What Would You Do In My Position?

[brianc_li]

Ok all you financial experts out there, let´s see what suggestions you have.

I´m 50 as is my partner. We own our own property here (NL) outright. Value is immaterial as it is where we want to live. We both have good jobs, a reasonable amount saved and are paying as much as we are allowed to into our pensions (20% of salary). We expect to be able to retire very comfortably by the age of sixty.

We have recently inherited 100k euro. We have no need for it whatsoever now or for the near future. Our plan is to try to use it retire even earlier if we can. Ideally we´d like to try and get a return of over 15% compound per annum. We´re fully aware that this involves risk and that we could end up with a fraction of the original sum. If so, no big problem, we can live with it.

It is likely that we´ll buy a property in Spain at some stage but given the state of the market there at present it won´t be in a hurry.

At present the money is sitting in a highly geared equity based fund spread across world markets and sectors. Is this the right place for it? If not, what would you suggest?

[Justice]

Keep it in euro's and don't let it burn a whole in your pocket unless you think house prices are about to sky rocket.

[Guest Parry]

Ok all you financial experts out there, let´s see what suggestions you have.

I´m 50 as is my partner. We own our own property here (NL) outright. Value is immaterial as it is where we want to live. We both have good jobs, a reasonable amount saved and are paying as much as we are allowed to into our pensions (20% of salary). We expect to be able to retire very comfortably by the age of sixty.

We have recently inherited 100k euro. We have no need for it whatsoever now or for the near future. Our plan is to try to use it retire even earlier if we can. Ideally we´d like to try and get a return of over 15% compound per annum. We´re fully aware that this involves risk and that we could end up with a fraction of the original sum. If so, no big problem, we can live with it.

It is likely that we´ll buy a property in Spain at some stage but given the state of the market there at present it won´t be in a hurry.

At present the money is sitting in a highly geared equity based fund spread across world markets and sectors. Is this the right place for it? If not, what would you suggest?

Not all of us!

[50%deposit]

buy up some RLD kamers and preserve your nations history in full working order

[Dorkins]

If you really don't need it, give it to a third world charity. Sounds like you are happy with your lives already, and you could bring a lot of happiness to a lot of people with that money.

[Guest Parry]

If you really don't need it, give it to a third world charity. Sounds like you are happy with your lives already, and you could bring a lot of happiness to a lot of people with that money.

Good idea! See my sig, OP.

Thanks in advance.

[alexw]

Ok all you financial experts out there, let´s see what suggestions you have.

I´m 50 as is my partner. We own our own property here (NL) outright. Value is immaterial as it is where we want to live. We both have good jobs, a reasonable amount saved and are paying as much as we are allowed to into our pensions (20% of salary). We expect to be able to retire very comfortably by the age of sixty.

We have recently inherited 100k euro. We have no need for it whatsoever now or for the near future. Our plan is to try to use it retire even earlier if we can. Ideally we´d like to try and get a return of over 15% compound per annum. We´re fully aware that this involves risk and that we could end up with a fraction of the original sum. If so, no big problem, we can live with it.

It is likely that we´ll buy a property in Spain at some stage but given the state of the market there at present it won´t be in a hurry.

At present the money is sitting in a highly geared equity based fund spread across world markets and sectors. Is this the right place for it? If not, what would you suggest?

I suggest finding your nearest casino and putting it all on red as your potential return would be 100%, significantly higher than your desired return. Also your losses would be only slightly greater than what your willing to tolerate, from your above statements.

[Pindar]

Send it to me, I will invest it for you:

Sort code 99-55-33

Account: 42343444

[TheEmperorHasNoClothes]

Send it to me, I will invest it for you:

Sort code 99-55-33

Account: 42343444

Is this suggestion anyway linked to this thread? :

Recession Drives White-collar Women To Sex Trade

[Yorkshire Lad]

Start your own charity shop and give profits back to the local community in which you live.

All too often money given to charity disappears from the locals pockets and doesnt benefit them whatsoever.

You'll appear in the local newspaper handing those big cheques to local needy causes.

