Investment of £40,000

therocks64

Hi. We're looking at investing £40,000. Were both retired (60), living off our personal pensions and rental income from a property we own. 
We're looking to invest £40,000 over 4 years into a medium risk investment.
Any advice would be greatly appreciated.

DodgyDave88

£40k lump sum to hand now or over 4 years (IE £10k a year) if lump sum it's been proven that putting the lot into a low cost world tracker long term is better than trying to time the market / drip feeding / pound costing. 

I would suggest £20k into each ISA allowance in a all world fund. VWRL is a good place to start! I would classify that as medium risk especially over 4 years.

InvesterJones

DodgyDave88 said:

£40k lump sum to hand now or over 4 years (IE £10k a year) if lump sum it's been proven that putting the lot into a low cost world tracker long term is better than trying to time the market / drip feeding / pound costing. 

I would suggest £20k into each ISA allowance in a all world fund. VWRL is a good place to start! I would classify that as medium risk especially over 4 years.

100% equities is high risk, and not suitable for a short time frame such as 4 years. But OP, do you mean 4 years to accumulate/add to the investment, or you wish to access the investment after 4 years? If the latter, equities are almost certainly not suitable.

For four years/medium risk I'd be looking at bonds, and at most a pretty low equities portion multi-asset fund.

aroominyork

A 100% equity fund such as VWRL is not medium risk, and definitely not if you want to take out the money in four years. Look at what happened in the four years (or even the ten years) after 2000.

PS  But if you are looking at adding it over four years to hold long term that is a different matter, although 100% equities is still not medium risk.

DodgyDave88

Bonds 😂 might as well just whack it into a savings account even when over the PSA. Or PBS...! VWRL all day long !

ColdIron

DodgyDave88 said:

Bonds 😂 might as well just whack it into a savings account even when over the PSA. Or PBS...! VWRL all day long !

100% equities for only 4 years is well into high risk territory. It might be OK for you but the OP asked for medium risk so it's poor, or dare I say dodgy, advice that the OP would do well to disregard

SacredStephan

therocks64 said:

Any advice would be greatly appreciated.

Have you checked your state pension forecasts, by logging in to your Personal Tax Account?

dunstonh

DodgyDave88 said:

Bonds 😂 might as well just whack it into a savings account even when over the PSA. Or PBS...! VWRL all day long !

The internet can be helpful but you need to be on guard for trouble makers (who intentionally give duff info) or those that don't know what they are talking about.   I don't know which you are but the OP should ignore you either way.

eskbanker

DodgyDave88 said:

VWRL is a good place to start! I would classify that as medium risk especially over 4 years.

Go on then, let's hear what you'd classify as high risk over four years on your scale - blindfolded chainsaw juggling perhaps?

Albermarle

therocks64 said:

Hi. We're looking at investing £40,000. Were both retired (60), living off our personal pensions and rental income from a property we own. 
We're looking to invest £40,000 over 4 years into a medium risk investment.
Any advice would be greatly appreciated.

The usual advice is that if you are wanting to withdraw the money within 5 years, than it should be kept in a zero risk savings account ( not invested) .
For higher risk  investing > 10 years is recommended.
For between 5 and 10 years - medium risk investments and some cash savings.

So it all hinges on when you might need the money.

MEM62

therocks64 said:

Hi. We're looking at investing £40,000. 

therocks64 said:

We're looking to invest £40,000 over 4 years into a medium risk investment.

Four years is too short a horizon for investments.  You should be looking at savings.