• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

How would you invest £100,000

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    How would you invest £100,000

    OK Serious suggestions only!

    Surely some of you well heeled contractors are in the fortunate position to have a bit of cash floating around. Have you considered any investments or do you just keep the money in the bank?

    Way I see it is, £100k in a bank at 5% interest is £5k income a year, before tax, and then of course that value is eroded 2% by inflation. So that's a pretty crap investment by any standard.

    The property game is expensive, slow, boring and currently garnering an over-interest from everyone in the universe. So it's not a great investment any more.

    What would you do with £100,000, if you had to invest it (rather than blow it all away...).

    #2
    Taz,

    I find myself in a similar (un)fortunate position.

    I put £30K into premium bonds (zero risk, some potential rewards and I believe that odds ar something like 24500:1 so in theory I should win "something" every month)

    I already have a BTL (and I dont want another one in current over priced market)

    Rest of my dosh is in a high interest bank account as I have been unable to find a relatively secure investments that pay a decent return.

    Comment


      #3
      Recent discussions I've seen have centered on tracking funds - which always do better than managed over time - and funds based on companies that pay dividends, since they tend to perform well over time and give you a return over and above changes in share prices.

      The market is on an upward trend atm, and in the long term is still the best place to invest.
      "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

      Comment


        #4
        Taz,

        forget to add.....ref premium bonds if they appeal to you.

        3% interest is what they reckon is equivalent return on the bonds.

        The rules say your money needs to be invested for a full calendar month before it is entered into a draw.

        This means you have just enough time to invest some money (via online service) before the end of Feb which means your money could be part of the April draw

        Comment


          #5
          All I can suggest is the most prudent thing is to usually settle any loan/mortgage first. Assuming this is done then it all depends on your attitude to risk and liquidity.

          Comment


            #6
            Yep all sounds reasonable so far.

            As you guys suggest, I have looked into paying off my mortgage early, and hopefully that'll happen within the next 3 to 4 years (got a good fixed rate before the rates went up, so I'm not in any great urgency to pay it off any quicker).

            I also have a BTL, now with no mortgage, though the income is quite small. Ten of these would be nice but I also don't want any more properties in this overpriced market. Of course, I hope the property market does come down so that we can buy more BTLs.

            I will be buying premium bonds, I actually forgot so thanks for reminding me!

            I've got some Fidelity mutual funds, primarily in ISAs. Not a great Tracker fan as I bought one before the market crash in 2000. I play the stock market a lot myself but this is high risk/low return so far. Again the stock market has ridden up very far very fast. I may invest when a pullback occurs.

            My aim would be to create an income stream of circa £3000 - £5000 per month, from passive investments. For this you could buy 4 houses priced at £250k and receive £1000 / month from each one. But then you need £1m cash!

            Comment


              #7
              You could put them all into SKA

              Comment


                #8
                Originally posted by AtW
                You could put them all into SKA
                AtW,

                are you looking for investment ? - do you have a sensible business plan and marketing strategy that can be put in front of potential investors (and the bag of a fag packet will not suffice)

                Comment


                  #9
                  Originally posted by eternalnomad
                  AtW,

                  are you looking for investment ? - do you have a sensible business plan and marketing strategy that can be put in front of potential investors (and the bag of a fag packet will not suffice)

                  Hmmm, Deja Vu.....
                  "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

                  Comment


                    #10
                    Originally posted by eternalnomad
                    are you looking for investment ? - do you have a sensible business plan and marketing strategy that can be put in front of potential investors (and the bag of a fag packet will not suffice)
                    In a few months I will have finished main R&D and that's when I can sit down and write business plans - I can keep you posted if you interested.

                    Comment

                    Working...
                    X