If you had 12k to invest where would you put it?

kjs31

I had some of my LLOY shares set to ‘sell at 60p’ which they hit yesterday so I’ve got 12k sitting as cash in my S&S ISA. I’m a bit conflicted about where to reinvest so wondering what others would choose to do. 

I’ve got some in Fundsmith Equity, Vanguard US Equity index fund and Vanguard FTSE Developed Europe ex-UK equity index fund at present. Wondering whether to top these up or look at something different? 

Beddie

A - Global tracker. Or
B - Lower your overall volatility with a bond or multi-asset fund - if that's important to you. If not, then A.

Voyager2002

Find a star fund manager to invest wisely for you and turn your nest egg into a fortune. How about Neil Woodford?

I like emerging markets, so if I had your portfolio (which is nothing at all like mine) I would be looking at the Asia-Pacific region. China is likely to come good once Xi eventually goes to the great homeland in the sky, so that would be a very long-term play. Vietnam continues to exceed expectations, and I have been very pleased by my holding in the Vietnam Opportunities Fund (which is an Investment Trust).

MX5huggy

I would put it in VHVG and come back in 15 years. 

frayedknot

If you're anywhere near pension age you could look at your state pension forecast and  see if you have any gaps in ni contribution years and if paying for them might top your pension up.

Bostonerimus1

I'd put it in Vanguard US Equity Index. However that's just me. If I was someone else I might

1) pay off high interest debt
2) save it in the bank if I didn't have at least 6 months of spending cash
3) use it to make extra payments into my pension to get the tax benefits
4) put it in a stocks and shares ISA

boingy

I'm somewhat boring so I'd put it in a global tracker and forget about it.
If I was younger I'd put it in a pension.

kempiejon

kjs31 said:

I had some of my LLOY shares set to ‘sell at 60p’ which they hit yesterday so I’ve got 12k sitting as cash in my S&S ISA. I’m a bit conflicted about where to reinvest so wondering what others would choose to do. 

I’ve got some in Fundsmith Equity, Vanguard US Equity index fund and Vanguard FTSE Developed Europe ex-UK equity index fund at present. Wondering whether to top these up or look at something different? 

I try to minimise selling but I do harvest capital gains as tax planning or occasionally redirect if I think the share is overvalued and see another prospect.
How did you conclude 60p as the sale price for Lloyds? It is a nice round number and nothing wrong with taking a profit.
I have been adding Lloyds for 18 months at 45-55p and still think there is more and a useful 5% yield and growing dividend.
. 

Linton

If you have no need for the cash in say the next 5 years I would diversify the portfolio.  You have not told us how much is in the current portfolio nor the % allocations so it's impossible to see what £12K actually means in the overall picture.

However you could add Emerging Markets or SE Asia.  Another area is Small Companies.  Npne of these is covered by your existing investments.

kjs31

frayedknot said:

If you're anywhere near pension age you could look at your state pension forecast and  see if you have any gaps in ni contribution years and if paying for them might top your pension up.

Thanks, good suggestion. I’ve just retired actually and qualified for the full state pension at the end of the last tax year, but don’t get my state pension for a few years. 

Eyeful

1. Use tax shelters where possible.
2. If money needed within next 5 years, it should be in a savings account protected up to £85k by the FSCS.
3.  If money not needed within 5 years, think of a stocks & shares ISA.
4. For the very long term use pension. You get "free money" & investments grow tax free, until you withdraw it.

Watch this first:   https://www.kroijer.com/

For a simple buy and forget approach use a low cost passive Global Index Fund or ETF.
Example: VWRL, HMWO

For less risk use a low cost passive Global Multi Asset Fund or ETF set at a share/bond split you are happy with.
Example: https://www.hsbc.co.uk/investments/products/hsbc-global-strategy-portfolios/#balanced.

The above approach is simple, keeps costs down, has minimum number of funds and allows you to get on with life.