Investing £70k tomorrow!!!

Cautious_Investor_3

jimjames wrote: »

Was that the Santander cautious portfolio though?

Er no.....portfolio put together by an IFA who outsource it, TER of circa 0.90%, friend is very happy with it.

The Cautious Investor

investment_newbie

Would it be worth using my 10.2k ISA allowance this year with Santander in a cautious portfolio, in order to get access to this amount of their 'super' products.... allowing me to transfer my poorly performing cash ISAs over to a 5.5% rate?

jimjames

investment_newbie wrote: »

The guy did make me feel like having 70k in 'cash' was ridiculous when the stock market was at such a low....

Nice to know it's not such an alien concept!

I'm so glad I took 5 minutes to post on here!

If the adviser was also suggesting that the stock market was at such a low then they also seem to be out of touch with reality! The UK market measured by the FTSE 100 today reached over 5700 compared to a low of 3500 in early 2009. The high point for the market was 6900 so we are not that far off - hardly a case for them stating it was at such a low I think!

Cautious_Investor_3

investment_newbie wrote: »

Would it be worth using my 10.2k ISA allowance this year with Santander in a cautious portfolio, in order to get access to this amount of their 'super' products.... allowing me to transfer my poorly performing cash ISAs over to a 5.5% rate?

I really do think that rather than looking for piecemeal you should go back to basics.

Find an IFA, think about your goals and ambitions for your money and let them do the hardwork.

Maybe interview a couple, to see who you get on with best.

The Cautious Investor

jimjames

Cautious_Investor wrote: »

Er no.....portfolio put together by an IFA who outsource it, TER of circa 0.90%, friend is very happy with it.

The Cautious Investor

Ok, fair enough.

I'd assumed that reply you quoted related to the charges for the Santander cautious product and the chances are that their performance would be outweighed by charges to a much greater extend that your friends which could equate to the statement about "being eaten up by fees".

jayme1

no way would I ever put it in anything that can loose your money, honestly can say 100% or even 40-50% that the market will go up in the next 2-3 years

also property, property, property, that is the single best place to put cash, cant believe you would put off buying a house just because you think 3 year investment isnt worth it. I could go out tomorrow and buy a £70grand house and know for cirtain I could sell within the next 3 (dependant on market factors exactly when you sell) years for more I paid, including costs.

lvader

Right now I'd say property is a far greater risk than stocks.

investment_newbie

Hehe, property is tempting! But no £70k houses near me! Probably couldn't even buy a car park space!

Cautious_Investor_3

jayme1 wrote: »

also property, property, property, that is the single best place to put cash, cant believe you would put off buying a house just because you think 3 year investment isnt worth it. I could go out tomorrow and buy a £70grand house and know for cirtain I could sell within the next 3 (dependant on market factors exactly when you sell) years for more I paid, including costs.

So to paraphrase, providing the market has not fallen you will be able to make a profit?!? Genius investment logic!

Which one of higher inflation leading to higher interest rates, tightening lending criteria, students leaving Uni with higher debt and rising unemployment will push house prices up over the next couple of years.

Property is like any other asset classes, it is perfectly possible to lose money on it, the sooner people stop thinking that money will always be made from property the better.

The Cautious Investor

mike88

Cautious_Investor wrote: »

So to paraphrase, providing the market has not fallen you will be able to make a profit?!? Genius investment logic!

Which one of higher inflation leading to higher interest rates, tightening lending criteria, students leaving Uni with higher debt and rising unemployment will push house prices up over the next couple of years.

Property is like any other asset classes, it is perfectly possible to lose money on it, the sooner people stop thinking that money will always be made from property the better.

The Cautious Investor

I agree. Buyers of properties at the bottom end of the market in particular are likely to be few and far between. Uncertain security of employment, student debt coupled with stricter bank lending criteria will conspire to stifle demand and increase supply resulting in lower prices.

The property investing boom is now likely to be a thing of the past.

If the OP is looking to invest in a property in 2 years time the chances are that the price he will pay will be lower than if he bought one today. On that basis a fixed term savings account could turn out to be a good bet.