85k to invest for 4/5 years advice please

deefadog

Hi all, I have 85k to invest for 4 years, what are my best options? I will not be touching it so it cvab be tied up for the 4-5 years.

The plan is to invest this for 4 years at which time it should grow enough to pay my mortgauge off and my family stability!

I have been looking and it seems 7% is achievable, but is this tax free?

many thanks and any advice most welcome!

EdInvestor

Are you looking for savings?

Investments usually require a 5 year time span.

deefadog

Thanks - It will be a lump some of 85k, it does not have to be savings and can be for 5 years. I just want the best return over that time

Many thanks

deefadog

Anyone got any advice? or a place to start looking

Many thanks

cheerfulcat

Hi, deefadog,

Have you looked at the performance of the world's stock markets over the last few days? Do you think that you could stomach seeing your hard-earned capital performing like that? The reason people say that you need at least five years for an investment in the stock market is because over the short term it can be incredibly volatile. And even over the longer term it is possible to lose money - are you willing to take that risk?

I have been looking and it seems 7% is achievable, but is this tax free?

Considerably more than 7% ( per annum, I'm guessing you mean ) is achievable but higher rewards normally come with a price, namely higher risk. Capital gains are not tax free but you have an annual exemption ( £8800 for this tax year ) before tax becomes payable. All capital gains within an ISA are tax free, though.

deefadog

Hi Cheerfulcat, thanks for the advice, i do not have a clue about the stock market tbh, hence my post on here The 7% i was reffering to was a hi savings accounts or similar, maybe a little less than 7% i guess.

I just need to know my options really - fixed savings account - no risk around 6-7% - or go the stockmarket root. Are there any more options? i guess i could have 2 x ISA's me and the wife that would take care of the £30k over the next 5 years, but ermm, you see i am lost, not very good at this!

So a full list of options to start with would be a good place i guess, can anyone list them for me please?

Many thanks

uk_steve

cheerfulcat wrote:

Hi, deefadog,




Considerably ( £8800 for this tax year ) before tax becomes payable. All capital gains within an ISA are tax free, though.

Can you tell me more about this please? £8800 is that what you can earn before you get any tax?:search: or have i missed read

cheerfulcat

deefadog wrote:

The 7% i was reffering to was a hi savings accounts or similar, maybe a little less than 7% i guess.

A lot less than 7%. The best interest rates available now are around the 6% mark; after tax that translates to 4.8% for a basic rate taxpayer or 3.6% for a higher rate payer. Inflation is 4.4%...

I just need to know my options really - fixed savings account - no risk around 6-7% - or go the stockmarket root. Are there any more options? i guess i could have 2 x ISA's me and the wife that would take care of the £30k over the next 5 years, but ermm, you see i am lost, not very good at this!

So a full list of options to start with would be a good place i guess, can anyone list them for me please?

Put very simply, your options are cash ( including gilts ), bonds, property and shares. Don't think that cash is no-risk, btw; look at the inflation rate vs the savings rate.

uk_steve wrote:

Can you tell me more about this please? £8800 is that what you can earn before you get any tax?:search: or have i missed read

Hi, uk_steve,

That is how much profit you can make from investments before you pay capital gains tax.

Naetha

I'd still be interested to know this as well - will have 110k hanging around for 3 years until we come out of our mortgage lock-in period. Plan is to fill up our cash ISA allowances and open at least two regular savers accounts each per year, but that will still leave a good 65k. I'm less keen on investing in the stock market for less than 5-10 years (last week has proved that), but still keen to beat the best savings rates with moderate risk.

How risky are investments like this? http://www.themovechannel.com/property/Land/Smorhagen/260848/details.htm

cheerfulcat

Naetha wrote:

I'm less keen on investing in the stock market for less than 5-10 years (last week has proved that), but still keen to beat the best savings rates with moderate risk.

How risky are investments like this? http://www.themovechannel.com/property/Land/Smorhagen/260848/details.htm

Wouldn't touch that with a bargepole. That's way beyond risky, it actually looks like a scam. Guaranteed 20% a year? Where's that going to come from?

If you need the money within a few years, keep it in the bank.

deefadog

Thanks cheerfulcat, forgot about the tax aspect.