If you had £180k...

Associate
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15 Dec 2011
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1st world question...

If you found yourself with £180K and didnt need it for 12-18 months where would you put it/what would you do with it to create the biggest return either in that period or ongoing.

Medium to low risk for large amounts and medium to high for smaller amounts.
 
Soldato
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Do you need the whole 180k in the future or are you willing to accept some risk of it reducing?

If you need it then spreading it accross a few banks, ISA/Premium bonds etc is probably the best. Think today is the last day for this years ISA allowance.

Otherwise something like a Stocks and Shares ISA but then you've got a reasonable amount of risk depending on the markets.
 
Soldato
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Possibly speak to a financial advisor/analyst depending on how much they cost, spread it out over low/med and high risk investing, try and get in with a hedge fund. You probably wont even for that kind of money. Otherwise couple of cheap properties and do them up. Bonds are another option. Depends on what's hot or not at the current time.
 
Caporegime
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For 1 year, just shove it in a couple of different savings accounts, or a fixed term bond.

1 year is far too short to have reasonable returns at low risk. investments work well for consumers when you are investing over 10 years say. Especially in the current climate, not only Brexit but a few factors might lead to some big shocks to the market within 12 months.

I have a similar amount sitting in some savings accounts as I don't want much risk. Pension is in a much higher risk diverse shares involvements since I can ride out a recession or 2.
 
Soldato
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One bit of advice I see on the UK Personal Finance Reddit is that the FSCS protect up to £85k in one account, so it's always recommended to split what you have to below that threshold, just in case.
 
Associate
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1 year is too short to invest them as stocks & shares, that's for sure! I think I'd go premium bonds and/or the highest rate current accounts.
 
Soldato
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Split into ~£85k across several banks. If anything goes wrong you could lose more than half.

If I had £180k it would be to pay mortgage off and begin to invest. With that amount you could perhaps see someone in wealth management.

I would also be looking at options to retire early.

Also: Jammy *******
 
Soldato
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1 Year isn't much time to mature,

Split it to as close as £85k for each bank to keep FSCS protection, Marcus would be a quick easy one and then split the rest between high interest highstreet banks with their yearly offers.
 
Caporegime
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Wish i was in a Ramen Shop Counter
Buy house and rent it out for £500 a month.

Will probably take at least 8-10 weeks before you get get it, then listing. Let's say 2 weeks before someone moves in.

That leaves you 9 months left. 9 x 500 = £4500.

That's like 2.5% profit with a LOT of work, not knowing even if that's enough to get a house for £180,000 since you have to pay for survey, fees and searches.

Personally if you don't mind a medium level of risk, put it into Vanguard, pick an Index, can see a 6% return for little to no work.
 
Caporegime
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Will probably take at least 8-10 weeks before you get get it, then listing. Let's say 2 weeks before someone moves in.

That leaves you 9 months left. 9 x 500 = £4500.

That's like 2.5% profit with a LOT of work, not knowing even if that's enough to get a house for £180,000 since you have to pay for survey, fees and searches.

Personally if you don't mind a medium level of risk, put it into Vanguard, pick an Index, can see a 6% return for little to no work.

You missed the potential rise in property price. You're probably looking at another 3k on top of that.
 
Associate
OP
Joined
15 Dec 2011
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226
Thanks All... hadnt thought about year not being long enough or savings bonds.

Currently spread out across multiple savings accounts - Markus snd ISAs under threashold of protection... just with all that im getting about 170/month interest at most.

Ive just been saving like crazy as been working away for 3 years with work. Away for another 12-18 months so wanted to see if I could get money to work more for me.

Random question- Is it possible to close and reope a markus account to get the 1.5% rate again after drops down after 12 month introductory rate ends?

Thanks
 
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