Hi all, looking for some advice on a 5 year investment. Married couple, two children in uni, we would like to invest c.300k, we already have a prisma 5 fund investment, no mortgage, maxing out pensions and an investment property ( no mortgage). I was thinking just a mix of state savings certificates and maybe a deposit account ( Raisin?). I think we may use this money to help our children on the property market in about 5 years time so don't want to lock it away for any longer. I would love to have some advice from posters here, we're definitely not astute financial people!
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- Thread starter MHoran379
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Brendan Burgess
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Ok, simple answer to the question asked without considering any other factors.
The investment horizon suggests deposits. Check the deposit best buys.
For how long have you invested in the Prisma 5 fund and are you happy with it’s performance? Zurich’s web site says the fund had a positive cumulative performance of the past 5 years years. So if you invested for that period you did not experience a loss. Are you happy with the fund’s volatility, i.e. the frequency of when it falls in value and the length of time taken for it to recover? Zurich tell us on their website that the risk of the fund is measured relative to global equities and has an expected volatility of 80% to 120% over the long term. So for your envisaged 5 year period the probability of a loss is low(ish) but not zero. By staying invested in the Prisma fund you have acceped this risk and the return, it implies you have successful experience of investing in collective investment products.
You also say you also have a mortgage-free investment property, so you are experience landlords, and accept the risks and returns from this type of investment.
You are probably more successful than many, so why are you asking this question? You can either (a) invest more money in the Prisma 5 fund; or (b) buy another investment property, with the initial objective of using it for your kids’ housing needs in 5 years time. You already have sufficient experience to make this decision.
You also say you also have a mortgage-free investment property, so you are experience landlords, and accept the risks and returns from this type of investment.
You are probably more successful than many, so why are you asking this question? You can either (a) invest more money in the Prisma 5 fund; or (b) buy another investment property, with the initial objective of using it for your kids’ housing needs in 5 years time. You already have sufficient experience to make this decision.
Brendan Burgess
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- 58,439
Johnny apples
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Do you know how much the fund is per year, cost makes a difference
What does this mean?
Johnny apples
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Obviously, I meant how much does cost each year.
Not obvious, which is why I asked.
I didn't know if you were on about charges or fund performance or something else.
That seems quite high.
Johnny apples
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1.25% might seem small but when multiplied by 15 years is nearly 20% or a fifth of your investment. I set up an IBKR account and bought a world etf ( vwce) . I think the fee is approx 0.2% . It's not too difficult to setup