Pastor

I'm about to come into some money, a few grand short of 100K to be precise and I'm at a loss at what to do with it (no I don't want to give any of it away)
I've earmarked 20K to blow which leaves me with 80K to invest. I'm aware that leaving it in the bank is only going to reduce it's value. What I'm looking for is something safe to invest the majority of it in (not property though), that will allow it to keep pace with inflation at least. I'd also like to gamble with a small amount of it, something high risk with the chance of a good return.
Looking at sites such as motley fool has given me some ideas but I'd like the opinion of some the clever so and so's on here if they want to share their secrets that is.
Thanks
Alan

davegtt

why not invest in property? pay off your margage? (presuming u have 1)

lucky bugger life sucks

blair

Have you had a look at the HYP discussion board on the fool - thats the route I'd go if I were in the same position I think. You probably want to have a decent spread of risk as well - some in a high yield account, some in shares, some as a bit of a punt.

If you have any debt its probably worth paying that off first as you'd get lucky to invest in anything that provides a net yield which is the same as say your mortgage rate.

Poor Guy

ISAs?

my old fella got 37.5% last year on his money. american market or something.

Pastor

Thanks for the ideas, I have no debt or mortgage I was too young to buy into the property market when levels were reasonable and I have no wish to join it at the moment as I can only see prices coming down in the future (through stagnation or some actual falls who knows). Rather I want to keep this money safe for the time I do want to buy a property.
ISA's I'm not so sure about, thanks for the tip about the fool forums, I'm going to take another look right now.

marky1

if you've had to come on the internet to ask people then I'd say the best you can do is stick in the bank with INGDirect at 5%.

sleeka

I would say ISA, earn loads of interest and you know it is definitely safe.

My dad is an independent financial advisor so if you want proper advice PM me.

Pastor

Thanks the 5% account sounds just what I'm looking for, I've never had any money before thus why I'm asking dumbass questions.

marky1

no fair enough! Just can tell by your risk parameters that is probably the best thing for you. 5% aint bad as well, and pretty much no risk.

Claudius

You should be able to get a bit more than 5% with a good bond.

Other than that, a friend of mine is selling an absolutely mint GT2

milo

before u go putting £80k in a single 5% account, be aware that should the institution where you have your money go bankrupt you are only protected for the first £30k (i think).

in other words, if 5%ish minimum risk investment is what you want.. dont put more than £30k with a single institution. split your 80k between 3 or more different companies.

marky1

I think there would be a few people/banks in a lot of trouble if ING were to go bust. Not sure how practical it is to start putting 30 grand in lots of accounts and you don't exactly clean up on the interest if you've got 30k in different banks. Also bonds go up and down in value so you can have capital loss which i would imagine is not what you want.

Vlad the Impaler

*Cough*....bullsh1t....*cough*

Iwan

£30k on premium bonds, average tax free return of 2.4% p/a and zero risk.

Not sure about the rest, but if i'd come into that much money i'd be thinking about investing a bit of it on doing the Gumball next year.

Pastor

Thanks for the info all, account opened with ING.

Vlad, I wish I hadn't come into this money, it's my mothers life savings which she unfortunately doesn't need any more as she died of cancer recently. Thanks for your kind words.

Edcase

God there are some tw@ts on this forum.

Why do you even bother mate? Oh...its cos you haven't got any real friends!!!

This isn't the nova forum mate, there are people on here with real cars and real money and real life issues.

milo

actually, with some accounts you get MORE interest for having less than 50k invested.

and with ING u dont get any more interest for having more than 30k invested, so why bother.

yes, there would be lots of people in trouble if ING went bust.. but why be one of those people when u dont have to?

not worth the gamble of putting all the money in one place... nobody thought barings would go bust.. but they did.

Tiggs

dont often bother with splitting up funds for clients once its sub 100k.

milo

how come?

do they realize they could lose 70k should the institution go bust?

Edcase

ING are owned by Barings aren't they?? I met the main shareholder of barings recently, based in geneva. They sponsor my mate's race team in British GT.

paulr

Its unlikely any bank would go bust as there are always other banks wiliing to buy them out.

Tiggs

depends on investment size but if someone is finding a home for 3,4,500k + its normally the case that they will not go below 100k per company. If they are doing higher sums its often £250k each way.

they worry about losing their money (due to a bank going bust) about as much as they worry about having a 747 land on their house.

milo

i assume they have buildings insurance for the latter tho?

Faire D'Income

ING Direct seems to have become the Scoobynet fact du jour and whilst it may have been paying the highest interest rates in the past, it certainly isn't now so I'd suggest you look around for other building society accounts that pay higher rates.

I'd also suggest that you invest some of your cash in Premium Bonds which I've done very well with and although if you're unlucky and don't win anything your initial investment will only depreciate by the current inflation rate.

A small portion could be put into a cash or investment ISA as has already been suggested and if you wanted to be more adventurous or speculative, then someone like Framlington or Jupiter have some excellent funds to invest in. Again, don't take my word for it - look online and do some comparitive shopping.

The trick is to have a balanced portfolio of investments so that if one fails to perform it should be counter balanced by one that is doing well. Personally, I wouldn't worry too much about any of the UK banks going bust in today's climate but as your title suggests you should never have all your eggs in one basket.

Tiggs

ahhhhh...i wondered why they always seemed so casual about the plane/house thing

Claudius

Listen to this man.

Pastor

This type of advice is exactly what I was after, lots of sense talked on this thread.

It looks as if it's to be some with ING, premium bonds, cash ISA, investment Funds and some choice mods for my Impreza. Again thanks all I really appreciate your time and effort pointing me in the right direction.

Diablo

What about BCCI?

Millions were lost.

Many lost out due to the Barings collapse (although it was bought)