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Where to invest £100,000

Posted by geeksadmin on March 30, 2023
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If you want to build and protect your financial future, you are looking for investment options. You have been a diligent saver, steadily putting money away in a savings account. Upon checking your account, you realize you have hit the six-figure mark.

We understand you are worried about sinking your resources into the wrong place. The investment gurus from Property Geeks are here to advise you. This guide offers you the best ways to invest your £100,000 safely.

Characteristics of a reasonable investment

Before we dive into the best investment for £100,000, we acknowledge that there are those among us who are not aware of what to look out for in an investment.

Purposed to meet your needs

From our experience in the property industry, each investor has unique financial goals. They desire to meet these goals by sinking funds and resources into a particular investment. The investment chosen must empower the investor to meet their unique financial goals.

Safety

No investment offers absolute safety except for an investment in government securities (bills and bonds). This is no disclaimer for uninformed decision-making. The investor must perform thorough due diligence to determine the amount of risk.

Return

The return accruable from an investment is directly proportionate to the level of risk. The higher the amount of risk, the higher the possible returns. For example, the government mentioned above that bills and bonds are low-risk investments with a high safety factor. An investor can get low to medium returns.

Liquidity

The economic conditions are always unpredictable, and one needs funds urgently. We recommend having a more liquid investment. An investor with a more liquid asset/ investment can dispose of the investment and get funds more accessible.

A hedge against inflation

This characteristic will be helpful if you are an investor looking for a long-term asset. Sink your funds into an investment whose capital gain/ appreciation matches or supersedes the power of inflation.

Tax Shield

Be on the lookout for investments that offer you tax incentives and reliefs. This may be in front-end and rear-end tax incentives/ reliefs.

Since that is clarified, Property Geeks will now detail the best way to invest £100,000 for income.

The £100,000 investment options

Here are a few options that our reputable team has put together. For more information on either, don’t hesitate to contact us.

Choose the fast-growing industries.

Suppose you are looking for the best return on your £100,000, one of the best options stocks. But not just any stock. Focus on fast-growing sectors such as e-commerce, financial technology (fintech), healthcare, and cloud computing.

An example can be put forth of technology companies during the Covid-19 pandemic, especially in 2020. Due to the restrictions and measures suggested by health authorities, technology drove almost every sector of the economy.

Choosing the right stocks might be a way to gain quick returns quickly and also significantly grow your portfolio.

Consider bonds

You might have heard of the volatility of stocks and are looking for an option that fluctuates less over time. Well, bonds are the assets that you should be fixated on. Bonds are ideal for short-term investors looking for fixed returns on their investments.

To define, a bond is a loan to an organization. Over the bond term, the bondholders (in this case, the investors) are bound to receive payments at regular intervals. At the end of the period, they will receive the bond’s face value.

Real estate

Real estate offers investors several options. The first is the orthodox option, purchasing, renovating, and selling it off. This is referred to as flipping. After renovations, an investor can also choose to rent it out. This can be a lucrative option if you enter a market with room for growth and demand for property.

While owning property might lure you, the high price range may factor you out. You can invest in real estate by purchasing shares in real estate investment trusts (REITs). REITs are a low-cost option that gives shareholders a continuous flow of dividends. They are typically centred on shopping malls or commercial property.

Crowdfunding is another real estate investment option. Investors, hereby known as the ‘crowd’ put together funds and fund a massive real estate project. It could be a commercial or mixed-use project. The avenues of getting back your investment are several, depending on the terms of the deal.

Retirement savings

If you are similar to most clients we have dealt with, you have yet to consider retirement. It is one of the possible investment options because, believe it or not, old age is coming for us all.

Your employer might be offering several retirement options/ accounts. Two highly recommended options include 401(k) and 403(b). If you joined the party late, you could make catch-up contributions.

If your employer doesn’t offer a 401(k), you should consider an individual retirement account, IRA. The traditional IRA is open to anyone. You can benefit from the Roth IRA for those with higher income earnings.

Paying down your debt

This is not your standard option when it comes to investment. However, it can be worthwhile in the long term.

Consider this. Most of us have loans and debts in one form or another, from student loans to credit card debt to medical bills. Regardless of the form of debt, it grows every day due to the interest rates charged. By paying your debt and possibly getting out of it, you are increasing your financial muscle in the future.

Our Property Geeks Take is

Out of the investment, as mentioned earlier options, real estate is one of the best options that you consider. Property is preferred because of its longevity, stable income, hedge against inflation, and appreciation benefits. Property investment, however, requires specialized information that only some have. Rely on the leading property investment and brokerage company in the area.

At Property Geeks, we have the experience, industry knowledge, and expertise to offer sound and professional advice. Our experienced team has guided hundreds of investors and is willing to help you navigate the murky waters of real estate investment.

Reach out to us today.

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