What to do with 25K investment pot...

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vkurup

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This weekend was time with the lads and now that we are all pushing 40s, the realisation that we might be in the second innings of life. Lots of talk about missed opportunities. Financial independence in the next few years was a hot topic. Also, given the dire strait of pension which can be only be explained by Richart, the conversation moved to investments. If we raise a corpus of 25k (which is a nice arbitrary but achievable figure), what could we do to ensure that it provides in the post retirement era. Usual suspects
1) Property investment (Buy to let)
2) Stocks including overseas pension
3) Top up of Pensions
4) Pay off or reduce some debt e.g. Car/Mortgage
5) Start a small business - shop/cafe (though this deemed too risky)

Question back to forumers.. If you had 25K, what would you do ...

ps: Going on holiday was not an option..
 
Where I am at in my life I'd be giving serious consideration to just investing the sum in premium bonds...

Purchased a few thousands worth on behalf of the grandchildren a couple of years back... Pay outs, thus far, have exceeded anything that could have been got in other scheme...
 
I put half of my pension pot into Premium bonds about 12 years ago.
The second month I got a dividend of £1000 [I refuse to call them wins!] and have done pretty well out of them until recently.
They have easily outperformed my ISA's. over that period. You obviously reinvest any dividends.

You do need a decent investment chunk, I would say £10k min to stand any chance. The max is £30k per person.
I know some couples who have £60k invested between them and are quite happy with their investment.
I don't seem to be doing so well since they reduced the payouts, stands to reason I suppose but still happy to keep my money 'safe'. You also have the gamble that the big win just may happen.

Gibbo...I would clear out any credit card debts or high interest debt.
Put your pot in a separate account and use it as a bank. If you need a new car/ boiler etc use the account and set up monthly payments back into it.
 
G1BB0 said:
Personally I would clear my small debts. Put some away for my kids driving lessons and 1st car then put the rest in an isa
Click to expand...

ISA rates are very low at the moment with very little return, for long term investment it has to be the stock market. Lloyds looks like a decent bet....
 
Premium bonds: Got a few bobs in Premium bonds, but of late nothing seems to be coming my way. I guess there is a need to go past the 10K mark.
ISAs: ISAs are good options (provided you can find one)
Shares: Lloyds shares looking good at the moment.

Surprisingly no one thinking of going into becoming a landlord. Is 25K too little an amount to be a landlord. Seems to be in London & the home counties (I think)
 
property is the best way! people will ALWAYS need a place to stay, and with the immigration influx and not enough new builds its a no brainer............however, £25k is just your deposit and landlord set up costs, plus you need to factor in ongoing maintenance/insurance/no rent periods etc etc

still safer than the stockmarket
 
vkurup said:
Premium bonds: Got a few bobs in Premium bonds, but of late nothing seems to be coming my way. I guess there is a need to go past the 10K mark.
ISAs: ISAs are good options (provided you can find one)
Shares: Lloyds shares looking good at the moment.

Surprisingly no one thinking of going into becoming a landlord. Is 25K too little an amount to be a landlord. Seems to be in London & the home counties (I think)
Click to expand...

25K... I think average house peice is 10x that
 
Assuming there's you and your missus - i'd split it 50-50 initially.

Fill up both of your ISA's (accounting for c£21,200) in Stocks and Shares. Tax free profits, winner.

With the rest, i'd be a little more aggressive and choose some precious metals explorers. Or alternatively, if you fancy something safer, as previously suggested throw them at premium bonds - you never know what could happen.

£25,000 invested in property means a buy-to let mortgage. Your rental income needs to cover that mortgage, it'd be a long time before you saw any profit from it.
 
vkurup said:
This weekend was time with the lads and now that we are all pushing 40s, the realisation that we might be in the second innings of life. Lots of talk about missed opportunities. Financial independence in the next few years was a hot topic. Also, given the dire strait of pension which can be only be explained by Richart, the conversation moved to investments. If we raise a corpus of 25k (which is a nice arbitrary but achievable figure), what could we do to ensure that it provides in the post retirement era. Usual suspects
1) Property investment (Buy to let)
2) Stocks including overseas pension
3) Top up of Pensions
4) Pay off or reduce some debt e.g. Car/Mortgage
5) Start a small business - shop/cafe (though this deemed too risky)

Question back to forumers.. If you had 25K, what would you do ...

ps: Going on holiday was not an option..
Click to expand...

You are not getting any more free advice off me.:ears:;)
 
A lot of people I know have invested in Premium Bonds. All have done rather well fir themselves.
You can 'win' regular. All depends on the amount you put in.
 
diablo333 said:
A lot of people I know have invested in Premium Bonds. All have done rather well fir themselves.
You can 'win' regular. All depends on the amount you put in.
Click to expand...

Yup my mum and dad both have maximum premium bonds and win something every month, may only be £25 or whatever the smallest pay out is, but every single month at least 1 "win" each...
 
The only thing I find with premium bonds, is this: Everybody's 'doing well' with them.

Are they really? Is everybody actually doing well?

I know somebody who has £10,000 worth invested. Last year, won £50 3 times, and £25 twice. So every couple of months was getting a letter advising him of his 'win'. Great, all good stuff, he thought. But that's still only £200 on a £10,000 investment in a year. 2% isn't much.

Yes you have the chance of the big one, but the odds are stacked hugely against you - more chance of winning the Euromillions jackpot.

All depends what you want, safety, bit of income, great - fill your boots with premium bonds.

But if you want a real return on your investment, and to be frank, it's what most of us are going to need come retirement - you need to find more than 2% a year from somewhere, certainly on your main investments.
 
Rooter said:
Yup my mum and dad both have maximum premium bonds and win something every month, may only be £25 or whatever the smallest pay out is, but every single month at least 1 "win" each...
Click to expand...

If you'd put 25k in to say booker group a month ago, it would now be worth just shy of 28K.... not bad for a months work

If you'd bought Lloyds a year ago you'd have made quite a bit by now.
 
guest100718 said:
If you'd put 25k in to say booker group a month ago, it would now be worth just shy of 28K.... not bad for a months work

If you'd bought Lloyds a year ago you'd have made quite a bit by now.
Click to expand...
But what about the stocks that have gone down in the same period ? Premium Bonds are no risk, shares are not. Both investments suit different types of investors. You are probably not old enough to remember the Stock Market crash in the late 80's, but solid companies share prices fell by over 40% in a couple of days.
 
guest100718 said:
If you'd put 25k in to say booker group a month ago, it would now be worth just shy of 28K.... not bad for a months work

If you'd bought Lloyds a year ago you'd have made quite a bit by now.
Click to expand...

ARM Holdings were the shares to buy about 18 months ago, you would have almost doubled your money! and i KNEW they were going to do this too!!! just didnt have any cash to invest.
 
richart said:
But what about the stocks that have gone down in the same period ? Premium Bonds are no risk, shares are not. Both investments suit different types of investors. You are probably not old enough to remember the Stock Market crash in the late 80's, but solid companies share prices fell by over 40% in a couple of days.
Click to expand...

Exactly, for most people, the high risk outweighs the potential risk.
 
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