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    • will-he-payitoff
    • By will-he-payitoff 10th Apr 18, 11:09 AM
    • 691Posts
    • 191Thanks
    will-he-payitoff
    Best place for 20K for 7 years
    • #1
    • 10th Apr 18, 11:09 AM
    Best place for 20K for 7 years 10th Apr 18 at 11:09 AM
    Ive got £20000 thats not earning a great deal of interest and I will not need it for 7 years, got maximum amounts going into regular savers every month. I have been looking at S&S ISAs could anyone please advise if 7 years is long enough to keep the cash in there or any alternatives. TIA
Page 1
    • ColdIron
    • By ColdIron 10th Apr 18, 11:16 AM
    • 4,036 Posts
    • 4,980 Thanks
    ColdIron
    • #2
    • 10th Apr 18, 11:16 AM
    • #2
    • 10th Apr 18, 11:16 AM
    For me it's not so much that seven years is too short in itself, it may not be, but rather that if you have a fixed commitment or a desired by date which coincides with a downturn you may be on a sticky wicket. If you could easily defer whatever happens in seven years then maybe not so much
    • will-he-payitoff
    • By will-he-payitoff 10th Apr 18, 11:49 AM
    • 691 Posts
    • 191 Thanks
    will-he-payitoff
    • #3
    • 10th Apr 18, 11:49 AM
    • #3
    • 10th Apr 18, 11:49 AM
    Thanks, 7 years is the minimum I would be looking at and then I wouldnt need it all in one go so could ride out a dip in the markets.
    • Alexland
    • By Alexland 10th Apr 18, 12:01 PM
    • 2,236 Posts
    • 1,630 Thanks
    Alexland
    • #4
    • 10th Apr 18, 12:01 PM
    • #4
    • 10th Apr 18, 12:01 PM
    How about a target date 2025 fund within a Vanguard S&S ISA which automatically reduces stock market and currency risk as the withdrawal date approaches? Don't worry about the word 'retirement' that's the main market for these types of funds.

    https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa

    https://www.vanguardinvestor.co.uk/what-we-offer/target-retirement-products

    If the 7 years is really of little significance as you can delay the withdrawal by a few years in a downturn then perhaps just VLS60 which is roughly where VTR2025 would start anyway.

    https://www.vanguardinvestor.co.uk/what-we-offer/life-strategy-products

    Alex.
    Last edited by Alexland; 10-04-2018 at 12:13 PM.
    • aroominyork
    • By aroominyork 10th Apr 18, 12:28 PM
    • 423 Posts
    • 123 Thanks
    aroominyork
    • #5
    • 10th Apr 18, 12:28 PM
    • #5
    • 10th Apr 18, 12:28 PM
    Interesting that the Vanguard TDF for 2020 retirement is 56% equities. The blurb does not differentiate between planning to take an annuity in 2020 or keeping it invested and starting to draw down. Without that info how can an appropriate asset allocation be set?
    • Alexland
    • By Alexland 10th Apr 18, 1:17 PM
    • 2,236 Posts
    • 1,630 Thanks
    Alexland
    • #6
    • 10th Apr 18, 1:17 PM
    • #6
    • 10th Apr 18, 1:17 PM
    Interesting that the Vanguard TDF for 2020 retirement is 56% equities. The blurb does not differentiate between planning to take an annuity in 2020 or keeping it invested and starting to draw down. Without that info how can an appropriate asset allocation be set?
    Originally posted by aroominyork
    It's intended for people buying annuities (so the value of the investment on the day of purchase really matters) and yes the blub could be clearer. I really think these should be renamed Vanguard Target Withdrawal Date funds. The 'retirement' word will confuse people and they are also useful for Junior ISAs if the child is likely to use the money for university, etc at age 18.

    Alex
    • aroominyork
    • By aroominyork 10th Apr 18, 3:24 PM
    • 423 Posts
    • 123 Thanks
    aroominyork
    • #7
    • 10th Apr 18, 3:24 PM
    • #7
    • 10th Apr 18, 3:24 PM
    It's intended for people buying annuities (so the value of the investment on the day of purchase really matters) and yes the blub could be clearer. I really think these should be renamed Vanguard Target Withdrawal Date funds.
    Originally posted by Alexland
    Nice idea! Still, 56% equities on funds you intend to sell in two years to buy an annuity is crazy risky. I have a workplace TDF and two years before planned retirement date it would be 30% equities.
    • TBC15
    • By TBC15 10th Apr 18, 4:13 PM
    • 453 Posts
    • 211 Thanks
    TBC15
    • #8
    • 10th Apr 18, 4:13 PM
    • #8
    • 10th Apr 18, 4:13 PM
    Are there many annuities being sold at the moment? If so who do they appeal to.
    • Zola.
    • By Zola. 10th Apr 18, 4:21 PM
    • 1,214 Posts
    • 479 Thanks
    Zola.
    • #9
    • 10th Apr 18, 4:21 PM
    • #9
    • 10th Apr 18, 4:21 PM
    http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-ftse-all-world-index-class-c-accumulation

    ?
    • DiggerUK
    • By DiggerUK 10th Apr 18, 5:49 PM
    • 2,965 Posts
    • 2,904 Thanks
    DiggerUK
    Seven years for gold is perfect. If you don’t know anything about gold savings then you will need to research the matter. This is as good a start as any.
    https://moneyweek.com/a-beginners-guide-to-investing-in-gold/

    Trust me....I am the MSE (self appointed) expert on gold. All questions answered for free..._
    I am not now, nor have I ever been, a Financial Adviser.
    ’Forward to the British Spring’ ‘Viva Wikileaks’
    • bundly
    • By bundly 10th Apr 18, 7:47 PM
    • 967 Posts
    • 799 Thanks
    bundly
    Digger,,,, tell me about gold!
    • jimjames
    • By jimjames 10th Apr 18, 7:59 PM
    • 12,545 Posts
    • 11,178 Thanks
    jimjames
    Digger,,,, tell me about gold!
    Originally posted by bundly
    Well if you're worried about lack of interest then gold isn't for you - it pays zero income!
    Remember the saying: if it looks too good to be true it almost certainly is.
    • will-he-payitoff
    • By will-he-payitoff 11th Apr 18, 11:13 AM
    • 691 Posts
    • 191 Thanks
    will-he-payitoff
    Alexland & Zola, looked at both your suggestions and they both say the ISA would be with HSBC. Would I not be better off just opening a S&S ISA with HSBC?
    • eskbanker
    • By eskbanker 11th Apr 18, 11:39 AM
    • 6,822 Posts
    • 7,074 Thanks
    eskbanker
    Alexland & Zola, looked at both your suggestions and they both say the ISA would be with HSBC. Would I not be better off just opening a S&S ISA with HSBC?
    Originally posted by will-he-payitoff
    It sounds like you don't understand the difference between funds and platforms, which is kinda important when setting out on your investment journey.

    Read up on the introductory pieces on here, such as:
    https://www.moneysavingexpert.com/savings/investment-beginners
    https://www.moneysavingexpert.com/savings/stocks-shares-isas

    and all should become clearer!
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