How to invest £160k

[sammieuk1]

12 minutes ago, xtrnuno41 said:

hahahahaha i know that nigerian prince, scammer !

Impossible you must have known the fake one .

[KNJ]

Investing is all about risk, and the best financial advisor is yourself, as you understand what level of risk appetite you have.

Paying for financial advice  ( 160K will be between 1-2% ) compound that over 30 years plus of your remaining life and it is a big chunk of dosh.

Whilst as we get older most would advise to move investments and assets into less risky areas that is not to say that as part of a balanced portfolio you should exempt yourself from having a small(ish) level of speculative investments such as Bit Coin, Ripple or whatever is todays flavour is purely buying a number in a system, with no underlying product behind it. It uses a technology which most probably will revolutionise the way banking is done, but you are only buying a number on that platform with no firm asset attached to it.

If from your current cash you are willing to take a small percentage gamble as a speculative nature then work out yourself what percentage you are willing to write off should it go pear shaped. With 160K  unless you have a high risk appetite one or two percent maximum.

As to investments educate yourself, at your age or in the next few years something like tracker funds to protect your capital are probably most appropriate .

If you have high risk appetite more than even crapto then you could always try binary options, or the equivalent black or red on roulette which are essentially the same. As I said you are your own best financial advisor, and are free. You need to educate yourself for the best balance.

You need to ask yourself how much do you need for how long and go from there , then work out what is your risk appetite. ONLY YOU know the answer to this

[SteveMack]

Buy some houses here and rent them out..(p.s. I wish I was in your shoes,)

[wolf81]

Put the money into a low cost index fund. You can use a reputable one, like from Vanguard. E.g. VTI or VXUS or a mix.

Depending on the chosen fund, your average return (looking back over the last 100 years or so) should be around 7% a year.

 

160k GBP * 0.07 = ~11k GBP a year. Should be plenty to live from in Thailand, provided you have a payed off apartment or house over there and you don't require too much luxury.

 

You should try to spend a bit less every year if possible, so the fund can grow a bit over time. Try to counter the inflation. And hope you won't need it for hospital care in the future.

 

 

[scubascuba3]

Timing is important, markets are at a high at the moment and GBP pretty low. Investing in UK Investment Funds (unit trusts & OEICs UK or foreign) is a good option, but when to invest is something you need to think about. IFAs will tell you its "time in the market" to encourage you to invest but when markets are at a high its more "timing the market".

Citywire.co.uk has a Fund performance search which is good. I would include the link but it will probably get deleted.

[HauptmannUK]

Thanks guys. Some interesting comments.

I actually work in a tech-related area so have a basic understanding of cryptocurrency - but its not something I would currently invest in other than as a hobby with money I could afford to lose.

My property in the UK is a well-located and quite smart apartment. Mortage free. I could probably get £700 month maximum. I would only draw £300-400 month at most and keep the rest for repairs, redecoration etc. My son lives close by and would act as my agent. I don't want to buy any additional properties either in UK or TH. Too many headaches.

I am most concerned to keep the real value of my £160k, since I believe my pension will be enough to live an OK life on. So I don't want to draw from capital or interest.

My major concern is the state of the GBP. I basically work for a branch of the UK government involved in tech consultancy - very interesting job with lots of world travel and nice hotels (I frequently work in TH), but pay is very poor for the level of expertise and responsibility. The reason we are all being offered voluntary redundancy is Brexit - HMG seems to be imploding right now. Things are in a terrible state (the public are not being told just how bad) and I have great fears for the GBP - at least for the next 10 years. Converting my lump sum into US$ might be a good idea - but doesn't help with the pension of course.

[Monti]

A couple of things to explore.Might be possible to top up existing pension  .

Buy a bigger property in the uk or another smaller one

 

[scubascuba3]

Thanks guys. Some interesting comments.
I actually work in a tech-related area so have a basic understanding of cryptocurrency - but its not something I would currently invest in other than as a hobby with money I could afford to lose.
My property in the UK is a well-located and quite smart apartment. Mortage free. I could probably get £700 month maximum. I would only draw £300-400 month at most and keep the rest for repairs, redecoration etc. My son lives close by and would act as my agent. I don't want to buy any additional properties either in UK or TH. Too many headaches.
I am most concerned to keep the real value of my £160k, since I believe my pension will be enough to live an OK life on. So I don't want to draw from capital or interest.
My major concern is the state of the GBP. I basically work for a branch of the UK government involved in tech consultancy - very interesting job with lots of world travel and nice hotels (I frequently work in TH), but pay is very poor for the level of expertise and responsibility. The reason we are all being offered voluntary redundancy is Brexit - HMG seems to be imploding right now. Things are in a terrible state (the public are not being told just how bad) and I have great fears for the GBP - at least for the next 10 years. Converting my lump sum into US$ might be a good idea - but doesn't help with the pension of course.

