What would you invest 500k in for the next five years ?

kendricks1

Hi,looking to place 500k into short term investment,with low risk.
Any ideas would be appreciated,I'm still working until next year then hope to retire.
Money at the moment is held in building society one year bonds,paying 4.5 %
Having read some ideas on previous forum questions,has anyone's views changed due to a Trump presidency,looking into the future.
I already have cash isa's and premium bonds,any ideas would be appreciated thanks .

Hoenir

kendricks1 said:

Hi,looking to place 500k into short term investment,with low risk.

Investing comes with risk. How much capital would you be prepared to lose ? 

QrizB

kendricks1 said:

Hi,looking to place 500k into short term investment,with low risk.

For low risk, how about T30 gilt? Currently trading at close to nominal, paying a 4.375% coupon?
https://www.hl.co.uk/shares/shares-search-results/t/treasury-4.375-07032030-gilt

HHarry

Will you really need all £500k in 5 years time?  If so, leave it in the bank.

If you need to start spending some of the £500k in 5 years, but won’t need some of it for at least 10 years+ then investing some of it is more likely to be a good idea. Multi-asset global fund with low fee’s.  As a starting point for your research VLS (Vanguard Lifestrategy) 20/40/60 - although many people wouldn’t touch VLS, and there are loads of alternatives.

michaels

The michaels fund pays a guaranteed 3% above inflation for the next 5 years (fixed term), all interest is reinvested and no withdrawals are permitted in the term.

Send your cheque to michaels , poste restante, Cayman Islands

Marcon

kendricks1 said:

Hi,looking to place 500k into short term investment,with low risk.
Any ideas would be appreciated,I'm still working until next year then hope to retire.
Money at the moment is held in building society one year bonds,paying 4.5 %
Having read some ideas on previous forum questions,has anyone's views changed due to a Trump presidency,looking into the future.
I already have cash isa's and premium bonds,any ideas would be appreciated thanks .

Here's an idea: get some proper professional advice (the sort you pay for) based on a full understanding of your circumstances, attitude to risk, age etc etc. Could be your best investment by far.

MK62

QrizB said:

kendricks1 said:

Hi,looking to place 500k into short term investment,with low risk.

For low risk, how about T30 gilt? Currently trading at close to nominal, paying a 4.375% coupon?
https://www.hl.co.uk/shares/shares-search-results/t/treasury-4.375-07032030-gilt

Given that it appears this 500k is outside any tax wrapper, and so would need to be invested via a general investment account, then the much lower coupon TG30 gilt might be a better choice due to the lower tax payable.
That said, I agree with HHarry, that unless the full 500k is actually needed in 5 years time, it might be better to split it into a short, medium, and long term "pots", and invest according to the timeline of the pots.........eg long term pot in equities, medium term in mixed asset, and short term in a gilt.....or go with an IFA's recommendation.

Triumph13

Something that matches what you actually intend to do with the money in five years' time.

MEM62

Five years to too short a horizon for investment.  Leave it in cash at the best interest rates that you can find.  

eskbanker

kendricks1 said:

Hi,looking to place 500k into short term investment,with low risk.
Any ideas would be appreciated,I'm still working until next year then hope to retire.
Money at the moment is held in building society one year bonds,paying 4.5 %
Having read some ideas on previous forum questions,has anyone's views changed due to a Trump presidency,looking into the future.
I already have cash isa's and premium bonds,any ideas would be appreciated thanks .

Why not continue with your existing thread?

https://forums.moneysavingexpert.com/discussion/6597601/retirement-planning-portfolio

squirrelpie

QrizB said:

kendricks1 said:

Hi,looking to place 500k into short term investment,with low risk.

For low risk, how about T30 gilt? Currently trading at close to nominal, paying a 4.375% coupon?
https://www.hl.co.uk/shares/shares-search-results/t/treasury-4.375-07032030-gilt

I looked for interest, but there seems to be something very wrong with the graphs if you look at longer timescales?