40k to invest, whats best?

Lokolo

Yes, invtesments don't really grow loads until upto 3-5 years. However, have you got children and grandchildren? If so, you can leave these to grow over and number of years and then pass them down 'later on'.

Or particularly, what were you planning on using the extra money for?

dunstonh

I can invest in a £7200 cash an Investsment ISA but am I correct in stating that Investments should only be considered for 3-5years. being 70 years nearly I don't think this would be a good idea.

Why is 70 too old? Just because you hit retirement, doesnt mean you should stop investing. Sure your risk profile is going to be different to someone half your age and you may seek some guarantees. A common guarantee is the death guarantee (in the event of your death the value of your investment or the original amount invested if its gone down is paid out). Also, the investments can be transferred to the beneficiaries without the need to cash them in.

Investments typically are 5 year plus. But at 70 you are still young enough to consider investments depending on your needs and your overall assets.

jamesd

belto, at 70 about half of all average people will live for 16 more years. Plenty of time to go.

What really matters is when you think you might need the money and arranging to have the amounts you need in investments that won't be temporarily at low values when you need to take the money out. Five years provides enough time that it's likely that a mixture of investments will be worth at least what it started at even during a big value drop. They often act a bit like a rollercoaster going uphill - upward trend but lots of rises and dips along the way.

You reduce the volatility risk in part by using commercial property, corporate bonds and savings accounts as part of the mixture, also by having a fairly broad selection of UK and international investments.

Alternatively, there are some investments that offer a capital guarantee and those can be useful as part of a mixture.

debbie42

dunstonh wrote: »

Why is 70 too old?

My grandma is 99. She'd class 70 as a youngster.

belto

Thanks a lot
I feel younger already, will run around the block later.

But first I have just checked value of an old investment ISA European Growth Fund and ithe value has dropped 10.5% since last October, and considering the bleak economic forcast should I transfer the funds and if so where ?

lostilly

Hi, can I ask jamesd about the BlackRock UK Absolute Alpha. I have looked it up on HL and it shows 3 funds: one is 'income', another is 'accumulation' and the third is 'Class P Acc'. I am generally interested in Acc funds but am not sure which of the 2 is the one you are investing in.
Thanks

jamesd

lostilly, class P Acc is the one you need - it's the one for consumers. The other two are the institutional funds that were around and proving the concept before they decided to introduce a consumer version.

lostilly

Thanks jamesd for the quick & clear explanation. I have benefited from some of your previous posts and thought you'd help out.

Thanks again:T