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“ Your daughter has a 16-year timeframe , but you may not and may want to dip into your ISA to buy a car or a house . You need to think about this and invest accordingly ”
risk off the table by adding bonds and alternatives to the portfolio . Fortunately , we have time on our side , so I can afford to take on some of the volatility associated with equities . By comparison , the approach I take with my own ISA differs because my time horizon is shorter .
“ Your daughter has a 16-year timeframe , but you may not ,” explains Peter Sleep , a senior investment manager at 7IM . “ You may want to dip into your ISA to buy a car or a house . You need to think about this and invest accordingly .”
PERFORMANCE OF INDEX VS CASH AND INFLATION OVER 18YRS
FTSE All Share |
Bank of England Base |
UK Consumer Price |
( 296.84 %) |
Rate ( 37.19 %) |
Index ( 44.9 %) |
350 % |
300 % |
250 % |
200 % |
150 % |
100 % |
50 % |
0 % |
-50 % |
|
|
|
|
|
|
|
|
May03 |
May05 |
May07 |
May09 |
May11 |
May13 |
May15 |
May17 |
May19 |
Source : FE Analytics
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