Where to park money?

[23.7]

£100k. Premium bonds maxed out, we don't need an income, but also don't want it tied up forever. (a few months notice would be okay)

Needs to be secure, also good if it beat inflation.

Whenever I've asked my IFA in the past he's been vague and offered a property investment scheme which I'm really not sure about.

[Richard-G]

I’ve been terrible at stacking large volumes of cash in instant savers (Marcus etc) until i followed the Intelligent money thread in here.

i opened a stocks and shares ISA which was very easy, placed it into a low risk equity fund and now I’m £2k up in 4 months.

i only wish id started sooner! To withdraw cash takes around 3 days iirc and no penalty, obvs if its an ISA you can only put in £20k a year.

they also do general investment accounts etc. Other similar services exist with HL and fundsmith etc, i just found the IM guys non patronising and straightforward.

[Crumpet]

I’ve been happy with Vanguard in an S&S ISA. Think it’s +7.5% since I opened it in February.

[JapanRed]

As above, plus you can put money in your kids premium bonds (£50k per child).

[VR99]

Don't want to be 'that guy' but.....we have had a good run in the markets for the last few years.
If and that's a big 'if' there is a market correction or crash would.you be comfortable taking a 20-40% hit? It's not a loss of course unless you sell out and yes there are lower risk funds available but to 'beat inflation' I can't see how you can avoid taking some risk.
Most of my cash is in Marcus gaining a pittance as all my investments are 100% Equities across the board and the markets are looking very frothy (IMO) and make me a bit nervous... as well as need for some cash to cover short term large-ish costs that are coming up.

[Simpo Two]

23.7 said:

Needs to be secure, also good if it beat inflation.

What do you mean by secure?

[23.7]

Simpo Two said:

23.7 said:

Needs to be secure, also good if it beat inflation.

What do you mean by secure?

Secure as in risk averse.

[Jiebo]

VR99 said:

Don't want to be 'that guy' but.....we have had a good run in the markets for the last few years.
If and that's a big 'if' there is a market correction or crash would.you be comfortable taking a 20-40% hit? It's not a loss of course unless you sell out and yes there are lower risk funds available but to 'beat inflation' I can't see how you can avoid taking some risk.
Most of my cash is in Marcus gaining a pittance as all my investments are 100% Equities across the board and the markets are looking very frothy (IMO) and make me a bit nervous... as well as need for some cash to cover short term large-ish costs that are coming up.

If you think there is a risk that you need the capital exactly at the point there is a large crash, and you wouldn’t be able to wait 6 months - 2 years, then this is the real risk.

I’m almost 100% in equities because I genuinely think if there is another huge correction, all they will do is print 2x the amount of money as the last time to get out of the black hole, and it will all shoot back up again.

Is there a risk of a 40% fall with no recovery across the board in a global tracker fund? Yes, but I think its so minute now, it’s not worth worrying about.

[Scootersp]

Jiebo said:

Is there a risk of a 40% fall with no recovery across the board in a global tracker fund? Yes, but I think its so minute now, it’s not worth worrying about.

and this is it in a nutshell, you now have to make a choice you think is the lowest risk, there is no 4% (for example) interest option and so people like you and me have to make a decision.

With the potential for inflation then it puts even more pressure to take risks, I think it's almost criminal that borrowing is so cheap whilst saving gets you so little.