Any Medium-Risk Saving Alternatives I've Missed?

Absorbed_2

Hi there,

I recently got some money to invest. I have done some research, but I was wondering if the wise heads in this forum know of any opportunities I've missed.

I have £50,000 to invest. I intend to invest £17,000 in cash ISAs with family members. I'm happy with that.

I'm unsure what to do with the remainder. I'm looking for low-to-medium risk investments. At the moment, the best idea I've had is to put it in a 1-2-3 account. I think I know most of the low-risk options, so its really medium risk options I'm looking for ideas on.

Thanks

bigadaj

I think you probably need to determine you view on risk, as this varies massively. Conventional spectrum of risk goes from cash savings at 1 to 100 for a uk ftse all share tracker, though you can obviously get far higher than 100 on such a scale.

A global tracker would come in below 100 because it spreads risk outside of the uk, which is not something appreciated by many.

A default fund for many for first investments might be the vanguard lifestyle fund as it spreads risk, though it will go up and down along the way and you have to accept this and don't panic and cash out at the wrong time.

If you give money away to others then remember it's legally their money.

Paying money into a pension or paying down a mortgage at a high rate are also possible options.

In cash then 123 is probably the best option for a relatively good rate and high limit, though it needs monthly funding and direct debits setting up.

le_loup

Absorbed wrote: »

I intend to invest £17,000 in cash ISAs with family members. I'm happy with that.

Be careful.
You mean you are GIVING family members some cash which they may chose to put into INDIVIDUAL Saving Accounts.

Yorkie1

le_loup wrote: »

Be careful.
You mean you are GIVING family members some cash which they may chose to put into INDIVIDUAL Saving Accounts.

Which then legally becomes theirs so you have no legal claim to it back.

And which, if they need to claim any means-tested benefits, will be calculated as their assets and could impact on what they are entitled to.

And which, if they have financial difficulties, will be included in their assets for the purpose of bankruptcy or other financial arrangement.

And which, if they are married and split up, will become part of the marital assets to be divided.

Frankly what you are planning with the ISAs borders on, if not actually is, tax evasion even if you do ignore all the high risks to both you and to the family members you're embroiling in your plans.

eskbanker

Are you looking exclusively at savings, which, while traditionally viewed as low risk, are unlikely to keep pace with inflation, or at genuine investment without capital protection? The terms are sometimes used as if they were interchangeable but they're quite different things....

thelawnet

Absorbed wrote: »

I have £50,000 to invest. I intend to invest £17,000 in cash ISAs with family members. I'm happy with that.

I'm unsure what to do with the remainder. I'm looking for low-to-medium risk investments. At the moment, the best idea I've had is to put it in a 1-2-3 account. I think I know most of the low-risk options, so its really medium risk options I'm looking for ideas on.

Thanks

Why do you want low-to-medium risk investments when you have a ultra-high risk investment with your family members?

Absorbed_2

eskbanker wrote: »

Are you looking exclusively at savings, which, while traditionally viewed as low risk, are unlikely to keep pace with inflation, or at genuine investment without capital protection? The terms are sometimes used as if they were interchangeable but they're quite different things....

I am considering investment opportunities as well. I'm considering taking a small punt on the Royal Mail with the plan of selling them on the first day. But that is probably my risk limit, and it would be a small gamble.

dunstonh

have £50,000 to invest. I intend to invest £17,000 in cash ISAs with family members. I'm happy with that.

What happens if your family members die and the cash ISA forms part of their estate?

I'm unsure what to do with the remainder. I'm looking for low-to-medium risk investments.

So far, you have only looked at savings options. No risk on those other than shortfall and inflation (or family member death or running off with the money)

I'm considering taking a small punt on the Royal Mail with the plan of selling them on the first day. But that is probably my risk limit, and it would be a small gamble.

You are jumping from one end of the scale to the other. Have you considered investing appropriately rather than taking speculative punts?