A client plans to buy a house in three years time. He has a sum of money ear-marked for the deposit, but at the moment it is all in equities. The recent turbulence has made him nervous and he is wondering whether three years is too short a time period for equity investment, yet wants to ensure he maximises his deposit. What options are open to him?
Mark Dampier Hargreaves Lansdown I think it would be nuts for the client to keep all his money in equities for a property purchase. In fact, I wouldn't be in equities at all. The past three years have been brilliant and there are no guarantees the next few will see similar returns. I would even be nervous about using equities over five years. It is just a gamble that stockmarkets are going to be OK and the money won't be secure. If a client bought three weeks ago, he is already 10% down. That's not going to do much for his general well-being. If the client is willing to take some risk of...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes