Finance/Investment

[Slick]

Wondering if any bordies have any experience in this, I am totally useless and have literally no idea.

If a bordie had come into a decent amount of cash what would they do with it given that it looks like we are in for a bumpy couple of years. Currently no house/mortgage, but it's not enough to buy a place outright and unlikely to get a mortgage for the next year or so.

This is not a thread, looking for genuine advice.

[Dinsdale Piranha]

Depends how much but if it's a decent chunk then you should have a financial adviser / company looking after it. - Through one means or another - ISAs / funds - most of it needs to be invested in the stock market.

Take a look on moneysavingexpert.com and look for an IFA.

[Blackmac]

If you really have zero knowledge I would definitely go with an IFA but be careful that it is a genuine IFA and not one tied to the likes of St James Place, which many appear to be.

[Happyhooker]

Wondering if any bordies have any experience in this, I am totally useless and have literally no idea.

If a bordie had come into a decent amount of cash what would they do with it given that it looks like we are in for a bumpy couple of years. Currently no house/mortgage, but it's not enough to buy a place outright and unlikely to get a mortgage for the next year or so.

This is not a thread, looking for genuine advice.

I've emailed you

[Slick]

Wondering if any bordies have any experience in this, I am totally useless and have literally no idea.

If a bordie had come into a decent amount of cash what would they do with it given that it looks like we are in for a bumpy couple of years. Currently no house/mortgage, but it's not enough to buy a place outright and unlikely to get a mortgage for the next year or so.

This is not a thread, looking for genuine advice.

I've emailed you

got it, cheers!

[weegie01]

For a decent amount a properly independent advisor is a good idea.

Having said that, my rule of thumb is that getting on the property ladder is the first objective. Unless you have a very peripatetic lifestyle, you are always going to need somewhere to live, so initial investment decisions should bear this in mind. This generally means be fairly conservative, make sure you spread it around, and in doing so look at tax efficient wrappers first (eg ISAs).

If you have never owned a property, look at Lifetime ISAs. The Gov adds 25% to what you put in (within limits) as long as you use the money for buying a home (there are restrictions). You can get the money out for other reasons, but with penalties so you need to be sure this is money you will not need for other reasons.

[Torquemada 1420]

Wondering if any bordies have any experience in this, I am totally useless and have literally no idea.

If a bordie had come into a decent amount of cash what would they do with it given that it looks like we are in for a bumpy couple of years. Currently no house/mortgage, but it's not enough to buy a place outright and unlikely to get a mortgage for the next year or so.

This is not a thread, looking for genuine advice.

Depends on your time frame and ability to swallow a loss.
- <5 years, before you need it: leave it in cash
- ALWAYS use your ISA allowances (£20k pa) regardless. Build up a tax free reserve. You can always switch from cash to other investments within later.

How much is "decent" compared with any debt you have? You might want to dump debt and ensure you have a cash buffer.

[Torquemada 1420]

If you really have zero knowledge I would definitely go with an IFA but be careful that it is a genuine IFA and not one tied to the likes of St James Place, which many appear to be.

Yup

Unless you have a LOT of money AND don't care about being ripped off. But they'll make you feel reaaallllll special whilst doing it.



https://www.thetimes.co.uk/article/the- ... -lrm9d62hg
https://www.ft.com/content/c3407692-4bc ... 9067e0f50d
https://www.thetimes.co.uk/article/forg ... -99q8qbjdf

[SaintK]

Wondering if any bordies have any experience in this, I am totally useless and have literally no idea.

If a bordie had come into a decent amount of cash what would they do with it given that it looks like we are in for a bumpy couple of years. Currently no house/mortgage, but it's not enough to buy a place outright and unlikely to get a mortgage for the next year or so.

This is not a thread, looking for genuine advice.

I've emailed you

So have a number of Nigerian Financial Advisors!!!

[OomStruisbaai]

Wondering if any bordies have any experience in this, I am totally useless and have literally no idea.

If a bordie had come into a decent amount of cash what would they do with it given that it looks like we are in for a bumpy couple of years. Currently no house/mortgage, but it's not enough to buy a place outright and unlikely to get a mortgage for the next year or so.

This is not a thread, looking for genuine advice.

Stay away from debt. It hurts you once you lose your job.

[inactionman]

I'm loath to offer any financial advice whatsoever, so I just mention as an observation - lots of people I know with a few quid to spare are investing small amounts in cryptocurrencies. Some of the returns have been pretty staggering, even recently there was 1% return a day, but followed by a 20% drop. I'm tempted to put a tiny bit in, but I'd suggest it's far too high risk for anything other than a speculative dabble. I'd certainly not put the retirement fund into it.

Apologies to highjack the thread slightly, but I'd also be interested in good investment ideas for more modest sums over shorter periods - I'm a contractor and I tend to receive income in large lumps, and these just sit in my account until needed. I always thought that it could do more than lose value against inflation, but not sure where to look - many investments are longer terms and aren't very liquid. I strictly speaking do have a financial advisor, but he's really just managing my SIPP. I'm talking £10k to £20k over 6-12 months, which would be required at a point in time where my clients come to senses and sack me and I need to live off savings.

I'm not investing in happyhooker enterprises, before you ask.

[Torquemada 1420]

I'm loath to offer any financial advice whatsoever, so I just mention as an observation - lots of people I know with a few quid to spare are investing small amounts in cryptocurrencies. Some of the returns have been pretty staggering, even recently there was 1% return a day, but followed by a 20% drop. I'm tempted to put a tiny bit in, but I'd suggest it's far too high risk for anything other than a speculative dabble. I'd certainly not put the retirement fund into it.

I'm not investing in happyhooker enterprises, before you ask.

That's the rub:
- if you have large sums, why risk it on cryptos?
- if you have small sums, 1000% return won't change a thing

Wrong thread? You need to speak with ex Eng internationals.

[inactionman]

I'm loath to offer any financial advice whatsoever, so I just mention as an observation - lots of people I know with a few quid to spare are investing small amounts in cryptocurrencies. Some of the returns have been pretty staggering, even recently there was 1% return a day, but followed by a 20% drop. I'm tempted to put a tiny bit in, but I'd suggest it's far too high risk for anything other than a speculative dabble. I'd certainly not put the retirement fund into it.

I'm not investing in happyhooker enterprises, before you ask.

That's the rub:
- if you have large sums, why risk it on cryptos?
- if you have small sums, 1000% return won't change a thing

Wrong thread? You need to speak with ex Eng internationals.

I thought most balanced portfolios had small amounts in high risk, noting that only some will come off but they'll help with the incremental growth of the overall pot. That's how my SIPP is structured, anyway.

[SaintK]

I'm loath to offer any financial advice whatsoever, so I just mention as an observation - lots of people I know with a few quid to spare are investing small amounts in cryptocurrencies. Some of the returns have been pretty staggering, even recently there was 1% return a day, but followed by a 20% drop. I'm tempted to put a tiny bit in, but I'd suggest it's far too high risk for anything other than a speculative dabble. I'd certainly not put the retirement fund into it.

I'm not investing in happyhooker enterprises, before you ask.

That's the rub:
- if you have large sums, why risk it on cryptos?
- if you have small sums, 1000% return won't change a thing

Wrong thread? You need to speak with ex Eng internationals.

I thought most balanced portfolios had small amounts in high risk, noting that only some will come off but they'll help with the incremental growth of the overall pot. That's how my SIPP is structured, anyway.

That's what my wife and I have got. Though for some reason she is less risk averse than me!!

[Blackmac]

I find the whole investment process quite fascinating. I've been dabbling in self investment since just after the 2008 crash which I saw as a decent opportunity. I've been putting in any spare cash and it's been a pretty easy ride since then due to the almost constantly rising markets. By the time I retired 3 years ago I felt confident enough to deal with the reasonable lump sum that I received on retirement. I do this through a number of investing platforms which provide you with a significant amount of advice pretty much free of charge. I feel I have done okay. Reasonable returns, diverse portfolio and everything sheltered away from the taxman whilst saving myself a bit of cash avoiding professional fees. I like the fact that for very little money you have the likes of Nick Train, Terry Smith etc looking after your money for you.

