Prolapsed vent - am I getting it right?

[Crooked Chicken]

I've very kindly been given a large sum of money from my parents who have sold a house. The thing is - what to do with it!!

 

Luckily, it's something that we don't need to touch for say 7/8 years - maybe more. Husband would like to invest in stocks and shares (not that we've ever done that before), and I'm, well, VERY cautious, especially with all the financial news lately. Thinking more of a bond or some sort of savings account.

 

What would you do?

[Joojoo]

Ooh you lucky thing am very Good luck with whatever you decide to do, but remember if you put it in a bank account, that you are only covered for £35,000 should the bank get into difficulties.

 

Have a look at this for some inspiration http://www.moneysavingexpert.com/banking/

[Cinnamon]

In the current climate,with property at a low,if you have a decent amount I would say invest in property,either here to rent out or overseas to use yourselves too.

 

What a lovely decision to have to make!

[Janty]

Definitely look at property if you can. I was renting a house to a friend. When she moved out I asked the local estate agent to value it and he told me that it had dropped £15,000 in value in the last year. It will pick up again though.

[Tessa the Duchess]

I wouldn't touch stocks and shares at the moment unless you really know what you are doing. I dabble on the stock market and am experiencing heavy losses at the moment If it is enough money to buy property you couldn't have picked a better time to buy, being a landlord is not always fun though.

 

Tessa

[theherd123]

If you havent already got an ISA get one and max it out.

 

I would put the rest in a high interest savings account and, like suggested above, if its over £35K split it among different banks so you know you are covered if they go down.

 

Personally i would touch stocks & shares right now at all - way too risky.

[Janty]

I know. We have a pair of right clowns in our house at the moment. Can't wait to get them out at the end of the six month period.

 

Jan

[Helen&Lee]

I wouldn't touch stocks and shares at the moment either - both OH and his brother dabble and it's really not easy at the moment.

 

Property is a great idea - otherwise the high interest accounts will be better for now.

[BERTIE MCSQUIRTY]

having lost quite a bit in the past, i wouldn't do stocks and shares either - i would be tempted with premium bonds myself tho' at the moment

[deejmum]

I dont wish to put a dampner on things but property prices are expected to drop significantly further, so if you can I would wait until it the decline has slowed before investing in property . However, if it is not burning a hole in your pocket, property will be the thing to put your money in soon, so hang on in there!

[MedusA]

I'm finding it a nightmare at the moment.

 

Not only do I bank with Halifax , but their financial advisor persuaded me that my lump sum (from when I retired last year) could "work so much better" in a Personal Investment Plan than with standard savings accounts. They showed me all these very convincing graphs of what I could expect to make. I chose ethical investments because I didn't want to bouy up the corporate fat cats.

 

This was all just before the sub-prime problems and the credit crunch. *sigh*

 

A year later, not only have I not made a profit, I'm about £1500 down. I need to keep my money in for the long haul in the hope of an eventual upturn, or will make a huge loss. I feel I was misadvised, but then again "Ooops, word censored!"ody was actually forcing me to do it. I have "Ooops, word censored!"ody to blame but myself. Should have stuck with the safer options.

[Ain't Nobody Here]

I would choose a high interest internet account - or a few different ones if you want to spread the risk. Some pay 7.2% at the moment.

 

You could always put some in Premium Bonds too for the fun of it although the MoneySavingExpert guy says they're not really worth it statistically. I have some and win some months, lose others but it's great when you do win (I got £500 a few years ago!)

[Cinnamon]

I put our savings into an account with Kaupthing Edge recently,on the advice of the money saving expert blokey

Its an interent accout & has a great interest rate

[Paola]

As you do not need the money for 7/8 years, then I would buy a property. You can get good deals at the mo and it will go up in price before you need to sell it My neighbour works for HSBC in Canary Wharf and has predicted that towards the end of next year the value of property will start to climb again.

 

Good luck with whatever you decide to do with it

[hilda-and-evadne]

I've very kindly been given a large sum of money from my parents who have sold a house. The thing is - what to do with it!! What would you do?

 

I'd open a euro account with some of it (eg at Abbey). The economic downturn could have a lot further to go. If the US Treasury Secretary's plan fails, or only fixes things for a couple of months, then 1929 could like look like a walk in park compared to end 2008/beginning 2009.

[Tessa the Duchess]

I'd open a euro account with some of it (eg at Abbey). The economic downturn could have a lot further to go. If the US Treasury Secretary's plan fails, or only fixes things for a couple of months, then 1929 could like look like a walk in park compared to end 2008/beginning 2009.

 

The only problem with Abbey is that they are part of the Santander Group, and do not have a British based bank, so are not covered by the FSA's bail out up to £35,000 should things go totally down the pan.

 

Tessa

[hilda-and-evadne]

The only problem with Abbey is that they are part of the Santander Group, and do not have a British based bank, so are not covered by the FSA's bail out up to £35,000 should things go totally down the pan.

 

Tessa

 

Yes, I should have added that I was suggesting this by way of "spreading the risk".

 

I guess everyone knows that the FSA's guarantee applies only to one account per person per licensed institution (not per bank).