Five year ISA stash which one?

[carreauchompeur]

Hi folks,

I’ve just started a 5 year fixed mortgage deal. In my last one I was overpaying directly off the balance, in hindsight would have been better investing it but that was how my mind was at the time!

New Mortgage rate is 3.9pc. I am aiming for overpayments of £400 a month, slightly more than the last one but manageable. I want to get this mortgage paid off ASAP so I can focus on other things in life.

I currently have a Wealthify stocks and shares ISA which I pay £100 a month into. “Ambitious” style. I haven’t been particularly impressed with returns over the past 5yrs I’ve had it, although the last year seems to have picked up a bit.

Any suggestions for anything fairly high yielding over a 5 year timescale, more or less?

[Hustle_]

High yield implies high risk. Also, everybody’s scrabbling to find out where the yields are coming from for years to follow, and nobody knows! Forecasts look pretty lacklustre. Hedge your bets?

[Panamax]

carreauchompeur said:

I haven t been particularly impressed with returns over the past 5yrs I've had it, although the last year seems to have picked up a bit.

That's bizarre. Any equity fund should have made you a fat packet these last 5 years, especially an "ambitious" one.

[carreauchompeur]

Well yes, I thought the same! I have been drip feeding into it, initially £50/mo and for the last 2 years or so £100 but it is only just starting to steepen its curve.

[Hustle_]

So you're going to have to address the subject of risk. I am in a S&S ISA invested in essentially a global tracker and it has done +14% in 8 months. Great. But when the imminent financial armageddon takes place, that + could become a -.

If you invest in global trackers, will you be in positive territory at the end of 2030? Probably, but nobody's going to guarantee it.