Where to invest 100k for 3 years?
Discussion
sidicks said:
cashmax said:
sidicks said:
cashmax said:
Perhaps worth looking at the kick out plan FTSE based structured products from the likes of Investec or Morgan Stanley.
6-8% annual growth is normal, pretty low risk, but capital can be reduced if you get unlucky.
Normally these have high fees built in making them relatively poor value.6-8% annual growth is normal, pretty low risk, but capital can be reduced if you get unlucky.
That doesn’t mean that you won’t get ‘exactly what is says on the tin’.
That's the point though isn't it?
Someone says "medium risk", well simply put that means that if you put £40K into equities you might return in 3 years and find your £40K is now worth 60K so "mission accomplished" and you now have £120K or you might find it's worth £10K so you now have £76K (let's assume the other £60K got put into something 100% safe).
Guaranteed returns don't pay much and people often say "invest" when they actually mean save.
I've not seen a response from the OP on whether they can afford to lose the money or wait it out if the capital value is less than they put in.
I only started investing in funds recently but 3 years isn't a long time, you can be sensible about it but I don't think anyone would ever guarantee a return of 20% over 3 years, otherwise we'd all be doing it.
Someone says "medium risk", well simply put that means that if you put £40K into equities you might return in 3 years and find your £40K is now worth 60K so "mission accomplished" and you now have £120K or you might find it's worth £10K so you now have £76K (let's assume the other £60K got put into something 100% safe).
Guaranteed returns don't pay much and people often say "invest" when they actually mean save.
I've not seen a response from the OP on whether they can afford to lose the money or wait it out if the capital value is less than they put in.
I only started investing in funds recently but 3 years isn't a long time, you can be sensible about it but I don't think anyone would ever guarantee a return of 20% over 3 years, otherwise we'd all be doing it.
cashmax said:
You said they were poor value. I don't think 8% is poor value in todays market, given the OP's risk requirements. Everything other than something like HMT income bonds at sub 1% is going to have some risk attached to it.
8% is what you happened to achieve in a different time period, it's totally irrelevant to the OP's requirements.Poor value is assessed by comparing the actual exposure achieved with the exposure that could have been achieved based on market parameters.
This is where the hidden costs - the ones that you have overlooked - can provide a significantly worse return that should have bene the case, given the risks being taken.
I think the FTSE All Share returned around 15% for both 2016 and 2017.
cashmax said:
Perhaps you could suggest a solution for the OP, rather than simply pointing out the downside of everyone else's suggestions?
1. I already have.2. Pointing out the flaws in other people's suggestions is equally useful for the OP.
Edited by sidicks on Friday 24th August 19:08
b
hstewie said:
hstewie said: I've not seen a response from the OP on whether they can afford to lose the money.
Sorry been really busy with work, whole infrastructure upgrade, anyhow it's mostly an inheritance so unexpected however I'd like to pass it on to my daughter rather than piss it up the wall on an M2, in terms of risk I'd say a 3 or 4. Obviously I'd like more than I started with but I'm a complete novice with investing but nutmeg or vanguard do look tempting.
The abysmal savings account rates means I'd lose money with inflation so I'd like something more if possible.
otherman said:
trowelhead said:
Nah, defaults are rising across the sector. Disaster waiting to happen. Multiple platforms have disappeared etc.
You missed the part about 'secured by first legal charge over the property' with typically 70% LTV. Tell me a significant platform that disspeared.
https://www.pistonheads.com/gassing/topic.asp?h=0&...
James_B said:
Good, I’m glad that you enjoy it, and that you are doing well. It’s especially good that if you call it wrong you’ll still have a very nice bottle to drink.
I’m like quite a few people in finance with my investments, far too heavily invested in financial stocks, but with no choice in the matter, and with the rest mainly in diversified funds That I buy and forget.
Thank you mate I’m like quite a few people in finance with my investments, far too heavily invested in financial stocks, but with no choice in the matter, and with the rest mainly in diversified funds That I buy and forget.
As you say I can drown my sorrows if it goes Pete Tong.I am always interested in looking at different possibilities of investing money.
My father invested a lot of money in the 80's and 90's in his pension and also shares and basically lost a lot of money.
He has a private pension but considering what he put in it over the years it would have been much better in different area's. Hindsight is a wonderful thing.
He was advised in many aspects of what he was doing but the share dealing was more his own personal flutter which would normally land up making a bit but losing more. This was when it was a phone call rather than sitting at a computer.
This is why I went down the Whisky route but obviously, I am not investing everything in this area. But perhaps it is wrong of me to completely rule out investing in financial stocks.
The interest rates being as they are it is not exactly easy to make any savings work well for any of us hence why we are always looking for something that will
Again I want to wish you all the best with your portfolio going forward.
This goes for everyone on this thread.
Might just follow this to get some fresh ideas
Edited by anonymous-user on Tuesday 28th August 21:10
FredClogs said:
Croutons said:
keith333 said:
What about some high yielding FTSE 100 shares such as National Grid, SSE, Vodafone, Lloyds, Centrica, Imperial Brands and Legal & General? Decent yields and a limited downside I hope...
https://www.dividendyields.org/ftse100-best-divide...
Individual shares, over a 3 year period? You're not an ifa, are you? https://www.dividendyields.org/ftse100-best-divide...
