Best pace to save/invest 65k please

booklover

hello

My sister is looking advice on the best pace to save/invest 65k that she now has saved

she has paid her mortgage and is 44 years old and has 2 children and in a steady job.earning20k.

She said she could invest it for up top 3 years bur wants it to be sage cant risk loosing any.


I am getting so confused...

many thanks

PS she has filled her Isa already


Fiona

bendix

There's nothing to be confused about. It's simple: If you can't risk losing any, then you'll be saving it, not investing it. The trade off for not wanting to risk anything, is that she will get much lower returns.

The most you could likely do is divide it between three banks and put it in 3 year term deposits which will likely give her around 4% per annum before tax. Not a fortune, but not to be sniffed at i suppose.

Saturday and sunday papers are full of ads offering these sort of rates.

dunstonh

In addition to not being able to put any at risk, the timescale isnt really suited to investing either unless you are experienced and accept that short term can mean higher risk. So, it really does look like saving.

Not that saving is risk free. You dont have investment risk but you do have shortfall risk and inflation risk to contend with (and potentially provider risk).

Is she planning to spend all the money in three years?

Primrose

If she's used up her ISA allowance for this year she could put £50K of it in a Kent Reliance Two Year Bond which is paying 4.25%. £50K is the maximum she can hold in one institution for the compensation limit. She may want to hold £5100 back in an easy access account until next April so she can use up her next year's Cash ISA allowance. If she wants to keep her money absolutely safe she could look around for another fixed term bond. I think investing in the stock market for a 3 year period is too volatile and risky and perhaps two years is the maximum she should consider for a fixed rate bond in case interest rates start rising again after that. The other longer term issue she should consider is whether she has made adequate pension provision for herself, which might be another option for some of her money.