Originally posted by rogerfederer
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£200k to invest - what would you do ?
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I am what I drink, and I'm a bitter man -
Originally posted by Spoiler View Post
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
"Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
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