Where should I put £100k for two years ??
Discussion
I'm a 911?? I thought not too.
Basically, I'll be selling a property I have soon and will have around £100k left which I need to set aside for 2 years when i next look to move. I've never been in a position to be a saver before and i'd assume i should max out mine and the wives isa allowance??
Would there be any other opportunities I've missed? premium bonds??
Your thoughts would be appreciated.
Basically, I'll be selling a property I have soon and will have around £100k left which I need to set aside for 2 years when i next look to move. I've never been in a position to be a saver before and i'd assume i should max out mine and the wives isa allowance??
Would there be any other opportunities I've missed? premium bonds??
Your thoughts would be appreciated.
Easy option would be a well managed fund such as one of the Lindsell Train ones through the likes of HL.
Haven't looked at the figures in the last few months but think it may well be averaging north of 10% pa
If you don't mind a little more effort (although not much) then either JV partnership or an investor bank for property development (no not Funding Circle type P2P leading).
A reputable borrower will give you first charge as security so very little if any risk. The investor bank I know only deal directly with borrowers that they know and trust so no issues and very good reputation. Returns of 15%+ annualised are about par for the course.
If you're looking for 1-1.5% then I'd just stuff it under the mattress, not much difference TBH.
Haven't looked at the figures in the last few months but think it may well be averaging north of 10% pa
If you don't mind a little more effort (although not much) then either JV partnership or an investor bank for property development (no not Funding Circle type P2P leading).
A reputable borrower will give you first charge as security so very little if any risk. The investor bank I know only deal directly with borrowers that they know and trust so no issues and very good reputation. Returns of 15%+ annualised are about par for the course.
If you're looking for 1-1.5% then I'd just stuff it under the mattress, not much difference TBH.
Nick928 said:
Easy option would be a well managed fund such as one of the Lindsell Train ones through the likes of HL.
Haven't looked at the figures in the last few months but think it may well be averaging north of 10% pa
Or it might be down about 3% over the last few weeks. I speak from significant personal exposure. Haven't looked at the figures in the last few months but think it may well be averaging north of 10% pa
Edited by Croutons on Friday 28th September 08:01
Croutons said:
Nick928 said:
Easy option would be a well managed fund such as one of the Lindsell Train ones through the likes of HL.
Haven't looked at the figures in the last few months but think it may well be averaging north of 10% pa
Or it might be down about 3% over the last few weeks. I speak from significant personal exposure. Haven't looked at the figures in the last few months but think it may well be averaging north of 10% pa
Do not listen to this douche.
Lindsell Train has performed extremely well over many years.
3 months +6.92%
6 months +21.9%
1 year +29.74%
3 years +97.98%
5 years +162.93%
You need to spread your risk, so perhaps £50,000 in Premium Bonds and split the remaining £50,000 with 1/3rd in Fundsmith, Scottish Mortgage and Lindsell Train.
LT and Fundsmith have done very well for people who hold them (and I do) but I'd be very cautious about suggesting them (or any fund) as some kind of "sure thing" for someone who wants to put in £100K and be positive they will definitely have at least £100K 2 years later.
Point being you may have £140K 5 years later but that may be no use if you only have £70K at the point you need it.
Point being you may have £140K 5 years later but that may be no use if you only have £70K at the point you need it.
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hstewie said:
hstewie said: LT and Fundsmith have done very well for people who hold them (and I do) but I'd be very cautious about suggesting them (or any fund) as some kind of "sure thing" for someone who wants to put in £100K and be positive they will definitely have at least £100K 2 years later.
Point being you may have £140K 5 years later but that may be no use if you only have £70K at the point you need it.
This ^ . If you need to have your original capital in 2 years time, equities is a bad place to put it.Point being you may have £140K 5 years later but that may be no use if you only have £70K at the point you need it.
Croutons said:
Nick928 said:
Easy option would be a well managed fund such as one of the Lindsell Train ones through the likes of HL.
Haven't looked at the figures in the last few months but think it may well be averaging north of 10% pa
Or it might be down about 3% over the last few weeks. I speak from significant personal exposure. Haven't looked at the figures in the last few months but think it may well be averaging north of 10% pa
Do not listen to this douche.
Earlier this year I pulled everything out expecting them to drop after a short burst upwards...and they just kept going up
I could have bought a nice car with the money I "lost" by not just leaving it with them!
The only caveat is that the growth they have had over the past 5 years cannot be sustained IMO.
Personally I would spread the 100k over at least 5 decent performing global funds. Review it every 6 months or so and move the worst performing to something better (or safer).
As with everything S&S based, you have to be prepared to lose money, and if that's not an option then you need to aim lower/safer.
Edited by 98elise on Friday 28th September 08:03
98elise said:
Personally I would spread the 100k over at least 5 decent performing global funds. Review it every 6 months or so and move the worst performing to something better (or safer).
I've no hate, but I think that equities for a 2 year duration is a terrible idea.The trouble is that even if you split it up across multiple funds, in a downturn their performance tends to be broadly correlated - in a major downturn, not much is going up. Look at this graph:
http://i.imgur.com/Sdg1UZd.jpg
OK, it's for UK equities not global, but for 2 years you're looking at ~40% likelihood of losing money.
Croutons said:
Nick928 said:
Easy option would be a well managed fund such as one of the Lindsell Train ones through the likes of HL.
Haven't looked at the figures in the last few months but think it may well be averaging north of 10% pa
Or it might be down about 3% over the last few weeks. I speak from significant personal exposure. Haven't looked at the figures in the last few months but think it may well be averaging north of 10% pa
Do not listen to this douche.
As others have said, a few weeks aren’t representative and over the longer term they have performed very well indeed. Also from personal experience.
98elise said:
Why the name calling?
I apologise. I misread the op, which I took to be the weekly request from someone who has 50-500k which they want back in 6-36 months.These usually come with a request for no risk but a 5-12% return. In this case the op has not mentioned risk, so gambling over a short period might be acceptable to them.
Groak will soon be along to suggest 7 crack houses.
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