Best place for 20K for 7 years

will-he-payitoff

Ive got £20000 thats not earning a great deal of interest and I will not need it for 7 years, got maximum amounts going into regular savers every month. I have been looking at S&S ISAs could anyone please advise if 7 years is long enough to keep the cash in there or any alternatives. TIA

ColdIron

For me it's not so much that seven years is too short in itself, it may not be, but rather that if you have a fixed commitment or a desired by date which coincides with a downturn you may be on a sticky wicket. If you could easily defer whatever happens in seven years then maybe not so much

will-he-payitoff

Thanks, 7 years is the minimum I would be looking at and then I wouldnt need it all in one go so could ride out a dip in the markets.

Alexland

How about a target date 2025 fund within a Vanguard S&S ISA which automatically reduces stock market and currency risk as the withdrawal date approaches? Don't worry about the word 'retirement' that's the main market for these types of funds.

https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa

https://www.vanguardinvestor.co.uk/what-we-offer/target-retirement-products

If the 7 years is really of little significance as you can delay the withdrawal by a few years in a downturn then perhaps just VLS60 which is roughly where VTR2025 would start anyway.

https://www.vanguardinvestor.co.uk/what-we-offer/life-strategy-products

Alex.

aroominyork

Interesting that the Vanguard TDF for 2020 retirement is 56% equities. The blurb does not differentiate between planning to take an annuity in 2020 or keeping it invested and starting to draw down. Without that info how can an appropriate asset allocation be set?

Alexland

aroominyork wrote: »

Interesting that the Vanguard TDF for 2020 retirement is 56% equities. The blurb does not differentiate between planning to take an annuity in 2020 or keeping it invested and starting to draw down. Without that info how can an appropriate asset allocation be set?

It's intended for people buying annuities (so the value of the investment on the day of purchase really matters) and yes the blub could be clearer. I really think these should be renamed Vanguard Target Withdrawal Date funds. The 'retirement' word will confuse people and they are also useful for Junior ISAs if the child is likely to use the money for university, etc at age 18.

Alex

aroominyork

Alexland wrote: »

It's intended for people buying annuities (so the value of the investment on the day of purchase really matters) and yes the blub could be clearer. I really think these should be renamed Vanguard Target Withdrawal Date funds.

Nice idea! Still, 56% equities on funds you intend to sell in two years to buy an annuity is crazy risky. I have a workplace TDF and two years before planned retirement date it would be 30% equities.

TBC15

Are there many annuities being sold at the moment? If so who do they appeal to.

Zola.

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-ftse-all-world-index-class-c-accumulation

?

DiggerUK

Seven years for gold is perfect. If you don’t know anything about gold savings then you will need to research the matter. This is as good a start as any.
https://moneyweek.com/a-beginners-guide-to-investing-in-gold/

Trust me....I am the MSE (self appointed) expert on gold. All questions answered for free..._

bundly

Digger,,,, tell me about gold!