£65000 to invest

berko

i have £60000 to invest for at least 10 years iam looking to make at least 15% a year to turn it into around £260000
after ten years i will need around £5000 a year to cover rent and other little bits but would still take some risks my partner will be retire and will only need around that figure


iam looking to unit trusts does any one think this is possible and any one got any tips

Jonbvn

I think that a consistent 15%pa return for S&S is too high a target to set. It may be possible, but you should not rely on achieving such a return.

dunstonh

15% p.a. is potentially achievable but would require higher risk funds as part of the portfolio. That doesnt fit with the "would still take some risks" which suggests a lower risk profile.

Rebalancing would almost certainly have to take place and it couldnt be an invest and forget portfolio.

15% maybe experienced investor range but not inexperienced low risk investor range.

Footsie_2

You need to weigh up the risks, 15% is a tall order in the current climate without taking high risks. Obviously with high risks you have a chance of losing a lot of money. Not a good idea to rely on such an increase if you can't afford to lose the core investment.

berko

to me £60000 i would take a high risk in the hope that in say 10 to 20 years i could live of the intrest with partners pension and job for me
we both rent and have left it to late in life to buy so its not money we need and would probley spent it lol
so if i i did lose some or all of it to me it seems like a risk worth taking putting it into a bank would never make anything worth thinking about i worked out that if it could make a 15% reurn it would be work over 1 mill by the time i retire so woth a risk

thanks for the help

IvanOpinion

I would go further than most and would suggest a sustained 15% is pretty much unachievable. Over time you will probably lose the equivalent of 3-5% in fees, commissions, management charges etc. If you try to do it yourself then I would guess you would need to be devoting a large proportion of your time managing it (thereby losing personal 'earnings' potential). There are reasons why most institutions quote based on more realistic gains.

Ivan

dunstonh

I would go further than most and would suggest a sustained 15% is pretty much unachievable.

It is potentially achievable.

Over time you will probably lose the equivalent of 3-5% in fees

Fees, comms etc are typically 1.5% p.a.

There are reasons why most institutions quote based on more realistic gains.

The "realistic" figures are quoted mainly as the FSA believe the typical consumer to be cautious in risk. Double digit returns are highly unlikely with a cautious spread over the long term. You need to be medium/high or high to really stand any chance of getting 15% a year but you have to expect that to be an average as it will be volatile and more than the average inexperienced investor would normally be happy to accept.