Should I stay or should I go?

client clinic

Professional Adviser
clock

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

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

Building Society-owned Newcastle Financial Advisers acquires Openwork firm

First of a number of acquisitions

Hannah Godfrey
clock 09 December 2019 • 1 min read

Bond managers fear hedges being undermined as liquidity dries up

The recent sell off in the bond market and growing liquidity issues have forced bond investors to use similar hedging techniques, undermining their effectiveness and causing concerns about how much downside protection funds really have.

Anna Fedorova
clock 03 July 2013 •

Police launch investigation into mortgage middleman fined £1m

West Midlands Police have launched a fraud investigation into a Birmingham financier over his role in sale and rent back agreements.

clock 25 June 2013 •