Investing 'surplus' cash that isn't for retirement?

george4064

JustAnotherSaver said:

I'm at work and my break is about to come to an end after reading that.

So just a quick one to say that if you're of the impression I was saying my food will come out of investment money then I've explained very very badly and will need to have another bash at it.

Alex seemed to get the gist of where I was coming from with his 2nd post.

My aim (for this particular goal) is for the money to not be eroded by inflation, not necessarily trying to squeeze out maximum potential. 

If the objective for that pot of money is to keep up with inflation then a capital preservation trust is probably a good option to consider.

Most of the capital reservation trusts’ objectives are to not let inflation erode the capital of investments, the likes of PNL, RICA, RCP and CGT are popular names that come to mind.

Whilst not an exact science, as an indication you could always look through past performance of the trusts and see how they managed during the volatile periods in March 2020 etc and if you could stomach that?

MovingForwards

I think I get what you're trying to do, it's quite possibly what I actually do, or am slowly saving towards; I earn a lot less than most on these boards.

My accounts pay some form of interest, be it 0.10 or 1.75%. These are short-term ready access accounts, less than 5 years before I may need to spend it.

Current account 1 = everything to do with my car and home insurance, then as it's used I can keep topping it up. 

Current account 2 = something internal emergency.

Then I've got 2xEFs, one to cover mortgage, the other to cover utilities and food.

Various accounts for internal modernising, upgrades, exterior repairs and mortgage ERCs in case I change lender early.

On top of that I've 0 - 0.01% as the money goes up and down like a yo-yo:
Current account 3 = wages in and utilities, food, general purchases and savings out.
Cash ISA = float or pocket money for things like haircut, beauty salon, hobbies, ad hoc day out.

Long-term money is going into S&S ISA and PBs, I've earmarked them as early retirement, but could equally be flipped if I wanted to move, decide to take a holiday of a lifetime or something else.

Plus there's pensions on the go for actual retirement age and mortgage overpayments each month.

With all of them I know how much I want saved, or available, each year or within a 5 year timeframe and transfer a sum each month.

JustAnotherSaver

colsten said:

JustAnotherSaver said:

So just a quick one to say that if you're of the impression I was saying my food will come out of investment money then I've explained very very badly and will need to have another bash at it.

JustAnotherSaver said:

The consideration is that I will need x-amount in cash, just in case. .... So i will need x-amount in cash which will be separate to my emergency savings. This x-amount would be for day-to-day type things. Food shopping, buying clothes, buying a phone, insurance, house repairs so on & so forth. Just your regular kind of spends.

I was just going by what you had posted 

Yeah exactly. "in cash" for things like food.

Investing, which is what I'm asking about, would not be money "in cash". 

colsten

I am out 

JustAnotherSaver

george4064 said:

JustAnotherSaver said:

I'm at work and my break is about to come to an end after reading that.

So just a quick one to say that if you're of the impression I was saying my food will come out of investment money then I've explained very very badly and will need to have another bash at it.

Alex seemed to get the gist of where I was coming from with his 2nd post.

My aim (for this particular goal) is for the money to not be eroded by inflation, not necessarily trying to squeeze out maximum potential. 

If the objective for that pot of money is to keep up with inflation then a capital preservation trust is probably a good option to consider.

Most of the capital reservation trusts’ objectives are to not let inflation erode the capital of investments, the likes of PNL, RICA, RCP and CGT are popular names that come to mind.

Whilst not an exact science, as an indication you could always look through past performance of the trusts and see how they managed during the volatile periods in March 2020 etc and if you could stomach that?

I'll have a look when I get home. Thanks. Those abbreviations, are they typical capital preservation funds? I don't like searching too much on my phone as its faffy so I'll do all that at home. 

JustAnotherSaver

colsten said:

I am out 

If you're just here to have a giggle then that's probably for the best. 

george4064

JustAnotherSaver said:

george4064 said:

JustAnotherSaver said:

I'm at work and my break is about to come to an end after reading that.

So just a quick one to say that if you're of the impression I was saying my food will come out of investment money then I've explained very very badly and will need to have another bash at it.

Alex seemed to get the gist of where I was coming from with his 2nd post.

My aim (for this particular goal) is for the money to not be eroded by inflation, not necessarily trying to squeeze out maximum potential. 

If the objective for that pot of money is to keep up with inflation then a capital preservation trust is probably a good option to consider.

Most of the capital reservation trusts’ objectives are to not let inflation erode the capital of investments, the likes of PNL, RICA, RCP and CGT are popular names that come to mind.

Whilst not an exact science, as an indication you could always look through past performance of the trusts and see how they managed during the volatile periods in March 2020 etc and if you could stomach that?

I'll have a look when I get home. Thanks. Those abbreviations, are they typical capital preservation funds? I don't like searching too much on my phone as its faffy so I'll do all that at home. 

Depends what you mean by ‘typical capital preservation funds’!

All the trusts are classified as ‘Flexible Allocation’ trusts, so they will invest in a mixture of shares, bonds, index linked gilts, gold etc. Ultimately you need to look through the various trusts and decide which one or multiple trusts is for you. 

There are wealth preservation Funds as well, but I’m only familiar with the investment trust vehicles.

JustAnotherSaver

Well i did a Google search of the very first term used - PNL. Turns out that relates to a French rap duo.

I'll need to hit the funds list on Hargreaves Lansdown and see if i can find anything matching those terms.

xylophone

https://www.investorschronicle.co.uk/news/2021/02/16/what-the-wealth-preservation-investment-trusts-are-telling-us/

There are four investment trusts that stand out as wealth preservers: Personal Assets Trust (PNL), Capital Gearing Trust (CGT) and RIT Capital Partners (RCP), which are in the IC Top 100 Funds list, and Ruffer Investment Company (RICA) – the youngest of the four, established in 2004.  

https://www.youinvest.co.uk/articles/investmentarticles/196887/which-capital-preservation-funds-delivered-market-falls

Aceace

Albermarle said:

Until a couple of years ago , some people would have suggested P2P as a possible  home for medium term money , that was not critical for your main finances. Interest rates varying from 4% to 12 % .
Even before Covid cracks appeared , especially amongst the ones offering double digit returns , which have largely disappeared/packed up/gone bust. . Covid of course brought a lot more stress. However some P2P companies have survived and are operating normally or at least on the road back.
Worth a look as a possible medium term  alternative for a small % of your overall money, but proceed with caution.

At last, a sensible suggestion by a respected poster, where P2P would appear to be a good solution. Not all P2P platforms are basket cases. A platform at the lower risk end, like Loanpad.com, would appear to offer exactly what the OP is looking for. A return of 4% for 60 day access. Capital is at risk and access has never been delayed (though can't be guaranteed), but that appears to be acceptable to the OP.