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    • fraz101
    • By fraz101 10th Aug 18, 9:12 PM
    • 42Posts
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    fraz101
    Investing 20k over 5yr term advice
    • #1
    • 10th Aug 18, 9:12 PM
    Investing 20k over 5yr term advice 10th Aug 18 at 9:12 PM
    My dad has a guaranteed investment bond with MetLife that is due to mature next month, it was an 8 yr term and he invested 20k, it now sits at 24.5k (thoughts on his return over 8yr term?)

    He now is looking for somewhere else to invest it as MetLife no longer do guaranteed investments.

    He wants to invest for 5yr Max with guarantee of at least his investment back. (He is not a risk taker)

    He already has ISA and doesn't want to add it to that.

    What is available that has a decent guaranteed return?
    Last edited by fraz101; 10-08-2018 at 9:30 PM.
Page 1
    • Audaxer
    • By Audaxer 10th Aug 18, 9:44 PM
    • 1,491 Posts
    • 920 Thanks
    Audaxer
    • #2
    • 10th Aug 18, 9:44 PM
    • #2
    • 10th Aug 18, 9:44 PM
    No investment can guarantee return of the capital in 5 years as there could easily be an equity crash within the next 5 years. If he is not prepared to invest for the long term - at least 10 years - then he would be better with the best fixed interest savings account rather than an investment.
    • NewShadow
    • By NewShadow 10th Aug 18, 10:28 PM
    • 3,359 Posts
    • 14,496 Thanks
    NewShadow
    • #3
    • 10th Aug 18, 10:28 PM
    • #3
    • 10th Aug 18, 10:28 PM
    According to my calculations, 20k to 24k over 8 years is in the region of 2.2% ROI per year compounded.

    This page has a number of savings accounts where you can get around the same rate of return for three/four/five years: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#fixedsavings
    That sounds like a classic case of premature extrapolation.

    House deposit: 26% = 26,000 + 800pm * 9 months = 33,000

    Goal: Keep the bigger picture in mind...
    • AnotherJoe
    • By AnotherJoe 10th Aug 18, 10:49 PM
    • 11,814 Posts
    • 13,758 Thanks
    AnotherJoe
    • #4
    • 10th Aug 18, 10:49 PM
    • #4
    • 10th Aug 18, 10:49 PM
    My dad has a guaranteed investment bond with MetLife that is due to mature next month, it was an 8 yr term and he invested 20k, it now sits at 24.5k (thoughts on his return over 8yr term?)
    Originally posted by fraz101
    Depends from what perspective. It's just about kept pace with inflation. So if he's happy with that, then fine. Had it been invested in the global stock market in a really low risk fund say vls20, he'd have 30k. And medium risk, 40k. And I'm not saying he should have bought those, just giving a benchmark.

    He wants to invest for 5yr Max with guarantee of at least his investment back. (He is not a risk taker)
    Originally posted by fraz101
    He is he just doesn't realise it. He's taking a risk that inflation will whittle away his savings. He did well to break even.

    What is available that has a decent guaranteed return?
    Originally posted by fraz101
    I doubt he'd beat inflation this time round.is that counted as a reasonable return ? It all depends on your perspective. Don't be fooled by these "guaranteed 8% return bonds" you'll find innnewspaper adverts and google searches. You could literally lose all your money with those.
    • xylophone
    • By xylophone 10th Aug 18, 11:28 PM
    • 27,645 Posts
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    xylophone
    • #5
    • 10th Aug 18, 11:28 PM
    • #5
    • 10th Aug 18, 11:28 PM
    http://www.thisismoney.co.uk/money/article-1621507/Best-savings-rates-Fixed-rate-accounts.html
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