£200k to invest - what would you do ?

[Whorty]

Most of this is reasonable advice, but premium bonds pay less and less over the years due to government changes in the percentage of total held money then awarded as 'prize' money. It's basically, on average, well below inflation.

Wife and I both have max amount in premium bonds. Over the past 2 years we have both just beaten their 'average' return, so not great but no worse than cash ISAa and there is the possibility of winning bigger one year (well, we all have to dream!). This is our rainy day, easy access cash.

[scooterscot]

Now, the idea of FIRE seemed appealing. Work out how much cash one would need to retire, how long it'll take to accumulate, and stick a retirement date in the diary

At this point, passive investing is now looking like the preferred option over BTL. Am still reading lots, but this is the outline plan:

Basics - done:
- Home on a long-term fixed mortgage
- No other debts currently
- FU Money already stashed

In Progress:
- Work out current expenditure
- Create a budget, and realise the available monthly cash
- Identify how much cash needed to live on in retirement, and based on current stash and the available monthly amount, work out retirement year
- Stick pot of cash & monthly free cash into savings, invest in a world equity index tracker & bonds, balancing ratio to manage the risk (investing as tax-efficiently as possible)

Oh, and also: Marie Kondo the house

Definitely the way to go. BTL is energy draining, zaps your brain juice. Furthermore you'd be buying into an overinflated overhyped market. Soon enough interest rates will begin their journey north. When they hit 2-3% many yields from BTL will go up in a puff of smoke. We'll soon have a BTL glut as landlords look to unload their properties when a savings account look infinitely more appealing without the management stress.

The only thing I'd suggest, as in my first post, on this thread is to diversify. Don't go all in on the bond market, too many are throwing money at the government. Even in Germany money back will be less than they gave. Nuts.

Even the equity market should be give caution amidst the epic amount of share buy back that's been going on.

Equity Market Concentration - Market Capitalization of 10 Largest Companies as Share of S&P 500 Total


Take aways, diversify and don't be too keen to use up your cash on investments. A year from now folks with cash will be in the minority.

Take 1% of your portfolio and buy Ethereum. Sell it in June. Not financial advice