Does this sound like a 5 year plan ??

BOBS

£25k to invest - considering Tesco 5 year fixed rate which would result in £28050
On top of this save £600 monthly in easy access internet a/c with rate 1.16% - giving £39620 at end of 5 years

Hopefully giving £67670 (£6670 of which interest) and then start fixed rate with this all over again.

Dont overly trust myself with these numbers,

bostonerimus

You don't mention tractor production so it doesn't sound like a 5 year plan to me. Seriously if this money isn't earmarked for any particular purpose I'd put it in a stocks and shares ISA, although that might be more risk than you want to take.

msallen

If you don't intend to spend any of this for 5 years why save monthly into an instant access account at just 1.16%? You could get 5% for up to a year at a time on that using regular savers. As regular savers matured every year stick the proceeds in a 4/3/2/1 year fixed rate account.

Having said that there is no way I would want sixty odd grand in cash (unless perhaps it was definitely going to be needed in five years, for example for a house purchase - but if that was the case I'd be utilising a HTB or Lifetime ISA as well). I'd be investing a portion of it.

BOBS

bostonerimus wrote: »

You don't mention tractor production so it doesn't sound like a 5 year plan to me. Seriously if this money isn't earmarked for any particular purpose I'd put it in a stocks and shares ISA, although that might be more risk than you want to take.

Where do I get advice on stocks and share isa ?
Money not ear marked for anything other than retirement nest egg in 20+ years. Almost mortgage free

Msallen. Didn't think of moving the monthly amount year on year to fixed

dunstonh

Where do I get advice on stocks and share isa ?

You get advice from an adviser. Typically an IFA. On the internet you just get discussion and comment.

BOBS

dunstonh wrote: »

You get advice from an adviser. Typically an IFA. On the internet you just get discussion and comment.

Thanks !! Mind u scares the £&@? Out of me

steampowered

BOBS wrote: »

On top of this save £600 monthly in easy access internet a/c with rate 1.16% - giving £39620 at end of 5 years

I'm afraid your calculation is wrong. See http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator.

According to the MSE calculator, paying in £600 a month over 5 years at 1.16% would only get you £1,076.05 in interest.

While you would pay in £36,000, remember that the 1.16% interest only gets applied to what you actually have in the account at the time. You don't get to £36,000 paid in until the very end of the 5 years.

Think of it this way: you start with £0 and you end up with £36,000. The average balance over the 5 years is £18,000.

If you are saving for the long term, you would be well advised to put your money into a Stocks & Shares ISA, in something like a FTSE 100 tracker fund or global tracker fund. Leave the money there and forget about it until a year or two before retirement.

This will mean you will get fluctuations from one year to another, but over the long term your returns would vastly exceed anything you'd get from holding the money as cash in a bank account.

chockydavid1983

steampowered wrote: »

In something like a FTSE 100 tracker fund or global tracker fund.

The latter is far more diversified and likely to do better in the long run.

dunstonh

If you are saving for the long term, you would be well advised to put your money into a Stocks & Shares ISA, in something like a FTSE 100 tracker fund or global tracker fund. Leave the money there and forget about it until a year or two before retirement.

Those two options are much higher than the average consumer risk profile and the OP has already said they are nervous about it. (Plus a FTSE100 tracker is a really bad investment option even if the risk profile fit).

BOBS

steampowered wrote: »

I'm afraid your calculation is wrong. See http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator.

According to the MSE calculator, paying in £600 a month over 5 years at 1.16% would only get you £1,076.05 in interest.

.

Sorry my mistake - had used MSE calculator but lifted wrong figure to put on here. - figure included some ££ I wanted left for easy access rather than tie everything up in fixed rate.

jimjames

BOBS wrote: »

Where do I get advice on stocks and share isa ?
Money not ear marked for anything other than retirement nest egg in 20+ years. Almost mortgage free

Msallen. Didn't think of moving the monthly amount year on year to fixed

If it's money for retirement in 20+ years then it's crazy to leave as cash. What about pension? That's also worth looking at as well as S&S ISAs.