, out of curiosity?
Also, why did you use 5% of your investment fund to buy a depreciating asset? (The 335d)
I've not decided what to do with the rest yet. Brexit worries me with financial markets....Also, why did you use 5% of your investment fund to buy a depreciating asset? (The 335d)
335d- because I wanted to! I think the one treat won't hurt much...
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