On the other hand I appreciate I could likely have done better using a professional and would certainly not have had the knowledge to invest a large lump sum straight off the bat, but I'm happy with the way things are and the satisfaction I get out of it.

I mentioned St James Place as they seem to have cornered the market in ripping off retiring police officers. They are invited to pre retirement courses in exchange for supplying a nice lunch. They then go on to tell you their bullshit without mentioning any of the costs which can be between 5 and 8% PA. That was when I first realised I was doing okay investing because I was quite happy I was out performing the returns they were boasting about.

[inactionman]

I find the whole investment process quite fascinating. I've been dabbling in self investment since just after the 2008 crash which I saw as a decent opportunity. I've been putting in any spare cash and it's been a pretty easy ride since then due to the almost constantly rising markets. By the time I retired 3 years ago I felt confident enough to deal with the reasonable lump sum that I received on retirement. I do this through a number of investing platforms which provide you with a significant amount of advice pretty much free of charge. I feel I have done okay. Reasonable returns, diverse portfolio and everything sheltered away from the taxman whilst saving myself a bit of cash avoiding professional fees. I like the fact that for very little money you have the likes of Nick Train, Terry Smith etc looking after your money for you.

On the other hand I appreciate I could likely have done better using a professional and would certainly not have had the knowledge to invest a large lump sum straight off the bat, but I'm happy with the way things are and the satisfaction I get out of it.

I mentioned St James Place as they seem to have cornered the market in ripping off retiring police officers. They are invited to pre retirement courses in exchange for supplying a nice lunch. They then go on to tell you their bullshit without mentioning any of the costs which can be between 5 and 8% PA. That was when I first realised I was doing okay investing because I was quite happy I was out performing the returns they were boasting about.

I've been disappointed by many of the professional services I've been a customer of. When I was last permanently employed we had a company pension scheme administered through standard life, I noted that after a few years the only growth in my pot had been through my (and my employer's) contribution and that any investment gains had been pretty much swallowed up by servicing fees. Granted, this was a new scheme so I only had a relatively small pot so absolute fees had a disproportionate effect, but still galling.

[inactionman]

That's the rub:
- if you have large sums, why risk it on cryptos?
- if you have small sums, 1000% return won't change a thing

Wrong thread? You need to speak with ex Eng internationals.

I thought most balanced portfolios had small amounts in high risk, noting that only some will come off but they'll help with the incremental growth of the overall pot. That's how my SIPP is structured, anyway.

That's what my wife and I have got. Though for some reason she is less risk averse than me!!

The advice I've been given is that risk is really linked to time in life/closeness to needing the funds - higher risk the younger you are, as downs will eventually be replaced by ups, but lower risk as you get nearer to needing to use the money to avoid last minute dips.

That's about as fiscally sophisticated as my knowledge gets.

[Ymx]

Yeah not far off there.

2 factors

Attitude to risk. Appetite to handle a loss.
Time horizon. When you will/might need it.

If you want it in a years time, you need to be wary you could be down 20-30% if following stock market heavy investment. This might not suit you, see what that number looks like to you. But of course no risk, no gain.

If you can happily hold on to it for 5 years without needing it for any sudden life event, then invest it in some funds. Either with a IFA, or through a fund supermarket eg Vanguard, Hargreaves, ii. With an IFA they will help you choose suitable investment for you, and talk about ISA’s v GIA. ISA is tax free (but can only put £20k in it each year). GIA you pay tax on dividends and cap gains. But with an IFA you are likely to pay 1% extra in fees per year of your total pot.

If no appetite for loss as you will likely want to use it in short term. There aren’t many great savings products out there at current interest rates. But £50k for you and other members each can go in to premium bonds (tax free income). And better return than bank rates (plus the tax free gives it a 40% income tax relief) increases it.

