Should I put £100,000 in a L&G Tracker Fund

celiam_2

I have no mortgage and no ISAs. Good news I have £100,000 to invest. I am 55 yr old, self-employed with variable income. Someone recommended a L&G Tracker Fund. Is this a good idea?

sabretoothtigger

Ive heard worse, speak to an IFA though. It'd be a false economy to skip some proper advice on an amount this large

jem16

Putting £100k in one single fund is a very bad idea. You should be looking to split it over several funds to diversify.

Alias_Omega

I like fixed interest rate savings...

I like safe savings..

jimjames

So no other investments?

As mentioned £100k in one fund is not a sound move.

I'd also suggest looking at the HSBC tracker funds as you will make quite good annual savings with their lower charges.

Maybe a mix of trackers, UK FTSE 100 & 250 indexes, US, Pacific and Euro might be worth investigating.

Paddy_Boy

[QUOTESomeone recommended a L&G Tracker Fund. Is this a good idea? ][/QUOTE]

That means you have not considered this properly. I suggest you do some research and speak to a few IFA's. L&G have lot's of tracker funds, most are 100% equities, that is high risk and something you need to be sure fits your risk profile.

I suggest you think about what it is you want and go from there. Be carefull/don't listen to friends etc, you only hear about how amazing there investments are doing, which is good for them, but has nothing to do with you. £100,000 is a lot of money, make sure you feel comfortable with whatever you decide.

Until then get £85,000 in the best account you can and put the rest in a differant bank.

Good luck

Paddy Boy

Loughton_Monkey

What exactly are you 'tracking'?

Perceived wisdom would have that amount of money distributed around 5 to 10 funds. If you want long term growth, invest in areas that actually produce something, sell it, and create wealth. This 'art' has long since departed from UK and so £100K in a UK Tracker would, in my view, be quite an 'interesting' investment!

nrsql

Any reason not to use isas?

DiggerUK

celiam wrote: »

... I have £100,000 to invest. I am 55 yr old.....

celiam, First thing to ask yourself, is why do you want to pay an IFA for a decision you can take yourself for free. £100,000 is a goodly sum, but not a fortune. We are similar ages by the way.

For me, gold would be first port of call, you may decide it is not for you, but it is easily taken off the radar if bought as physical and stored in a deed box in the bank. About £50 p.a.+ £10 per time accessed.
Can also be put in S&S ISA's as what is known as 'paper gold'

If NSI bring back Index Linked savings Certificates then grab them.

Have some fun with Premium Bonds, no guarantee what you will get, but they are safe and instant access.

In the here and now, line up two best paying easy access or 30 day notice A/C's to park it in whilst you decide.
Best of fortune.

dunstonh

£100k in one sector would be really poor investing. Also, going straight in at medium/high risk for an inexperienced investor (assuming as you wouldnt ask the question if you were) often results in tears when the the next 45% crash comes along.

why do you want to pay an IFA for a decision you can take yourself for free.

Like any DIY, if you do it well then you can save money. If you do it badly then it will cost you more. Suggestions about what someone should do without knowing a thing about them or their objectives are pretty much the sort of suggestions you should avoid.

smallfry27

As someone who also started investing late in life, I'd say beware of the management charges of whatever you buy, and see all the advice on how to choose an IFA on this site and elsewhere. (e.g. Candid Money). I've had some bad experiences with FAs (i.e. ones influenced by commission).

I like tracker funds (low charges), but you need to spread globally and non-equity and you can't do it all with trackers. Also consider how long it will be before you need the money - a retirement home perhaps, do you have enough pension, etc etc. If you want it to help fund an early retirement in the next few years, that's quite a different matter to saving up to pay for a care home when your 80 or 90.