Partially hypothetical/partly not. How best to invest £500k
Discussion
Firstly you should invest it in the most tax efficient way possible, but exactly what that is will depend on your personal circumstances, current income, pensions etc.
Outside of that putting it in the lowest cost global index tracker with dividends reinvested is a cheap, easy, accessible, completely-passive, and relatively diverse way to invest it. If you worry you'll dip into it for frivolous purchases, want leverage, or don't mind taking on the extra work of managing them, then BTLs
Outside of that putting it in the lowest cost global index tracker with dividends reinvested is a cheap, easy, accessible, completely-passive, and relatively diverse way to invest it. If you worry you'll dip into it for frivolous purchases, want leverage, or don't mind taking on the extra work of managing them, then BTLs
z4RRSchris99 said:
It stick 100k in property, 300k in bonds, gilts, and bluechips, and the other 100k accross a few growth trackers.
should give you a nice income.
He says he doesn't need income, just maximum growth so why 3/5ths in bonds/gilts? should give you a nice income.
Personally, in his circumstance I'd by much closer to 100% equity and would diversify by market cap/geography.
Important question - OP, how old are you, how many years till you'd like to retire? E.g. I'm 31 and at my age would invest in far riskier positions as I have plenty of time to smooth the variance..
Mike,
Forget all the micro-detail right now. If you want 'out' by 55, you have 7+ years to get ready. Think what life is going to be like, think about how best you can be tax efficient. Think about the lump sum purchases you might want (the 911), think about estate planning (if you think you might want to), even anticipate long term care (yeah, I know we all say we're not bothered) and stay light on your feet.
Work out how much income you want, work or how hard/easy your money has to work and extrapolate accordingly based on that. Don't think about which direction you shold be going in, think about where you want to end up. Look back and take a view from there to where you are now. Financial planning isn't rocket science, it's like planning to go to Le Mans. Nail the journey details first.
If it's just you, make sure you insurance is sorted. Once that has been addressed, only then consider strategies, tactics, asset allocation, tax wrappers, funds etc. If you have a partner, make sure you are doing everything with them - max out their annual allowances too. Once you have the basics sorted, everything pretty much flows from that. As someone said, take authorised and regulated advice that you trust, or get an informed consensus from mates who you trust.
Forget all the micro-detail right now. If you want 'out' by 55, you have 7+ years to get ready. Think what life is going to be like, think about how best you can be tax efficient. Think about the lump sum purchases you might want (the 911), think about estate planning (if you think you might want to), even anticipate long term care (yeah, I know we all say we're not bothered) and stay light on your feet.
Work out how much income you want, work or how hard/easy your money has to work and extrapolate accordingly based on that. Don't think about which direction you shold be going in, think about where you want to end up. Look back and take a view from there to where you are now. Financial planning isn't rocket science, it's like planning to go to Le Mans. Nail the journey details first.
If it's just you, make sure you insurance is sorted. Once that has been addressed, only then consider strategies, tactics, asset allocation, tax wrappers, funds etc. If you have a partner, make sure you are doing everything with them - max out their annual allowances too. Once you have the basics sorted, everything pretty much flows from that. As someone said, take authorised and regulated advice that you trust, or get an informed consensus from mates who you trust.
mikees said:
If you had £500k in cash what's the best way invest for growth?
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