If you really don’t need it at all, and want it for income. Old bastard option. You also have the bond option. You can draw 5% of it a year tax free. It’s already assumed to be tax paid as income at basic rate when you draw further. And you don’t pay capital gains on your investments like you would a GIA. Do this through an IFA, or I found a good cheap one at HSBC. Not SJP !!!!

Thinking about it, you should probably find a good IFA.

[Torquemada 1420]

The advice I've been given is that risk is really linked to time in life/closeness to needing the funds - higher risk the younger you are, as downs will eventually be replaced by ups, but lower risk as you get nearer to needing to use the money to avoid last minute dips.

That's about as fiscally sophisticated as my knowledge gets.

And that is right on the nail for Joe Bloggs. Obviously, if you have £gazillions, your capacity for loss is infinite and so you can do what the hell you like.

[Torquemada 1420]

If you really don’t need it at all, and want it for income. Old bastard option. You also have the bond option. You can draw 5% of it a year tax free. It’s already assumed to be tax paid as income at basic rate when you draw further. And you don’t pay capital gains on your investments like you would a GIA. Do this through an IFA, or I found a good cheap one at HSBC. Not SJP !!!!

Thinking about it, you should probably find a good IFA.

You mean a life assurance bond? In this case, an onshore variant: because offshore has no tax deducted (bar withholding taxes).

The 5% is only a return of capital i.e. 5% x 20 years = 100% return of capital.

Good luck with the last advice!

[Uncle fester]

[Margin__Walker]

I'm no IFA, but if I were you I'd definitely buy one of those cartoon apes.

You can thank me later.

[Ymx]

If you really don’t need it at all, and want it for income. Old bastard option. You also have the bond option. You can draw 5% of it a year tax free. It’s already assumed to be tax paid as income at basic rate when you draw further. And you don’t pay capital gains on your investments like you would a GIA. Do this through an IFA, or I found a good cheap one at HSBC. Not SJP !!!!

Thinking about it, you should probably find a good IFA.

You mean a life assurance bond? In this case, an onshore variant: because offshore has no tax deducted (bar withholding taxes).

The 5% is only a return of capital i.e. 5% x 20 years = 100% return of capital.

Good luck with the last advice!

Yes, that’s it. Investment bonds, or sometimes called life insurance bonds.

[Dinsdale Piranha]

I find the whole investment process quite fascinating. I've been dabbling in self investment since just after the 2008 crash which I saw as a decent opportunity. I've been putting in any spare cash and it's been a pretty easy ride since then due to the almost constantly rising markets. By the time I retired 3 years ago I felt confident enough to deal with the reasonable lump sum that I received on retirement. I do this through a number of investing platforms which provide you with a significant amount of advice pretty much free of charge. I feel I have done okay. Reasonable returns, diverse portfolio and everything sheltered away from the taxman whilst saving myself a bit of cash avoiding professional fees. I like the fact that for very little money you have the likes of Nick Train, Terry Smith etc looking after your money for you.

On the other hand I appreciate I could likely have done better using a professional and would certainly not have had the knowledge to invest a large lump sum straight off the bat, but I'm happy with the way things are and the satisfaction I get out of it.

I mentioned St James Place as they seem to have cornered the market in ripping off retiring police officers. They are invited to pre retirement courses in exchange for supplying a nice lunch. They then go on to tell you their bullshit without mentioning any of the costs which can be between 5 and 8% PA. That was when I first realised I was doing okay investing because I was quite happy I was out performing the returns they were boasting about.

I've been disappointed by many of the professional services I've been a customer of. When I was last permanently employed we had a company pension scheme administered through standard life, I noted that after a few years the only growth in my pot had been through my (and my employer's) contribution and that any investment gains had been pretty much swallowed up by servicing fees. Granted, this was a new scheme so I only had a relatively small pot so absolute fees had a disproportionate effect, but still galling.

I'll see your Standard Life scheme and raise you my company pension scheme making it on to watchdog Top quartile fees bottom quartile returns the entire 6 years I was in it. I'd have been better off not taking the 6% from the company and sticking it in my own scheme.

