Would £200,000 be good to invest in....

by 29 replies
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next year, around the june time, i'll recieve a house in a inheritence (will get it then because of my age)

as i already have an apartment with my girlfriend and the little one, i'm going to be selling it, it's valued at £200,000+

what is the best way to invest this sort of money?

would brick and mortar businesses that already established be a good option?

or web businesses are the future? which would be safer as a investment

would a group of offline businesses be best due to bringing in a monthly income?

any advice?
#main internet marketing discussion forum #£200 #good #invest
  • Sounds like you're in your 20's and getting a good chunk of change. You really have to protect that money. Find someone you trust, that you've known for a long time that can be a mentor for you. Remember as well that money can be a quick way to wreck a friendship so choose carefully and be forgiving and patient.

    My 2 cents.

    Jeff
  • This goes for anyone who is about to get a large amount of money for the first time.

    Hire a financial advisor.

    Don't listen to people like us. We don't know what we're talking about. Go to an expert.
    • [ 5 ] Thanks
    • [1] reply
    • Look for a financial advisor and use your common sense, dont act too quickly, you dont make opportunities, you find them.

      BUT... invest at least 5,000 of that money on IM and keep the rest safe until you are sure what to do with it.
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  • Dont invest in IM until you know what you are doing. Its not like stock market where you buy a couple of popular stocks and then wait for 5years and your investment will surely increas by some $$ atleast.

    You could actually end up getting back 0$ from IM if you are not careful.
  • Why sell it? I'd keep it and rent it out.


    Andrew
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    • Hi,

      Take your TIME. As much of it as you want. Contrary to the popular myth, for the majority it is NOT 'easy come, easy go.' It's just 'easy go.'

      The world is rammed to the brim with people waiting like predators for those with money to invest, but lacking the experience to know what to do with it.

      In many ways, this is good advice. But in many other ways, it is not. At the end of the day, YOU must take the responsibility for what you do with your opportunities.

      The financial advice sector just happens to be filled with the most prolific financial predators who's full time job is to extract your money as quickly and efficiently as possible, while giving you as little as possible.

      My country is bankrupt because of snakes residing in the financial sector - many of them masquerading as financial advisors. You might be better talking to the multitude of burnt investors who now face retirement in poverty, because they had no investment experience and paid someone else to take the responsibility. Almost unilaterally, they were sold duds and were (secretly) treated like total fools. In many ways, they were. They didn't take responsibility for their own education and their lifetime's work proceeds.

      This may also be true in many cases - but most definitely not in all cases.

      I'm not personally after your money dragonetinvestments. But 100% of all financial advisors are and you will get no useful advice from them for nothing.

      Do your homework. Educate yourself. Take your time. YOU are the person that has to live with the consequences of your decisions - anyone you trust will be off into the sunset if it goes wrong. Consider how hard someone worked to provide you with this opportunity - don't let them down.

      You may not get another opportunity like this - so treat it like it's your lifetime's aim and most imortantly (sorry to repeat) - take the time to educate yourself. Study the news. Study those who got it wrong. Study those who (claim to have) got it right.

      When you have lots of money to invest - become a miser. Be discreet. You are now the target of more predators than you have ever been. Enjoy it
      • [ 2 ] Thanks
  • Give it to me and go to heaven in afterlife - best investment there is!
  • NO SH*T! Dont listen to those Financial Advisor, they really know nothing about investing. They wont sit there, their whole life if they really does. Take a personal finance class and learn how to manage your money properly. Bank 80% of the money and use 20% on your im venture. If you do it right, you can almost double your money in IM. Just start small and never put your eggs in one bucket. Learn how to do things right before taking the risk to spend tons of money in IM.




    Best of Luck!
    • [ 1 ] Thanks
  • Probably best to invest it in stocks and be highly diversified. Maybe index fund ETFs?
    • [1] reply
    • I don't think so. I would say, the best way to loose $200k in a flash. Understanding Stock Market is not easy. Most people who started without any knowledge will just listen to his/ her broker and ends up loosing their money down the drain. It is indeed the fastest way to gain (Again! Only If you know how to play the game)
  • The first thing I would do is consider renting the property. The housing market is in a slump right now (in the UK at least, don't know how that applies elsewhere but since you are getting £200,000 I figure that must be UK). If you can rent the property at any kind of profit on the mortgage, if there is one, plus any agents fees, maintenance etc then you should see a monthly income plus capital growth over the next few years as the market comes out of this slump.

    If you are set on selling it you need to work out when you need access to the money. The best returns are available for investing your money over longer periods of time but that is no good to you if you will need it sooner rather than later.

    Make sure to take advantage of the quick and easy wins that are available to you. Max out your own and your wife's ISA limits (they go up next March). Find someone who will give you a preferential rate for taking out a stocks ISA alongside their cash ISA. It took me all of 2 hours with an Alliance and Leicester financial advisor to find a couple of mutual funds to split my money across. FWIW I don't think A&L have the best return but I've banked with them for years so it was a path of least resistance for me.

    I'm not sure how old your little one is but I think there are a lot of tax incentives to invest for his/her future. Make sure you find out all you can and get a lump sum invested into one of those programs to mature when he/she will be off to university.

    After that you're outside my area of experience so I'll stop whittering now

    Andy
    • [ 1 ] Thanks
  • I will echo Andy Fletchers advice.

    Unless you are in need of the money you should hold onto the property and offer it for rent.

