If you had 50k to invest?

jamels2

What would be the best place to put it?

I wouldn't want any risk, would rather a lower interest rate and no risk.

Also what options would there be for access? Not sure I'd need instant access, but certainly wouldn't want it tied up for years.

Thanks for any suggestions.

Totton

I'd say that you don't want to invest but simply want to earn a decent interest, if so then max out your Cash ISA's for 2012/13 and 2013/14. The remainder should go into a decent deposit account, hopefully someone will be along shortly to steer you in the right direction for those.

Stay away from the stock market unless you are prepared to lose some money in the short term.

HTH,
Mickey

atush

I wouldn't want any risk, would rather a lower interest rate and no risk.

This shows a lack of understanding about risk. A low interest rate (or the best currently available easy access) is less than the rate of inflation.

So, you are ignoring the fact that your money is shrinking in real terms daily/weekly/ monthly/yearly. This is a risk to your cash.

If you put the entire 50K in income funds, and took the interest/income (ie say 4-6%) the balance of the acct would rise and fall with the markets. But keep paying the income regardless. So the balance technically would not matter.

But no one would say to put the entire amt in income funds, as you have not said what the money is for. That was an illustration of why being too risk averse can damage your wealth.

The best way is to split the money in tranches, each with a different time frame/eventual use. From an easy access fund for emergencies, to 1 or 2 year bonds to gain a higher interest, to some investments for the longer term to either grow your fund or keep up with inflation at least.

jamels2

Ahh I should have said where to put the money to earn an interest! I would most certainly want it to return a rate better than inflation! What is the inflation rate right now, anyway??

quotememiserable

jamels2 wrote: »

Ahh I should have said where to put the money to earn an interest! I would most certainly want it to return a rate better than inflation! What is the inflation rate right now, anyway??

Ah, but you said you wanted no risk. The only risk free investments are building societies and gilts where you will get is about 2.5%. Inflation is about 3%.

If you want more than that, there has to be some risk.

gkerr4

yeah - as above - there isn't any savings accounts paying greater than inflation - so its risk or capital loss - your choice.

clydefreeman

The best thing you need to do with your money is to invest it to the stock market or find a stable bank to invest your money.

fcmisc

You could try a diversified basket of bond funds. Most of them tend to go upwards and they are safer than the stock market. To learn more about them, just go to a fund supermarket such as hargreaves lansdown and do a seach on the various sectors. I think they are

GBP High yield
GBP corporate bond
gbp strategic
global bonds
gilts

atush

Apart from t he fact that many say there is a Bond Bubble that will burst one day.

I don't think Bonds are Bad, but I would not put 100% in them.

In fact, I would not advise EVER putting 100% of your money in one asset class.

entrepreneur1

Diversify in several investments that gives their returns at different times of the year and meets your requirements. Also it is important that you understand how they perform. Take your time to learn about the available investments. You can do your search online. Please be informed that returns are directly proportional to the risk.

quotememiserable

atush wrote: »

Apart from the fact that many say there is a Bond Bubble that will burst one day.

I agree. Gilt prices are up because the government have pushed up demand by buying them up with the QE money. Bonds have followed because of lot of gilt buyers (pension funds et al) have moved on to bonds because just now bonds + default insurance is slightly better value than gilts. This bubble will burst and not too far away now I think.