£55,000 to invest for 1 year

BB12345

Hi,

I have around £55,000 to invest but only for about 1 year. I wont need access to the money for the year and am wondering where the best place to put it would be. I already have an ISA for this year.

I have just seen the A&L Fixed Rate Bond at 7% which looks pretty good. Are there any other good offers about at the moment?

Thanks,

Ben.

dunstonh

Forget investing as its too short term. Stick to savings like the Fixed term deposit like you mention.

derrekmay

With that amount of money you have allot of options...
But the ebst thing you can do is searching those investments that have a relative low risk and a good profit factor.
It's not easy to find those, I know that but if you search good then you'll find one.
Just like I have.

dunstonh

derrekmay, that is inappropriate for the timescale.

derrekmay

What do you mean?
You can do this type of investment as long as you want.
If I only want to do this for one day then I can do that...
Or have I miss understood something?

Aegis

derrekmay wrote: »

What do you mean?
You can do this type of investment as long as you want.
If I only want to do this for one day then I can do that...
Or have I miss understood something?

You've misunderstood. The reason that people don't invest in the short term is because market fluctuations can cause fairly sizable decreases to capital in a very short timescale. Short term trends will do much the same. People invest because in the long term (5 years or more to be safe) investments will outperform cash accounts most of the time, but there is no such guarantee in the short run.

Essentially in the short term it often boils down to betting money on a coin toss, or a similar probability level.

derrekmay

Aegis wrote: »

You've misunderstood. The reason that people don't invest in the short term is because market fluctuations can cause fairly sizable decreases to capital in a very short timescale. Short term trends will do much the same. People invest because in the long term (5 years or more to be safe) investments will outperform cash accounts most of the time, but there is no such guarantee in the short run.

Essentially in the short term it often boils down to betting money on a coin toss, or a similar probability level.

There I have to disagree with you, if your trading strategy is good then it doesn't matter what the market does...
If it goes down you can stil earn a lot of money, and when it goes up it also does the same.
annyway my investment is as long as I want and it is given me a solid return till now...
I 'm not saying this is an investment with no risks but if you want to make a good ROI you have to take a few risks....
However I don't want to sound like I'm promoting annything, I only wanted to share my results with other people and maybe help them find a way how they could earn money on they're investment.

dunstonh

There I have to disagree with you, if your trading strategy is good then it doesn't matter what the market does...

That is naive.

my investment is as long as I want and it is given me a solid return till now...

till now being the key. Who knows what will happen in the future?

In the UK investment advice and product sales is highly regulated. Much more than the US and we have a lot more compliance and risk warnings issued. Many of the warnings are ignored by experienced investors but are there for the inexperienced investor.

What you are suggesting is not for an inexperienced investor. If I was to recommend what you suggest I would be looking at compensation claims and fines from the regulator as would be a blatent mis-sale. Just because this is an internet forum doesnt mean we should stop being responsible.

Aegis

derrekmay wrote: »

There I have to disagree with you, if your trading strategy is good then it doesn't matter what the market does...

If it goes down you can stil earn a lot of money, and when it goes up it also does the same.

Disagree with me all you like, but pick any type of investment in pretty much any sector and I'll almost certainly be able to show you a point at which that investment dropped in value without warning due to market conditions.

In any case, even the best investment strategy can be ruined by a sudden reversal in the market. Arbitraging your bets completely can negate all losses, but will counteract any gains at the same time. Picking one way or the other will allow you to gain money, but has to open the door to potential losses. It's the way it works.

Show me anyone who claims to have an investment strategy that means they never lose money in the short term and I'll show you either a liar or someone who refers to savings accounts as investments.

annyway my investment is as long as I want and it is given me a solid return till now...

Haven't you been saying recently that you've been in your particular investment for about 3-4 weeks? If so, does that really give you the level of expertise to argue this point with professional IFAs like dunstonh here?

I 'm not saying this is an investment with no risks but if you want to make a good ROI you have to take a few risks....

