How best to invest 50k

DrSyn

Have you decided which equity/bond split you will go for yet or are you going 100% into equity?

jrb4434

I'm in mind to opt for a mid risk approach 40/60 or 60/40...
But that raises another question, is it sensible to have two, one at a lower risk to offset the other at a higher % ?
I am looking at long term 20 ish years investment if that should influence any advice.

AnotherJoe

jrb4434 wrote: »

Just one other question I'd like to put out there....

I intend to pull the trigger on my little venture early in the new year. My aim is to use my full ISA allowance prior to 5th April (£15240 ( Vanguard my chosen atm)) then again on the 6th (£20000).
My question is; do I top up the firs ISA with my second years alloence, or do I opt for a second, new, ISA? Not sure how it all works?!
If either are options then which is best..? Or should I opt for a new ISA with a different provider?
Sorry in advance if it's a silly question but I'd like to be sure in my mind before I commit...

Top up. No point in having two.

DrSyn

jrb4434 wrote: »

I'm in mind to opt for a mid risk approach 40/60 or 60/40...
But that raises another question, is it sensible to have two, one at a lower risk to offset the other at a higher % ?
I am looking at long term 20 ish years investment if that should influence any advice.

I have never seen anyone here, say they were going to do that with this fund before. With the same amount in each fund you will have a 50/50 portfolio. If it suits you & you are happy, OK. Have you looked into if this will increase your costs?

I strikes me you are making it more complicated for yourself. It would be simpler to just choose one or the other.

Personally from these two I would choose just the 60/40.

Twenty years is a long time. The more equity in the fund, the greater you can expect the fund to grow. The bonds are there to smooth out the volatility (i.e the ups & downs).

You can see what I mean with the graphs below:-

https://www.trustnet.com/Tools/Charting.aspx?typeCode=NM990100,NASX

If you add the 100%, there is no smoothing effect, as you have no bonds at all.

DrSyn

Another point with your 50/50 split, you will have to keep monitoring the two funds to make sure they have the same amount is in each as they grow. If one becomes say 5% higher than the other, you will need to rebalance them back to equal amounts in each.


Sorry I gave you the wrong graphs. However if you remove the two already there and add the LS 40, 60, 100, using the controls on the RHS, you will see what I meant.

jrb4434

Taking onboard the above I've discarded the two fund approach. Wasn't sure if it was something I should have considered or not, hence the question.... Two funds doing the same thing would seem silly

bigfreddiel

Whatever you do, do NOT ask your bank for advice.

Find yourself a good IFA, decide what it is you want to do with your investment, and thst should do it.
£50k may be a bit on the low side for professional advice, but you never know

Good luck fj

jrb4434

:I went into my local branch sometime back simply to ask for literature on ISAs..... From the look on the girls face you'd have thought I asked for the secret to eternal life :rotfl:

Main reason I'm here, thanks for all the advice.

jrb4434

Well I'd pretty much made my mind on A VLS fund (acc) run on a Halifax share dealing platform....

Now I hear of iWeb dropping their fees!!

The cash I have is available as of 2nd Feb, I will be maxing my allowance for 2016/17-17/18 & 18/19 then drip feeding £200 a month forevermore... 20 years minimum....

should I re think? Would iWeb be the smarter choice over Halifax???

As I think I previously stated, I've no investing experience.

bigadaj

jrb4434 wrote: »

Well I'd pretty much made my mind on A VLS fund (acc) run on a Halifax share dealing platform....

Now I hear of iWeb dropping their fees!!

The cash I have is available as of 2nd Feb, I will be maxing my allowance for 2016/17-17/18 & 18/19 then drip feeding £200 a month forevermore... 20 years minimum....

should I re think? Would iWeb be the smarter choice over Halifax???

As I think I previously stated, I've no investing experience.

It's basically the same platform so little difference really.