£50k to £100k to invest?
Discussion
I'm in the luck position of having £100k sat in my bank account, and obviously, I'd like to be potentionally earning something from it!?
I have about 12k left on my mortgage, is it a no brainer to pay it off? It is a cheap loan at the moment.
I don't have shares account, is it worth opening one? And, if so, do I manage it myself? Or, get a broker to do it?
I did have an account 20 years ago, but it didn't go too well!
I don't currently have any ISA's etc.
I have about 12k left on my mortgage, is it a no brainer to pay it off? It is a cheap loan at the moment.
I don't have shares account, is it worth opening one? And, if so, do I manage it myself? Or, get a broker to do it?
I did have an account 20 years ago, but it didn't go too well!
I don't currently have any ISA's etc.
if you don't need the income then yeh pay the mortgage off.
If you want to "risk it" then you've got a plethora of options, property, shares, bitcoin, the list goes on.
Do you have a financial advisor? If so they can give you an idea of what type of return you could be looking at and the "riskiness" of the investment?
If you want to "risk it" then you've got a plethora of options, property, shares, bitcoin, the list goes on.
Do you have a financial advisor? If so they can give you an idea of what type of return you could be looking at and the "riskiness" of the investment?
You can put £20k each tax year in an ISA. By 6th April next year you could therefore have £40k in one and any interest / income / capital gain you make off it is tax free. It’s be silly not to.
You can have this in ‘cash’ or shares or a combination. The likes of Hargreaves lansdown and fidelity will have ready made products tailored to you risk / return preferences or you can choose from a range of funds yourself.
You can have this in ‘cash’ or shares or a combination. The likes of Hargreaves lansdown and fidelity will have ready made products tailored to you risk / return preferences or you can choose from a range of funds yourself.
Are you married? You can basically put £80k into S&S ISAs over the next 4 months as a married couple.
You say last time it did not "end well", my advice is to buy a low cost fund rather than individual shares. Have a look at Vanguard.
Depending on your attitude to risk I would look at VLS60 or higher.
That will leave you £20k to pay off the mortgage and put the remainder in a 123 account until April 2019 when you can put that in the ISA.
You say last time it did not "end well", my advice is to buy a low cost fund rather than individual shares. Have a look at Vanguard.
Depending on your attitude to risk I would look at VLS60 or higher.
That will leave you £20k to pay off the mortgage and put the remainder in a 123 account until April 2019 when you can put that in the ISA.
ringram said:
But SIPP will result in you getting all your tax back. (if any)
Yes and no - as I understand it you don't pay tax on 25% of it (assuming that tax-free cash survives to your retirement date), and you can phase your income to stay below the 40 and 45p thresholds, but you don't get all the tax back, you just defer it.An ISA is the opposite - you pay in out of taxed income but the withdrawal is tax free.
NickCQ said:
Yes and no - as I understand it you don't pay tax on 25% of it (assuming that tax-free cash survives to your retirement date), and you can phase your income to stay below the 40 and 45p thresholds, but you don't get all the tax back, you just defer it.
An ISA is the opposite - you pay in out of taxed income but the withdrawal is tax free.
A pension has a couple of tax advantages over an ISA An ISA is the opposite - you pay in out of taxed income but the withdrawal is tax free.
Firstly you get 25% tax free (so some of the tax is avoided not just deferred).
Secondly the odds are that your marginal tax rate will be lower in retirement than when you're working, so you may well pay in and get a 40% tax benefit, and only pay tax at the basic rate on withdrawl. Of course if you're massively comfortable financially in retirement there's also scope for passing it on in your estate.
The disadvantage of course is that you can't access it until 55 (presumably rising somewhat at some point in the future).
£100k would allow me to get mortgages to buy three houses where I live. The mortgage and service contracts would cost about £400/month for up to £700 income, all while the value of the houses creep upwards.
Obviously you have to pay tax on the income which you can partly offset by the expenditure and you have to keep the properties in good shape but three houses should offer that critical mass of income that you will be able to make it work without having to supplement them from your regular income.
No brainier for me.
Obviously you have to pay tax on the income which you can partly offset by the expenditure and you have to keep the properties in good shape but three houses should offer that critical mass of income that you will be able to make it work without having to supplement them from your regular income.
No brainier for me.
anonymous said:
[redacted]
I'd suggest that's a distinction of little point (especially in an ISA where differences in dividend and CGT tax treatment are less of an issue). If the capital grows you can sell some to generate income. If you don't need the income you can reinvest it within the ISA. What the investor is interested in is what choices will produce the best overall return, which they can then use as they see fit.The more interesting questions revolve around active vs passive management, and how much risk/volatility you're prepared to accept.
In general though I think that investments that aim for capital growth /seem/ to produce more return than companies that aim for dividend yield, but this is obviously difficult to assess over even the medium term.
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