£140k to invest

[Flure]

Hello, everyone.

It's been a long time since I've been hereabouts.

I hope evereyone is well.

Imagine, if you will, that I had - hypothetically - sold a property and, in September, invested £140000 in UK Income Bond, returning 1.16%

Now, imagine that the UK Gov has reduced that return to 0.01%.

Where would the shrewdies put that £140000 if said shrewdies were Risk Averse?

[langley59]

Hello, everyone.

It's been a long time since I've been hereabouts.

I hope evereyone is well.

Imagine, if you will, that I had - hypothetically - sold a property and, in September, invested £140000 in UK Income Bond, returning 1.16%

Now, imagine that the UK Gov has reduced that return to 0.01%.

Where would the shrewdies put that £140000 if said shrewdies were Risk Averse?

That begs a lot of questions. What do you intend to use the money for ultimately and in what timeframe?

[Itsallaguess]

Where would the shrewdies put that £140000 if said shrewdies were Risk Averse?

Have you already got any Premium Bonds?

I'd fill that allowance, certainly, and also look to fill any spouse Premium Bond allowance too, if there's any available (spouses, or allowances....)

Cheers,

Itsallaguess

[dealtn]

Hello, everyone.

It's been a long time since I've been hereabouts.

I hope evereyone is well.

Imagine, if you will, that I had - hypothetically - sold a property and, in September, invested £140000 in UK Income Bond, returning 1.16%

Now, imagine that the UK Gov has reduced that return to 0.01%.

Where would the shrewdies put that £140000 if said shrewdies were Risk Averse?

Sounds like you don't want to invest it at all so this is the wrong place to ask.

viewforum.php?f=11

Bank Account Savings and ISAs may be more appropriate if you are looking for a risk averse interest rate return.

[johnhemming]

Risk Averse?

This is an interesting couple of words. There is, of course, a risk in holding cash in that the value may reduce over time as a result of inflation.

[Mike88]

Shares and Bonds are not the place for a risk averse investor. I agree with the earlier poster who suggested Premium Bonds.

[GoSeigen]

Hello, everyone.

It's been a long time since I've been hereabouts.

I hope evereyone is well.

Imagine, if you will, that I had - hypothetically - sold a property and, in September, invested £140000 in UK Income Bond, returning 1.16%

Now, imagine that the UK Gov has reduced that return to 0.01%.

Where would the shrewdies put that £140000 if said shrewdies were Risk Averse?

Oh boy ask a simple question, get a bunch of hobby horses!



I've been investing in bank ordinary shares and building society PIBS.

Ideally only invest enough of your capital to get your desired return and to limit your risk to what is acceptable for you. For instance if you can invest for 5 years, and could bear to lose 5% of your capital for the chance of earning 2%pa, and you think returns from those bank shares could double (or halve) an invested sum over that period, then investing 10% of your capital in those shares would give you a decent chance of achieving that. £14,000 is enough to invest without incurring excessive fees.

The remaining 90% of your funds remain in the risk-free investment.



GS

[AleisterCrowley]

Oh boy ask a simple question, get a bunch of hobby horses!

And along comes another one...

[Itsallaguess]

Hello, everyone.

It's been a long time since I've been hereabouts.

I hope evereyone is well.

Imagine, if you will, that I had - hypothetically - sold a property and, in September, invested £140000 in UK Income Bond, returning 1.16%

Now, imagine that the UK Gov has reduced that return to 0.01%.

Where would the shrewdies put that £140000 if said shrewdies were Risk Averse?

Oh boy ask a simple question, get a bunch of hobby horses!



I've been investing in bank ordinary shares and building society PIBS.

Ideally only invest enough of your capital to get your desired return and to limit your risk to what is acceptable for you. For instance if you can invest for 5 years, and could bear to lose 5% of your capital for the chance of earning 2%pa, and you think returns from those bank shares could double (or halve) an invested sum over that period, then investing 10% of your capital in those shares would give you a decent chance of achieving that. £14,000 is enough to invest without incurring excessive fees.

The remaining 90% of your funds remain in the risk-free investment.

'Hobby horses'?

At least they were in keeping with the OP's request of 'Risk Averse' ideas GS.....

A casual observer might think that someone considering banking shares to be 'low-risk', whilst dismissing those replies that are trying to actually keep to that 'low-risk' remit, might themselves be promoting a 'hobby horse' of their own....

Cheers,

Itsallaguess

[GoSeigen]

Hello, everyone.

It's been a long time since I've been hereabouts.

I hope evereyone is well.

Imagine, if you will, that I had - hypothetically - sold a property and, in September, invested £140000 in UK Income Bond, returning 1.16%

Now, imagine that the UK Gov has reduced that return to 0.01%.

Where would the shrewdies put that £140000 if said shrewdies were Risk Averse?

Oh boy ask a simple question, get a bunch of hobby horses!



I've been investing in bank ordinary shares and building society PIBS.

Ideally only invest enough of your capital to get your desired return and to limit your risk to what is acceptable for you. For instance if you can invest for 5 years, and could bear to lose 5% of your capital for the chance of earning 2%pa, and you think returns from those bank shares could double (or halve) an invested sum over that period, then investing 10% of your capital in those shares would give you a decent chance of achieving that. £14,000 is enough to invest without incurring excessive fees.

