Reply to: If you had £500,000 cash

[ChimpMaster]

Not the right time to buy a UK tracker. Or Lloyds shares either.

I think there's a place in every portfolio for a selection of investments at varying grades of risk. Today, I feel that interest rates are reasonable for a very low level of risk and that there is a place for cash given the current volatility in other market sectors. So I have fixed a portion of my portfolio (hmmm not 500k!) until a better investment comes to light.

I've also held Indian, Chinese and S.E. Asian funds over the past couple of years, though this amount is smaller that I would invest in lower risk sectors. Still nice to get a 100% return once in a while but I wouldn't expect it very often.

[GreenerGrass]

6.5% is 3.9 %after tax.

This is why the rich look to earn 20% a year tax free in those offshore hedgefunds. They are the ones who make 6% after tax and inflation.

20%? pah, check out what emerging market funds (esp. China, Latin America) and commodities funds have returned in the last year 50 - 100+%.
"High risk" admittedly.

[MarillionFan]

Have you seen the price of GOOG, up from 75 to 600

Yes ATW. But I have 10000 shares in VMWare from $29

and you can't even get Majestic to compete with Goog.

[max]

Hopeing for a turnaround - considering that one investment has gone from 45,000 to 2,000. I may be waiting a looooong time. I'm not intending o ever retire.

Cripes what did that? Marconi?

[beaker]

Bonds carry risk - check on the RMBS market for sub-prime mortgage lending.

Sorry, you're right. I thought we were talking about Government bonds...

[chasingtheaurora]

The risk is higher though. A bond carries no risk.

I wouldn't buy it though as I like to be a bit more "clever" as you put it

Bonds carry risk - check on the RMBS market for sub-prime mortgage lending.

[lilelvis2000]

In equities? Paper losses are still losses.

Why would you not sell?

Hopeing for a turnaround - considering that one investment has gone from 45,000 to 2,000. I may be waiting a looooong time. I'm not intending o ever retire.

[Iron Condor]

6.5% is 3.9 %after tax.

Money supply growth in the UK is going up by around 14%.

So your money will be depreciating 10% a year.

This is why the rich look to earn 20% a year tax free in those offshore hedgefunds. They are the ones who make 6% after tax and inflation.

[Jog On]

The risk is higher though. A bond carries no risk.

I wouldn't buy it though as I like to be a bit more "clever" as you put it

Risk as "rich dad" would put it is in the eye of the 'financially educated'

At the end of the day it's a very personal decision what one choses to do with one's money.

I know what I'd do with 1/2 a mill though

[beaker]

tulipe if you ask me- tracker is better than - in the bank - ...

The risk is higher though. A bond carries no risk.

I wouldn't buy it though as I like to be a bit more "clever" as you put it

[Jog On]

tulipe if you ask me- tracker is better than - in the bank - ...

[beaker]

and how you control that risk by educating yourself

Correct. If you can't be arsed then 6-7% is pretty good.

[Jog On]

It's all about risk and return

and how you control that risk by educating yourself

[beaker]

Kiyosaki and his "rich dad" are - for all intents and purposes interchangeable.

What amazes me is that so called 'clever people' will take 6-7% on 6 figures.

It's all about risk and return

[Jog On]

Are you quoting Kiyosaki or his imaginary "rich dad"?

Kiyosaki and his "rich dad" are - for all intents and purposes interchangeable.

What amazes me is that so called 'clever people' will take 6-7% on 6 figures.