85k to invest for 4/5 years advice please

mroller

Actually the stock market fall this week should encourage people to invest more.
I have been waiting for a correction for many months ( I have already many funds but have more in savings) and I am really delighted by this one. I am just waiting for volatility to subside a little and up my investments.

dunstonh

Plus stockmarket investments are not all one level of risk. There is low risk and high risk and portfolios can be built defensively or aggressively depending on your risk profile.

Also, investing doesnt mean you have to go into the stockmarket. There are other options in between cash and stockmarket. A cautious investor would have a spread across the sectors with perhaps just a minority holding in the stockmarkets.

uk_steve

cheerfulcat wrote:

Hi, uk_steve,

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

Thank you:beer:

deefadog

Plus stockmarket investments are not all one level of risk. There is low risk and high risk and portfolios can be built defensively or aggressively depending on your risk profile.

Also, investing doesnt mean you have to go into the stockmarket. There are other options in between cash and stockmarket. A cautious investor would have a spread across the sectors with perhaps just a minority holding in the stockmarkets.

Thanks, so how would i go about this, contact a FA?

Jarlawuk

deefadog wrote:

Thanks, so how would i go about this, contact a FA?

If its a bank FA (who normally don't charge) you can usually arrange an appointment in branch or on their websites. Some IFA's are now beginning to charge fees for their time but they can sell all the products available so will be able to give you a wider range of choice - for them you're probably looking at the yellow pages/search engine.

jem16

Jarlawuk wrote:

If its a bank FA (who normally don't charge) you can usually arrange an appointment in branch or on their websites.

Whatever you do don't contact a bank's FA.

Their products are very limited and usually not very good. They may not charge a fee but they get commission which will eat into your investment.

Find an IFA and preferably an IFA who operates as an NMA - new model adviser. Typically an NMA IFA will charge 1% initial commission(the rest of their commission being rebated back into your investment) and 0.5% ongoing yearly commission.

deefadog

Thanks so much, will look into this ASAP

fimonkey

cheerfulcat wrote:

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%...

Where does this inflation figure come from and where can I find out more about inflation? For instance, i thought the BoE had said it was 3% not 4.4% (but then that doesn't take into account property prices right)?

Cheers

cheerfulcat

fimonkey wrote:

Where does this inflation figure come from and where can I find out more about inflation?

From the ONS. Here's the latest information. Loads of info here about inflation and the indices.

For instance, i thought the BoE had said it was 3% not 4.4% (but then that doesn't take into account property prices right)?

The BoE's benchmark is the CPI, which flatters the figures more than a little through leaving out certain inflationary items. Lots of detail here.

HTH

Cheerfulcat

deefadog

Some good info here thanks all!

Just to recap my original post;

Just been doing some sums and by the time my 5 year fix rate mortgage is up sept 2011 - i will owe - £110.835k and i currently have a lump sum of £85k.

I have worked out it can be acheived with a rate of around 5.45%

I want the lump sum to cover the outstanding balance when the fixed rate is up, so what would you guys do?

Many thanks