Investing 100K

ias76

I am now in the very fortunate position of being able to invest 100K for long term growth. I know its a balance between risk and return. In terms of risk, I want to see growth but not at the risk of losing my initial investment.

So where can I start reading up more ?
What do think is realistic returns? 10% per yr? more? less?

I have a few isas but haven't yet used up my allowance this year. My previous isa investment haven't performed too great so I am somewhat nervous the best way forward.

thanks.

dunstonh

So where can I start reading up more ?

You need to read on up tax wrappers and the differences. You will also need to read up on funds (around 10,000 of those available). I'm not sure where the best places to read those things is.

What do think is realistic returns? 10% per yr? more? less?

A cautious portfolio with a small degree of investment risk could hit 10%. If you had invested at the highest point prior to the stockmarket crash in 2001 in a defensive or cautious portfolio, you would have achieved between 9-12% p.a. average.

My previous isa investment haven't performed too great so I am somewhat nervous the best way forward.

That probably has more to do with the way you invested it and the selection of sectors you chose. How you spread and which sectors you invest in is more important than picking individual funds. Yet it tends to be the area that the average DIY investor spends the least time looking at.

sallyholt

I am concerned that you have asked 'where can I start reading up about this'

Where a relatively large sum of money is concerned you really do need professional advice - if you had a serious illness hopefully you would not rely on purely self help but would consult a professional on how to treat your condition. The same applies with Financial Wellbeing.

It takes many years and annual exams to be a professionally qualified financial adviser so do value this expertise and either get a recommendation from a friend or coleague who has a valued adviser or contact an adviser at a location covenient to you.

I am a professional adviser and the rules of the website do not allow me to advertise for financial gain but the company I work with has advisers all over the country - just google Wealth Management and you should get my company as one of the options.

Good luck I hope you find a professiona who will help you to find what you want from your money.

EdInvestor

ias76 wrote:

I am now in the very fortunate position of being able to invest 100K for long term growth. I know its a balance between risk and return. In terms of risk, I want to see growth but not at the risk of losing my initial investment.

The key to reducing risk is asset allocation - that is, splitting your money up in the correct proportion between the various asset classes, ranging from high to nil risk.

Have a fiddle with this calculator which will give you an overall idea of how your money should be split.

It's American, so post the result and we can help you adjust it a bit for the UK system and make the risk choices clearcut.

So where can I start reading up more ?

After you have decided which asset classes you want, then it will be necessary to choose which funds ( or direct investments) to put the money into.

This website grades funds by category, don't bother with anything not in the top 10:

https://www.citywire.co.uk/Funds/Home.aspx

What do think is realistic returns? 10% per yr?

Yes.

I have a few isas but haven't yet used up my allowance this year. My previous isa investment haven't performed too great so I am somewhat nervous the best way forward.

As DH says the ISA is just the tax wrapper, it's what's inside it that's important.

Note that investment is not rocket science.Unfortunately many advisors know little about it, as most of their time is spent learning rules and regulations for insurance products like pensions and bonds, which make money for the insurance industry, not you.

dunstonh

Unfortunately many IFAs know little about it, as most of their time is spent learning rules and regulations for insurance products like pensions and bonds, which make money for the insurance industry, not you.

That comment is highly unfair and misleading. If you had said tied agents, I would have agreed 100% with you but most IFAs will do a perfectly fine job. Certainly a much better job than someone that hasnt got a clue. Like any profession, there is a minority that wont do a good job but unlike other professions, the majority get tarnished with the same comments.

EdInvestor

Sorry, I keep forgetting you're so sensitive about incorrect use of the term IFA. IMHO this sensitivity is understandable, but the fact is, many people think that the man down at the bank is an IFA.

Have amended to "many advisors".

cheerfulcat

ias76 wrote:

So where can I start reading up more ?
What do think is realistic returns? 10% per yr? more? less?

You can start reading here. Then visit the discussion boards. Incademy is very good for basic ( free ) short courses.

10% is certainly a realistic expectation, as long as you are aware that you won't necessarily get a positive return every year.

You absolutely do not need an advisor; many people invest their own money very successfully without " professional " help. But even if you do decide to take advice, it's a good idea to have a solid understanding of basic investment principles.

ias76

Thanks for everyone's input so far. Its very interesting.

Whether I get an advisor or not, I need to be clear that they are doing a good job for me. Its hard to know who to trust upon first impressions. Like all professions some are good and some are bad. I suspect if I go with an advisor it will be a case of testing the water with them and them proving themselves. I have been canvassing opinions and sussing things out over the past year. I like to look after my own money and over the past two years I have been taking out a few investments to see how it goes.

For example my isa this year is split over 7 £1000 funds, some high risk some more conservative across a variety of sectors. Looking at it performance its been pretty up and down but its early days on that front. Plus I have a minor investment in a commercial property fund which has returned 12% per annum. Thats been a solid investment. Also some shares.

But keep the advice coming. I will check out some of that info you have given me.

Chrismaths

sallyholt wrote:

I am concerned that you have asked 'where can I start reading up about this'

Where a relatively large sum of money is concerned you really do need professional advice - if you had a serious illness hopefully you would not rely on purely self help but would consult a professional on how to treat your condition. The same applies with Financial Wellbeing.

It takes many years and annual exams to be a professionally qualified financial adviser so do value this expertise and either get a recommendation from a friend or coleague who has a valued adviser or contact an adviser at a location covenient to you.

I am a professional adviser and the rules of the website do not allow me to advertise for financial gain but the company I work with has advisers all over the country - just google Wealth Management and you should get my company as one of the options.

Good luck I hope you find a professiona who will help you to find what you want from your money.

Hmmm... Sally Holt? not St James' Place is it?

dunstonh

Hmmm... Sally Holt? not St James' Place is it?

Only one sally holt on the FSA register and she works for.... St James Place

EdInvestor

Gosh, another one. :eek:


They must have noticed the St James's Place thread