I have £550k and ne...
 

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[Closed] I have £550k and need to get a safe 3% return

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For 1 year.

What would you do with it? Buying houses not an option.


 
Posted : 01/09/2019 10:42 pm
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Convert it to € and US$ before it’s too late!


 
Posted : 01/09/2019 10:44 pm
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Euros seem a good investment right now.


 
Posted : 01/09/2019 10:44 pm
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I get the sense you need to have it available again in a year, and you can’t afford to lose any of your principal, so that says to me it’s got to be deposit or savings accounts of some sort, but you will need to work hard to get anything like that return.

Given you’ve said it needs to be safe I wouldn’t touch currency with a barge pole personally..


 
Posted : 01/09/2019 11:02 pm
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That kind of money needs more looking into/expertise than anyone off here can give you without a face to face consultation.
My nephew is a financial adviser & regulated by the FCA, he does our stuff.


 
Posted : 01/09/2019 11:05 pm
 5lab
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You can't. The only place to stash that amount of money with a decent return and safety (given it way exceeds the 85k can on guaranteed savings) is premium bonds. Approx 1% back

Edit : nope, there's a 50k limit on those too


 
Posted : 01/09/2019 11:06 pm
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Ask JRM or Boris what their foreign investments are.


 
Posted : 01/09/2019 11:26 pm
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Tinned food, antibiotics, sandbags, corrugated iron, a thunder dome


 
Posted : 01/09/2019 11:31 pm
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You need to invest into a property development - i.e. provide the JV funds I reckon.

Where are you based? Couple of good developers I could introduce you to that always seek investment 👍


 
Posted : 01/09/2019 11:35 pm
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Ask JRM or Boris what their foreign investments are.

I doubt they'll 'only' have that much to spare.

OP, don't ask such serious questions on her about over half a million quid. Ask around about a FCA regulated advisor that you can go & talk to. Yes they'll take a fee but you won't notice cos It'll come out of any commission they make.
Unless there's any FCA regulated experts on here who'll do it for free of course, & there'll be loads.....


 
Posted : 01/09/2019 11:46 pm
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Humble Braaaaaaaag!


 
Posted : 01/09/2019 11:57 pm
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Humblebrag?
Your money or on behalf of another?
'Guaranteed' 3% not possible.
Chunky investment and short term time horizon are inherently contradictory.
Split investment into medium and low return investments.
An internet bike forum is not the best place for impartial, specialist investment advice.
Go see a specialist IFA; limited free advice - then you pay.
Fundsmith T accumulation shares; FTSE 100 tracker; banking share tracker....
Not my money.


 
Posted : 02/09/2019 12:02 am
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If you give it to me I’ll guarantee you’ll get the 3%. The original amount, I’m not so sure about...


 
Posted : 02/09/2019 6:48 am
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Thanks for the replies all.

There’s No element of humble bragging, I was thinking there’s a lot of intelligent people on here so was interested in their opinions in case there was options that I hadn’t thought of.

Ifa is the obvious route thanks.


 
Posted : 02/09/2019 7:16 am
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If you can fix it for twelve months & leave it til then (no option to get it early without losing all interest) then 1.9-1.97% is possible.

3% guaranteed without risk is not.

Even if you do that you’ll still need to split it up to be covered by the £85K FSCS protection.

But really, as said above, get some real advice. It’ll pay for itself, I suspect.


 
Posted : 02/09/2019 7:28 am
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Do you need 3% in real terms, or ignoring inflation? So if inflation is 2.5%, do you need 5.5%?


 
Posted : 02/09/2019 7:41 am
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This might be of use:

https://www.flagstoneim.com/individuals


 
Posted : 02/09/2019 8:07 am
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Impossible to get safe 3% return at the moment, most banks in the EU would offer a negative interest rate! NB Plenty of adverts in the papers for high yielding bonds, but they're all unregulated and you stand to lose everything when they fold.


 
Posted : 02/09/2019 9:12 am
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Might help if you elaborate a bit. Why exactly one year? Why do you need 3%? How safe does it have to be? I understand if you would rather not on a public forum. A simple "put it in the bank and get 3% back, 100% safe" is pretty much impossible though.


 
Posted : 02/09/2019 9:21 am
 DrP
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I often think a good, safe, and easy access way of making money like this work would be to find a group of people you trust, who have offset mortgages.
You bung them the value of their mortgage into the offest, and then 'share' the savings on the interest rate.

For example, say i've £300k outstanding on my mortgage, at £3%.
You stick £300k into my offset. I carry on paying the mortgage of course, but am now 'saving' the 3% interest.
At the time it comes to you withdrawing your £300k again, we work out how much interest I 've saved, and split the difference. Obvs the higher the mortgage rate, the more 'return/saving' you get..

DrP


 
Posted : 02/09/2019 9:30 am
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I don't know what the point would be to go to an IFA.
There is no way to get a 3% risk free [safe] return on £550k over a year. Their fee would just mean you would have to make more to get your 3%.

If it needs to be safe, just look at the best buy tables for 1 year fixed savings account and put it in there. [Even that is not 'safe' as it is greater than the FSCS compensation limit if the bank goes bust].
National Savings/Premium Bonds are the safe options.

If you are willing to accept risk, the world is your lobster.


