Parking 120K In Investment Funds

Joey122

I ve been squirreling away cash for the last number of years and have got about 120K which is kept in Icesave.

I have a 20K cash ISA which I add to each year - I m 27 an have no debts and a fairly decent job.

I ve become quite interested in funds - Previously I always turned them down because I thought they were not good and entry and exit fees were substantial. Thanks to this site I can see H&L is pretty competitive.

Now my question is simple:

I ve no use for this cash in the next 3 years at the least - I ve only added to the amount over the last five years.

Can I / should I invest all of this at once and if so how on earth do I pick a fund thats safe given all the uncertainty at the moment in China and America?

If not then what do I do with this amount? I find it frustrating seeing it grow slowly in the bank.

egamar

You are a very lucky boy! (c) (Not Quite) Python, Monty.

Joey122

I did make a investment early this year in one US company after a tip which did not pay off - I ve lost a bit on that (about 5K).

At one point I heard a tip that Northern Rock was going to be bought out and it was a but at 700p - Thanks f**k I didnt go with that - I was quite tempted to stick 60K on Northern Rock.

What people forget is having money means a lot or responsibility in making sure its put to work - This is very very tricky - I ve tried spread betting , individual share buying and the likes but the returns net on net have not been great.

I want to put it all somewhere and let someone else do all the hard work for me in retun for 1.5% annual charge.

My concerns are clearly that I m spectical of the US markets - They are over priced and I see a recession in the US coming along soon.

Any funds which do well even in bad times ? A difficult question I know but this cash needs to start working!

Joey122

Just to be clear - I am kicking myself for missing out on the 5 year bull market in equities / china / uk property.

I really am - I feel I ve missed out big time and jumping in now is really risky as everything is so expensive.

+ Bernanke is off his trolley - $/£ trading at 2:08

Soon you'll see the dollar being completely worthless with this guy in office and constant interest rate cuts

jem16

A bit confused here about the amount you intend to invest as your title says £120k but yet you talk about £20k later in your cash ISA.

However asuming it is £120,000 that is a lot of money and not something you should be looking to stick into one single fund.

The idea would be to spread your funds over different sectors according to your risk profile. With £120k you could easily be looking at 10 - 15 funds. Perhaps you should be looking for an IFA who will manage a portfolio of funds for you with yearly rebalancing.

egamar

Joey122 wrote: »

Just to be clear - I am kicking myself for missing out on the 5 year bull market in equities / china / uk property.

I really am - I feel I ve missed out big time and jumping in now is really risky as everything is so expensive.

+ Bernanke is off his trolley - $/£ trading at 2:08

Soon you'll see the dollar being completely worthless with this guy in office and constant interest rate cuts

One just has to love and value such cogent, deep and weighty analysis of the current world financial situation. I can now base my personal financial decisions on some obviously thoroughly-researched and informed comment. Thank you so much.

egamar

jem16 wrote: »

Perhaps you should be looking for an IFA who will manage a portfolio of funds for you with yearly rebalancing.

http://www.torquilclark.com/ give 'extra service' to folks with over £100k. They analysed my portfolio, did a full fact-find and then recommended some adjustments/new investments to take out some risk from my portfolio which I misguidedly thought was not at all adventurous.

Their recommendations have been sound, if not spectacular (and the very sensible move into property had taken a beating recently but is still up) - but that is precisely what my portfolio needed!

Their remuneration essentially came - in my circumstances - entirely from the trail commission in the annual fees (which you can't get for yourself anyway).

purch

Bernanke is off his trolley

Tell us something we don't know !!!!!!!!

Unlike us stupid Brits, Americans have never measured their worth nor their confidence by the value of their House, rather in the value of the Stock Market and their individual investment portfolio....

egamar

purch wrote: »

Unlike us stupid Brits, Americans have never measured their worth nor their confidence by the value of their House, rather in the value of the Stock Market and their individual investment portfolio....

Really? You need to get out more.

lkoky

Just out of interest, how did you manage to save up £120k at the age of 27? Just wondered are there any tips I could borrow.

I completely understand if you dont like to answer the question, that's absolutely fine.

thanks.

purch

Really? You need to get out more

....eh ???

I lived and worked in America for many many years, so I did get out quite a bit.

The average American has invested in Stocks and has a far greater interest in the markets than the average Brit in my opinion. That is changing over time as more and more Brits save and invest in Stocks and Funds, and take more interest in how and where their pensions are invested, but overall it is still the case.

Americans do not view Real Estate, and especially their own home as an Investment in the way many Brits do, and have been encouraged to.

The Government, and Central Bank in this country tend to take into account Real Estate values in many of their decisions due to the 'importance' many of us place on the value of our homes.

The U.S. Government and Central Bank tend to take into account the value of the Stock Market far more into their decisions.

That is just my opinion based on nearly 20 years in Investment Banking, and a long period as an expat in the U.S.

If you want to disagree, then debate it.

Don't just post stupid and disparaging comments about others posts.