Hi, folks.

My house should be completeing in the next few weeks.

I have 140k to invest.

What would you do with this sort of chunk in these interesting times?

property

well i sold my BTL flat late 2005 when the yield had become untenable + seeing to many "been watching property ladder & homes under the hammer" property investors, coming into the market.

My dads advised "when the bell boy starts giving you market tips - thats the time to bail out!"

Anyway, right now i am thinking x2 £35K in high yield 1 year fixed bonds and 1x £35k with ICCI 1x £35K alliance and leicester 6.3 accounts.

Thoughts??

Depends on how long you're going to sit on your funds. If you're high rate tax payer, you'd be bonkers to stick it all in taxable accounts; 1 year fixed bond with Anglo-Irish looks OK, as do index linked 3 year with NS & I...provided RPI stays strong. Could do premium bonds for a bit of fun, but only if you put 30K in otherwise, don't bother.
But you're right to think in terms of no more than 35K in one pot, although big banks tanking unlikely.
Try Icesave, too.

Never though about premium bonds, according to this site calculator http://www.moneysavingexpert.com/savings/p...nds-calculator/ they probably would only return 88% of that of a 6.3% aer account. I'd prob have more fun taking the 12% down to the local casino

anyway, i'll just be paying basic rate of tax this year due to having a fair old chunk to come out the directors current account of my business. I'll chuck the normal £3K into my isa.

I am happy enough to tie up the cash for 12 months or so.

Your comment about taxable accounts interests me, what more tax efficient options would you be looking at if your were into 40% this year & had to do something with £140K?

Wouldn't the Anglo-Irish bond be taxed on the return like a savings account, or does this come under the capital gains allowance?

Income tax..........

Well, I am an STR who pays top whack tax. That's why cash in savings accounts is in my wife's name who only attracts low rate tax!
Premium bonds are, like I said, a bit of fun...but with the small chance of winning big. Even so, all you need are a few lucky moderate wins to return far more than 6% net. I'm certainly up on the deal so far.

Also, I'd go for 7k ISA (shares as opposed to cash). It doesn't seem worth it otherwise.
Beyond that, without getting into medium-high risk investment, IMHO you're better off with the majority of your funds in top-paying savings accounts and bonds.
Just spread it around to sleep easy...35K in each pot.

Buy NRK.L shares with all of it. Sure fire bet.

WAIT!!!!

Don't do it its a dumb idea.

Buy 2-3 cheap flats in Scotland no mortgage. Rent them out for 400 each, thats about £1200 a month income.

Anyone who replies to this with house price crashes etc.....who cares, £1200 a month income is just fine for doing next to nothing. Ile sell you a couple if you like with sitting tenents

Where in Scotland can you buy a flat for £46k and rent it for £400 a month?

...And why would you sell them if you are making £1200 for doing nothing?

Theres still a few places like cumbernauld, dumfermaline, Alloa...as long as you dont espect them to be palaces...

There real sh1t holes areas where you can buy flats for 15K each and rent them to the council, just a load of hassle as you will no doubtely have junkies in there. However I would get a property management company to collect the rent! Imagine having 10 X 14 K flats, no mortgage all out for £250-300 each, even with a property manager taking his 10% cut, thats good money for not much work. Its just whether you have the balls/money to do it - which most people dont.

I invested in not bad areas where you could buy for 40-50K at the time and rent for 400K and all my tenents are good working folk, however you cant do that in these areas any more as the prices have gone up.

The comment about selling was tongue in cheek, I probably wouldn't sell any. It was merely to say that i am currently doing this, and it can be done. If I was sitting on a pile of cash of 140K, thats what i would be considering, and thought it would be an interesting suggestion.

I would invest in NS@I index linked bonds 3-5 year. R.P.I should be singing along for a year at least.Some in a Nationwide fixed bond.Icesave.Sainsburys saver,ICIC,NS@I direct ISA.

Rememeber to spread the money around different banks just in case



edited for typo