where shall i stick my money ???

[qureshia]

Apologies if I sound like I am looking for the holy grail – reasonable return (7% plus & Medium to low risk)

I’m looking to sell one of my houses (bored with the net return of zero) rent income less Mortgage payments. Also the market (I believe) will be flat (at best) over the next three years – so no or very little capital growth

Looking at what I can do with the money I am left with - If I don’t squirrel it away I will end up buying a Gallardo or something equally frivolous

Options are

Pay a big chunk of the mortgage on the family home – Currently on a LTV ratio of less than 65% so feel reasonably secure also this has to be the boring option.

Leave in a high interest notice period account – boring and at best will only get 5% (net)

Shares – been there done it with some luck – feel the market is overvalued and don’t know of any good bets

EIS – not really keen as it involves lots of work as most of the opportunities are with small immature companies- also far too high a risk (been there and got stung pretty bad)

Anything I have missed – please no suggestion of pension funds!!!

My definition of risk is

High – Lottery ticket type odds
Medium – one in ten chance of losing the lot
Low – One in a thousand chance of losing the lot

[AndyAudi]

Was goin to suggest HBOS for Fixed term deposits which are paying about 6½% just now.

http://www.bankofscotlandhalifax.co.uk/savings/per...

You just create your own account and fund it online from another HBOS account & you can have a few on different terms
(I'm using a combination of these accounts just now so they mature at different times)

(but then noticed you weren't that fussed for a safe 5%net)

Andy

[johnfm]

You could find a decent financial advisor. There are loads of different investment vehicles for long term, short term etc etc

I put some in a monthly saving splan thing for 10 years which will be tax free at the end (becasue it comes with life insurance). Gets goos returns, is managed weekly by my IFA and won't pay tax on it. But I am happy to leave it growing for 10 years.

[trunnie]

Err I hate to mention pensions, but have you looked at the (very) low cost DIY SIPP pensions from people such as Hargreaves Lansdowne or Alliance Trust. They just act like an ordinary stockbrokers account but inside a pension wrapper and have a deposit account. If you're a higher rate taxpayer it's a >55% return as your £60 turns into £100 and look at the very low charges for opening/running/dealing the accounts. You could stick your money in one of those and put it in a deposit account until you think the stockmarket will improve. And no you don't get a thorough rogering on the charges.

[matt28]

If it was my money, I would be paying off the mortgage (assuming you have already maxed out ISAs).

Reason is that let's say you're paying 5% interest on your mortgage. Any investment is going to need to yield over 8% (assuming higher rate of tax) to match this. It's rare to get 8% right now without going to high risk investments.

Just IMO, but unless you really know the stock market, the most sensible way to invest any money is to use it to try to become mortgage-free ASAP.

[G1ABB]

matt28 said:

If it was my money, I would be paying off the mortgage (assuming you have already maxed out ISAs).

Reason is that let's say you're paying 5% interest on your mortgage. Any investment is going to need to yield over 8% (assuming higher rate of tax) to match this. It's rare to get 8% right now without going to high risk investments.

Just IMO, but unless you really know the stock market, the most sensible way to invest any money is to use it to try to become mortgage-free ASAP.

Agree, even though it might appear boring. Next logical step is what to do with the money not then spent on the mortgage each month? For risk takers that can be interesting in itself and intrinsically carries lower personal risk as you don't lose your house on the back of it! Well normally anyway.

[emicen]

G1ABB said:

matt28 said:

If it was my money, I would be paying off the mortgage (assuming you have already maxed out ISAs).

Reason is that let's say you're paying 5% interest on your mortgage. Any investment is going to need to yield over 8% (assuming higher rate of tax) to match this. It's rare to get 8% right now without going to high risk investments.

Just IMO, but unless you really know the stock market, the most sensible way to invest any money is to use it to try to become mortgage-free ASAP.

Agree, even though it might appear boring. Next logical step is what to do with the money not then spent on the mortgage each month? For risk takers that can be interesting in itself and intrinsically carries lower personal risk as you don't lose your house on the back of it! Well normally anyway.

My parents just decided against paying down a chunk of mortgage on the basis that a 12% bond was available and that was better than removing 6% mortgage interest even at higher rate tax payer level.

[qureshia]

all good ideas - think i will go with the following:-

start with IFA
max out wife and I's ISA (dont know why i have never done them before)
Pay some mortgage
Start pension (criminal 35 and have nothing)
Some (about 25%) on something meduim risk like emgering markets tracker

start track daying my car !

[mcflurry]

...don't forget to buy the Lambo (this is PH after all) lol

[BJWoods]

qureshia said:

Apologies if I sound like I am looking for the holy grail – reasonable return (7% plus & Medium to low risk)

I’m looking to sell one of my houses (bored with the net return of zero) rent income less Mortgage payments. Also the market (I believe) will be flat (at best) over the next three years – so no or very little capital growth

Looking at what I can do with the money I am left with - If I don’t squirrel it away I will end up buying a Gallardo or something equally frivolous

Options are

Pay a big chunk of the mortgage on the family home – Currently on a LTV ratio of less than 65% so feel reasonably secure also this has to be the boring option.

Leave in a high interest notice period account – boring and at best will only get 5% (net)

Shares – been there done it with some luck – feel the market is overvalued and don’t know of any good bets

EIS – not really keen as it involves lots of work as most of the opportunities are with small immature companies- also far too high a risk (been there and got stung pretty bad)

Anything I have missed – please no suggestion of pension funds!!!

My definition of risk is

High – Lottery ticket type odds
Medium – one in ten chance of losing the lot
Low – One in a thousand chance of losing the lot

if you put it in you mortgae you are effectively getting a return of OVER 7% tax FREE.
if you hae an offset, morgage reserve, type mortgae you can alway get it out again...

effectively (relative to many other 'investment') v low/zero risk.

B

[BJWoods]

emicen said:

G1ABB said:

matt28 said:

If it was my money, I would be paying off the mortgage (assuming you have already maxed out ISAs).

Reason is that let's say you're paying 5% interest on your mortgage. Any investment is going to need to yield over 8% (assuming higher rate of tax) to match this. It's rare to get 8% right now without going to high risk investments.

Just IMO, but unless you really know the stock market, the most sensible way to invest any money is to use it to try to become mortgage-free ASAP.

Agree, even though it might appear boring. Next logical step is what to do with the money not then spent on the mortgage each month? For risk takers that can be interesting in itself and intrinsically carries lower personal risk as you don't lose your house on the back of it! Well normally anyway.

My parents just decided against paying down a chunk of mortgage on the basis that a 12% bond was available and that was better than removing 6% mortgage interest even at higher rate tax payer level.

realtive risk of bond vs mortgage, mortagt relatively zero risk?