A retired British expatriate living in Portugal received a €250,000 lump sum following the sale of a UK property. The client wanted:
At the time, inflation was significantly reducing the value of money held in cash deposits. The client was concerned about investing a large amount all at once during uncertain market conditions.
According to deVere’s investment guidance, remaining invested for the long term and maintaining diversification can help smooth short-term volatility and improve long-term outcomes.
The portfolio was diversified across:
“Clients with international financial interests increasingly require specialist advice that transcends borders, tax jurisdictions, and regulatory frameworks” – deVere CEO Nigel Green.
deVere notes that structured products can provide growth opportunities while reducing exposure to sharp market declines, depending on the product structure.
The investment approach focused on:
Over five years, the client’s portfolio experienced short-term volatility during market corrections but achieved average annual growth of approximately 7–9% before fees.
A €250,000 investment growing at 8% annually would be worth approximately: € 367,000
Key factors contributing to the growth included:
Research cited by multiple investment studies shows that lump-sum investing has historically outperformed phased investing in most long-term market environments because more capital is invested for longer.
All investments can fall as well as rise in value, and past performance is not a reliable indicator of future results.
A senior wealth adviser at deVere discusses the questions to ask before investing cash.
You would think that where to invest would be the first and most important question, but not to a professional financial adviser. It would be ‘why do you want to invest?’ Understanding an investor’s motive or goals allows an adviser to find the best investment vehicles suited to the investor’s needs.
deVere Senior Wealth Adviser Lewis Duncan explains that every decision begins with understanding the client’s goals, when they need the money, and what they need it for.
“When someone has a lump sum of cash, the first question should never be where to invest, but why.”
If the funds are needed soon, keeping them liquid makes sense. But if the capital is sitting idle with no short-term plans, there may be opportunities to build growth, for succession benefits, or tax efficiency.
True financial advice looks at the purpose behind the decision, not the products.
“If someone has got a lump sum of cash in the bank, let’s say. My initial thought process would be: what’s the end goal? You know, when do you need that money and what do you need it for?… I think that the first step is understanding what the client’s key and core objectives would be. Once you understand them, then at that point, the advice would veer off in different directions, and you could be looking for a more tailored product.”
Watch Lewis’ full video below
There are several different kinds of lump sum investing, depending on the investor’s goals, time horizon, risk tolerance, and need for income or capital growth.
Investing a lump sum into stock markets through shares, ETFs, or equity funds.
Typical goals:
Examples:
A diversified portfolio combining equities, bonds, cash, and alternatives.
Typical goals:
Often used by retirees or cautious investors.
Placing a lump sum into lower-risk income-generating investments.
Typical goals:
Examples:
Using a lump sum to purchase property directly or through real estate funds.
Typical goals:
Examples:
Investments linked to market performance with predefined conditions.
Typical goals:
These are often used by wealth management firms for higher-net-worth clients.
Investing a lump sum into retirement structures or pension wrappers.
Typical goals:
Examples:
Designed specifically to generate regular income from a lump sum.
Typical goals:
Examples:
Investing in assets outside traditional stocks and bonds.
Typical goals:
Examples:
Lump sum investments could significantly boost savings over the long term, as more cash is invested, allowing for compounding interest to do its magic. This could be the difference between a financially secure retirement and a retirement lifestyle downgrade.
Please note, the above is for educational purposes only and does not constitute advice. You should always contact your adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.
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