On the plus side, the company my main savings are with have been good for the 30+ years I have had money with them, allowing me to retire early.

[Slick]

Thanks all, really appreciate it.

We will wipe out our debt and have a good chunk left. Ultimately it’s to buy a house but with my wife only recently returned to work and me running a business it’s unlikely we will get a mortgage for a year or so yet. So low risk and easy to get at when the time comes.

I’ll have a look at an IFA but having done a quick bit of research the advice to top out a couple of ISAs and look at the Lifetime ISA looks like a good start. The rest will probably go in a savings account which we can hopefully keep topping up now we don’t have the debt.

I’ll have a look at Premium Bonds as well although that Money Saving Expert chap doesn’t seem to be a fan

[Ymx]

Don’t you need to be under 40 for a LISA?

[Slick]

Don’t you need to be under 40 for a LISA?

You cheeky cunt

(My wife is)

[ASMO]

Buy a barrel or 2 of good whisky and store it for a few years, will make money no question.

[Hal Jordan]

I deal with a lot of IFAs in my line of work, not all of the St James's Place ones are bad, but the good ones tend to use the SJP backroom admin but retain their name on the tin, usually because the compliance stuff is so heavy and they've had a long run as actual old fashioned advisors who look after their clients for years without the fee grab and fuck ongoing service attitude that a lot of SJP advisors have.

[Dinsdale Piranha]

Buy a barrel or 2 of good whisky and store it for a few years, will make money no question.

Very few distilleries offer this anymore. Mostly the new ones who need the cash. Complete lottery.

[WoodlandsRFC]

For a decent amount a properly independent advisor is a good idea.

Having said that, my rule of thumb is that getting on the property ladder is the first objective. Unless you have a very peripatetic lifestyle, you are always going to need somewhere to live, so initial investment decisions should bear this in mind. This generally means be fairly conservative, make sure you spread it around, and in doing so look at tax efficient wrappers first (eg ISAs).

If you have never owned a property, look at Lifetime ISAs. The Gov adds 25% to what you put in (within limits) as long as you use the money for buying a home (there are restrictions). You can get the money out for other reasons, but with penalties so you need to be sure this is money you will not need for other reasons.

What's considered a "decent amount"? I'm in my mid 20's, so can't see myself on the property ladder anytime soon. Would it be worth an IFA if we're talking just a few thousand dollars?

[JM2K6]

Wondering if any bordies have any experience in this, I am totally useless and have literally no idea.

If a bordie had come into a decent amount of cash what would they do with it given that it looks like we are in for a bumpy couple of years. Currently no house/mortgage, but it's not enough to buy a place outright and unlikely to get a mortgage for the next year or so.

This is not a thread, looking for genuine advice.

I've emailed you

got it, cheers!

Don't lend him any, it's a scam

[Torquemada 1420]

Thanks all, really appreciate it.

We will wipe out our debt and have a good chunk left. Ultimately it’s to buy a house but with my wife only recently returned to work and me running a business it’s unlikely we will get a mortgage for a year or so yet. So low risk and easy to get at when the time comes.

I’ll have a look at an IFA but having done a quick bit of research the advice to top out a couple of ISAs and look at the Lifetime ISA looks like a good start. The rest will probably go in a savings account which we can hopefully keep topping up now we don’t have the debt.

I’ll have a look at Premium Bonds as well although that Money Saving Expert chap doesn’t seem to be a fan

A friend mentioned that you could easily get a Buy To Let Mortgage and then live in the house yourself.......

[Dinsdale Piranha]

Thanks all, really appreciate it.

We will wipe out our debt and have a good chunk left. Ultimately it’s to buy a house but with my wife only recently returned to work and me running a business it’s unlikely we will get a mortgage for a year or so yet. So low risk and easy to get at when the time comes.

I’ll have a look at an IFA but having done a quick bit of research the advice to top out a couple of ISAs and look at the Lifetime ISA looks like a good start. The rest will probably go in a savings account which we can hopefully keep topping up now we don’t have the debt.

