What's a good investment for a risk averse cynic?!
Discussion
Have six figs to invest. Plenty of people willing to sell me products and packages that add risk and take a fee even if they make a loss - err no thanks.
I'm too control-freak cynical really to give strangers my money and cross my fingers! Even cashed in my Pru pension in years ago for a SSAS as I could see the fees going out even if they didn't make me a profit that year. Too one sided deal for me. Best move ever as this is where my six figs now comes from and I still have the original capital and, crucially, full control.
Can anyone recommend a supplier and a type of product that delivers over 6% and only charges fee if they actually make money? I'm too risk averse and prefer knowns over unknowns and will languish at 5.5% on maxed out ISA's and savings accounts yet again.
Maybe there is no answer or solution for a ridiculous client, but even that is an answer
;)
I'm too control-freak cynical really to give strangers my money and cross my fingers! Even cashed in my Pru pension in years ago for a SSAS as I could see the fees going out even if they didn't make me a profit that year. Too one sided deal for me. Best move ever as this is where my six figs now comes from and I still have the original capital and, crucially, full control.
Can anyone recommend a supplier and a type of product that delivers over 6% and only charges fee if they actually make money? I'm too risk averse and prefer knowns over unknowns and will languish at 5.5% on maxed out ISA's and savings accounts yet again.
Maybe there is no answer or solution for a ridiculous client, but even that is an answer
;)Ken Figenus said:
Can anyone recommend a supplier and a type of product that delivers over 6% and only charges fee if they actually make money? I'm too risk averse and prefer knowns over unknowns and will languish at 5.5% on maxed out ISA's and savings accounts yet again.
Yearly? Why do look for just one?
use 5 or 10 spread is better IMHO.
Can’t see anyone “guaranteeing” you >6% today with zero risk. 5%, sure.
You haven’t really said how long you are investing this 100k+ for.
Might you need it in a year, or will it be >10 years before you need it?
Longer term: S&S will almost certainly be the right answer.
One or two years? Then bank it, for around 5%
You haven’t really said how long you are investing this 100k+ for.
Might you need it in a year, or will it be >10 years before you need it?
Longer term: S&S will almost certainly be the right answer.
One or two years? Then bank it, for around 5%
Thanks guys and for no one saying snowflake
The cash is imminent as decided to quit residential property months ago based on knowns rather than future unknowns - none of which are likely to be positive.
Really need to get up to speed on alternatives as all I know is self managed property.
Gilts have no income tax or CGT?
£20k in a S&S ISA would be fine but have no idea who to select and trust.
Seriously drawn to commercial property that will be far simpler than residential and can go in SSAS.
Many decisions to make so sorry I'm rambling but appreciate any input for cautious scaredy cats!
The cash is imminent as decided to quit residential property months ago based on knowns rather than future unknowns - none of which are likely to be positive.
Really need to get up to speed on alternatives as all I know is self managed property.
Gilts have no income tax or CGT?
£20k in a S&S ISA would be fine but have no idea who to select and trust.
Seriously drawn to commercial property that will be far simpler than residential and can go in SSAS.
Many decisions to make so sorry I'm rambling but appreciate any input for cautious scaredy cats!
Ken Figenus said:
Thanks guys and for no one saying snowflake
Seriously drawn to commercial property that will be far simpler than residential and can go in SSAS.
Seriously drawn to commercial property that will be far simpler than residential and can go in SSAS.
Ken Figenus said:
Can anyone recommend a supplier and a type of product that delivers over 6% and only charges fee if they actually make money? I'm too risk averse and prefer knowns over unknowns
These seem to be quite inconsistent objectives / constraints?If you want a fixed return (no risk) over a known period, then you should buy a government bond (Gilt) with the appropriate maturity.
Edited by Sport_Turismo_GTS on Monday 10th June 16:17
I started investing in Vanguard LS60, as a risk adverse investor. Now invest in riskier products and directly on the stock market. I started investing just before COVID, so I've seen many ups and downs in the past 5 years.
My investments overall are certainly worth more than if I'd put the cash in a bank account. (Despite some being significantly down).
Only invest what you can afford to lose. I'd recommend starting with passive funds.
My investments overall are certainly worth more than if I'd put the cash in a bank account. (Despite some being significantly down).
Only invest what you can afford to lose. I'd recommend starting with passive funds.
Heathwood said:
Premium bonds (up to the limit at least)? Admittedly, it’s not a great investments based on the average winnings, but it’s safe and there’s potential of larger gains than a simple savings account.
I would agree 100% with this, particularly if you think you have a need in the near future (<2-3 years). Capital is 100% safe, a (small!) chance of a big win, but a fair chance of a ~4% return during ownership.Beyond that, perhaps pick a Vanguard 80 or similar (IM80 if you join those of us with them!)....or indeed an ISA with a money market fund for guaranteed safety (albeit inflation is then the risk).
The biggest risk is perhaps 'doing nothing' - agonising for a few months and missing out on time in the market.....
Ken Figenus said:
£20k in a S&S ISA would be fine but have no idea who to select and trust.
As suggested above Vanguard is quite idiot proof and safe (not saying you're an idiot)Their charges are 0.22%, you can choose various risk based options ie VLS 40 (less risk) VLS60 - more etc up to 100% equities VLS100.
