What to do with £100k invested over 5 to 10 years

intgomo

I'm about to exit the property/BTL market and will have the delightful problem of working out where to put £100k for at least 5 years, probably longer.  Partner and I already have means to max out our ISAs and pension contributions until at least 2024/25 so I'm considering the following options:

1. A global tracker in a taxable broker account
2. VLS60 or similar in a taxable broker account
3. Combination of 1 and 2
4. Savings accounts (including drip-feeding to regular savings where available)
5. Premium bonds x 2 (also utilising partner's allowance)

Any and all ideas/thoughts/questions/feedback welcome, especially those that expand the list of options.
Relevant background info:

• Like to have some risky investments, but probably over-exposed to individual equities now so am slowly exiting these and building up stake in options 1 and 2 within ISAs and pensions
• Planning retirement in circa 5 years (me) and circa 10 years (partner)

george4064

An option you might want to consider is VCTs, they offer various tax benefits (subject to meeting the requirements) such as; Up to 30% income tax relief and tax free dividends.

jimjames

I can't add much to what you've already got there but the one comment I would suggest is to put all the funds that will likely generate most growth or income inside the ISA wrappers before using the broker accounts. There is no point for example maxing cash ISAs but taxable funds in broker accounts that will be liable for CGT and income tax.

intgomo

jimjames said:

I can't add much to what you've already got there but the one comment I would suggest is to put all the funds that will likely generate most growth or income inside the ISA wrappers before using the broker accounts. There is no point for example maxing cash ISAs but taxable funds in broker accounts that will be liable for CGT and income tax.

Thanks.  Yes, should have said we're maxing out our stocks and shares ISAs mainly with combinations of the first two options.

Alexland

george4064 said:

An option you might want to consider is VCTs, they offer various tax benefits (subject to meeting the requirements) such as; Up to 30% income tax relief and tax free dividends.

The problem I found with VCTs is you pay a fee at the start, high fees along the way and end up selling at a discount which eliminates the benefits of the tax break.
Given current asset valuations 5 years isn't really a long enough time horizon to have much confidence in S&S investment returns being better than cash rates. Much better at 7 years plus.

intgomo

I'd not considered VCTs before so thanks for the idea @george4064 and the health warning @Alexland.
Found this one, which certainly illustrates the high charges.  Performance over last 5 years on a declining trajectory too.  Will do some more research.

Aceace

intgomo said:

I'm about to exit the property/BTL market and will have the delightful problem of working out where to put £100k for at least 5 years, probably longer.  OH and I already have means to max out our ISAs and pension contributions until at least 2024/25 so I'm considering the following options:

• a global tracker in a taxable broker account
• VLS60 or similar in a taxable broker account
• combination of 1 and 2
• savings accounts (including drip-feeding to regular savings where available)
• premium bonds x 2 (also utilising OH's allowance)

Appreciate that our personal circumstances, age, retirement plans etc. are all relevant here.  That said, any and all ideas/thoughts/questions/feedback welcome, especially those that expand the list of options.

Another investment option for part of your portfolio would be P2P lending. Plenty of detractors on this forum, but it's been great at providing a steady income for me. Research is required to avoid the crooked platforms. 

dunstonh

over medium term (5+ years)

5+ is not really medium term.   8-15 is generally regarded as medium term.      

Time dilutes risk.  So, being clearer on your timescale is important.   5 years is less than half an economic cycle. Are you going to get the good 5 years or the bad 5 years?   5+ could mean 20-30-40 years.   It could mean 6.    So, a bit more understanding on timescale would not go amiss. 

a global tracker in a taxable broker accountVLS60 or similar in a taxable broker accountcombination of 1 and 2savings accounts (including drip-feeding to regular savings where available)premium bonds x 2 (also utilising OH's allowance)

You are a bit all over the place on the risk scale there.     Is there some thinking behind those selections or are they just picked out of a hat?

I'd not considered VCTs before so thanks for the idea

VCTs are an advanced investment option that is used by under 1% of the population.    I suppose it is as random as the other options you have selected in terms of risk but statistically, it's likely not to be suitable.

intgomo

dunstonh said:

over medium term (5+ years)

5+ is not really medium term.   8-15 is generally regarded as medium term.      

I was thinking 5 to 10 years so guess that puts cash options at the top of the list.

a global tracker in a taxable broker accountVLS60 or similar in a taxable broker accountcombination of 1 and 2savings accounts (including drip-feeding to regular savings where available)premium bonds x 2 (also utilising OH's allowance)

You are a bit all over the place on the risk scale there.     Is there some thinking behind those selections or are they just picked out of a hat?

I have investments in all of these categories now, except premium bonds, and am slowly building a stake in option 2 in particular as I move an equities-heavy portfolio to one with more bonds.  My purpose is to reduce the level of risk exposure in preparation for retirement.

eskbanker

intgomo said:
My purpose is to reduce the level of risk exposure in preparation for retirement.

Surely it would have made sense to have declared that up front, instead of the coy and deliberately uninformative:

intgomo said:

Appreciate that our personal circumstances, age, retirement plans etc. are all relevant here.

DiggerUK

The Digger Mansions Plan  (DMP) ends up with a lot of gold, so if your not interested move to the next post.
The DMP  is based on the assumption that the government and its other government chums internationally, really are going "to do whatever it takes" coming out of the current situation. We don't see them having any choice other  than to boom the economy in a manner that will even make Blair, Brown and Darling blush. If your still not interested move to the next post.

OK, you're  still here. Put most of your funds in options 1, 2, 3 or similar. Ride the boom and move the skyrocketing spare in to gold as you feel happy with, physical or ETF/ETC.

Buy me and Mrs. D lots of champagne breakfasts for such great advice.......Seriously, you've already made it and you know I'm right. Best of fortune..._