What to invest in ??

[PostHeads123]

Very open ended question but I've got some £ to invest can be long term and cant decide what to do, I have no mortgage, early 40's.

The obvious investments are BTL but everyone saying this is a dying market with regs comes in etc / tax changes coming in, shares / funds but a lot of people say its the top of the market etc and I got badly hit in the credit crunch with some big loses (I should of held my positions). Savings account rates are cr*p, I'm not really into the peer to peer lending. Could pay more into pension but a lot of people say don't do this as this will be the next thing the government wants to hit hard or harder ....

[JulianPH]

A commercial property in a SIPP perhaps?

That gives you property exposure, rental income back into your SIPP and all the pension tax advantages without getting involved in stock markets.

[Jockman]

JulianPH said:

A commercial property in a SIPP perhaps?

That gives you property exposure, rental income back into your SIPP and all the pension tax advantages without getting involved in stock markets.

Risky, matey

Too much exposure to a single asset class.

Yeah, I know you know that

We did this then ploughed 3 years annual allowance - as well as the rental income - into funds via transact, just to get a more balanced portfolio.

[Supersam83]

Bitcoin and Ethereum

You will thank me later

[JulianPH]

Jockman said:

Risky, matey

Too much exposure to a single asset class.

Yeah, I know you know that

We did this then ploughed 3 years annual allowance - as well as the rental income - into funds via transact, just to get a more balanced portfolio.

Hi mate

I agree, but if the OP doesn't want any of the other options it was all I could think of.

How about different pockets of rural land within a SIPP. You can get a nice yield by renting out paddock space and if you get planning permission on one you have hit the jackpot...?

Or an Aston Martin DBS? We both lost out in the price rise in those beasts!

[Jockman]

JulianPH said:

Jockman said:

Risky, matey

Too much exposure to a single asset class.

Yeah, I know you know that

We did this then ploughed 3 years annual allowance - as well as the rental income - into funds via transact, just to get a more balanced portfolio.

Hi mate

I agree, but if the OP doesn't want any of the other options it was all I could think of.

How about different pockets of rural land within a SIPP. You can get a nice yield by renting out paddock space and if you get planning permission on one you have hit the jackpot...?

Or an Aston Martin DBS? We both lost out in the price rise in those beasts!

Good point, well made !!

Keep your eye on rural land, bearing in mind the next labour govt????

http://www.independent.co.uk/news/uk/politics/labo...

Tbh, if I had spare cash I would be building myself a sumptuous swimming pool in the garden, with sweeping balustraded stairs into it. Yup

[JulianPH]

Jockman said:

JulianPH said:

Jockman said:

Risky, matey

Too much exposure to a single asset class.

Yeah, I know you know that

We did this then ploughed 3 years annual allowance - as well as the rental income - into funds via transact, just to get a more balanced portfolio.

Hi mate

I agree, but if the OP doesn't want any of the other options it was all I could think of.

How about different pockets of rural land within a SIPP. You can get a nice yield by renting out paddock space and if you get planning permission on one you have hit the jackpot...?

Or an Aston Martin DBS? We both lost out in the price rise in those beasts!

Good point, well made !!

Keep your eye on rural land, bearing in mind the next labour govt????

http://www.independent.co.uk/news/uk/politics/labo...

Tbh, if I had spare cash I would be building myself a sumptuous swimming pool in the garden, with sweeping balustraded stairs into it. Yup

Now why didn't I think of something like that!

Cheers mate

[drainbrain]

PostHeads123 said:

Very open ended question but I've got some £ to invest. Can be long term and cant decide what to do. I have no mortgage, early 40's.

The obvious investments are BTL - but everyone saying this is a dying market with regs comes in etc / tax changes coming in......

I've been hearing this in one shape or form for more than 40 years.

IMO the rental market from which property makes money will die when either demand for, or supply of, rental property ceases - or both.

Until then there will be an ever-changing market for rental property from which profit will continue to be made.

It may not be a great idea to take money-making advice from 'everyone'. 'Everyone' usually doesn't have much money although they presumably follow their own advice on how to make it.

[Behemoth]

Supersam83 said:

Bitcoin and Ethereum

You will thank me later

Yes, especially if you drop the Ethereum part

[JulianPH]

drainbrain said:

It may not be a great idea to take money-making advice from 'everyone'. 'Everyone' usually doesn't have much money although they presumably follow their own advice on how to make it.

This is exactly why I don't have a financial adviser. I'm not knocking them, just saying that taking advice from someone who is less successful (financially) is not the best way forward.

edited for typo

[MisterJD]

JulianPH said:

This is exactly why I don't have a financial adviser. I'm not knocking them, just saying that taking advice from someone who is less successful (financially) is not the best way forward.

edited for typo

Would you then expect a more successful financial advisor to be interested in your meagre pot? If they had made as much money as you they wouldn't share their success with you either.

