100k to invest for 2 years?

[muppetboy]

What would you do,,,,,,

[sidicks]

Depends what the objectives are!

[ringram]

Thats a hard one.
Not many inflation protected options.
Maybe price setting equities...

I assume you have paid all your debts off!?

If you pay income taxes max out your pension. Basically up to 50% tax back. So thats a no brainer for a start.
(ie) Front load your pension now as much as possible and claw it back from savings over time.

[muppetboy]

Basically sold up moved West, no debts, small business ticking over nicely. Renting a house, don't want a mortage at the moment yet. Leaving it in the bank is a bit of a waste. Possibility of buying somewhere cash in a nearby town (130k) and renting it out. BUT house prices in South Devon are on a downward turn at the moment so not sure about that. Just wondering what other options are out there. Not adverse to a bit of risk.

[croyde]

Old Nag in the 3.15 Kempton Park 150-1

[anonymous-user]

£30k premium bonds

£32.5k National Grid Shares

£32.5k Aviva Shres

£5k Praesepe shares

not intended as advice, no qualifications etc. but its what I would do

[cymtriks]

A Tuscan (circa 20K)
10K of Gold
Shares

Given the PH mantra that global warming is a con can anyone think of a way to make money out of cold weather?

Gas supplies?
Triple glazing manufacturers?
Wine (Northern vineyards may be at their peak)?
Ski equipment?

[J__D]

A mix of bonds and equities, international exposure would be a benefit at the moment. Maybe some yielding stocks, not much growth, but good income if your looking for security. How risky are you? E-mail me if you want to ask anything.

[DonkeyApple]

Er. Cash.

It's money that you will need to access in order to buy a home.

The risk associated with investing it in a market is too high.

Cash.

[5potTurbo]

Lend £6K+ to Emsman?

Invest £94K for real investment returns?

[shamrock]

I think you'd do well to receive anything more than a 5% net return without going to a lot of hassle if you played the markets. Of course there is also risk with this approach.

Premium bonds only pay 2% in my experience.

I'd consider Gold even though it is at an all time high with such uncertainty in the short term.

With such a short window I'd be tempted to put it into something like a Santander 2 Year Fixed Rate Bond. You'll get 3.5% (AER). It won't make you rich but you're guaranteed a return and security. The only draw back is that you won't be able to access your funds for that period.

[GT03ROB]

DonkeyApple said:

Er. Cash.

It's money that you will need to access in order to buy a home.

The risk associated with investing it in a market is too high.

Cash.

Listen to this man. 2 years is too short a period to recover any significant fall in the markets.

[J__D]

GT03ROB said:

DonkeyApple said:

Er. Cash.

It's money that you will need to access in order to buy a home.

The risk associated with investing it in a market is too high.

Cash.

Listen to this man. 2 years is too short a period to recover any significant fall in the markets.

Disagree, cash is useless unless your purchasing something asap. Your 100% effectively losing money keeping it in cash. Inflation will completely erode it, and interest rates, well, no need to even mention.

Stock market over the next 2 years will prob be stronger than over the next 5-10. FTSE has already gone from 4,500 - 5,700. Thats what? 20 - 25% increase isn't it? Ok, Christmas is a bit slow, but don't see why at least a portion shouldn't be going towards that. Look at some ETF's, lower risk than individual share in a lot of cases, due to diversity, and pretty cheap to invest into, much cheaper than any funds. Plus you can get your money out at any point.

Edited by J__D on Thursday 28th October 16:12

[DonkeyApple]

J__D said:

GT03ROB said:

DonkeyApple said:

Er. Cash.

It's money that you will need to access in order to buy a home.

The risk associated with investing it in a market is too high.

Cash.

Listen to this man. 2 years is too short a period to recover any significant fall in the markets.

Disagree, cash is useless unless your purchasing something asap. Your 100% effectively losing money keeping it in cash. Inflation will completely erode it, and interest rates, well, no need to even mention.

Stock market over the next 2 years will prob be stronger than over the next 5-10. FTSE has already gone from 4,500 - 5,700. Thats what? 20 - 25% increase isn't it? Ok, Christmas is a bit slow, but don't see why at least a portion shouldn't be going towards that. Look at some ETF's, lower risk than individual share in a lot of cases, due to diversity, and pretty cheap to invest into, much cheaper than any funds. Plus you can get your money out at any point.

Edited by J__D on Thursday 28th October 16:12

No one in their right mind would invest what is fundamentally the majority of their liquid assets into a stock market based on a 2 year time horizon. End of.

[GT03ROB]

J__D said:

GT03ROB said:

DonkeyApple said:

Er. Cash.

It's money that you will need to access in order to buy a home.

The risk associated with investing it in a market is too high.

Cash.

Listen to this man. 2 years is too short a period to recover any significant fall in the markets.

Disagree, cash is useless unless your purchasing something asap. Your 100% effectively losing money keeping it in cash. Inflation will completely erode it, and interest rates, well, no need to even mention.

Stock market over the next 2 years will prob be stronger than over the next 5-10. FTSE has already gone from 4,500 - 5,700. Thats what? 20 - 25% increase isn't it? Ok, Christmas is a bit slow, but don't see why at least a portion shouldn't be going towards that. Look at some ETF's, lower risk than individual share in a lot of cases, due to diversity, and pretty cheap to invest into, much cheaper than any funds. Plus you can get your money out at any point.