You could become a hero!

[TheEmperorHasNoClothes]

Ok all you financial experts out there, let´s see what suggestions you have.

I´m 50 as is my partner. We own our own property here (NL) outright. Value is immaterial as it is where we want to live. We both have good jobs, a reasonable amount saved and are paying as much as we are allowed to into our pensions (20% of salary). We expect to be able to retire very comfortably by the age of sixty.

We have recently inherited 100k euro. We have no need for it whatsoever now or for the near future. Our plan is to try to use it retire even earlier if we can. Ideally we´d like to try and get a return of over 15% compound per annum. We´re fully aware that this involves risk and that we could end up with a fraction of the original sum. If so, no big problem, we can live with it.

It is likely that we´ll buy a property in Spain at some stage but given the state of the market there at present it won´t be in a hurry.

At present the money is sitting in a highly geared equity based fund spread across world markets and sectors. Is this the right place for it? If not, what would you suggest?

Some ideas:

Invest in oil, I think the price of oil must go up over the next couple of years. Perhaps solar-related investments too. Agricultural land? Nuclear Power? Anything that will profit from an overpopulated planet which is running out of natural resoruces.

[Ruffneck]

buy a country farmhouse , build defensive perimeter , get vegie patch , animals etc

[Wait & See]

Buy and few Bank of Ireland and RBS shares.

[durhamborn]

Ok all you financial experts out there, let´s see what suggestions you have.

I´m 50 as is my partner. We own our own property here (NL) outright. Value is immaterial as it is where we want to live. We both have good jobs, a reasonable amount saved and are paying as much as we are allowed to into our pensions (20% of salary). We expect to be able to retire very comfortably by the age of sixty.

We have recently inherited 100k euro. We have no need for it whatsoever now or for the near future. Our plan is to try to use it retire even earlier if we can. Ideally we´d like to try and get a return of over 15% compound per annum. We´re fully aware that this involves risk and that we could end up with a fraction of the original sum. If so, no big problem, we can live with it.

It is likely that we´ll buy a property in Spain at some stage but given the state of the market there at present it won´t be in a hurry.

At present the money is sitting in a highly geared equity based fund spread across world markets and sectors. Is this the right place for it? If not, what would you suggest?

First forget aiming for 15% compound.It means nothing.At 50 your aim is to hold or increase its value relative to inflation.

Id split it 50/50 and invest the full allowance in ISAs each year.Its £10200 starting April.One lot in a good corporate bond ISA,one in an equity income fund.Income reinvested on both until your 60 then take the income each year.

Take around 5 years to invest it.In the mean time it would be in the best cash account i could find.Or should i say 2 cash accounts to be covered by the 50k rule.

Geared equity accounts might make fantastic returns,but with that comes huge risk.IMO 50 isnt the age to be taking such risks when your already secure.

[KingBingo]

We have recently inherited 100k euro. We have no need for it whatsoever now or for the near future. Our plan is to try to use it retire even earlier if we can. Ideally we´d like to try and get a return of over 15% compound per annum. We´re fully aware that this involves risk and that we could end up with a fraction of the original sum. If so, no big problem, we can live with it.

It is likely that we´ll buy a property in Spain at some stage but given the state of the market there at present it won´t be in a hurry.

At present the money is sitting in a highly geared equity based fund spread across world markets and sectors. Is this the right place for it? If not, what would you suggest?

Given your requirement and risk profile yes, it is about right.

Personally I would lower my estimation to 10%, treat anything else as a bonus, and don't use a geared fund, just regular unit trusts. If I were you I would pick the top two funds in each geographic sector and divide your money across them.

That way you reduce the risk, especially of the gearing, plus gain divserifaction.

I invest a similar sum of money and use these guys because they are dead cheap: www.intethic.com

Edited June 25, 2009 by KingBingo

[_w_]

You could look at start-up / business angel investing. It's time consuming and high risk but seems to respond to your requirements. 100k is not much for this but you could split it into 2 or 3 investments. I would advise against putting it in a start up mutual fund or similar, it would still be high risk but the return you would end up with would be closer to gilts, the difference going into a new Aston Martin for the fund manager as is usually the case. On top of that you help the uk rebalance its economy towards more productive activities so you can feel good about it :-)

[R K]

Agree with Durhamborn.

