scc
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Post by scc on Oct 24, 2018 5:58:31 GMT
OP, how far away are you from pensionable age?
You'd have to drip feed it into a pension over quite a few years - but the tax relief could be worth it.
If it were me, I'd consider:
Putting a few percent of it into more riskier investments that could pay off in the longer term/provide a hedge against downturns
Max out pension & ISA contributions (maybe by drip feeding if stocks & shares)
Consider if there were any SEIS investments you wanted to make
Pay off mortgage.
Solar panels for own home. Energy isn't getting any cheaper.
Invest in self education/hobbies that have potential to be high earning/start a business eg current high paying skills like AI
Drip feed a percentage point or so some into (local) causes or KIVA. Won't earn you anything, but might give you lots of happiness.
Get a full health check up for self and any partner over the age of 40.
Stick what's left in an index tracker. But drip feeding.
Personally, I think you should be asking for professional advice though. That is a big sum of money to be asking advice from a bunch of randoms on the internet.
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£200k
Oct 24, 2018 8:27:22 GMT
Post by newlender on Oct 24, 2018 8:27:22 GMT
If you can identify an area where property prices are forecast to rise from a low base, buy a small 1/2 bed flat and rent it out. I remember about 20 years ago a colleague had researched this and he bought a place in Peckham. He lived there for about 15 years and then sold up with a 50% profit! There are areas of Outer London which are forecast to rise a lot irrespective of the macroeconomic situation. (Or you could put the lot into Zopa Plus  ) As you mention Marcus, just to say that my initial reaction is very positive there too, but at 1.5% p.a. I doubt you'd reach your goal anytime soon. |
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Post by dan1 on Oct 24, 2018 12:11:08 GMT
... He lived there for about 15 years and then sold up with a 50% profit! ... Sigh. 50% increase over 15 years converted to APR is 15th root of 1.5 or 1.5^(1/15) which is 1.0274 which is 2.74%. Which doesn’t sound so exciting. Take off, say, 1% pa for maintenance and you're not too far from the rate offered by Marcus. Of course, the "investment" could have been leveraged by a mortgage in which case the gains would have been amplified.
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£200k
Oct 24, 2018 14:50:50 GMT
Post by Ace on Oct 24, 2018 14:50:50 GMT
Sigh. 50% increase over 15 years converted to APR is 15th root of 1.5 or 1.5^(1/15) which is 1.0274 which is 2.74%. Which doesn’t sound so exciting. Take off, say, 1% pa for maintenance and you're not too far from the rate offered by Marcus. Of course, the "investment" could have been leveraged by a mortgage in which case the gains would have been amplified. Since mortgage rates are likely to have averaged more than the post-maintenance rate of 1.74%, leveraging would have amplified a loss rather than a gain!
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£200k
Oct 24, 2018 15:10:38 GMT
Post by newlender on Oct 24, 2018 15:10:38 GMT
Just checked. Bought for £280K mainly funded by an inheritance, so no mortgage. Sold for £575K after 15 years, so profit was approaching 100%. Overheads included £15K to modernise it but little else. Of course, it could have been rented out for the 15 years and that would have made quite a difference.
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pom
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£200k
Oct 25, 2018 8:17:49 GMT
Post by pom on Oct 25, 2018 8:17:49 GMT
Just checked. Bought for £280K mainly funded by an inheritance, so no mortgage. Sold for £575K after 15 years, so profit was approaching 100%. Overheads included £15K to modernise it but little else. Of course, it could have been rented out for the 15 years and that would have made quite a difference. Not really sure what your point is, as unless you have a tardis the chances of repeating are extremely slim given how much the market has risen in 20yrs. And I can't resist saying he didn't pick it that well....nearly 20yrs ago I bought in Greater London...spent a minimal amount, sold 4.5yrs later for 2.4x what I paid for it, and zoopla now reckons it's worth 4.5x what I paid for it (which I find absolutely hysterical given what I remember of the street/area, but a neighbouring property has actually sold for that much a couple of months ago, albeit probably in far better condition now my old place has been rented out for 15yrs, but with smaller garden, so I kinda have to believe it)
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michaelc
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Post by michaelc on Oct 25, 2018 15:35:10 GMT
Well, a bit of luck in a casino, 200k on the black and win , or lose 200k on the red  / '0'. Definitely huge risk Problem with that might be finding a casino willing to accept such a bet from a non-high roller. I think even in Vegas you'll struggle to get over 10K. In London a lot have 5K tops for "even" money bets. Not that I'm an expert......(!)