Are they over staffed where you work? I always find UK public sector seems to be that way.
I personally wouldn't convert to $s. £ is low but it depends on what way you think it will go. If you have good transferable tech skills have you considered contracting for a while in the private sector? That's where you can earn the serious money

[sometimewoodworker]

5 hours ago, HauptmannUK said:

Thank you for the replies so far.

As regards an offshore bank account, what is the advantage. Is it simply that I wouldn't pay UK tax?

Any income generated outside the UK, once you become non resident has no UK tax liability. 

 

So so if you are going to invest the money you should be doing it off shore, as long as you can stay out of the UK long enough to be non resident. The requirements have become more and more stringent over time.

 

My personal savings are just enough for them to be managed for me through HongKong branch of my UK accountants in a Luxembourg based platform. These are UK tax free. Last year they saw a 7% rise.  I pay UK tax on the income I am getting in the UK

[rickudon]

Some 'safe' investments to make out of your 160,000 GBP. 

 

First, in Thailand you will need your visa extension money. Could always use the Embassy statement but if pound does implode (a distinct possibility) may not be high enough. So 16,000 GBP (10%) into a Thai term deposit to give you your 800,000 baht. Also useful for medical emergencies.

 

Second, use you ISA allowance  on a stocks and shares ISA, if playing safe can pick an income unit trust which will generate a small monthly income, pick an international fund so not to dependent on how the UK does. Income from the ISA will of course be tax free. If you already have some cash and stocks in Isa's, now is the time to make any changes as may not be able to after you leave.

 

Third, make any UK bank account changes before you go, as cannot theoretically open one after you leave (but can when back in the UK). Remember if you cancel most of your direct debits you may not qualify for the accounts with the offers (higher interest rates, lower or free foreign transactions). Also good to have more than one UK account in case of loosing a card (hard to replace when in Thailand). Leave a small cash nest egg for emergency money in the UK (maybe to pay for big credit card transactions), 2nd and 3rd may account for another 10-15% of your 160,000 GBP.

 

Lastly, as you have now covered yourself for most emergencies, you still have 75% left to do what you like with and can afford some risk (if you want). Can buy more stocks and shares (in UK or elsewhere), a bit of gold, land, whatever you fancy.

[HauptmannUK]

59 minutes ago, scubascuba3 said:

Are they over staffed where you work? I always find UK public sector seems to be that way.
I personally wouldn't convert to $s. £ is low but it depends on what way you think it will go. If you have good transferable tech skills have you considered contracting for a while in the private sector? That's where you can earn the serious money

We are extremely lean and mean. I have worked with plenty of private sector organisations and they are far more profligate. Its unlikely private sector staff would put up with our working conditions - its not unusual for me to work overseas 90 hours without sleep. Its affecting my health.

I've really only stuck with it because its interesting, I like the people I work with and the great team spirit (lack of backstabbing etc). 

I have been offered work, including in Thailand, but I think if I retire then that will be it....

[scubascuba3]

I would not take early retirement ! Try to work till 63-65 years age. Or if you enjoy your work then work as long as you are able to, inflation takes its toll. 
I would not invest in Cryptocurrencies yet. Maybe 5%. The world does not fully understand them. 
The world markets are difficult to navigate so seek the help of a trustworthy advisor. 
I nvest for long term growth not short term high profit.
Good luck.

Work til 65? Not long then til you kick the bucket, better to retire earlier with less

[Sirbergan]

38 minutes ago, scubascuba3 said:

5 hours ago, Roymac said:

I would not take early retirement ! Try to work till 63-65 years age. Or if you enjoy your work then work as long as you are able to, inflation takes its toll. 
I would not invest in Cryptocurrencies yet. Maybe 5%. The world does not fully understand them. 
The world markets are difficult to navigate so seek the help of a trustworthy advisor. 
I nvest for long term growth not short term high profit.
Good luck.

Work til 65? Not long then til you kick the bucket, better to retire earlier with less

Depending on expenses, careers and salaries, that's not an option to a lot of people. Most of us are slaves to heavy bank loans, government policies etc.

[lkn]

7 hours ago, seancbk said:

Lots of resources online to learn about it.

