Investment Ideas

[Lockhouse]

If you had any spare cash at the moment where would you put it for growth\income where it didn't need to be actively managed? (moving it once every three months is OK, every week is not).

Property is out as it's not my cash and it's too illiquid. I need to help out my Father-in-Law invest the money from the sale of his bungalow, We're off to see the IFA again next week but I'd like to have some suggestions in advance of that. We're talking maybe 500k.

I was thinking of putting some of it into the more profitable bonds he already holds, plus a low cost FTSE tracker, some high yield blue chip shares? I want to diversify so that the risk is minimal. I also want to move some of it out of sterling but not sure how to go about it. Anyone got any ideas?


Cheers

[Churchill]

Monte-Carlo - bet it all on green!

[Lockhouse]

Monte-Carlo - bet it all on green!

Nooooo! It's on red!

[Churchill]

If he hasn't got the full allocation (30k I think) of Premium Bonds then I* (Personally) would go for that as part of the portfolio.

*IINAIFA and I'm not qualified to give financial advice.

[Freamon]

If you had any spare cash at the moment where would you put it for growth\income where it didn't need to be actively managed? (moving it once every three months is OK, every week is not).

Property is out as it's not my cash and it's too illiquid. I need to help out my Father-in-Law invest the money from the sale of his bungalow, We're off to see the IFA again next week but I'd like to have some suggestions in advance of that. We're talking maybe 500k.

I was thinking of putting some of it into the more profitable bonds he already holds, plus a low cost FTSE tracker, some high yield blue chip shares? I want to diversify so that the risk is minimal. I also want to move some of it out of sterling but not sure how to go about it. Anyone got any ideas?


Cheers

What are you trying to achieve?

If he will rely on it for retirement income, assuming he is fairly old, then you should look at yield rather than capital growth / risk to capital. This means government bonds, savings accounts, in whatever currency the income is required (presumably sterling).

If he doesn't need an income from it then you have a spectrum of risk to choose from. To diversify, you probably need some metals (gold, silver), some natural resources (energy ETFs etc), some equities (local and foreign, although FTSE 100 companies derive a lot of income from abroad these days, so offers some diversification in and of itself), corporate bonds, etc.

If I had 500k to invest I would put at least some of it (5%?) into high risk high return, e.g. bets on european stock market crashes, bets on global water shortages etc.

[Lockhouse]

What are you trying to achieve?

If he will rely on it for retirement income, assuming he is fairly old, then you should look at yield rather than capital growth / risk to capital. This means government bonds, savings accounts, in whatever currency the income is required (presumably sterling).

If he doesn't need an income from it then you have a spectrum of risk to choose from. To diversify, you probably need some metals (gold, silver), some natural resources (energy ETFs etc), some equities (local and foreign, although FTSE 100 companies derive a lot of income from abroad these days, so offers some diversification in and of itself), corporate bonds, etc.

If I had 500k to invest I would put at least some of it (5%?) into high risk high return, e.g. bets on european stock market crashes, bets on global water shortages etc.

He is in his eighties - he doesn't need wholly yield, he has a good pension (luckily) and no day-to-day expenses. He really wants it inflation proofed so it doesn't depreciate in real terms.

[Churchill]

What are you trying to achieve?

If he will rely on it for retirement income, assuming he is fairly old, then you should look at yield rather than capital growth / risk to capital. This means government bonds, savings accounts, in whatever currency the income is required (presumably sterling).

If he doesn't need an income from it then you have a spectrum of risk to choose from. To diversify, you probably need some metals (gold, silver), some natural resources (energy ETFs etc), some equities (local and foreign, although FTSE 100 companies derive a lot of income from abroad these days, so offers some diversification in and of itself), corporate bonds, etc.

If I had 500k to invest I would put at least some of it (5%?) into high risk high return, e.g. bets on european stock market crashes, bets on global water shortages etc.

Surely if he doesn't need it for income then he doesn't need it period.

Get him to transfer the money over to you and then you can have a rare auld time!

[Freamon]

Surely if he doesn't need it for income then he doesn't need it period.

Get him to transfer the money over to you and then you can have a rare auld time!

Or at least avoid some IHT.

[Freamon]

He is in his eighties - he doesn't need wholly yield, he has a good pension (luckily) and no day-to-day expenses. He really wants it inflation proofed so it doesn't depreciate in real terms.

If he wants it to be of any use to anyone (seeing as he doesn't need it himself, I assume his concerns about inflation etc stem from being able to pass it on) then I suggest you (both) take some professional advice on IHT, as that will eat into it far more than inflation ever could.

[Lockhouse]

If he wants it to be of any use to anyone (seeing as he doesn't need it himself, I assume his concerns about inflation etc stem from being able to pass it on) then I suggest you (both) take some professional advice on IHT, as that will eat into it far more than inflation ever could.

That's one of the reasons we're seeing the IFA, there's a couple of things that I'm aware of that he can do to pass some of the cash on now.