[db10]

There's some decent private equity investments around. I have a corporate bond at 9 pc and an eis investment that could turn 2.5 times on exit for example

[sidicks]

db10 said:

There's some decent private equity investments around. I have a corporate bond at 9 pc

Which is only 'decent' providing it doesn't default!

db10 said:

..and an eis investment that could turn 2.5 times on exit for example

or it could fail, like a significant proportion do!

Edited by sidicks on Friday 4th August 18:48

[JulianPH]

MisterJD said:

JulianPH said:

This is exactly why I don't have a financial adviser. I'm not knocking them, just saying that taking advice from someone who is less successful (financially) is not the best way forward.

edited for typo

Would you then expect a more successful financial advisor to be interested in your meagre pot? If they had made as much money as you they wouldn't share their success with you either.

You have entirely summed up my point. Thank you.

Edited by JulianPH on Friday 4th August 18:59

Edited by JulianPH on Friday 4th August 20:56

[MisterJD]

JulianPH said:

You have entirely summed up my point. Thank you.

If they were any good they would not need to be still be working.

I have two financial adviser companies in my "meagre" investment portfolio. I own 100% of both of them (4,000 clients), but have never (until now) felt the need to mention it.

I am not involved in the day to day running of these business, I only comment here as an investor.

Edited by JulianPH on Friday 4th August 18:59

There are some very wealthy individuals in the UK wealth & investment management industry, Neil Woodford & Richard Woolnough for example. Those individuals enjoy what they do and continue to be very successful, personally and for their clients.

Equally there are a lot of individuals who punt products and scams schemes just to make money without putting the client at the centre of what they do.

[x5x3]

JulianPH said:

There are really good ones out there.

I cannot comment on the rant bit but this is so true.

I was lucky to find a very good one and over the years he has got me into some very good investments.

Is he "rich"? well he has an F-type (not a DB9) nice house/holidays/etc/etc so I'd say he is pretty good at what he does and his retention rate is very good also - and I mean staff and customers.

My only real complaint is how regulation has affected his business and the range of products he is able to recommend (officially of course).

I'd recommend the OP is patient and goes to see a few and decide which one really understands you, your situation and your vision for the future.

[JulianPH]

MisterJD said:

There are some very wealthy individuals in the UK wealth & investment management industry, Neil Woodford & Richard Woolnough for example. Those individuals enjoy what they do and continue to be very successful, personally and for their clients.

Equally there are a lot of individuals who punt products and scams schemes just to make money without putting the client at the centre of what they do.

Again, this is my point, they are fund managers, not financial advisers!

[NickCQ]

JulianPH said:

A commercial property in a SIPP perhaps?

That gives you property exposure, rental income back into your SIPP and all the pension tax advantages without getting involved in stock markets.

A quick question on this, if you don't mind?

How do you manage reinvestment when you have cash-yielding assets in your SIPP rather than land or accumulating funds? Do you allow cash to build up and periodically invest it or is there some better holding asset? I imagine some of it gets used up by property & management expenses.

ETA a follow-up question - is it possible to gear commercial property / whatever other assets held in a SIPP or does it have to be all-equity?

Edited by NickCQ on Saturday 5th August 14:42

[JulianPH]

NickCQ said:

JulianPH said:

A commercial property in a SIPP perhaps?

That gives you property exposure, rental income back into your SIPP and all the pension tax advantages without getting involved in stock markets.

A quick question on this, if you don't mind?

How do you manage reinvestment when you have cash-yielding assets in your SIPP rather than land or accumulating funds? Do you allow cash to build up and periodically invest it or is there some better holding asset? I imagine some of it gets used up by property & management expenses.

ETA a follow-up question - is it possible to gear commercial property / whatever other assets held in a SIPP or does it have to be all-equity?

Edited by NickCQ on Saturday 5th August 14:42

Hi, your SIPP owns the asset so it receives the income from it (on behalf of you). You can instruct you SIPP provider to hold it in cash, invest it in funds (good for diversification) or use it any way you like (within the SIPP rules!).

Yes, your SIPP can borrow up to 50% of its assets. So a £200k SIPP can borrow £100k and purchase a £300k property. Your SIPP (and therefore you) benefit from the income and growth the gearing provides (but obviously this needs paying off - just as with any mortgage/gearing).

[NickCQ]

JulianPH said:

Hi, your SIPP owns the asset so it receives the income from it (on behalf of you). You can instruct you SIPP provider to hold it in cash, invest it in funds (good for diversification) or use it any way you like (within the SIPP rules!).

Yes, your SIPP can borrow up to 50% of its assets. So a £200k SIPP can borrow £100k and purchase a £300k property. Your SIPP (and therefore you) benefit from the income and growth the gearing provides (but obviously this needs paying off - just as with any mortgage/gearing).

That's very helpful, thanks for the response.