500,000 GBP to invest

[DannyDubai]

Hello Folks

My time in the sand has, f I n a l l y, come to an end and I am escaping back to Thailand

I have hit my target and saved 500 grand. At the moment, I have two buy to lets in the UK worth 120k and 155k with 110k on mortgages. The remaining 335k is in building society bonds (with 85k sat in cash in a bank).

I also have a place in Thailand but don't factor the mothership into investments as Id never sell it.

My question - how would you invest the booty? I had a FA once in Kuwait but the dodgy little git gave me crap advise and I lost 30k so I have given them a miss since then.

So, as non FAs how would you invest?

Cheers

Danny

[ukrules]

Buy some Bitcoin and wait for the stock market to crash before buying anything. You won't have to wait long by the looks of it.

Edited August 31, 2013 by ukrules

[Dancealot]

Being a non-FA. I wouldn't invest.

I would sit on it and enjoy life.

[Richie23]

High yield dividend stocks/ bonds spread across different sectors. Not an FA, but did a stint as an structured/risk arb trader for an inv bank for a few years. By all means p.m me if any cares. Good luck with whatever you decide.

[DannyDubai]

Sit on it how exactly?

I should add that I am 39 also and don't really need an income from it yet.

[Satcommlee]

That's probably the worst thing you can say on here!

Wait for all the PM's to invest in dysfunctional bars/restaurants etc..

[DannyDubai]

High yield dividend stocks/ bonds spread across different sectors. Not an FA, but did a stint as an structured/risk arb trader for an inv bank for a few years. By all means p.m me if any cares. Good luck with whatever you decide.

Richie - what are those bonds? High yield sounds risky to me....

No need to make the convo private, lets talk here if that's ok with you?

cheers

[denby45]

Sorry but we need more information first:

1.) I guess it's sterling because you mention a building society.

2.) Your age please?

3.) Are you semi retiring because depending on your age and the current rates you can get on investments 500G doesn't sound like enough to me?

4.) How many anklebiters and hangers on are involved?

I made a drawdown spreadsheet which included inflation etc. for myself and got a very big shock how quickly I would run out of money with no income. I hope you have done the same.

Den

[DannyDubai]

That's probably the worst thing you can say on here!

Wait for all the PM's to invest in dysfunctional bars/restaurants etc..

I wont worry too much about them.....I can spot a skank a mile off.

[DannyDubai]

Sorry but we need more information first:

1.) I guess it's sterling because you mention a building society.

2.) Your age please?

3.) Are you semi retiring because depending on your age and the current rates you can get on investments 500G doesn't sound like enough to me?

4.) How many anklebiters and hangers on are involved?

I made a drawdown spreadsheet which included inflation etc. for myself and got a very big shock how quickly I would run out of money with no income. I hope you have done the same.

Den

GBP

39

No, not semi retired but not planning on working to save any longer, I am working to spend.

No hangers on but I do have a 4 year old with me and a wife.

[pomchop]

Open a bunch of Thai bank accounts not exceeding 1 million baht each and put your money into at least a 3% guaranteed annual safe return and do NOTHING for several years. Use your free time in Thailand to study options and think very very carefully about investments. It is a WHOLE lot easier to lose money than to make money especially if you get in a hurry.

[DannyDubai]

I can get 3% in a UK bank. I would not consider investing in Thailand any significant sums given the lack of proper regulation, law etc.

[DannyDubai]

It is a WHOLE lot easier to lose money than to make money especially if you get in a hurry.

You are an American, right?

[denby45]

Sorry but we need more information first:

1.) I guess it's sterling because you mention a building society.

2.) Your age please?

3.) Are you semi retiring because depending on your age and the current rates you can get on investments 500G doesn't sound like enough to me?

4.) How many anklebiters and hangers on are involved?

I made a drawdown spreadsheet which included inflation etc. for myself and got a very big shock how quickly I would run out of money with no income. I hope you have done the same.

Den

GBP

39

No, not semi retired but not planning on working to save any longer, I am working to spend.

No hangers on but I do have a 4 year old with me and a wife.

Sounds like a good plan. I don't like to give advice to others about investments because I am not qualified. The only thing I did a few years ago was started diversifying in currencies. Now I am holding Sterling, USD, ThaiB, Euro and my largest holding and best performer so far the Chinese Yuan. I'm 56 and hoping to retire or perhaps semi retire next year. In this case I am totally risk averse. Even if I was younger I would certainly not be in any of the stock markets right now. The writing is on the wall. I don't like bonds either especially High Yield.

