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Yorkshireman, not a DUDE!
2011 Mitsi RA Sportback SST
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Discussion Starter #1
Mother-in-law has a few £K that she needs to do something with.
She has been to her building soc' and was told that the returns on a 'low risk' investment were much better (they are) that a general savings account. It is the word 'risk' that worries her though. I know that nothing can be totally safe but is it possible to say what the risk level might be and what type of share/institution the cash would be invested in ?
Any advice/info appreciated, pm if you wish.

Cheers and thanks

Brian
 

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2005 forester sti 6MT
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Mother-in-law has a few £K that she needs to do something with.
She has been to her building soc' and was told that the returns on a 'low risk' investment were much better (they are) that a general savings account. It is the word 'risk' that worries her though. I know that nothing can be totally safe but is it possible to say what the risk level might be and what type of share/institution the cash would be invested in ?
Any advice/info appreciated, pm if you wish.

Cheers and thanks

Brian
Buying some crack cocaine and re-selling it has some risk too - but much greater returns.
Plus the drug dealing industry is slightly less corrupt and disreputable than the UK banking fraternity.

There aint any kind of (legal) investment making worthwhile returns at the moment - just tell her to hold onto the cash and don't expect to make anything from it.
 

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Emeritus Forum Staff
2015 Triumph Tiger XCx 1 Down. 5 Up.
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5,242 Posts
Mother-in-law has a few £K that she needs to do something with.
She has been to her building soc' and was told that the returns on a 'low risk' investment were much better (they are) that a general savings account. It is the word 'risk' that worries her though. I know that nothing can be totally safe but is it possible to say what the risk level might be and what type of share/institution the cash would be invested in ?
Any advice/info appreciated, pm if you wish.

Cheers and thanks

Brian
Depending on the level of investment, have a look at government bonds and gilts. As they always say investments can go up as well as down! ;o)
 

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2008 GRB 20th anniversary 6 MT
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or buy something you can enjoy that appreciates with age

ie art
Was watching a BBC documentary a couple of months ago about contemporary 'art' and prices were growing ridiculously but it was all a bubble.
What about buying a property now that prices have dropped?
 

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Yorkshireman, not a DUDE!
2011 Mitsi RA Sportback SST
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Discussion Starter #6
Thanks for the replies.
All she wants to do is invest the money in either a BS savings account or a 'low risk' account . Nothing else !
So back to my original question, what type of investment by a BS is 'low risk ' ? What is the cash put into ? Is 'low risk ' basically bullet proof and the BS are covering themselves ?

Thanks

Brian
 

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2006 2.0 XE Manual N/A
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I have a small monthly investment in an equity ISA managed by these people:

Hargreaves Lansdown | Best ISA & SIPP | Buy funds and shares

The fund is called BlackRock UK Absolute Alpha and its aim is to make steady growth rather than lurch around with the vagaries of the stock market.

It appears to be well managed and has done pretty well over the last three years (it only fell 10% when the FTSE fell by 30%). While no investment is without risk I'm satisfied that this is fairly low in the current climate.

CAUTION: This is not financial advice ... :icon_eek:
 

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1999 forester s turbo
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I wouldnt give any bank a penny of my money. They are responsible for all of the worlds woes. Get yourself down to hatton garden and buy gold with it. Gold has real value that doesnt go down.
 

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99 UK S-turbo
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Gold has real value that doesnt go down.
Perhaps you should look back over time, Oh yes it does, now is arguably the wrong time to buy Gold, its at its height (has to peak sometime) as people are looking for a safe investment, but it will inevitably fall back.......

Gov't bonds are safe enough (aka low risk) and award higher interest than most saving accounts....

Simon
 

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2000 S-Turbo Manual
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If she hasn't maxed out her ISA allowance she should do that (tax free returns) - max £10,200/yr (up to £5,100 can be in a bank account, rest can be in shares - I prefer tracker funds as they have very low charges eg. Legal & General - Index Tracking ISAs - The charges).

If she has used this allowance, then National Savings & Investments - Index-linked Savings Certificates may be worth a punt - Pays Inflation + 1% per year, which isn't amazing but obviously means the 'value' of her investment will always rise, and are protected from the risk of an inflation bubble after the next election. Tax-free returns also.
 

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Well a big gold chain that I bought back in the mid 90s got more in the the pawn shop recently than I originaly paid for it.
Which of course means its never dropped in price in the meantime? Of course not, and when prices are sky high (compared to normal growth trend) they usually only have one way to go, remember when houses were a sure fire investment?

Simon
 

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TANSTAAFL
2010 2.5X Premium AFF 4EAT
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Gold is a store of value rather than an investment that presumably will return dividends. However, as gold has retained high value for the last 6,000 years and will more than likely continue to be valuable regardless of the relative amount of fiat currency it takes to purchase some, it is low risk.
 

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Emeritus Forum Staff
2015 Triumph Tiger XCx 1 Down. 5 Up.
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Gold is a store of value rather than an investment that presumably will return dividends. However, as gold has retained high value for the last 6,000 years and will more than likely continue to be valuable regardless of the relative amount of fiat currency it takes to purchase some, it is low risk.
Gold is an investment as much as any other and it's price goes up as well as down.

A few years ago it's price was comparatively low which made it a good time to buy.

Gold has traditionally been seen as a safe retreat for funds during a recession and thus, over the last couple of years, most investors have taken their money out of more risky investments and bought gold.

This in turn has driven the price up to it's current level. So yes, in this respect, it is a fairly safe investment - at the moment.

However, market confidence is returning and other investments are beginning to look more appealing, which means that investors will soon pull their money out of gold and in turn the price will fall as the demand will be less.

Gold is at (or very near to) the peak of the market which makes it a great time to sell and not to buy since there is a far greater downside than upside - making it a fairly poor investment in my book.

There are probably still some short term gains to be had in the market but the medium term trend is more likely to be downward than upward if you ask me.
 

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TANSTAAFL
2010 2.5X Premium AFF 4EAT
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However, market confidence is returning and other investments are beginning to look more appealing, which means that investors will soon pull their money out of gold and in turn the price will fall as the demand will be less.

Gold is at (or very near to) the peak of the market which makes it a great time to sell and not to buy since there is a far greater downside than upside - making it a fairly poor investment in my book.

There are probably still some short term gains to be had in the market but the medium term trend is more likely to be downward than upward if you ask me.
Makes perfect sense. And, I'm sure it would have made perfect sense in 1998 when the price of gold was only about 1/4 as high as it is now.

My advice? I recommend to always take delivery. :icon_wink:
 

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Current rate for index-linked bonds are Inflation (RPI) plus 1% p.a.

You'll never make millions, but the cash will always slightly rise in value. And the government is less likely to default than a bank (Honest!).

Most high street rates of 3-4% either rely on a first year bonus, or tying the cash in for 4-5 years (unlikely interest rates will be 0.5% for the next few years...)
 

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Makes perfect sense. And, I'm sure it would have made perfect sense in 1998 when the price of gold was only about 1/4 as high as it is now.
I remember it well, as that was when some idiot called Gordon Brown decided to sell a very large amount of the stuff :icon_mad:
 
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