    Sell once the property market recovers, which it will over the next 3 to 7 years. In the uk, over the last 60+ years the property market has doubled every 7 to 11 years.

    By selling now you are selling at the low end of the market. Even holding onto it for only a few years will be more beneficial.

    The rental income (assuming there is no mortgage) can be used in investment in some online activities.

    Riz
    • [ 1 ] Thanks
    • [1] reply
    • Keep the house. You can rent it out and get income - renting property is a business, I know, I do it. And it involves work when tenants change.

      With a house - if property prices go up, you get a capital gain and income. If prices go down, you still have income and you still have an asset that will appreciate again at a later date.

      With stocks and shares, if prices go down you are in danger of losing their income and, in some cases, losing the shares altogether if the company goes out of business.

      Property is always best - keep it. Don't mortgage it unless you need to, and don't sell it unless you need the capital.

      My 2c worth.
      • [ 1 ] Thanks
  • Thanks for all the advice and comments, very usefull and helpfull, i am in my early 20's and this will be a big chunk coming in and i seriously don't want to waste it. I'm going to have a look in renting out, seek some professional advice.

    Thanks all
  • Be careful finding professional advice. (Ask anyone that went to Bernie Maddoff for professional advice.) Just as some bloggers are compensated for a good review for a product, that same situation can hold true with some financial planners.

    I'm not saying to listen or not listen to any specific advice here, the bottom-line is it is your money and whatever happens, you will reap the benefits or the loses. You have to take an active role in investigating whatever you decide to do. Conventional wisdom would have you 'diversify', just as an IMer after focusing on one income model might develop another 'stream of income' with another, diversifying can lessen the damage a wrong desicion can cause; but it is ultimately you that wins or suffers and that makes it your responsibility to NOT blindly accept any outside strategy (here or anywhere else) without doing your 'due diligence'.

    In MY opinion. Lol.
    • [1] reply
    • Exactly what i was thinking, i'm a bit weary on financial advisors as they could just be telling me anything, due to me know not much about investing
  • Yes, Dragoninvestments,

    They could be telling you anything just to get your money.

    There are financial advisors who are paid by the commission they receive from the investment instruments they sell... be it stocks, bonds, or annuities. They might advise you to invest in whatever gives them the largest commission.

    There are financial advisors who do fee-based work, are paid by you for their time, and for their advice, and they don't earn a commission. Thus they have no hidden agenda (wanting larger commissions) in the advice they provide.

    Others here have mentioned keeping the property and letting it be the investment. My wife and I love real estate as an investment, but even this takes some knowledge. There is a real estate investment website with a forum that is a lot like the warrior forum - except it is about real estate. You can find it at creonline.com. I am not an affiliate.

    Here in the US there are REIAs -real estate investment associations that teach REI to members. There may be something like it in your country. There also are investment clubs that teach members about general investing. Again these are probably in your country too.

    I realize the prospect of having a large sum of money in your hands is calling you, but take your time.

    :-Don
    • [ 1 ] Thanks
    • [1] reply

    • Thanks, i'll check it out. i've got alot of thinking to do, i think renting it out is the best option, it's an investment i don't want to lose as it could secure my future, and don't want to be gullible and risk and spend it away.

      thanks, i'm going to have a look to see if i can find any of those real estate associations.

      Will be much appreciated if anyone in the uk, can point towards something like the don's have said. Guy's your awesome! all your help is great, i'm very gratefull.
  • Don't sell it, sure your get a chunck of change but if you got 200k your do something with it and blow it on stuff, new car etc... Rent the house out, what would you rather have 200k or residual income?
    • [1] reply

    • I already make a good income online, through my own site's that i run, i was told by my older brother that i could probably collect £750 around that amount in monthly rental fee's.

      going to look into it further, need to do some research before i choose anything, i have enough time to choose what i want to do until june.
      • [1] reply
  • ok there seems to be a lot of financial adviser bashing.

    It would be very irresponsible to completely disregard the benefits of a financial adviser.

    just like there are good and bad restaurants (random example) doesn't mean all restaurants are bad. (hope you get the point).

    solid financial advice can set you up for a long time.


    some other advisers that you may want to set up appointments with:

    accountant
    lawyer
    etc.


    last point. read this book. rich dad poor dad by Robert Kiyosaki

    Amazon.com: Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and Middle Class Do Not! (9780446677455): Robert T. Kiyosaki, Sharon L. Lechter: Books
    (not an affiliate link)

    will cost you 11 dollars. but is invaluable information.



    good luck with your investments.


    regards

    Simon
    • [ 1 ] Thanks
  • i've already started talking to my accountant, and the lawyer that is dealing with the inheritence, i'll check the book out, thanks bud!
  • CAUTION. The word of the day.

    I like the answers I see above. I would not jump into anything. Take plenty of time and get your research done. Unless you must sell the house, take plenty of time on that as well. It may be valued at 200K but it is worth only what someone will pay for it.

    You are in a good place in a bad economic time. Do you research from all angles before selling or investing any money.
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    • [1] reply
    • This is something, I'm not jumping into, I don't want to risk anything at the moment. I am in no rush to sell the house, So time i do have a lot off.
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  • Listen to Don Schenk. You want a financial advisor who does not work on commissions, but for a fee.

    If you're already working with an accountant and a lawyer, ask them for referrals to financial advisors. Think of people you know and trust who invest (especially those who have been doing it for years), and ask them for referrals. Get references, and check them.
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