Den

[DannyDubai]

Now Den that was a very strange post........

[denby45]

High yield dividend stocks/ bonds spread across different sectors. Not an FA, but did a stint as an structured/risk arb trader for an inv bank for a few years. By all means p.m me if any cares. Good luck with whatever you decide.

I am also not an FA but I really think FA about your advice. I think the exacy opposite to what you suggest would be appropriate. The Op is looking for where to invest in the near term. High Yield dividend stocks will get crushed as inflation takes off and interest rates rise. Only a very few companies will benefit from rises in interest rates and inflation. If you leave bonds alone for the time being until after the rout in the bond markets you may be able to get in at a half decent yield without losing your shirt as bond prices tumble.

Den

[Thaddeus]

I am going to set up a business in neon lighting, I will only make one sort of light, it will be about six foot high and will spell out troll.

It will come in a range of different colours though so that it doesn't upset some Rev in Whocaresville USA.

Next.

[denby45]

Now Den that was a very strange post........

Yes probably because I'm a strange guy. I tried re-reading my post but I can't find the strange bit?

As I said I am not giving advice merely telling what I am doing now and what I would be doing if I was younger. I have done very well for myself as far as investing is concerned and maybe there was a bit of luck involved. I tend to read a lot about the markets etc. and there are certain people whose advice I like to follow. At the moment I am heeding the avice of John Mauldin. Also I have always been a fan of Warren Buffett. He just makes so much sense and is a down to earth guy.

Den

[denby45]

I am going to set up a business in neon lighting, I will only make one sort of light, it will be about six foot high and will spell out troll.

It will come in a range of different colours though so that it doesn't upset some Rev in Whocaresville USA.

Next.

Doesn't look like a Troll to me. If he is I didn't spot it. Got sucked right in. Perhaps I need to pay a visit up the road to Dubai.

Den

[pomchop]

It is a WHOLE lot easier to lose money than to make money especially if you get in a hurry.

You are an American, right?

Yep...put your money in a FDIC American bank savings account now and you're lucky if you get 1/2 percent interest...so UK banks are paying 3% on savings accounts? Really?

[NeverSure]

I don't think you have nearly enough money to retire at your age. There is no safe haven right now, especially not one with good yields.

I was just doing some math this morning on what I think would be the amount I would need to retire in Thailand as a single man and I'm 67. I had to figure that I might live to be 92 since my mom lived that long and my dad is alive and well at 96. So I figured 25 years. I didn't figure inflation because I have no idea whether the world will be in recession or high inflation. I just did a straight line.

I figured US$50k just to get set up. That's air fare, visa, a car, a scooter, insurance, licenses and other incidentals until I'm established.

Then I figured a bare minimum of US$2500 per month which atm is 80,000 baht. Who knows what the exchange rate will be? Who knows whether it's best to transfer a bunch of money into baht, or leave it in the US hoping for a better rate?

The 80k pm isn't absolutely necessary, but there are always surprises. I do have more savings in the US and the ability to return to the US if things go sideways.

Bottom line is that I need $50k plus $750k with no thought for inflation. I could eat up a bunch more in medical bills if I have an accident or serious medical emergency. If a big medical problem isn't an emergency, I could fly back to the US where I have health insurance. Still the trip and all would be expensive.

If I need a minimum of US$800k + medical at my age, I think you're dreaming.

[DannyDubai]

Now Den that was a very strange post........

Yes probably because I'm a strange guy. I tried re-reading my post but I can't find the strange bit?

As I said I am not giving advice merely telling what I am doing now and what I would be doing if I was younger. I have done very well for myself as far as investing is concerned and maybe there was a bit of luck involved. I tend to read a lot about the markets etc. and there are certain people whose advice I like to follow. At the moment I am heeding the avice of John Mauldin. Also I have always been a fan of Warren Buffett. He just makes so much sense and is a down to earth guy.

Den

strange in that you asked me to post up further info so you could offer advice and then I did, you then send you don't like giving advice, are not qualified and then didn't give any advice but instead starting talking about your asset currencies......strange :-)

[HalibutJones]

Complete and utter <deleted> from start to finish.

[DannyDubai]

I don't think you have nearly enough money to retire at your age. There is no safe haven right now, especially not one with good yields.

