Investing £100k for 3/4 years

jamiesalisbury

Hi all,

We're exchanging on our house tomorrow and will receive £100k in equity.

We're currently living in rented accommodation, and plan on doing so for 3 or 4 years before buying a home again.

Question is, what to do with that £100k for the next 3/4 years before we need it as a deposit again.

I'm naturally a risk taker, so I like the idea of getting involved with some post-Brexit stocks and shares - but on the flip side I know very little about it (although happy to research) and have a family of four to consider.

I'd really appreciate some advice - it'd be lovely to grow that £100k if possible!

Or should I just hide cash under the mattress....?!

Thanks!

Jamie

bigadaj

jamiesalisbury wrote: »

Hi all,

We're exchanging on our house tomorrow and will receive £100k in equity.

We're currently living in rented accommodation, and plan on doing so for 3 or 4 years before buying a home again.

Question is, what to do with that £100k for the next 3/4 years before we need it as a deposit again.

I'm naturally a risk taker, so I like the idea of getting involved with some post-Brexit stocks and shares - but on the flip side I know very little about it (although happy to research) and have a family of four to consider.

I'd really appreciate some advice - it'd be lovely to grow that £100k if possible!

Or should I just hide cash under the mattress....?!

Thanks!

Jamie

Too short a timespan for equities, you'd be just as likely to lose money as make any really.

Simple answer is ns&i though instant access savers would be slightly better and if it is presumably a joint account you'd be covered under fscs.

You'd make a couple of per cent more by using current accounts and regular savers, as a couple you could have £130k invested at rates of around 3.5%, with regular savers on top.

If you do want a risk then for some of the money p2p might be an option, risk of default but plenty of options paying 10-12% if not more.

Startup1985

Have a look at some p2p for a portion of it, for safety I would put some in ratesetter which is up to 6% depending how long you are willing to leave it in for.

Also saving stream is worth a shout, 12% per year paid at 1% per month. Have a go with a compound interest calculator to see what happens with your money compounded at 1% per month

economic

its £100k - i wouldnt put it all in p2p. maybe 10k of it.

are you renting because you think prices will fall?

i would put much as you can in high interest accounts and since you are a ris ktaker invest the rest in globally diversified equity tracker. low risk and you earn a yield.

bigadaj

economic wrote: »

its £100k - i wouldnt put it all in p2p. maybe 10k of it.

are you renting because you think prices will fall?

i would put much as you can in high interest accounts and since you are a ris ktaker invest the rest in globally diversified equity tracker. low risk and you earn a yield.

Not sure I'd go for the latter option, currency risk with the pound as it is may well wipe out any dividend returns, when it is needed in just a few years.

economic

bigadaj wrote: »

Not sure I'd go for the latter option, currency risk with the pound as it is may well wipe out any dividend returns, when it is needed in just a few years.

most of it is USD stocks which is most likely to appreaciate further. then its GBP stocks which is fine. OP said hes willing to take risk - i think this is the best option.

guitarman001

Interesting - I never heard of saving stream before!

bigadaj

economic wrote: »

most of it is USD stocks which is most likely to appreaciate further. then its GBP stocks which is fine. OP said hes willing to take risk - i think this is the best option.

Not a follower of CAPE then.

jamiesalisbury

Thanks all, interesting options! Checking out P2P it looks like rates of 5-6% which would build up nicely over 3 years. Googling Saving Stream now!

I'm renting current because we wanted to move locations, and I'm self-employed and wife was on a short contract so not eligible for sufficient mortgage. I'm very confident my income will grow substantially over the next few years and my wife will be in permanent employment by then too.

jamiesalisbury

How about this as a rough plan - £50k split between Savingstream, Funding Circle and either Ratesetter or Zopa.

Then the other £50k into a regular savings account, although I can't currently see where I can get more than 1.5% interest on this.

Too risky? Too safe?!

jamiesalisbury

Also - should I be more wary considering the impact of Brexit?

And is there any point in waiting for P2P ISA's to become available?