Investing £70k tomorrow!!!

dunstonh

The global equity portfolio went up 19.18% last year! (But I don't suppose that will happen again any time soon!)
I was told I could take the money out at any time without penalty...

The sales pitch certainly had me at first!

It would have gone down 45% over the previous 18 months.

slinga

investment_newbie wrote: »

Hello,

I'm about to walk into a high street bank in the morning and give away £70k of my hard earned cash to be invested for me.

I've had two discussions with the financial advisor in the bank and have so far decided to split it:

25k in a Global Equity Portfolio (1.8% fees, no initial charge)
10k in a Cautious Portfolio (1.51% fees, no initial charge)
7.5k in super ISAs (5.5%)
22.5k in a 1 year bond (4.5%)
5k in cash, filtering off into a 6% savings account.

I have no debt, and am saving for a house deposit that I'll be looking to put down in 2/3 years.

I haven't gone to too many sources for advice on my investment. Any ideas/insight/market predictions would be gratefully received!!

Are there any disadvantages to using a major high street bank to manage the fund managers?
Is it sensible to keep so much of my money in 'cash' type savings?

Cheers :beer:

Funny that, the day before yesterday I put an extra 80k into my portfolio.
All into SEA UTs.

'Hoping' for an uptrend of 30% next year.

I wonder how I'll be feeling this time next year.:beer:

slinga

investment_newbie wrote: »

Thanks everyone for your advice!

I have a day off tomorrow to get this all sorted! And an appointment at the bank (10am!) which I may well cancel!

Better to get these things right!

You really want to think about your decision a bit.
A day off work and you 'hope' to finalise things.

I don't think so.

Cautious_Investor_3

slinga wrote: »

All into SEA UTs.

SEA?

What asset mix did you go for?

The Cautious Investor

Bigsmak

jimjames wrote: »

If the bank adviser has really suggested that you put at least 50% of your money into stock market investments when you have stated that you have a 2-3 year time frame for needing the cash then you should report them. Others may be able to suggest the best place to do so - bank superiors or FSA but there is no way that you should put money into those investments when you need it so soon.

100% They should not have advised this.

Why not speak to a local Independent Financial Advisor, they won't charge you for having a chat and looking at your options, well they might but ask about that before you sit down, I wouldn't for a first meeting.

calypso_rhapsody

mike88 wrote: »

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.

Absolutely - savings returns may be lower than RPI or CPI but (depending where you live of course) they are probably not lower than house price inflation so saving in a fixed term account provides security and should maintain house buying power. In the same situation as the OP i would keep all or at least the vast majority of my funds in deposit accounts - shopping around for the best rates and using ISAs etc of course

feesarefare

investment_newbie wrote: »

Hello,

I'm about to walk into a high street bank in the morning and give away £70k of my hard earned cash to be invested for me.

if its hard earned, why the heck are you handing it over to a clown in bank.

I've had two discussions with the financial advisor in the bank and have so far decided to split it:

should read "I've had two discussions with a target based sales rep in the bank .......................

I have no debt, and am saving for a house deposit that I'll be looking to put down in 2/3 years.

Heres the crux - if your SAVING what the dickens are you doing INVESTING

Is it sensible to keep so much of my money in 'cash' type savings?

Yes - on your time frame you shouldnt be anywhere else.

I see some posts recommending you to go to an IFA - that would be a total waste of your time as no IFA would advise INVESTING the money over that time frame


Just out of interest, just how big a deposit are you looking for ? £70K would be more than enough for alot of people

Cautious_Investor_3

feesarefare wrote: »

I see some posts recommending you to go to an IFA - that would be a total waste of your time as no IFA would advise INVESTING the money over that time frame

Why would it?

You are assuming that an IFA cannot or would not advise on Cash investments / savings? If so I know plenty of IFAs who are happy to advise on cash.

The OP needs to spend time with an IFA, if only to make sure he doesn't give cash to the a greedy direct salesman from the bank.

The Cautious Investor

feesarefare

Cautious_Investor wrote: »

You are assuming that an IFA cannot or would not advise on Cash investments / savings?

No....

If so I know plenty of IFAs who are happy to advise on cash.

What do they charge for that advice?

The OP needs to spend time with an IFA, if only to make sure he doesn't give cash to the a greedy direct salesman from the bank.

If they hand over their cash to a bank after these posts then I've no sympathy. Theres nothing that hasnt been said here that an IFA could add value to

Cautious_Investor_3

feesarefare wrote: »

If they hand over their cash to a bank after these posts then I've no sympathy. Theres nothing that hasnt been said here that an IFA could add value to

I'd suggest there is, to start with one of the best 3 year fixed rate accounts available at the moment is only available through an IFA and not directly.

An IFA can also add value as they often provoke thought and action with a client which they would otherwise not take. Furthermore many people like to delegate the management of their financial affairs to a 3rd party so they can concentrate on other matters.

I really do think an IFA can add value in a circumstance like the OP has outlined.

The Cautious Investor