First of all, look at the risks to your very secure future and ensure you cover them. I wouldn't have thought leveraged equity funds and expecting 15% compounded gains for the next ten years is the best way to do that. You don't mention anywhere protecting against expected losses yet equities haven't returned 400% in the last 10 years so I'm not sure why you think they should in the next. Whatever you do, stop messing around with leverage.

[Guest X-QUORK]

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[brianc_li]

First forget aiming for 15% compound.It means nothing.At 50 your aim is to hold or increase its value relative to inflation.

Id split it 50/50 and invest the full allowance in ISAs each year.Its £10200 starting April.One lot in a good corporate bond ISA,one in an equity income fund.Income reinvested on both until your 60 then take the income each year.

Take around 5 years to invest it.In the mean time it would be in the best cash account i could find.Or should i say 2 cash accounts to be covered by the 50k rule.

Geared equity accounts might make fantastic returns,but with that comes huge risk.IMO 50 isnt the age to be taking such risks when your already secure.

Durhamborn,

What you say would make sense if I lived in the UK. I don´t so ISAs, which are a particularly UK concept, are not an option.

I´m not sure why you say "50 isnt the age to be taking such risks when your already secure.". The point I was trying to make is that I am already secure and this is money I want to play with.

Emperorhasnoclothes

Makes sense. I´ll look a bit further.

Anyone else?

[IBlewItLastTime]

I opened an online broking account and invested in IShares some years ago. The dealing charges are low and they are liquid, which means that you can easily whack it all into bonds when the going gets tough, like it did on the way in to the Credit Crunch.

I remember learning somewhere that if you invest in the index, then over the long-term you will beat the active fund managers.

Property is good if you can gear up and can stand the agg, but its not going to bounce back any time soon (famous last words).

The market is now global and the UK is f**d, so I think indices like MSCI World and the asians (XNIF, BRICS) are good bets long term. It can be a rocky ride, mind, and I try to be diversified.

Right now the markets are pausing for breath following a great rally. Its anyone's guess where they go from here.

[Vagabond]

I suggest finding your nearest casino and putting it all on red as your potential return would be 100%, significantly higher than your desired return. Also your losses would be only slightly greater than what your willing to tolerate, from your above statements.

Best. Advice. Ever.

Really, if you're willing to lose the lot and don't mind a bit of risk this is the way to go. Just make sure its not US roulette as that would mean '00' as well as '0' on the wheel.

[brianc_li]

Really, if you're willing to lose the lot and don't mind a bit of risk this is the way to go. Just make sure its not US roulette as that would mean '00' as well as '0' on the wheel.

It was/is a serious question about investing the money. Have to say I do find it interesting that out of the so many on here who are ready to give their views about pretty well everything there appear to be very few who are prepared to give a considered reply.

Besides if I wanted to gamble it in a casino I´d play craps rather than roulette or indeed any other game. The odds in favour of the house are lower.

[pl1]

I would go and read the other forums on here and stop being lazy. The one called Investment might be a good start? You'll find nothing here on this forum, with a question of this nature, but cheeky comments (disguising ignorance) peppered with one or two good gem's but you'll find a wealth of knowledge on the other forums with regards to this (let's face it very common) question.

[Johnny Storm]

I´m not sure why you say "50 isnt the age to be taking such risks when your already secure.". The point I was trying to make is that I am already secure and this is money I want to play with.

You say that, but you also say about a villa in Spain. Do you want to risk it and end up with no villa? Just put it somewhere safe and enjoy your holiday home in a few years time.

Good luck whatever you decide.

[sooperlids]

If you really don't need it, give it to a third world charity. Sounds like you are happy with your lives already, and you could bring a lot of happiness to a lot of people with that money.

Nice idea except the vast majority wouldn't go to the needy. It will mostly also disappear in administration charges etc, depending on the charity of course.