I’ll have a look at Premium Bonds as well although that Money Saving Expert chap doesn’t seem to be a fan

A friend mentioned that you could easily get a Buy To Let Mortgage and then live in the house yourself.......

They appear to be checking this closely nowadays. The person moving in to the flat next door to me has a BTL mortgage and can't move in for at least 18 months - which given how much she's just dumped refurbishing is pissing her off. Lots of evidence needed from the lender, she said.

[Torquemada 1420]

Thanks all, really appreciate it.

We will wipe out our debt and have a good chunk left. Ultimately it’s to buy a house but with my wife only recently returned to work and me running a business it’s unlikely we will get a mortgage for a year or so yet. So low risk and easy to get at when the time comes.

I’ll have a look at an IFA but having done a quick bit of research the advice to top out a couple of ISAs and look at the Lifetime ISA looks like a good start. The rest will probably go in a savings account which we can hopefully keep topping up now we don’t have the debt.

I’ll have a look at Premium Bonds as well although that Money Saving Expert chap doesn’t seem to be a fan

A friend mentioned that you could easily get a Buy To Let Mortgage and then live in the house yourself.......

They appear to be checking this closely nowadays. The person moving in to the flat next door to me has a BTL mortgage and can't move in for at least 18 months - which given how much she's just dumped refurbishing is pissing her off. Lots of evidence needed from the lender, she said.

It's a reflection of all that is wrong with the UK housing market. Way easier to get a mortgage to BTL than to buy to live in. Why the lender should care, as long as mortgage payments are met, who only knows. Draw up an AST for a friend who ghost occupies and go from there.....

As long as you make sure your buildings and contents aren't affected, f**k the banks!

[JM2K6]

A friend mentioned that you could easily get a Buy To Let Mortgage and then live in the house yourself.......

They appear to be checking this closely nowadays. The person moving in to the flat next door to me has a BTL mortgage and can't move in for at least 18 months - which given how much she's just dumped refurbishing is pissing her off. Lots of evidence needed from the lender, she said.

It's a reflection of all that is wrong with the UK housing market. Way easier to get a mortgage to BTL than to buy to live in. Why the lender should care, as long as mortgage payments are met, who only knows. Draw up an AST for a friend who ghost occupies and go from there.....

As long as you make sure your buildings and contents aren't affected, f**k the banks!

Is it easier? I thought the deposit required was a lot bigger.

[Lobby]

They appear to be checking this closely nowadays. The person moving in to the flat next door to me has a BTL mortgage and can't move in for at least 18 months - which given how much she's just dumped refurbishing is pissing her off. Lots of evidence needed from the lender, she said.

It's a reflection of all that is wrong with the UK housing market. Way easier to get a mortgage to BTL than to buy to live in. Why the lender should care, as long as mortgage payments are met, who only knows. Draw up an AST for a friend who ghost occupies and go from there.....

As long as you make sure your buildings and contents aren't affected, f**k the banks!

Is it easier? I thought the deposit required was a lot bigger.

They are; you usually need around 25% deposit and the interest rates tend to be higher as well. As far as I can see the only benefit might be that the mortgage amount can be calculated on projected rental income from the property, rather than just the applicant's current income.

[Torquemada 1420]

They appear to be checking this closely nowadays. The person moving in to the flat next door to me has a BTL mortgage and can't move in for at least 18 months - which given how much she's just dumped refurbishing is pissing her off. Lots of evidence needed from the lender, she said.

It's a reflection of all that is wrong with the UK housing market. Way easier to get a mortgage to BTL than to buy to live in. Why the lender should care, as long as mortgage payments are met, who only knows. Draw up an AST for a friend who ghost occupies and go from there.....

As long as you make sure your buildings and contents aren't affected, f**k the banks!

Is it easier? I thought the deposit required was a lot bigger.

AFAIK, you can still get 80% LTV on BTLs. The real issue for many buyers is income multiples (or affordability test) whereas with BTL, pretty much the presumption is the rent will cover the mortgage and so you can scale up indefinitely as long as you have the deposit.