I was just doing some math this morning on what I think would be the amount I would need to retire in Thailand as a single man and I'm 67. I had to figure that I might live to be 92 since my mom lived that long and my dad is alive and well at 96. So I figured 25 years. I didn't figure inflation because I have no idea whether the world will be in recession or high inflation. I just did a straight line.

I figured US$50k just to get set up. That's air fare, visa, a car, a scooter, insurance, licenses and other incidentals until I'm established.

Then I figured a bare minimum of US$2500 per month which atm is 80,000 baht. Who knows what the exchange rate will be? Who knows whether it's best to transfer a bunch of money into baht, or leave it in the US hoping for a better rate?

The 80k pm isn't absolutely necessary, but there are always surprises. I do have more savings in the US and the ability to return to the US if things go sideways.

Bottom line is that I need $50k plus $750k with no thought for inflation. I could eat up a bunch more in medical bills if I have an accident or serious medical emergency. If a big medical problem isn't an emergency, I could fly back to the US where I have health insurance. Still the trip and all would be expensive.

If I need a minimum of US$800k + medical at my age, I think you're dreaming.

I agree and as I said, I am not looking to retire.

[DannyDubai]

It is a WHOLE lot easier to lose money than to make money especially if you get in a hurry.

You are an American, right?

Yep...put your money in a FDIC American bank savings account now and you're lucky if you get 1/2 percent interest...so UK banks are paying 3% on savings accounts? Really?

really

[DannyDubai]

I am going to set up a business in neon lighting, I will only make one sort of light, it will be about six foot high and will spell out troll.

It will come in a range of different colours though so that it doesn't upset some Rev in Whocaresville USA.

Next.

Doesn't look like a Troll to me. If he is I didn't spot it. Got sucked right in. Perhaps I need to pay a visit up the road to Dubai.

Den

I always find these troll hunters on forums who scream TROLL at every point are as pathetic as the trolls.

Good call Den.

[theblether]

Eh, I'll rise to the bait.

Mercedes Girl was at a bank repossession auction yesterday, she's looking to buy more land in San Khampaeng. We are not allowed to own land however we can own condos. She said there were a few condos going cheap at the auction. She also said it's shocking how many properties are being auctioned, apparently this is a three day sale that's going on.

Cheap condos in tourist areas? Got to be worth looking at.

* Proviso, they need to be quite modern, older condos have a poor resale value.

[NeverSure]

Eh, I'll rise to the bait.

Mercedes Girl was at a bank repossession auction yesterday, she's looking to buy more land in San Khampaeng. We are not allowed to own land however we can own condos. She said there were a few condos going cheap at the auction. She also said it's shocking how many properties are being auctioned, apparently this is a three day sale that's going on.

Cheap condos in tourist areas? Got to be worth looking at.

* Proviso, they need to be quite modern, older condos have a poor resale value.

What is cheap, as in what's the bottom? During the US housing crash, I watched guys buy houses on the way down only to see them go lower. I've been predicting a condo crash in Thailand all year and even posted such several times in the financial forum. I can't predict a time, and I can't know that I'm right of course.

But I see the same signs and the same "buy now and buy more because prices always go up" thinking in the Thai condo market as I saw in the US. I see the same vacancies and the same irrational price increases as vacant units increase.

In other words if they've just started falling and it's just a few, I would wait. As the old saying goes, "never try to catch a falling knife."

$.02

[pomchop]

It is a WHOLE lot easier to lose money than to make money especially if you get in a hurry.

You are an American, right?

Yep...put your money in a FDIC American bank savings account now and you're lucky if you get 1/2 percent interest...so UK banks are paying 3% on savings accounts? Really?

really

so why when I google highest saving account interest rates in the UK does it say the best one is 1.7%? Perhaps you can share which UK banks pay 3% as I am interested to investigate their offers.

[JaiLai]

Eh, I'll rise to the bait.

Mercedes Girl was at a bank repossession auction yesterday, she's looking to buy more land in San Khampaeng. We are not allowed to own land however we can own condos. She said there were a few condos going cheap at the auction. She also said it's shocking how many properties are being auctioned, apparently this is a three day sale that's going on.

Cheap condos in tourist areas? Got to be worth looking at.

* Proviso, they need to be quite modern, older condos have a poor resale value.

Older condos ( if in a good location and well maintained ) will have a better resale value than the newer ones in my opinion due to size. All the newer builds are tiny, the older ones seem to be of a much large size, eg older 1 bedroom 80sqm as opposed to newer 1 bedroom 55sqm.