I recommend this one: https://hackernoon.com/ten-years-in-nobody-has-come-up-with-a-use-case-for-blockchain-ee98c180100

[Dene16]

10 hours ago, HauptmannUK said:

I have been offered early retirement, so relocation to Thailand is a possibility.

I have nearly the exact circumstances as yourself( you have a very good pension by today;s standards) Got made redundant (age 50) with good payoff and early retirement package. slightly smaller pension 60k and 160K with my 25% in 2 months time House that i rent out,  but with the option to rent out the one i live in.

Worked in a workforce of over 2,000 and every year saw at least 2 people i knew die just before or after retirement ( Always said i would retire early so it did not happen to me) 

I have a school class reunion approx every 2 years (2 dead, 2 likely to be in a wheelchair before they are 70, 1 diabetic), From a class of 30

I can assure you that you will live very adequately in issan on your pension but both and  your wife must know that anyway

Each to their own but could you live here all year round, i for one, cannot

The one thing i will say is do not put all your eggs in one basket. 

People keep mentioning off shore accounts but to my knowledge interest rates are not that good and only good for avoiding paying tax on wages

I have had to change the way i invest over the years but look to see what good investment funds are out there obviously there is a risk but my funds have provided anything between 5% and 15% i have also invested in peer to peer lending which will give you a rate of at least 4.2%

Not sure i agree with someones idea to sell and buy another property as you are tying up your money which you may want easy access to later but has its own merits in other ways

As for someones idea to carry on working? all i can say is do not waste the chance you have been given.

[MyFriend You]

9 hours ago, Sirbergan said:

Depends, he did say he wanted to invest - cryptos gives hands down the best returns of any markets these days. Dropping 1k pounds on 10 different coins that are currently of low value, has a great use case and are backed by a good team and a solid roadmap could easily make you a millionaire if you do your research and bet on the right coins.

 

I would probably not invest it all in crypto currencies, but to me it would definitely make sense to check that market out.

The hard part is getting your cash out............so I have been told by a 'big BitCoin owner" in UK, so he bought a yacht in Singapore so he wouldn't lose it all. 

[Acemaker]

9 hours ago, Crash999 said:

As one gets older one’s risk profile decreases as they depend more on the nest egg. Putting money into crypto is not good advice at all for OP given it’s so risky. 

 

It’s no better than trading penny stocks on margin. Could turn one into a millionaire but odds are one will probably lose the whole thing long term. 

Thats total Tosh , it sounds like you havent done any meaningful research on the current Crypto market, just listening to losers in late night Bars who mock anybody whois clever enough to make money on Cryptos, Penny Stocks lol, what an ill informed person you are.

[seancbk]

2 hours ago, lkn said:

I recommend this one: https://hackernoon.com/ten-years-in-nobody-has-come-up-with-a-use-case-for-blockchain-ee98c180100

 

I'm not going to bother ripping that article apart.   It is so full of inaccuracies and shows the author has no idea about the technology.  

If you are too stubborn to learn about the advantages and opportunities then that is your loss.

Incidentally, bitcoin and the blockchain was first released 9 years ago today.   So the author of that article didn't do enough research to know even that small fact.

 

Edited January 3, 2018 by seancbk

[catman20]

17 hours ago, R123 said:

OP: Get a reputable offshore financial adviser (qualified with protection) who might then suggest and assist you in getting the monies handled by a regulated company such as Investec.

been there done that , you take all the risks they take their commission every month if their is any thing after that you get it, but............ i was 60k sterling up after a few years and after a few more years they kept taking their commissions , i could not take my money out cos of penalties in the end i got out all money back no penalties and after about 7/8 years walked away with 3,000 sterling profit, on a 700,000 investment.

when i complained i was told  ( you was lucky most people lost their money) forget the post above. its a scam.

Edited January 4, 2018 by catman20

[scubascuba3]

Depending on expenses, careers and salaries, that's not an option to a lot of people. Most of us are slaves to heavy bank loans, government policies etc.

Yes i agree, but given the choice retiring earlier leaves you longer to enjoy your retirement,obvious i know. The only exception is if you really enjoy your work so why retire early. But as a guess only 1 in 10 are in that position

 

[scubascuba3]

been there done that , you take all the risks they take their commission every month if their is any thing after that you get it, but............ i was 60k sterling up after a few years and after a few more years they kept taking their commissions , i could not take my money out cos of penalties in the end i got out all money back no penalties and after about 7/8 years walked away with 3,000 sterling profit, on a 700,000 investment.
when i complained i was told  ( you was lucky most people lost their money) forget the post above. its a scam.

