Making my money work
Discussion
I'm very good at saving but useless at knowing what to do with it. It was fine when I had just started working and didn't have much so could just use high interest accounts but it's got a bit out of hand and I feel like I'm missing out massively from the income it could generate.
I now have almost £300k in savings and it's all sat in cash. I'll need 35-50% of it in the next year or so for a house purchase, but the rest of it needs to start earning its keep. The problem is, I have no idea where to start. I've maxed out premium bonds and have about £60-70k in S&S ISAs, but not actually invested because I don't know what to invest it in. Is it worth getting someone else to manage it for me (would they for this amount?) or do I just need to pick some funds and jump in (I'm of the "dead cat bounce" view of the market which isn't helping with jumping in)? If so, what's the best way of going about it? Do I leave the house deposit in cash or invest it for now?
I now have almost £300k in savings and it's all sat in cash. I'll need 35-50% of it in the next year or so for a house purchase, but the rest of it needs to start earning its keep. The problem is, I have no idea where to start. I've maxed out premium bonds and have about £60-70k in S&S ISAs, but not actually invested because I don't know what to invest it in. Is it worth getting someone else to manage it for me (would they for this amount?) or do I just need to pick some funds and jump in (I'm of the "dead cat bounce" view of the market which isn't helping with jumping in)? If so, what's the best way of going about it? Do I leave the house deposit in cash or invest it for now?
If you really have no idea what to do with a sum of money like that, speak to a recommended IFA. Tell them the level of risk you're prepared to take, what your short and long term goals are and what you're committed to.
Do not take advice from an internet forum.
Do not buy a property to rent out.
Do not 'wing it'
I am in a similar position, albeit with a considerably smaller amount!
Do not take advice from an internet forum.
Do not buy a property to rent out.
Do not 'wing it'
I am in a similar position, albeit with a considerably smaller amount!
That’s a short period to invest. I wouldn’t risk the stock exchange if you need the money next year. I’d just spread the money over different banks paying the best rates. Look at:-
https://www.marcus.co.uk/uk/en
https://uk.virginmoney.com/
https://www.marcus.co.uk/uk/en
https://uk.virginmoney.com/
Keep it simple.
- The 50% you need for the house purchase should IMO stay in cash.
- Invest the rest in global stock market funds, feeding it in at, say, £5-10k a month until you've got to where you want to be.
- Remember you'll need an ongoing cash reserve of some kind even after you've bought your house and completed your investment program.
Muzzer79 said:
If you really have no idea what to do with a sum of money like that, speak to a recommended IFA. Tell them the level of risk you're prepared to take, what your short and long term goals are and what you're committed to.
Do not take advice from an internet forum.
Do not buy a property to rent out.
Do not 'wing it'
I am in a similar position, albeit with a considerably smaller amount!
Thanks. The advice I'm looking for is how to proceed, not specifics on what to do with it Do not take advice from an internet forum.
Do not buy a property to rent out.
Do not 'wing it'
I am in a similar position, albeit with a considerably smaller amount!
I'm not interested in becoming an amateur landlord either, I'd also ruin the benefits of being a first time buyer. Also not wanting to wing it, hence having sat on this for a good few years sadly.Stevil said:
From personal experience I'd highly recommend having a chat with Julian, Nik & Co. on the IM sticky at the top of the forum as you'll get some good impartial suggestions (not going to say advice...).
Nothing against those guys but remember they’re running a business with the aim of making them a profit. I’m not saying don’t speak with them or another IFA but always bear in mind that like any business they’re in it for the money.bad company said:
Nothing against those guys but remember they’re running a business with the aim of making them a profit. I’m not saying don’t speak with them or another IFA but always bear in mind that like any business they’re in it for the money.
Strange response, they are in the business of making money from making their clients money.bad company said:
Stevil said:
From personal experience I'd highly recommend having a chat with Julian, Nik & Co. on the IM sticky at the top of the forum as you'll get some good impartial suggestions (not going to say advice...).
Nothing against those guys but remember they’re running a business with the aim of making them a profit. I’m not saying don’t speak with them or another IFA but always bear in mind that like any business they’re in it for the money.alistair1234 said:
bad company said:
Nothing against those guys but remember they’re running a business with the aim of making them a profit. I’m not saying don’t speak with them or another IFA but always bear in mind that like any business they’re in it for the money.
Strange response, they are in the business of making money from making their clients money.Someone’s going to make money making me money and I’d rather it was the guys that can save me money whilst doing so!
markiii said:
how much is the house is that 150k the deposit or the whole lot?
Deposit. Unlikely to use it all, but will depend on what my wife and I can borrow and what comes to market that we like.Once the house is sorted, there's likely to be a toy (probably an Exige), but I'm hoping that once the money is working, it'll be better to finance that instead.
I am a Financial Consultant.
There are some basic rules to follow
You must never invest any funds that you intend to use within the next 5 years.
You must retain an emergency fund of no less than 3 months income, more if feasible.
The company I work at now, advocate what I refer to as the emergency emergency fund.
Say you have £100,000 but you need £30k 3 years from now for an extension/world tour etc etc, you immediately remove that £30,000 from the equation. Say your net income is £3k per month, you set your EF at £9k.