The remaining 90% of your funds remain in the risk-free investment.

'Hobby horses'?

At least they were in keeping with the OP's request of 'Risk Averse' ideas GS.....

A casual observer might think that someone considering banking shares to be 'low-risk', whilst dismissing those replies that are trying to actually keep to that 'low-risk' remit, might themselves be promoting a 'hobby horse' of their own....

Cheers,

Itsallaguess

You didn't read or think about my post then, did you, like earlier today.

GS

[Flure]

Yep. Good questions.

No special plans for it - and timeframe is, therefore, flexible.

[Flure]

Where would the shrewdies put that £140000 if said shrewdies were Risk Averse?

Have you already got any Premium Bonds?

I'd fill that allowance, certainly, and also look to fill any spouse Premium Bond allowance too, if there's any available (spouses, or allowances....)

Cheers,

Itsallaguess

Thanks. Yes, both partners have maxed their PB s.

[Itsallaguess]

You didn't read or think about my post then, did you...

I thought to ask myself why someone might wish to dismiss previous replies as 'hobby horses', when they seem perfectly reasonable options for the OP to consider, in keeping with his specific 'Risk Averse' request..

If you've got an alternative idea GS, I'm sure people would love to hear it, and if you consider it to be 'low risk' then you can explain why, and people can take a view on that, but why the specific need to denigrate earlier options like that?

Cheers,

Itsallaguess

[Flure]

Hello, everyone.

It's been a long time since I've been hereabouts.

I hope evereyone is well.

Imagine, if you will, that I had - hypothetically - sold a property and, in September, invested £140000 in UK Income Bond, returning 1.16%

Now, imagine that the UK Gov has reduced that return to 0.01%.

Where would the shrewdies put that £140000 if said shrewdies were Risk Averse?

Sounds like you don't want to invest it at all so this is the wrong place to ask. .

Ah, now that IS an interesting way to look at "investing".

[AleisterCrowley]

Don't forget the FSCS limits when assessing risk. £85k for banks and BS, with a higher short term allowance IIRC

[dealtn]

Hello, everyone.

It's been a long time since I've been hereabouts.

I hope evereyone is well.

Imagine, if you will, that I had - hypothetically - sold a property and, in September, invested £140000 in UK Income Bond, returning 1.16%

Now, imagine that the UK Gov has reduced that return to 0.01%.

Where would the shrewdies put that £140000 if said shrewdies were Risk Averse?

Sounds like you don't want to invest it at all so this is the wrong place to ask. .

Ah, now that IS an interesting way to look at "investing".

Well you asked "hypothetically" where someone who is risk averse but is now unhappy an interest bearing income bond that is government backed has reduced its return from 1.16% to 0.01% should invest.

That sounds "non-hypothetically" to me like a NS&I income Bond whose interest rate drops to 0.01% before the end of the month.

Well it seems to me I would suggest to someone that is used to a no notice, no penalty savings product, with no capital risk to look at savings accounts. That's not investing.

Apologies if that was too cryptic. If that's not the "hypothetical" scenario perhaps you can flesh out what it is you are looking for, and what you consider appropriate, or not, by your request for risk-averse. Otherwise it is difficult to help.

[billG]

One option you may wish to consider is Hargreaves Lansdowne have an 'Active Savings' facility where you setup an account which then allows you to allocation to different organizations offering returns from different saving institutions (banks, building societies etc.) The rates looks competitive to me and you maybe able to achieve a scintilla more interest going direct to each provider but for the hassle factor of having all you savings in one place and only having to open one account it may be worth it. You can split the amount between different fixed term saving periods as per your requirements. Remember to split your monies to take advantage of the £85K government guarantee.
Of course if your time frame is 5+ Years then investing in IT Wealth preservers such as RIT Capital Partners, Capital Gearing, Ruffer and Personal Assets is very likely to result in a positive return esp. after inflation - but there are no guarantees. (Look at how they performed over the past year to get an idea of how effective {or otherwise} they are.)

Good Luck.

[TUK020]

Counter-intuitive input

The world is in deep [expletive deleted]
Stock markets will have priced this in.
We think we are heading for a low interest/inflation world, but.......?

Article of faith: there will be economic progress, this will be reflected in stock market progress in the long term
For horizons >5 years, lowest risk is a world economic tracker - VWRL or FCIT?

[GrahamPlatt]

Prefs.
BOI @ ~6%
SBSA @ ~ 6%
NWBD @ ~ 6%
...
ITs
EAT ~ 6%
SMIF ~ 7.5%
HEFL ~ 7.5%
....

Etc

[billG]

I will define risk as the chance of losing some of your capital.
An Investment in a pure equity portfolio your are likely to maximize your gains and loses. e.g. world wide tracker or global IT.
A mixed investment in different asset classes: equities, gold, property, bonds, credit etc. is likely to provide less volatile returns and therefore less risky overall investment. That is what Wealth Preserver try and do. i.e. They cater for people with risk-adverse profile.