Instead of NS&I income bonds?

clive0510

beeza650 said:

clive0510 said:

if, as you said earlier, you believe the markets will fall further in the near future, why are you moving money from low risk to high? surely if times are uncertain you're better of in low risk.

I don't think I said that - I think the bottom has been and gone if I'm honest but that things will take quite some time to fully recover. What I really should do is transfer some cash savings into something "medium" risk and carry on the plan to put this £60k into something high risk. 
I can't help but feel - extremes aside - that the perception high risk = high reward and vs versa is a bit misleading. The same as the widely held view that stocks and shares are only right for long term investment as that seems to me to only be true if you have a lot of flexibility (many years) in when you must cash out. 

and since the interest rate is about to go from very low to almost nothing later this month I need to invest elsewhere

by interest rate I assume you also mean the markets as the two go hand in hand 9 times out 10.

beeza650

clive0510 said

and since the interest rate is about to go from very low to almost nothing later this month I need to invest elsewhere

by interest rate I assume you also mean the markets as the two go hand in hand 9 times out 10.

`ahhhhh...no NS&I income bonds currently pay 1.16% and they are being lowered to 0.05% I think. It's a fact not a prediction.

missile

In these turbulent times, I am hanging on to my NS&I bonds as a hedge against what I expect will be rampant inflation next year.

ColdIron

beeza650 said:

clive0510 said

and since the interest rate is about to go from very low to almost nothing later this month I need to invest elsewhere

by interest rate I assume you also mean the markets as the two go hand in hand 9 times out 10.

`ahhhhh...no NS&I income bonds currently pay 1.16% and they are being lowered to 0.05% I think. It's a fact not a prediction.

It's 5 times worse than that, 0.01%

beeza650

missile said:

In these turbulent times, I am hanging on to my NS&I bonds as a hedge against what I expect will be rampant inflation next year.

...are you thinking of Index-linked Savings Certificates rather than Income Bonds - I've also got £19K in the former and have no intention of cashing them in any time soon

missile

beeza650 said:

...are you thinking of Index-linked Savings Certificates rather than Income Bonds - I've also got £19K in the former and have no intention of cashing them in any time soon

Sorry, I misunderstood your post. 

masonic

beeza650 said:

masonic said:

Moneyfarm is a very expensive option at 0.5-0.75% management fee and 0.2-0.3% other charges. On the sum you're considering investing that will be well north of £500 per year.

The cheapest equivalent option would be investing through a low cost investment platform (e.g. iWeb, but several other cheap options exist) into a multi-asset fund like L&G Multi Index, HSBC global strategy, Vanguard lifestrategy, etc. Total cost would be about a third of what you'd pay at Moneyfarm.

I'd sort of assumed Moneyfarm were "well" priced - I must admit though I only signed up with as it was 2 years free.
I have an iWeb account but haven't used it yet. Would you suggest I put it all into a single fund? Would I need to actively "manage" anything? Thanks 

If you go with a multi-asset fund, then it is a single fund solution and will be automatically rebalanced etc, so is appropriate to be left alone and only revisited if your circumstances change. It's exactly the same principle as a service like Moneyfarm, but packaged as an investment fund rather than an investment account.

clive0510

I have a high income fund isa with m&s. its s&s based and I'm thinking of withdrawing my premium bonds and putting them into that. If I do it, I wont draw the income, but have reinvested into the same fund. but I'm still unsure as to how good a move that will be.

beeza650

masonic said:

The cheapest equivalent option would be investing through a low cost investment platform (e.g. iWeb, but several other cheap options exist) into a multi-asset fund like L&G Multi Index, HSBC global strategy, Vanguard lifestrategy, etc. Total cost would be about a third of what you'd pay at Moneyfarm.

ok so I'm about to invest using my iWeb account (having some issues getting to recognise my new debit card).
Do I stick it all 70k in VVLSRE Vanguard LifeStrategy 80% Equity Accumulation Fund or chose some other similar funds (or another strategy)? Thanks

@masonic

[Deleted User]

beeza650 said:

masonic said:

The cheapest equivalent option would be investing through a low cost investment platform (e.g. iWeb, but several other cheap options exist) into a multi-asset fund like L&G Multi Index, HSBC global strategy, Vanguard lifestrategy, etc. Total cost would be about a third of what you'd pay at Moneyfarm.

ok so I'm about to invest using my iWeb account (having some issues getting to recognise my new debit card).
Do I stick it all 70k in VVLSRE Vanguard LifeStrategy 80% Equity Accumulation Fund or chose some other similar funds (or another strategy)? Thanks

@masonic

If it helps I started investing with Vanguard about 8 months ago. I put some in Vanguard lifeStrategy 80% equity and chose a few separate ETF funds. If you have any basic questions let me know:)