Edited by J__D on Thursday 28th October 16:12

He's going looking at buying a house in the next couple of years, chances are house prices at best won't move over that period. Therefore all he needs to do is preserve it's value to stand still. The markets have been on an 20 month one way direction having risen around 40% in that time. The chances of that sort of run continuing for the next 2yrs, without an adjustment?? Well anyones guess I suppose!

[shamrock]

GT03ROB said:

J__D said:

GT03ROB said:

DonkeyApple said:

Er. Cash.

It's money that you will need to access in order to buy a home.

The risk associated with investing it in a market is too high.

Cash.

Listen to this man. 2 years is too short a period to recover any significant fall in the markets.

Disagree, cash is useless unless your purchasing something asap. Your 100% effectively losing money keeping it in cash. Inflation will completely erode it, and interest rates, well, no need to even mention.

Stock market over the next 2 years will prob be stronger than over the next 5-10. FTSE has already gone from 4,500 - 5,700. Thats what? 20 - 25% increase isn't it? Ok, Christmas is a bit slow, but don't see why at least a portion shouldn't be going towards that. Look at some ETF's, lower risk than individual share in a lot of cases, due to diversity, and pretty cheap to invest into, much cheaper than any funds. Plus you can get your money out at any point.

Edited by J__D on Thursday 28th October 16:12

He's going looking at buying a house in the next couple of years, chances are house prices at best won't move over that period. Therefore all he needs to do is preserve it's value to stand still. The markets have been on an 20 month one way direction having risen around 40% in that time. The chances of that sort of run continuing for the next 2yrs, without an adjustment?? Well anyones guess I suppose!

Would keeping the £100k in cash preserve its value over 2 years if we do see high inflation?

[williaa68]

If you are a basic rate taxpayer then have a look at Edinburgh Investment Trust. Yield approx 5% as a dividend which means it is effectively net for basic rate (+ another 32.5% for higher rate). Well diversified, low MER, good manager. Could do worse although 2 years is perhaps a bit short. As a general rule Investment Trusts offer better value than unit trusts as they dont pay commission to intermediaries...

[DonkeyApple]

shamrock said:

GT03ROB said:

J__D said:

GT03ROB said:

DonkeyApple said:

Er. Cash.

It's money that you will need to access in order to buy a home.

The risk associated with investing it in a market is too high.

Cash.

Listen to this man. 2 years is too short a period to recover any significant fall in the markets.

Disagree, cash is useless unless your purchasing something asap. Your 100% effectively losing money keeping it in cash. Inflation will completely erode it, and interest rates, well, no need to even mention.

Stock market over the next 2 years will prob be stronger than over the next 5-10. FTSE has already gone from 4,500 - 5,700. Thats what? 20 - 25% increase isn't it? Ok, Christmas is a bit slow, but don't see why at least a portion shouldn't be going towards that. Look at some ETF's, lower risk than individual share in a lot of cases, due to diversity, and pretty cheap to invest into, much cheaper than any funds. Plus you can get your money out at any point.

Edited by J__D on Thursday 28th October 16:12

He's going looking at buying a house in the next couple of years, chances are house prices at best won't move over that period. Therefore all he needs to do is preserve it's value to stand still. The markets have been on an 20 month one way direction having risen around 40% in that time. The chances of that sort of run continuing for the next 2yrs, without an adjustment?? Well anyones guess I suppose!

Would keeping the £100k in cash preserve its value over 2 years if we do see high inflation?

Not relevant. High inflation will be countered by rising interest rates, at which point the asset value of the property will fall while the yield on cash will increase. Even if it is a net decline v inflation it is negligiable and in heavy contrast to the downside risk of the property valuation.

It's why over such a short time horizon and a requirement to remain liquid you wouldn't consider equities or even cash equivs, but cash and only cash.

You should be able to secure an average of 3% which will compare favourable to current inflation levels without adopting any capital risks.

[GT03ROB]

shamrock said:

GT03ROB said:

J__D said:

GT03ROB said:

DonkeyApple said:

Er. Cash.

It's money that you will need to access in order to buy a home.

The risk associated with investing it in a market is too high.

Cash.

Listen to this man. 2 years is too short a period to recover any significant fall in the markets.

Disagree, cash is useless unless your purchasing something asap. Your 100% effectively losing money keeping it in cash. Inflation will completely erode it, and interest rates, well, no need to even mention.

Stock market over the next 2 years will prob be stronger than over the next 5-10. FTSE has already gone from 4,500 - 5,700. Thats what? 20 - 25% increase isn't it? Ok, Christmas is a bit slow, but don't see why at least a portion shouldn't be going towards that. Look at some ETF's, lower risk than individual share in a lot of cases, due to diversity, and pretty cheap to invest into, much cheaper than any funds. Plus you can get your money out at any point.

Edited by J__D on Thursday 28th October 16:12

He's going looking at buying a house in the next couple of years, chances are house prices at best won't move over that period. Therefore all he needs to do is preserve it's value to stand still. The markets have been on an 20 month one way direction having risen around 40% in that time. The chances of that sort of run continuing for the next 2yrs, without an adjustment?? Well anyones guess I suppose!

Would keeping the £100k in cash preserve its value over 2 years if we do see high inflation?

I meant relative to house prices, not other items so the only relevent measure here would be house price inflation or deflation.

[XTR2Turbo]

yorkshire BS 1 year 3.4%