85k long term (5 - 10years)

spluff

Looking for advice what to invest/bank this money? What would you advise low to medium risk with best rate of returns?

MaxiRobriguez

Investing/Banking aren't the same nor is low/medium risk.

Probably best to give us a bit more clue as to what you plan to do with the £85k - is it retirement? Start a business? New home? And what your life situation in general is (age, income, partner, children?)

steampowered

As you are investing for at least 5-10 years, it is likely that the best use of your funds will be to invest. A low cost tracker fund (such as a Vanguard fund) is an easy way and profitable way of doing this.

Use up your stocks & shares ISA allowance as far as possible.

Prism

I think of 5-10 years as short to medium term and as such don't consider equities for anything I might need in that timescale. So I would be looking at fixed term savings accounts and maybe a passive bond fund or two.

xylophone

The money could be saved in deposit accounts.

https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

The money could be invested.

https://monevator.com/low-cost-index-trackers/

https://monevator.com/compare-uk-cheapest-online-brokers/

You might consider a pension contribution.

You might consider a combination.

spluff

Is Vanguard safe to use and is recommended on the forum?

I was thinking of multiple options...

I was thinking of Pension but not sure what the advantages of putting in a lump sum into that would give me? (I cant work due to illness anymore).

Prism

spluff wrote: »

thanks for all advice....

I think a mix would be best - I quite like the Virgin @ 1.5% for some with 2 withdrawals for access if needed....

I will read more about Vanguard and see what that offers... Is this a good option?

I use the Virgin account for the imediate access benefit (not needed it yet). I then use a few fixed term accounts for a slightly better rate. Have a look at Vanguard for an investment option. They have a range of multi asset funds, one of which is VLS 20 which is classed as risk level 3 (of 7). Not sure I would go above that in your situation

aroominyork

Prism wrote: »

I think of 5-10 years as short to medium term and as such don't consider equities for anything I might need in that timescale. So I would be looking at fixed term savings accounts and maybe a passive bond fund or two.

There is a significant difference between 5 years and 10 years. In equity terms, I agree 5 years is short; 10 years is maybe short-medium, but I think it's too cautious to opt out of equities for funds you plan to access in 10 years. The aim is to invest everything you can in equities to get maximum growth, while protecting against the risk of having to sell them at a loss. So you would only avoid equities for funds you need in 10 years if you think it might take that long to recover from a crash/bear market which starts tomorrow. I think a balanced fund, say 60% equities, is OK for funds you want in 10 years and then de-risk as time goes on.

xylophone

I was thinking of Pension but not sure what the advantages of putting in a lump sum into that would give me? (I cant work due to illness anymore).

Even if you have no relevant income, if you are under 75, you can make an annual net contribution of up to £2880 to a personal pension and receive tax relief of up to £720.

https://forums.moneysavingexpert.com/discussion/5580163/paying-2880-into-pension-when-retired&highlight=sipp+2880

eskbanker

spluff wrote: »

Is Vanguard safe to use and is recommended on the forum?

Their LifeStrategy range is a popular choice on here, particularly among relatively inexperienced investors looking for a low-cost low-maintenance solution. Other broadly similar products are available from providers such as HSBC (Global Strategy), Blackrock (Consensus) and L&G (Multi-Index), so they're far from the only show in town.

However, 'safety' is a difficult concept when investing - there is FSCS coverage as with that for deposit protection but this effectively only offers protection in the event of fraudulent activity. Fundamentally, all investments entail risk of capital loss, hence the prominent disclaimers everywhere about how they can go down as well as up, so don't be under any illusion that your capital is protected in the same way as it would be in a savings account. Investment risk can be minimised though, by diversifying widely across markets/sectors and asset classes, which is where such global multi-asset products come into their own....

spluff

xylophone wrote: »

Even if you have no relevant income, if you are under 75, you can make an annual net contribution of up to £2880 to a personal pension and receive tax relief of up to £720.

https://forums.moneysavingexpert.com/discussion/5580163/paying-2880-into-pension-when-retired&highlight=sipp+2880

I dont understand I am not paying any tax as I have no income...… If I put £2880 into my pension what is the £720 about?