That leaves £61,000, so remove 10% of that for the EEF and you are left with a max investable sum of £54,900 (This can be flexible depending upon the views of the client)
You say you haven't invested, but mention S&S ISA's which are by their very nature invested in a combination of: Equities, Cash, Bonds, Gilts, Property and possibly some Alternatives (gold, coffee, timber as examples)
I would suggest looking into the performance of your S&S ISA's or establishing whether they are just cash ISA's.
There are lots of options, but pension contributions are a good starting point depending upon your individual circumstances, as you get the uplift on your investment of 20%, 40% or 45%
Seek some advice from a professional. The two large companies I have been involved with, do not charge for meetings or advice, you are only charged if you actually take the advice.
There are some basic rules to follow
You must never invest any funds that you intend to use within the next 5 years.
You must retain an emergency fund of no less than 3 months income, more if feasible.
The company I work at now, advocate what I refer to as the emergency emergency fund.
Say you have £100,000 but you need £30k 3 years from now for an extension/world tour etc etc, you immediately remove that £30,000 from the equation. Say your net income is £3k per month, you set your EF at £9k.
That leaves £61,000, so remove 10% of that for the EEF and you are left with a max investable sum of £54,900 (This can be flexible depending upon the views of the client)
You say you haven't invested, but mention S&S ISA's which are by their very nature invested in a combination of: Equities, Cash, Bonds, Gilts, Property and possibly some Alternatives (gold, coffee, timber as examples)
I would suggest looking into the performance of your S&S ISA's or establishing whether they are just cash ISA's.
There are lots of options, but pension contributions are a good starting point depending upon your individual circumstances, as you get the uplift on your investment of 20%, 40% or 45%
Seek some advice from a professional. The two large companies I have been involved with, do not charge for meetings or advice, you are only charged if you actually take the advice.
Stevil said:
From personal experience I'd highly recommend having a chat with Julian, Nik & Co. on the IM sticky at the top of the forum as you'll get some good impartial suggestions (not going to say advice...).
alistair1234 said:
bad company said:
Nothing against those guys but remember they’re running a business with the aim of making them a profit. I’m not saying don’t speak with them or another IFA but always bear in mind that like any business they’re in it for the money.
Strange response, they are in the business of making money from making their clients money.Mr Pointy said:
bad company said:
Stevil said:
From personal experience I'd highly recommend having a chat with Julian, Nik & Co. on the IM sticky at the top of the forum as you'll get some good impartial suggestions (not going to say advice...).
Nothing against those guys but remember they’re running a business with the aim of making them a profit. I’m not saying don’t speak with them or another IFA but always bear in mind that like any business they’re in it for the money.bristolbaron said:
alistair1234 said:
bad company said:
Nothing against those guys but remember they’re running a business with the aim of making them a profit. I’m not saying don’t speak with them or another IFA but always bear in mind that like any business they’re in it for the money.
Strange response, they are in the business of making money from making their clients money.Someone’s going to make money making me money and I’d rather it was the guys that can save me money whilst doing so!
OP - We provide what you are looking for free to PHers. What you end up doing and with whom is entirely up to you.
You should keep the house deposit in cash/NS&I deposits and also do the same with an emergency fund (say, 6 month's outgoings). The rest you should put to work as tax efficiently as possible in a way you are comfortable with (moving from cash deposits to investing is not black and white, there are many shades of grey).
If you post on the IM thread (Intelligent Money) I can go into more detail.
The Dictator said:
I am a Financial Consultant...
You say you haven't invested, but mention S&S ISA's which are by their very nature invested in a combination of: Equities, Cash, Bonds, Gilts, Property and possibly some Alternatives (gold, coffee, timber as examples)
I would suggest looking into the performance of your S&S ISA's or establishing whether they are just cash ISA's.
He said 'about £60-70k in S&S ISAs, but not actually invested they were sitting as cash in S&S ISAs'.You say you haven't invested, but mention S&S ISA's which are by their very nature invested in a combination of: Equities, Cash, Bonds, Gilts, Property and possibly some Alternatives (gold, coffee, timber as examples)
I would suggest looking into the performance of your S&S ISA's or establishing whether they are just cash ISA's.
bad company said:
Nothing against those guys but remember they’re running a business with the aim of making them a profit. I’m not saying don’t speak with them or another IFA but always bear in mind that like any business they’re in it for the money.
We are not IFAs.We are an investment/pension/SIPP/ISA provider.
Therefore we don't earn from giving financial advice, we just offer information, guidance, support and financial/tax planning to our clients as part of our service (and to any PHers for free regardles of where their money is invested).
Mods - Sorry if this oversteps any lines (please feel free to remove with no offence taken!) but I was just trying to deal with the point at hand.
alistair1234 said:
bad company said:
Nothing against those guys but remember they’re running a business with the aim of making them a profit. I’m not saying don’t speak with them or another IFA but always bear in mind that like any business they’re in it for the money.
Strange response, they are in the business of making money from making their clients money.
bad company said:
alistair1234 said:
bad company said:
Nothing against those guys but remember they’re running a business with the aim of making them a profit. I’m not saying don’t speak with them or another IFA but always bear in mind that like any business they’re in it for the money.
Strange response, they are in the business of making money from making their clients money.
Not stirred things up at all, I was just pointing out that we are not IFAs and therefore we don't, indeed can't, sell anything!
There is no need for me to say anymore on the subject as PHers who have actually had experience with us have said enough.
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