What To Do With A Large Sum Of Money

| November 5, 2015 | 0 Comments

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If you’ve got a large lump sum of money sitting in your account, what exactly should you do with it? It’s a good question for those who have worked hard over the years, and built up a little nest egg. We all know that your average savings account isn’t going to produce much in the way of returns. Interest rates are at their lowest point in decades.

So, how can you make that money work harder? How can you improve your position, and turn that lump sum into something more? We’ve teamed up an experienced wealth management company to bring you some simple advice. Let’s take a look.

Invest – Investing is often a daunting process for many. Especially if that lump sum has taken years to build up. The last thing you want to do is risk it all on the market! The truth is the media likes to highlight stock market scare stories. In reality, a sensible, long-term investment strategy is relatively safe and secure. Spreading your investments across a wide range of thriving industries will help you grow. Overall, the market grows at about 7% a year. Now, that’s a much better interest rate than your current savings account!

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Property – Property is a core investment, and savvy financiers have been reaping the rewards for decades. Much like the stock market, the property market rises steadily over time. If you play the long game, you’ll grow your money slowly and securely. Alternatively, you could take a more active approach. By refurbishing a house, and quickly selling it on, you can make a swift fortune. Property is generally considered a stable and intelligent investment.

Start a business – We often think that the best investment you can make is in yourself. If you’ve got a fantastic business idea, you owe it to yourself to explore it further. It could be the key to even larger profits, and your future financial independence. Every small business requires a certain amount of startup funds, and this could be your opportunity. Seek guidance and help if you need it, but don’t be scared to make that big leap.

Open a high-interest savings account – Of course, the safest and most secure option is a high-interest savings account. It’s not always easy to find one of these, however. The government has set the national interest rate at almost zero to help aid economic recovery. It’s great for borrowers, but it’s bad news for savers! There are some high-interest accounts available, but you’ll often have to lock that money away for a period.

Enjoy a holiday! – Of course, you could take an entirely different approach! You don’t always have to do the safe and sensible thing. You’ve worked hard for that money, you deserve to treat yourself! Take the family, and enjoy a long holiday for yourself. Life is for living, after all!

If you are lucky enough to have built up a lump sum of cash, think long and hard about how to use it. If you’re savvy, you can double or even triple that cash. Take your time, and speak to a financial advisor if you need more information.

Category: Investment

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