Best place for £40K

ebs1980

Hi
I have £40K that i need to do something with.
I already have done my ISA alllowance for the year so that one is out.

I don't really need access to it for a yr, but don't want to lock it away for longer just in case.

I can't put it into my mortgage without paying a fee so that option is out until the end of the year when my mortgage rate runs out.

Any suggestions please?

Daniel_Elkington

Never mind the last comment, clearly inappropriate for a retail investor.

My suggestion was very high risk, and was not financial advice, very difficult to do that without reference to attitude to risk, attitude to investment and personal circumstances including experience of investing.

Thanks all for embarrasing me in public rather than using the pm system.

I was offering an option that didn't involve funding bankers bonuses!

The option that I would take myself, not the option I would advise to most people and as such was sticking my neck out. Clearly am now wandering around headless and in need of super glue.

Sorry all for suggesting a high risk option to someone who said, 'any suggestions'

gadgetmind

No way should anyone be investing (rather than saving) with only a one year time frame.

The fund managers are obliged to sell back the shares at the published price and they are already diversified portfolio's

I'm not sure I understand that sentence, and even those bits I do understand I disagree with!

innovate

Daniel Elkington is an IFA, and not one of the better ones, going by his response to the OP.

I know it is not illegal to suggest private individuals should invest for 1 year - but it really is "criminal"!

ebs1980, if I were you, I would

1. exploit regular savers (they have a 1-year horizon). Use the calculator in this article to understand the real potential
2. find the best savings account for the rest and/or look at whether & how you can benefit from current accounts which pay interest and/or cashback.

That way, you will have your £40K for your mortgage if you need it in a year's time.

gadgetmind

innovate wrote: »

I know it is not illegal to suggest private individuals should invest for 1 year - but it really is "criminal"!

There was also a mild inducement to geared investment, which is even more worrying.

I suspect that everything is not what it seems, which is a bummer for the OP as they asked a sensible question and initially got some inappropriate advice.

gadgetmind

opinions4u wrote: »

You should be struck off.

I totally agree, but I even take a very dim view of the misplaced apostrophe in "portfolio's" so maybe I'm just harsh.

xylophone

If you need the money in a year's time then the best deposit account/1 year bond you can find.
http://www.moneysupermarket.com/savings/fixed-rate-bonds/?gclid=COLv58zz-K8CFY8PfAodQ1_uFQ&source=GOO-13175F4A&p=0&keywords=one+year+fixed+rate+bondsPhrase&ef_id=zg29z9B6MjYAADLkFkwAAAAP:20120511185132:s

http://www.moneysupermarket.com/savings/

http://www.aibgb.co.uk/servlet/ContentServer?c=GBContent_C&pagename=GBBusinessPortal%2FGBContent_C%2Fgb_article&cid=1305459076901&channel=C008

Daniel_Elkington

The apostrophe thing was an auto correct from the iPad that I overlooked to correct.

Not sure these comments were entirely fair, but accept the criticism. Lesson learned and thanks for the constructive comments.

Go to moneyadviceservice.org.uk and avoid the ads

jem16

Daniel_Elkington wrote: »

Thanks all for embarrasing me in public rather than using the pm system.

Why would you expect them to use the pm system? If you post openly on a forum then replies should be on the forum too. The OP needed warned not to follow the dangerous advice you were giving.

Daniel_Elkington wrote: »

The apostrophe thing was an auto correct from the iPad that I overlooked to correct.

The iPad will only auto correct "portfolios" to "portfolio's" if you are in the habit of using that form. It certainly doesn't try to change portfolios for me.

innovate

Daniel_Elkington wrote: »

Sorry all for suggesting a high risk option to someone who said, 'any suggestions'

When you are in a hole, stop digging!

Yes, the OP did ask for "any suggestions" but also made it very clear they did only have a one year horizon:

ebs1980 wrote: »

I don't really need access to it for a yr, but don't want to lock it away for longer just in case.

Nobody with any basic knowledge of investments, let alone a reputable IFA, would suggest anything but savings accounts in such a situation.

Daniel_Elkington

Some people like to take risk with their investments.

You guys have all assumed that the investment term is definitely one year. Indeed the op is ambiguous to this, they may need access over the next year and there are suggestions of accounts that lock in money for at least a year, which is clearly inappropriate.

The op does not talk about ATR, however I do now notice their reference to paying off the mortgage would suggest a low to medium ATR. They could consider a structured deposit which may fit the bill if this isn't the case.

I wrongly assumed that any suggestions meant any suggestions. You wrongly inferred that I meant to chuck it all on the markets. This would clearly be inappropriate except for the most insane of investor.

If op is a low risk person with a limited knowledge of investments, then they may want to look at the penalty on the mortgage if repayment is a priority and work out how much interest they would pay over the next year. If the interest is more than the penalty then simply pay the penalty, this will be a net saving.

Like I said, I hedge my money over a one year period and have made quite a bit over the years. I know a few other folks who aren't in the industry who do the same. I'm sorry if that seemed a bit over the top.

Apologies for any insult caused but judging a persons professional standards based on a few lines of text is not very fair.