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  #1  
Old 05-02-2007, 02:08 PM
Chris2006 Chris2006 is offline
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Default Investment advice on large lump sum

Hi, I am looking for investment advice on a lump sum of money in which we have come into of 150000. We are a young couple (no family yet!) with a regular combined income of approx 65000. We have a mortgage of 200000 and no other loans. We are very capable of meeting our monthly mortgage repayments and I believe that the move of reducing our mortgage by the amount of the lump sum would be a waste of a potential investment opportunity. Am I correct in saying this? If so what investment advice would you give to a very cautious amateur? You help is very much appreciated.
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  #2  
Old 05-02-2007, 02:12 PM
HighFlier HighFlier is offline
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Default Re: Investment advice on large lump sum

I would pay down the mortgage and use the extra monthly income to invest in a good well checked out regular premium investment policy where any dips in the market can be overcome by the cost averaging method whereby over time you buy cheap units when markets are down. If you invest the 150k in one go you are gambling. Also worth considering is Pension AVCs where the revenue effectivly double your contributions by tax relief.
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Old 05-02-2007, 02:13 PM
ClubMan ClubMan is offline
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Default Re: Investment advice on large lump sum

Quote:
Originally Posted by Chris2006 View Post
I believe that the move of reducing our mortgage by the amount of the lump sum would be a waste of a potential investment opportunity. Am I correct in saying this?
Well - what is the basis for your own belief that this is the case first? For example what investments have you identified that will give a guaranteed return better than reducing the mortgage or hold out the prospect of better returns in line with the risk/volatility that you must take on in spite of what you describe as your cautious nature.

You really should get independent, professional advice.
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  #4  
Old 05-02-2007, 02:37 PM
phoenix_n
 
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Default Re: Investment advice on large lump sum

You should think about investments where a minimum amount (like your sum) is needed to invest. You can then take advantage of opportunities that would not be open to smaller investors.

Property syndicates is one area which you could investigate.
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  #5  
Old 05-02-2007, 02:38 PM
ClubMan ClubMan is offline
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Default Re: Investment advice on large lump sum

I would suggest that you start with the IFSRA and AAM guides to savings & investments linked from the key topics thread in this forum. They should give you some food for thought and ideas on how to structure your search for suitable investments.
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  #6  
Old 08-02-2007, 12:57 PM
Chris2006 Chris2006 is offline
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Default Re: Investment advice on large lump sum

Can anyone please advise / give their opnion on Canada Life Active Guaranteed fund? Thanks
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  #7  
Old 08-02-2007, 01:00 PM
ClubMan ClubMan is offline
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Default Re: Investment advice on large lump sum

Give us a summary of it here - e.g. charges, investment term, what it invests in, other terms & conditions. Why are you honing in on this product in particular?
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  #8  
Old 08-02-2007, 01:56 PM
Chris2006 Chris2006 is offline
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Default Re: Investment advice on large lump sum

Im honing in on this product based on the following information that was provided to me:

100% Capital Guarantee over 6 years - essentially means your capital is protected from market falls if you hold your policy for 6 years.
100% investment of your money
Offers unlimited growth potential

Funds

40% in Fixed interest - managed by JP Morgan
60% split between Dividend Fund, Global Opportunites and Morgan Stanley European Property Fund


Just looking for someone else's opnion or experience with this type of fund.
Thanks
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  #9  
Old 08-02-2007, 01:57 PM
ClubMan ClubMan is offline
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Default Re: Investment advice on large lump sum

But surely there are some charges? Is this a tracker bond?
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  #10  
Old 08-02-2007, 02:06 PM
Chris2006 Chris2006 is offline
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Default Re: Investment advice on large lump sum

Not fully aware of all charges but Im sure there are loads of charges at a % of the amount being invested!
Think I'l just stick to what I know, pay off what I can of the mortgage and save! Just worried that this is a mistake and I'l lose out on this opportunity due to me being over cautious.
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  #11  
Old 08-02-2007, 02:14 PM
ClubMan ClubMan is offline
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Default Re: Investment advice on large lump sum

You should get independent, professional advice if you don't know what's best for your specific circumstances.
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