Options other than Term Deposit/Savings Account

[Harvey Specter]

I have 2.5 years, then I will need the funds.

YOu could gamble on a National government and buy power company shares. Better yeild than TD's, with the gamble being a Labour led govt.

[milt1968]

Got scaled 80% in my application for Genesis. Will have a look tomorrow to see how they are going.

[BIRMANBOY]

So let me get this straight...you need the funds in 2.5 years and you are looking at moderate to high risk?????? I would rethink your strategy Milt. The share/bond market is not somewhere I would put money if I needed a certain amount back in a certain time frame...especially given your admitted propensity to "risky behaviour". There is no guarantee the market and/or your money will be where you need it to be at the desired point in time. As I said originally go find an AFA ...GIVE THEM all the information and have a good think about it. PS whatever you do don't go the "precious" metals.

I have 2.5 years, then I will need the funds.

[milt1968]

Im not looking for a particular level of risk. I am looking for something with a better return than a 4% term deposit with my bank.

[BIRMANBOY]

How can you not consider risk when you are looking for returns? Anything outside of a Bank deposit increases the risk. That's why they offer such low returns-they minimize your risk. Risk-reward ..its a sliding scale.. the further up the scale your "better returns" are changes the risk factor or your chances of losing some to none of your money. If you are looking for the holy grail of good returns and no risk you will realize that it isn't available. This therefore leads one to explore where exactly you sit on the scale as to risk tolerance, desired returns. in your particular situation, as you have articulated it so far, this is complicated by needing the funds back in 2.5 years. Have I got this right? If so, then you need to talk a professional so they can combine your information and individual quirks to what is best suited. Posting on here will get you nowhere because we are not privy to your financial details, your particular circumstances and very few of us (if any) are authorized financial advisors. As an exercise in idle curiosity by all means but 50,000 warrants a bit more respect in my opinion. However each to his own. My last comment.

Im not looking for a particular level of risk. I am looking for something with a better return than a 4% term deposit with my bank.

[milt1968]

Where did I say I was looking for the holy grail of good returns with no risk?

Am new to this and was asking for a little advice not a lecture.

T

[andrewfreestuff]

Where did I say I was looking for the holy grail of good returns with no risk?

Am new to this and was asking for a little advice not a lecture.

T

You've been given some fairly good advice milt, if I were you I wouldn't bite the hand that fed you. I'm sure many people here have seen the consequences of not respecting risk and are simply trying to educate you so you don't fall on your face as others have done.

With such a short timeframe until you want the money out, your options to beat the bank rate is probably limited unless you are prepared to take a gamble. And gambling with a short timeframe doesn't give you much time to lick your wounds and recover if it all goes pear shaped. Its up to you as to whether you could handle losing a big % of your money and still do what you need in 2.5 years - if the answer is no then you should take the safer option.

However, can anyone here give milt advice on how to check out the trading rates for bonds maturing in 2 years? This may be an option where the rate is better than a bank for fairly high quality bonds. But then again, with such a short timeframe it's likely that for quality bonds their trading rate will have moved fairly close to the bank rate (yes? otherwise you could borrow and invest and make free money...?)

[andrewfreestuff]

My last comment.

I've enjoyed reading your comments on this matter Birmanboy, perhaps reconsider if you think you still have more to add - others may find it useful.

[milt1968]

Have done a quick review and it isnt crucial that I have the funds available in 2.5 years. I respect the risk, am just looking for options other than term deposit. Simple as that. It is an amount I have set aside for something different, my life will not revolve around the investment and if it goes a little pear shaped I will be able to handle that. Just looking for something different with the money I have aside. Still learning.

[peat]

Even allowing for a moderate risk acceptance, equities are pretty much ruled out with a 2.5 year time frame... therefore debt instruments become the main alternative.
If one wishes to UP the risk/reward above bank term deposits then finance company debentures come into consideration. THey will offer higher interest rates but of course there is increased risk of capital loss which can be mitigated by reviewing the issuers profile and selecting accordingly.