swanny
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| posted on 24/5/11 at 08:54 AM |
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Investment Challenge
Hello all,
was sitting behind two guys on a train yesterday and overheard them chatting about what they'd do if they won the lottery.
After a bit they got onto how much money they'd need to leave work etc.
One guy suggested that a better challenge, rather than just planning how to spend millions would be to take a modest win they suggested £40k and work
out how to invest it to get the best return over the next 20 years given that banks interest rates are currently poo.
They werent just interested in cash returns, but they made a rule that they had to aim for 40k at the end of the 20 years so couldnt just blow it all.
So you've got £40k to invest/spend: what would you do with it?
One of the guys wanted to started a limo, wedding hire business, and set up his missus as a childminder with a converted extended garage. I didnt hear
all of the other guys idea, but it was something about buying a franchise.
it just occurred to me on the train that the locost lot would have much better ideas!
paul
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tegwin
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| posted on 24/5/11 at 09:07 AM |
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I would use it as money towards a bigger investment... quite possibly in the property business.
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Would the last person who leaves the country please switch off the lights and close the door!
www.verticalhorizonsmedia.tv
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nick205
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| posted on 24/5/11 at 09:13 AM |
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At 3% interest rates simply stickingit in an ISA for 20 years would grow it to £72k. That would no doubt improve as interest rates will fluctuate
over the next 20 years.
Personally, right now I'd pay all £40k straight off my mortgage as it would give me the biggest overall financial gain.
Other ideas would be...
1. Deposit on a buy-to-let property as house prices are favourable right now
2. Retrain for another career
3. Build that Ultima I've always wanted 
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owelly
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| posted on 24/5/11 at 09:19 AM |
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40,000 lotto tickets. With that winning streak, what could possibly go wrong...?
Round here, property would see you a good return. Throughout the 'property crisis' the prices here never dipped. Houses may have taken a
bit longer to sell and the prices stopped going up for a while but I sold one house just before the 'crash' and made a heap of money and
another slap bang in the middle of it but still got the asking price.
Or open a food joint. Bloody good profit in pies and mash...
http://www.ppcmag.co.uk
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GeoffT
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| posted on 24/5/11 at 09:29 AM |
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quote:
At 3% interest rates simply stickingit in an ISA for 20 years would grow it to £72k.
...or for something slightly different you can get 7.3% on Zopa
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hughpinder
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| posted on 24/5/11 at 09:38 AM |
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The best way is to be dynamic with your money and keep moving it, but split the risk a bit. For instance its been obvious for the last couple of years
that apple are a good investment, and their share price has tripled in the last 2 years, so putting a good chunk on them would have been good.... (If
only I didn't keep wasting my money of food, mortgage, petrol etc...). My Dad used to invest in the 'penny shares' market, and only
stopped last year. He managed to average about 11%pa average growth (he didnt start with a lot unfortunately) over about 20 years.
Hugh
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mcerd1
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| posted on 24/5/11 at 10:51 AM |
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how lucky are you feeling ?
my mate stuck a few ££ into a shares in a small oil exploration company - 3 months later they hit oil in the falklands and he'd quadrupled his
cash (lucky bar steward)
if your looking at long term then a bit in the likes of BP can't hurt, they are bound to bounce back (they've alrady recovered alot since
the start of the year... so probably too late for the really big gains)
-
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ashg
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| posted on 24/5/11 at 10:52 AM |
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i would buy another house and let it out. cant beat having someone else paying off your mortgage for you all the time the house is rising in value.
Anything With Tits or Wheels Will cost you MONEY!!
Haynes Roadster (Finished)
Exocet (Finished & Sold)
New Project (Started)
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Confused but excited.
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| posted on 24/5/11 at 12:06 PM |
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quote:
Originally posted by nick205
At 3% interest rates simply stickingit in an ISA for 20 years would grow it to £72k.
Which in twenty years will not buy you what £40K would buy you now.
You don't make money saving in a bank. you lose money, they make it.
The interest they pay, does not keep up with devaluation.
Tell them about the bent treacle edges!
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