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Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Oct 25, 2018 16:31:58 GMT
What's the quickest way to make £200k into £300k or £400k? And What's the strongest, but not necessarily safest way to make £200k into £300k or £400k, that's not 1.5% in Marcus? And would either of these create a steady drip income? Business start up ideas welcome. Public sector drudge asking (no, definitely not one of the fields of public sector work that have had a pay rise, at all. A good pay rise is 1% usually it's 0% or 0.5%, restructuring every year, it's totally absurd). Invest in P2P !! No !, wait a minute that was how to turn £300,000 or £400,000 into nothing I got a little confused due to lack of food since I have no money left to buy any 
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£200k
Oct 25, 2018 19:46:05 GMT
Post by newlender on Oct 25, 2018 19:46:05 GMT
There is a tiny startup company out there somewhere that will be the next Microsoft or Facebook. My Seedrs portfolio has a couple of horrors but two companies that look promising and have increased nicely in just a couple of years.
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Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Oct 25, 2018 20:12:16 GMT
Buy a time machine and go back and buy £20 worth of bitcoin.
Offer 78” 4K TVs worth £2000 for £500 on eBay with 1000 for sale with delivery before Xmas. Sell the lot and run away with the money.
Wait a minute I’ve seen this before it’s P2P investments
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Greenwood2
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Posts: 4,371
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£200k
Oct 26, 2018 12:48:46 GMT
Post by Greenwood2 on Oct 26, 2018 12:48:46 GMT
Buy a time machine and go back and buy £20 worth of bitcoin. Offer 78” 4K TVs worth £2000 for £500 on eBay with 1000 for sale with delivery before Xmas. Sell the lot and run away with the money. Wait a minute I’ve seen this before it’s P2P investments If you need any help I just might be persuaded to let you have a time machine for a small consideration of £200k, caveat emptor!
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Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
Posts: 2,011
Likes: 1,013
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£200k
Oct 26, 2018 21:06:09 GMT
Post by Godanubis on Oct 26, 2018 21:06:09 GMT
Buy a time machine and go back and buy £20 worth of bitcoin. Offer 78” 4K TVs worth £2000 for £500 on eBay with 1000 for sale with delivery before Xmas. Sell the lot and run away with the money. Wait a minute I’ve seen this before it’s P2P investments If you need any help I just might be persuaded to let you have a time machine for a small consideration of £200k, caveat emptor! The suggestion was for you mere mortals. I as a God I can flip back and forward.
I do however have no wish to cause a temporal paradox to get a few extra quid. link
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Greenwood2
Member of DD Central
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£200k
Oct 26, 2018 21:13:48 GMT
Post by Greenwood2 on Oct 26, 2018 21:13:48 GMT
If you need any help I just might be persuaded to let you have a time machine for a small consideration of £200k, caveat emptor! The suggestion was for you mere mortals. I as a God I can flip back and forward.
I do however have no wish to cause a temporal paradox to get a few extra quid. link To have a time machine I am obviously an immortal. I did not realise you are a real one also.
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scc
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Post by scc on Oct 27, 2018 16:28:07 GMT
Here's another possibly useful idea. Do an audit of long lasting/non perishable goods you use in your home. Buy in bulk a bunch of them which are likely to inflate over the next few years.
In my view, personal inflation tends to exhibit 80/20 like effects. Some things inflate by a lot more than CPI/RPI, others track it, some - like electronics/entertainment media - even deflate. For example, we are still using washing powder I bought in bulk five years ago. I bought ten sets of identical jeans from an M&S sale in 2014, and as a keen runner - five pairs of the same trainers in 2015. All are at least 40% below current prices. Another advantage is that you no longer waste mental time on adding it to a shopping list/keeping track of it. The flipside is that I tend to buy electronics/entertainment media secondhand and only when required. There's no point in storing spare computers.
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) As you mention Marcus, just to say that my initial reaction is very positive there too, but at 1.5% p.a. I doubt you'd reach your goal anytime soon.
/ '0'. Definitely huge risk