 
Posted : 02/09/2019 10:37 am
 kcal
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risk free and 3% guaranteed does not compute.
As above, spread round banking/savings and accept 1-3% return. IMO.


 
Posted : 02/09/2019 12:04 pm
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DrP, something similar exists. It's peer to peer lending. You can find stuff on money saving expert about it. It's unregulated/in protected though.

Doing it between close family members is maybe less risky... Maybe!


 
Posted : 02/09/2019 1:12 pm
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neilnevill

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Doing it between close family members is maybe less risky… Maybe!

I'd say its riskier -case law is rife with cases between family members as a result of money disputes.


 
Posted : 02/09/2019 1:18 pm
 Sui
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andyrm

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You need to invest into a property development – i.e. provide the JV funds I reckon.

Where are you based? Couple of good developers I could introduce you to that always seek investment 👍

this is the closest you will get, though it means you doing some homework with who you are lending to. I'm part of a property FB page where this stuff goes on all the time. You can generally see right through some of the requests as being unfeasible, but there are plenty of good ones, it also make 3% look like pennies - these are generally around the 7-12% RTI.

Peer to peer can be good.

Institutional investing means you'll tie your money up for 3-7 years noramlly and is still not risk free, nothing ever is over standard interest rates. I'd still say buying a run down house would be best..


 
Posted : 02/09/2019 1:24 pm
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I'd invest it low risk funds, suggest Vanguard LS80 if your risk appetite is low.

Not risk free you will only get 1.5% without risk.

At 3% you will be losing money as inflation (not the "official" figure, the real world figure) will likely outstrip that.

Laugh at anyone who suggests property.


 
Posted : 02/09/2019 3:08 pm
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You can't get 3% on 550k with no risk, even if you did buy a property which you will not.

Premium bonds x 11 friends would get you 1.25 or so, with safety of capital.

Inflation is lurking too thats quite an erosion of buying power.


 
Posted : 02/09/2019 3:21 pm
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If you get a property and need your 3 percent return after a year surely it's all gonna be wiped out wiuth capital gains tax?


 
Posted : 02/09/2019 6:27 pm
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Buy gold? It always does well during a recession.


 
Posted : 02/09/2019 6:52 pm
 ajaj
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Today's headline is house prices to fall by 5% if Boris gets his way, so property doesn't look very safe anyway.

Are you measuring in sterling or real world?


 
Posted : 02/09/2019 6:53 pm
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If you need it kept for exactly 1yr and no risk, I'd accept the 1.5%

If you are thinking of selling up and renting a shitbox for a yr then buying post crash them good luck but it wont crash like it did in the 80s, the 08labour bailout and 2011 austerity was for the same aim, to stop a crash of house prices because that section are the voters


 
Posted : 02/09/2019 7:16 pm
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There’s No element of humble bragging, I was thinking there’s a lot of intelligent people on here so was interested in their opinions in case there was options that I hadn’t thought of

That as may be, but I don't think an internet forum is going to give the balanced, experienced advice this sort of amount requires. Hope you're planning to seek specialist advice.


 
Posted : 02/09/2019 7:55 pm
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I would start off by asking on a chat forum. The benefits of this is that not only can you get a nice little ego boost but you can make other, less fortunate people feel a little less good about themselves who can only dream of having that amount of money, let alone actually make more money from it. It seems a win win situation for you.


 
Posted : 02/09/2019 8:14 pm
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I would start off by asking on a chat forum. The benefits of this is that not only can you get a nice little ego boost but you can make other, less fortunate people feel a little less good about themselves who can only dream of having that amount of money, let alone actually make more money from it. It seems a win win situation for you.

I can’t see the point of your reply? That hasn’t helped me at all.


 
Posted : 02/09/2019 9:02 pm
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https://www.classic-trader.com/uk/cars/search?priceMin=500000&priceMax=550000&currencyCode=gbp&locationDistanceUnit=mls&pagination%5BentriesPerPage%5D=15&pagination%5Bpage%5D=1&pagination%5Breset%5D=0&sorting%5Bsorting%5D=datePublished_desc

Buy one of them, there's bound to be one that will make £16k in a year.

Guaranteed? No chance.

Or bitcoin. You'd make £16k in a day, then lose £50k, then make another £10k...

If you'd invested your £550,000 at 7am this morning and pulled out at 7pm it would be worth £576,450. Minues fees etc.


 
Posted : 02/09/2019 9:25 pm
 rone
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Bitcoin did 7% today.

Had to be said!

(Your capital may be at risk;)


 
Posted : 02/09/2019 9:27 pm
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If only you didn't need 150k of it back for a few years I'd fly you out here and show you our build Project! I'd happily give you 3 or 4 % I interest


 
Posted : 07/09/2019 11:36 am
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Coincidence? Exactly £550k...

https://www.autocar.co.uk/car-news/new-cars/ian-callums-vanquish-25-project-makes-uk-public-debut

(ok, the return is not guaranteed in any way (in fact, it'll be negative i suspect)


 
Posted : 07/09/2019 2:40 pm
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As if on cue
https://www.theguardian.com/money/2019/sep/07/why-uk-savings-rates-may-be-heading-for-zero-what-to-do

You are Rupert Jones and I claim the £550k.


 
Posted : 08/09/2019 9:15 am
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Posted : 09/09/2019 9:16 am

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