Investment

Kim18035

Hi all ,
I would be grateful on all ideas what could I do with money I would like to invest ?

tibbles209

We will need a bit more information than that;

-How much money are you looking to invest. Is it a lump sum or will it be a regular (?monthly) investment?
-When are you likely to want to use this money? Can you commit to investing for 10 years? 20?
-What other investments/assets do you hold?
-How much additional cash (beyond what you are currently looking to invest) do you hold?
-What is your attitude to risk? Are you happy to accept higher risk/volatility of your investments in pursuit of a higher return, or would you prefer to invest in a lower risk manner with the understanding that your returns will likely be lower?

Kim18035

tibbles209 wrote: »

We will need a bit more information than that;

-How much money are you looking to invest. Is it a lump sum or will it be a regular (?monthly) investment? It is going to be 50 k in one lump
-When are you likely to want to use this money? Can you commit to investing for 10 years? 20? Investment for about 5 years
-What other investments/assets do you hold? I have got some more cash and have a flat with no mortgage on it , no other investments
-How much additional cash (beyond what you are currently looking to invest) do you hold? about 50 k
-What is your attitude to risk? Are you happy to accept higher risk/volatility of your investments in pursuit of a higher return, or would you prefer to invest in a lower risk manner with the understanding that your returns will likely be lower? I woud prefer low risk investment

Any more questions please ask , thanks.

AnotherJoe

Put it in a one year account that gives the highest interest rate you can find. In a years time, move it into a 3 or 4 year fixed rate.

Thrugelmir

Kim18035 wrote: »

Any more questions please ask , thanks.

No more questions without answers to what's already been asked.

eskbanker

Thrugelmir wrote: »

No more questions without answers to what's already been asked.

OP answered all the questions asked, in post #3!

RG2015

AnotherJoe wrote: »

Put it in a one year account that gives the highest interest rate you can find. In a years time, move it into a 3 or 4 year fixed rate.

Are you saying that for a five year timeline that cash saving is preferable to investing?

MallyGirl

5 year low risk investment - cash is probably best

tibbles209

I agree with the above posters OP; 5 years is a very short time to invest. Investing is a long game; ideally you want to be looking at 10+ years, although some people will invest for slightly shorter periods. At 5 years though that really is a very brief time to invest, and if there was a significant market downturn there may not be adequate time for your investments to recover before you need to access the money, and you could end up with an overall loss.

With cash savings you will not make any big money (in fact at the moment you would be doing exceptionally well to keep up with inflation) but your capital will be safe and waiting for you in 5 years when you want to use it. Have a look at the MSE top savings account article;
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest

RG2015

MallyGirl wrote: »

5 year low risk investment - cash is probably best

The best 5 year fixed rate at the moment is 2.51% although for £50k this may be liable to some income tax. Does your answer mean that there is no low risk investment that will achieve that rate over 5 years?

Also, the OP states that they already have £50k savings in cash so it looks like they are looking for a low risk investment that they expect to beat current cash rates.

I currently have some cash savings and an S&S ISA that I have had for 27 years. It really does come down to a personal decision.

For what it's worth, I prefer to think of how much cash I need for my life requirements rather than the rate of return on my capital.

And finally, no one has mentioned pension planning as yet.

AnotherJoe

RG2015 wrote: »

Are you saying that for a five year timeline that cash saving is preferable to investing?

Yes. Especially for someone that wants low risk.