Yes depending on the time period you mention, the last 10 years I'm up 250%, the last year 25%. People need to be careful with the advice they get. If from UK stick with UK as its highly regulated which gives good protection, except scams which are just fraudulent anywhere

[Dene16]

2 hours ago, catman20 said:

i was 60k sterling up after a few years and after a few more years they kept taking their commissions , i could not take my money out cos of penalties in the end i got out all money back no penalties and after about 7/8 years walked away with 3,000 sterling profit, on a 700,000 investment.

well done for for letting people know the possible pitfalls that can befall them.

Just because some have been lucky to make money does not mean they will be the same

The possible consequences are too dire to risk

[12DrinkMore]

16 hours ago, RichardColeman said:

My own current position finance wise is that I get the 44,000-45,000 a month rent (sterling dependent) and will get an early company pension at 55 (18 month from now) of about 33,000 a month. So about 77,000 a month in 18 months time. With a further say 25,000 a month at 67, that should give me about 102,000 a month at 67.

 

That should be enough.

 

The UK tax authorities will take 20% of everything above the tax free allowance of around 11,500 Quid, which is coincidentally your income from the property.

 

20% of the 33k will be sliced off and 20% from the 25k State pension.

 

Bummer.

 

 

 

 

 

 

[Oxx]

27 minutes ago, 12DrinkMore said:

 

The UK tax authorities will take 20% of everything above the tax free allowance of around 11,500 Quid, which is coincidentally your income from the property.

 

But not from income or capital gains from investments in shares and bonds.  There is no further tax to pay for non-residents.

[lkn]

2 hours ago, scubascuba3 said:

3 hours ago, catman20 said:

been there done that , you take all the risks they take their commission every month if their is any thing after that you get it, but............ i was 60k sterling up after a few years and after a few more years they kept taking their commissions , i could not take my money out cos of penalties in the end i got out all money back no penalties and after about 7/8 years walked away with 3,000 sterling profit, on a 700,000 investment.
when i complained i was told  ( you was lucky most people lost their money) forget the post above. its a scam.

Yes depending on the time period you mention, the last 10 years I'm up 250%, the last year 25%. People need to be careful with the advice they get. If from UK stick with UK as its highly regulated which gives good protection, except scams which are just fraudulent anywhere

@catman20’s total return was 0.4%. The money was clearly mismanaged, as I don’t think you can find any stock index that show similar low return, even if you pick a local maximum as the starting point and then go forward 7-8 years.

 

That said, I am sure there are lots of financial advisors showing similar poor performance, which is why I am surprised that financial advisors are often recommended on this forum. If you don’t want to research individual stocks then I suggest buying index funds that track markets like S&P 500 (USD), FTSE 250 (GBP), DAX (Euro), Nikkei 225 (JPY), etc.

Edited January 4, 2018 by lkn

[Farangdanny]

42 minutes ago, lkn said:

@catman20’s total return was 0.4%. The money was clearly mismanaged, as I don’t think you can find any stock index that show similar low return, even if you pick a local maximum as the starting point and then go forward 7-8 years.

 

That said, I am sure there are lots of financial advisors showing similar poor performance, which is why I am surprised that financial advisors are often recommended on this forum. If you don’t want to research individual stocks then I suggest buying index funds that track markets like S&P 500 (USD), FTSE 250 (GBP), DAX (Euro), Nikkei 225 (JPY), etc.

Catman, do you always make false statements without knowing the truth ? You might get sued.  The fund I mentioned is run by private investors for the benefit of private investors. NO monthly fees, or salaried managers. 

[suzannegoh]

Catman, do you always make false statements without knowing the truth ? You might get sued.  The fund I mentioned is run by private investors for the benefit of private investors. NO monthly fees, or salaried managers. 

He didn't say anything about the fund that you recommended, he commented about IFA's underperforming the S&P500 and other major indices.

[scubascuba3]

 
But not from income or capital gains from investments in shares and bonds.  There is no further tax to pay for non-residents.

I guess any ISAs would lose their tax free status also

[Oxx]

3 minutes ago, scubascuba3 said:

1 hour ago, Oxx said:

 
But not from income or capital gains from investments in shares and bonds.  There is no further tax to pay for non-residents.

I guess any ISAs would lose their tax free status also

 

No.  Existing ISAs keep their tax free status if you become non-resident.  However, you are not permitted to open new ISAs.

[scubascuba3]

Catman, do you always make false statements without knowing the truth ? You might get sued.  The fund I mentioned is run by private investors for the benefit of private investors. NO monthly fees, or salaried managers. 

So how does it work? Amateur private investors get together and agree on stocks to buy and sell? What was the performance the last 1, 5, 10 years?