If Vanguard fail then the world's gone down. The non risk stuff is literally cash / NS&I premium bonds etc - we have that as well.
We've grown to about £200k in Vanguard between us currently growing at 11% a year, all now tax free. Naturally it could take a dive with world events but its survived Covid / Putin, the secret is invest and forget.
Ken Figenus said:
Thanks guys and for no one saying snowflake
The cash is imminent as decided to quit residential property months ago based on knowns rather than future unknowns - none of which are likely to be positive.
Really need to get up to speed on alternatives as all I know is self managed property.
Gilts have no income tax or CGT?
£20k in a S&S ISA would be fine but have no idea who to select and trust.
Seriously drawn to commercial property that will be far simpler than residential and can go in SSAS.
Many decisions to make so sorry I'm rambling but appreciate any input for cautious scaredy cats!
It's strange what different people view as high vs low risk!The cash is imminent as decided to quit residential property months ago based on knowns rather than future unknowns - none of which are likely to be positive.
Really need to get up to speed on alternatives as all I know is self managed property.
Gilts have no income tax or CGT?
£20k in a S&S ISA would be fine but have no idea who to select and trust.
Seriously drawn to commercial property that will be far simpler than residential and can go in SSAS.
Many decisions to make so sorry I'm rambling but appreciate any input for cautious scaredy cats!
I'm very happy with various fund investments through my pensions which have shown a fair amount of volatility in recent years of course, but which have nevertheless returned around 11% YoY over the past 4 years, but I wouldn't touch commercial property with a bargepole!
I know very little about it, but just looking at the number of vacant High Street premises, the reluctance of people to return to the office after Covid and the inexorable rise of eCommerce is enough to make me think it's surely a very high risk sector?
Ken Figenus said:
£20k in a S&S ISA would be fine but have no idea who to select and trust.
I'd argue the trick is not to select: https://monevator.com/why-a-total-world-equity-ind...Kermit power said:
It's strange what different people view as high vs low risk!
I'm very happy with various fund investments through my pensions which have shown a fair amount of volatility in recent years of course, but which have nevertheless returned around 11% YoY over the past 4 years, but I wouldn't touch commercial property with a bargepole!
I know very little about it, but just looking at the number of vacant High Street premises, the reluctance of people to return to the office after Covid and the inexorable rise of eCommerce is enough to make me think it's surely a very high risk sector?
Agree that commercial property is really tricky at the moment.I'm very happy with various fund investments through my pensions which have shown a fair amount of volatility in recent years of course, but which have nevertheless returned around 11% YoY over the past 4 years, but I wouldn't touch commercial property with a bargepole!
I know very little about it, but just looking at the number of vacant High Street premises, the reluctance of people to return to the office after Covid and the inexorable rise of eCommerce is enough to make me think it's surely a very high risk sector?
The one in my SSAS has been succes but only because it was rented to our own business which we then sold to a very large company
When they vacate it will effectively be a white elephant, and have to be converted to residential which till take time and money and isn't as straightforward as it could be.
I've looked at commercial properties locally and nearly all have very large void periods.
Edited by TownIdiot on Tuesday 11th June 08:16
Claret m said:
Gilts maybe, lower return but safe.
No CGT in a GIA.
This would be my go to option if you have already maxed your ISA and you are a high rate tax payer (if so choose a low interest bearing gilt) and hold until maturity.No CGT in a GIA.
As usual, do you know own research before you pull the trigger, certain gilts work better for certain circumstances (when the ISA is already full + you are a higher rate tax payer).
DT1975 said:
As suggested above Vanguard is quite idiot proof and safe (not saying you're an idiot)
Their charges are 0.22%, you can choose various risk based options ie VLS 40 (less risk) VLS60 - more etc up to 100% equities VLS100.
If Vanguard fail then the world's gone down. The non risk stuff is literally cash / NS&I premium bonds etc - we have that as well.
We've grown to about £200k in Vanguard between us currently growing at 11% a year, all now tax free. Naturally it could take a dive with world events but its survived Covid / Putin, the secret is invest and forget.
Which of the Vanguard fund (or funds) are you finding works for you?Their charges are 0.22%, you can choose various risk based options ie VLS 40 (less risk) VLS60 - more etc up to 100% equities VLS100.
If Vanguard fail then the world's gone down. The non risk stuff is literally cash / NS&I premium bonds etc - we have that as well.
We've grown to about £200k in Vanguard between us currently growing at 11% a year, all now tax free. Naturally it could take a dive with world events but its survived Covid / Putin, the secret is invest and forget.
xeny said:
Ken Figenus said:
£20k in a S&S ISA would be fine but have no idea who to select and trust.
I'd argue the trick is not to select: https://monevator.com/why-a-total-world-equity-ind...Absolutely this!
Ken, take half an hour with a cuppa to watch Lars videos over at https://kroijer.com
(eta - just realised the moneyvator link *was* with Lars
)Then pick a global fund - perhaps a Vanguard 80 or IM80 (see sticky threads), sit back and relax. Pick a couple of you want to hedge bets.
Sounds far safer than commercial property to me!
Edited by mikeiow on Tuesday 11th June 09:19
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