£200,000...what would you do with it?

My parents live in Spain but have two hundred thousand pounds tied up in UK banks. I have been talking to them for months about my concerns regarding a global recession/depression and imploring them to diversify their life savings.

Today I received a call and they want to talk about safeguarding their money. I've told them we'll speak on Sunday and decide a plan.

What do I tell them???

That's just about the right amount of money you'd need for a Lamborghini. I can't see any better investment than that.

reply to post by MrBacon


The first thing to tell them is to seek advice from an experienced and competent advisor. I mean, I love our members and all, but come on, don't stake your parents' nest egg on some advice you got from an anonymous poster on a conspiracy site. If nothing else, disclose to them where the advice came from. That ought to at least get you off the hook from future requests.

If that is a serious question, look into purchasing commodities that will not lose their value. Stocks in commodities such as gold, silver and platinum mining as well as the actual metals.
There are many good companies that are not too closely pinned to the dollar and are doing fine. It just takes time and research.
If they don't want to do the research, look into Peter Schiff and see what he has to say. He called this mess 4 or 5 years ago and they didn't listen. His website or newsletters might give some ideas of what to do with that type of money in Europe or even some recommendations on who to listen to over there.
Whatever you do, don't trust many American stockbrokers.

[edit on 23-1-2009 by badgerprints]

I would suggest property long term it always does well.

But they would be best speaking to a financial advisor to minimise their tax liabilities.

reply to post by MrBacon

Imo, the Moderator has it right.

While it's fun to discuss options and personal biases, I would take any specific investment advice made on an Internet BB with a grain of sand. Successful protective strategies can be complex...never one size fits all. Suggest that your parents consult with a qualified financial advisor.

Caveat Emptor

GL

The pound seems to be in serious danger at the moment and I think they should at least get some Euros and possibly Swiss Francs. They are dependent on their savings for their retirement but they have lost a lot due to the weak Pound against the Euro. If they change their money to the Euro now they'll lose on the exchange.

What about Gold?

I would use the money to pay off any debts and mortgages

Beyond that getting a competent money manager seems the next step

Obe/yeahright

Thanks for the advice. Whilst I appreciate the advice, I couldn't say I trust financial advisers to give my parents the best advice. They have already lost so much money doing just that.

[edit on 23-1-2009 by MrBacon]

reply to post by MrBacon


Strangly enough, my mum asked me exactly the same thing this morning!

Weird.

Although, the amount is less at £50K.

I'm not a financial advisor, but i went with advising to buy gold.

Simply convert the paper into gold. The worlds economy is based on the stuff.

Anyone who knows better, or sees something wrong with this advice, don't keep it to yourselves will ya!

spikey.

reply to post by MrBacon


Hi MrBacon

You are absolutely correct, and I should have placed the term qualified in " "

If you, or your parents have the time and the inclination, I agree that personal DD is always the best policy...with, or without "professional" assistance.

GLTY

I agree with everyone who's suggested a good, trustworthy money manager. Maybe even two from different firms just to get a second opinion and see if their suggestions jive (obviously if one says "invest in the Euro" and the other says "Absolutely do NOT invest in the Euro" a warning flag should go up that one of them may not be on the up & up.)

Aside from that, it also has to depend on what this money represents to them. If it's their retirement fund and represents a huge chunk of all they have, then clearly whatever decision they make will have huge ramifications for their future. If, however, they are well off and this is just a portion of a larger portfolio, then maybe it would be a bold move for them to take a bigger risk as it could lead to a bigger payoff to them down the road.

One thing for sure, I'd suggest they get out of the pound. That currency has been dying a slow death since the Euro has risen to prominence.

Stick it all into a FTSE tracker, because there is no way you can lose on it.