I agree with you there, but the risk increases the shorter you make the investment. Someone wanting to invest for a year or less could easily see their capital decrease by 50% in their first year for a high risk investment, only to see massive growth for the next 4 years leading to a huge annualised return. This future growth would be useless for someone only investing for 1 year though.

This is just one example, but as I may have mentioned elsewhere, the minimum timescale for risky investments should be 5 years to allow the likely good years to mitigate the losses of the bad year or two that is likely to occur in that timescale.

However I don't want to sound like I'm promoting annything, I only wanted to share my results with other people and maybe help them find a way how they could earn money on they're investment.

It's great that you love your new investment, and I wish you the very best of luck with it. Please don't assume that everyone is going to have the same strategy as you though, and please listen to the professionals that hang around here when they give advice about how best to treat investments and savings. Their careers are literally on the line if their advice is bad, so they have more incentive than anyone else to ensure that the general advice they give here is of the best quality and backed by years of research.

derrekmay

Aegis wrote: »

Disagree with me all you like, but pick any type of investment in pretty much any sector and I'll almost certainly be able to show you a point at which that investment dropped in value without warning due to market conditions.

In any case, even the best investment strategy can be ruined by a sudden reversal in the market. Arbitraging your bets completely can negate all losses, but will counteract any gains at the same time. Picking one way or the other will allow you to gain money, but has to open the door to potential losses. It's the way it works.

Show me anyone who claims to have an investment strategy that means they never lose money in the short term and I'll show you either a liar or someone who refers to savings accounts as investments.





Haven't you been saying recently that you've been in your particular investment for about 3-4 weeks? If so, does that really give you the level of expertise to argue this point with professional IFAs like dunstonh here?



I agree with you there, but the risk increases the shorter you make the investment. Someone wanting to invest for a year or less could easily see their capital decrease by 50% in their first year for a high risk investment, only to see massive growth for the next 4 years leading to a huge annualised return. This future growth would be useless for someone only investing for 1 year though.

This is just one example, but as I may have mentioned elsewhere, the minimum timescale for risky investments should be 5 years to allow the likely good years to mitigate the losses of the bad year or two that is likely to occur in that timescale.



It's great that you love your new investment, and I wish you the very best of luck with it. Please don't assume that everyone is going to have the same strategy as you though, and please listen to the professionals that hang around here when they give advice about how best to treat investments and savings. Their careers are literally on the line if their advice is bad, so they have more incentive than anyone else to ensure that the general advice they give here is of the best quality and backed by years of research.

I also believe that there are allot of people here who can give good advices thats why I joined this forum , but sometimes you got to think outside the box.
Don't get me wrong I'm not saying you have to jump on the nex train that comes near you.
You always have to do some research.
I also agree with you that everybody have another style of investing and have other goals.
But my goals are verry clear, that's why I refuse to put my money in things that give me 7% a year.
As for this investment you said that the only things that work well are the ones where you have to stick in for 5 years...
But I'm planning on retiring in 5 years times:D
Also my money mannager have shown me statements over longer periods(1 year) and he has made a total profit of a little bit over 200%.
Annyway enough said about this I would say take a look at my blog a few times and judge for yourselfs if it works or not.
I don't need to convince you, I only have to convince myself

dunstonh

Also my money mannager have shown me statements over longer periods(1 year) and he has made a total profit of a little bit over 200%.

1 year is not a longer period. If I show you Gartmore China with near 100% return in a year does that mean you are going to get that every year? A longer period is 5-10 years. If I show just 1 year i wouldnt have to show the year that it dropped 60%.

People whine about UK financial services but you just have to look abroad and realise that things are pretty good here.

Annyway enough said about this I would say take a look at my blog a few times and judge for yourselfs if it works or not.
I don't need to convince you, I only have to convince myself

I havent made my mind up whether you are here to attempt to help or attempt to promote your website.

You keep convincing yourself you are right. However, you may just want to ask your money manager or whatever that is for longer periods. Say 10 years as that should give you a better idea of the volatility.