Anyone thinking of de-risking portfolio’s away from Equity (for colour this is positive affirmation of my bearish sentiments!)
stongle said:
Anyone using Demark Combo indicator? Its suggesting the Equity bull run is near exhaustion and we are about to see a reversal trend. It predicted correctly back in Jan when SPX fell 12%, (obviously the SPX made it all back and made a record high last week), but 2nd time this year we see potential inflexion point.
Anyone thinking of de-risking portfolio’s away from Equity (for colour this is positive affirmation of my bearish sentiments!)
Short answer = No, I’m in equities for the long term and don’t care about market volatility.Anyone thinking of de-risking portfolio’s away from Equity (for colour this is positive affirmation of my bearish sentiments!)
Sticking to OP's original question, we don't need to know anything about his situation or view on risk.
I split between stock markets via managed funds from one of the well known online services and cars (the latter I exclude from my reply due to the higher risk - but bloody good fun!).
There are good returns to be had, even with the regular downturns. Perhaps consider...
Emerging Markets 25%
Tech 20%
UK 15%
Europe 25%
Asia 15%
I've been checking the markets and funds regularly over the past 20-odd years and wouldn't leave it to a lazy pension company.
But, being that OP posted the question on a petrolhead site, I assume they are one so I'd maybe reduce some of the above and put, say, 20% into a low mileage hot hatch (like a Golf GTI or similar) then enjoy the investment with a few rides out over the three years. Expect maybe 10-20% profit.
Happy to be questioned on my choices.
I split between stock markets via managed funds from one of the well known online services and cars (the latter I exclude from my reply due to the higher risk - but bloody good fun!).
There are good returns to be had, even with the regular downturns. Perhaps consider...
Emerging Markets 25%
Tech 20%
UK 15%
Europe 25%
Asia 15%
I've been checking the markets and funds regularly over the past 20-odd years and wouldn't leave it to a lazy pension company.
But, being that OP posted the question on a petrolhead site, I assume they are one so I'd maybe reduce some of the above and put, say, 20% into a low mileage hot hatch (like a Golf GTI or similar) then enjoy the investment with a few rides out over the three years. Expect maybe 10-20% profit.
Happy to be questioned on my choices.
stongle said:
Thanks for the brevity..... ;-)
I can see the logic - easy to over trade (& incur costs etc). But the macro environment feels well, wrong.
Jackson Hole was a non-event (no Carney / Draghi - too many problems at home); way too quiet. However, the undercurrent from most Central Bankers is MP is done and we need new stimulus measures (or rather Trump sees protectionist measures).
If MP does give in (lets face it if you are not an "asset holder" now you are f**ked) / protectionism break out (tariff war) we could end up with a multi-year / decade bear cycle.
Possibly a bit tinfoil hat - I'm not stocking up on Spam and NATO 5.56mm, yet - but can 3-4% over inflation be done relatively low risk?
No.I can see the logic - easy to over trade (& incur costs etc). But the macro environment feels well, wrong.
Jackson Hole was a non-event (no Carney / Draghi - too many problems at home); way too quiet. However, the undercurrent from most Central Bankers is MP is done and we need new stimulus measures (or rather Trump sees protectionist measures).
If MP does give in (lets face it if you are not an "asset holder" now you are f**ked) / protectionism break out (tariff war) we could end up with a multi-year / decade bear cycle.
Possibly a bit tinfoil hat - I'm not stocking up on Spam and NATO 5.56mm, yet - but can 3-4% over inflation be done relatively low risk?
sidicks said:
Short answer = No, I’m in equities for the long term and don’t care about market volatility.
Brevity at its best.Over trading in volatile markets, racking up costs I's steer clear off. But the macro environment is giving me the willies.
FA came out of Jackson Hole this year; but most Central Bankers are trying to wave off MP (fuelling asset valuations); so you can either go Fiscal intervention or Protectionist for economies. If either break out, surely the rug is yanked from under current equity valuation?
Maybe a bit tinfoil hat (I also see the EU caught in a doom-loop with private sector support for public sector spending largesse) - but can 3-4% over inflation be achieved relatively low risk that does'nt involve equity, property or gold (too heavy can't shoot anyone with it).
bhstewie said:
hstewie said: 40K split equally between Fundsmith and Lindsell Train Global Equity?
Always easier when it's other peoples money so take with a bag of salt as different people have different definitions of "moderate".
I'm in both of these for a much smaller amount....but in 7mths have achieved 13% and 7% respectively. Its a diverse portfolio I'm looking at here.Always easier when it's other peoples money so take with a bag of salt as different people have different definitions of "moderate".
stongle said:
sidicks said:
Short answer = No, I’m in equities for the long term and don’t care about market volatility.
Brevity at its best.Over trading in volatile markets, racking up costs I's steer clear off. But the macro environment is giving me the willies.
FA came out of Jackson Hole this year; but most Central Bankers are trying to wave off MP (fuelling asset valuations); so you can either go Fiscal intervention or Protectionist for economies. If either break out, surely the rug is yanked from under current equity valuation?
Maybe a bit tinfoil hat (I also see the EU caught in a doom-loop with private sector support for public sector spending largesse) - but can 3-4% over inflation be achieved relatively low risk that does'nt involve equity, property or gold (too heavy can't shoot anyone with it).
Time to secure some growth whilst aware that this strategy comes with its own risks.
Gassing Station | Finance | Top of Page | What's New | My Stuff