£20,000, Best place to stash away.

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Pete_Smith
Pete_Smith Posts: 21 Forumite
in Savings & investments
Any advice on where to put £20,000 long term.


I have looked at long term fixed rate accounts.


My last S&S Isa has made nothing since I opened it 2 years ago,so unsure about those.

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  • MrSaver96
    MrSaver96 Posts: 48 Forumite
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    What about your pension; if your willing to tie it up long term?
  • jimjames
    jimjames Posts: 17,619 Forumite
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    Pete_Smith wrote: »
    My last S&S Isa has made nothing since I opened it 2 years ago,so unsure about those.

    A S&S ISA is just a wrapper so performance is dependent on what you actually bought inside it. Which funds do you have?

    Whatever you choose be very wary of investments that "guarantee" 8% or so as they are unregulated and you could lose all your money.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Pete_Smith
    Pete_Smith Posts: 21 Forumite
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    Hi,
    Thanks for the reply,the ISA is with H&L,

    H&L Multi-Manager Balanced Managed Trust.
    H&L Multi-Manager Balanced Special Trust
    & H&L Multi-Manager Balanced Strategic Bond Trust

    Those are all in one wrapper.



    They are showing a total gain of 1.43% after nearly 2 years and of course their fees are £3-£4 per month,so not really that amount.
  • DrSyn
    DrSyn Posts: 889 Forumite
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    Pete_Smith wrote: »
    Hi,
    Thanks for the reply,the ISA is with H&L,

    H&L Multi-Manager Balanced Managed Trust.
    H&L Multi-Manager Balanced Special Trust
    & H&L Multi-Manager Balanced Strategic Bond Trust

    Those are all in one wrapper.



    They are showing a total gain of 1.43% after nearly 2 years and of course their fees are £3-£4 per month,so not really that amount.


    Those funds you have quoted have very high charges. You might like to think about shifting your money into a low cost multi asset fund or EFT.

    Annual costs matter especially over the long term. The more that go out in fees, the less you end up with.



    As an example, looking on the HL website,

    the average annual charge for for a £5000 S&S ISA in

    H&L Multi-Manager Balanced Managed Trust = 2.12%

    while for the

    VANGUARD LIFE STRATEGY 60% EQUITY income (GBP) = 0.72%


    The following may be of interest to you:

    http://www.kroijer.com/

    https://www.ifa.com/indexfundsthemovie/


    Also this from the MSE website:

    https://forums.moneysavingexpert.com/showthread.php?t=5879942&highlight=multi+asset
  • jim8888
    jim8888 Posts: 375 Forumite
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    It depends on your time frame and your attitude to risk. If you don't need to touch it for the next five years, I'd put 4k each into 5 Index tracking funds - one UK, one Europe, one US, one Asia and one other. That's my personal view and, based on my past experience, doing that has served me well over the years. However, doing that also potentially means your 20k could be worth 15k (or less) at the end of the 5 years, or worth 25k (or more). So, are you feeling lucky?
  • eskbanker
    eskbanker Posts: 31,040 Forumite
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    jim8888 wrote: »
    I'd put 4k each into 5 Index tracking funds - one UK, one Europe, one US, one Asia and one other.
    Why would you weight these five areas equally and how/when do you rebalance to maintain that allocation?

    And on what rational basis would you contend that this approach would be better than any/some/all of the range of low-cost global multi-asset products available in the market?
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