Investment Opinions

taylor_alan

Some investment pointers would be much appreciated. I'm struggling to find the best short and medium term investment options.

I've spoken to the two banks that I deal with for financial advice and also an independent financial advisor but I've always ploughed my own furrow with investments and wasn't comfortable with any of the advice I got.

I've dabbled in the stock market in the early 2000's and had generally good success but a few failures have left me mostly looking at safer options. In 2008 I saw that the interest rate trend was to drop so i tied money up into 5 year bonds yielding over 5%, however now that its time to re-invest the current interest rate selection is depressing.

I'd be happy to tie some money up longer term, but other money i'd need at least some get out clause as i'm looking to buy a house but my job future is uncertain (looking at a job transfer but could end up with either no job and a payout or a different job with a payout).

I'd be happy if i could return a modest 3% net as i'm just looking to match inflation.

Any help and gudiance appreciated....frustrated with quality of professional advice out there at the momemt, they all seem to want to maximise their own bonuses and have little regard for what i actually want....

Totton

I don't think you will get 3& at the moment unless you invest in the stock market. You could cut the risk a little by opting for funds or IT's although the premium on IT's (and low discounts) probably adds a little to their normal risk level at this moment. The likelihood is that interest rates will rise and then you will get your desired 3% from deposit accounts etc but for now ......

The problem is that so many savers have ploughed money into equity income that some feel the market may be due a fall once those savers move back into deposits once rates rise.

From what you have written I am not sure investing is a risk you wish to take, therefore you may just have to bite the bullet and opt for the best savings rates you can find. In doing so I would't bother locking into a long term rates just now.

Ark_Welder

taylor_alan wrote: »

I'd be happy to tie some money up longer term, but other money i'd need at least some get out clause as i'm looking to buy a house but my job future is uncertain (looking at a job transfer but could end up with either no job and a payout or a different job with a payout).

I would suggest that you bite the bullet on the rates available on cash for now until you have more certainty over both your house and job prospects. To get 3+% rates you are going to have to take on risk that could result in a loss of capital if you are forced to sell assets to provide for spending on essentials. Once you have certainty then the answers can be revisited.

kidmugsy

Every week that passes persuades me increasingly that I have no idea what the investing future will bring. That results in my being happy to keep money in Cash ISAs at interest rates above the RPI inflation rate. When these mature and their interest rates plummet I'll be left wondering what the devil to do next. Maybe asset prices will have fallen by then. Maybe not. I'm pondering the lesson of
http://earlyretirementextreme.com/wiki/index.php?title=Permanent_Portfolio

But that doesn't sound at all relevant to someone in your position: "i'm looking to buy a house but my job future is uncertain". So my view inclines to those of Ark Welder and Totton.

taylor_alan

thanks for the advice... my money future is reasonably stable as i have a plan b which will see me by... have a couple of part time jobs etc.. and can stay cosy in the converted loft at home for another year or two....

from what the governor of the bank of england said this week its fairly clear he wont shift interest rates upwards until unemployment is below 7 million.... which may not happen anytime soon.

I used to get great rewards from the NS&I inflation tracker bonds which offered RPI plus a small bonus tax free, but there arent any products like this around.

I'm inclined to follow my usual strategy of a small amount in the stock market, some decent value easy access ISA's and then locking some away longer term in bonds for 2 years, by which point rates may have improved ever so slightly....

I'm usually quite good in these situations but now i'm in my 30's maybe my decisiveness has left me a little, the bravado of youth etc!

cheers for the advice, any more pointers also apprdciated!

Ifts

taylor_alan wrote: »

any more pointers also apprdciated!

In case you are not aware - Santander are currently offering 3% on balances up to £20K (123 current account, need to fund the account with £500 per month, and have 2 Direct Debits set up to qualify, you also get cashback on any qualifying Direct Debits, £2 monthly acc fee), you are allowed to open 2 of these accounts in your name which would take care of up to £40K.

http://www.santander-products.co.uk/banking/media/123.html