Financial advice.

stonerblue said:
A member of my family stands to get around 130k for the shares she has in the company she works at. Company is being bought out and all jobs are safe.
She has 18k left on her mortgage plus some savings.

What would be the best and/or worst thing to do with the lump sum? Bung it in the bank, isa's or some other 'bond' type thingy?
No risky or un-ethical investments. Just the best way to keep as much of the original sum as poss'

tia
Click to expand...

I've a bunch of my cash in an American hotel REIT called Apple Hospitality. Basically it owns 240 Hiltons,Marriotts etc.

I get 7.7% annual return for each share I hold.

Worth looking at but don't blame me if the market tanks :-)
 
Many thanks.
SWP's back said:
This is true.



Being debt free is over rated. If the mortgage is cheap and affordable from her monthly income, as it’s such a small amount outstanding then leaving it in place is an attractive option.

Whilst paying off a mortgage is great, property is highly illiquid when compared with savings/investments. Proper advice would depend on her capacity and appetite for risk (there’s a risk in involved in everything, from cautious investments having the risk of inflation eroding capital overtime through to systemic and institutional risk in classic direct equity holdings).



Again her timescales are very important here. If she wants to spend the money in five years, the above here is correct, if she’s retiring in twenty years and funds are there for that time, then Brexit is completely immaterial over the long term. She can also invest in “Brexit risk-free” investments or funds (such as FTSE 100 companies that make their turnover worldwide in the US Dollar trading in oil/gas/tobacco/pharmaceuticals etc) as they’re likely to be largely unaffected by whatever our wanker politicians do at home.

She also has the option of investing in other jurisdictions that are going to be unaffected by Brexit such as emerging markets or North America.

Again, time frame and appetite for risk are the key details that would be needed to give correct advice to her.



This is true of cash on deposit, in reality, after the separation of retail and investment banking post 2008, depositor protection on cash isn’t really needed if she’s with a major high street bank. The government showed they won’t let a major bank fold (not that one would due to the retail/investment separation and liquidity requirements) as it would kill confidence in the industry.

@stonerblue the tax wrapper (ISA/unit trust/bond) would depend on her personal circumstances, aims and goals bud b
Click to expand...
was hoping you'd pop up. Can you tell me a bit more about the possible taxes she may have to pay on the lump sum if she just bangs it in the bank?
 
I use a financial adviser who was recommended to me by a very wealthy man and he earns me about 8% per year on my investments. PM me if you want his details
 
OP, I have had a missed call from a number I do not know, please ask you sister to ring back after 2pm when I am in.
 
stonerblue said:
Many thanks.

was hoping you'd pop up. Can you tell me a bit more about the possible taxes she may have to pay on the lump sum if she just bangs it in the bank?
Click to expand...


Its not just about the lump sum tho..... SWP could probably advise better but it's also about when she cashes / if she cashes them in . You could do some on the 1st April which goes into one tax year and some on the 6th April which goes into another.... no one can really give proper advice without fully understanding her and her husbands circumstances.

Probs need to consult a financial advisor
 
You must log in or register to reply here.
Unread Posts

Don't have an account? Register now and see fewer ads!

SIGN UP
Back
Top
✖
  AdBlock Detected
Bluemoon relies on advertising to pay our hosting fees. Please support the site by disabling your ad blocking software to help keep the forum sustainable. Thanks.