Investments.
- Thread starter Sherbs
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Soldato
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Gold is fine if the dollar is weak but I wouldn't touch it personally.
Whichever one you choose you need to do a load of research and draw your own conclusions, by all means seek clarification from people on the internet on terms, jargon etc but be very careful about investing based on peoples "hot tips".
DYOR (Do your own research!)
Whichever one you choose you need to do a load of research and draw your own conclusions, by all means seek clarification from people on the internet on terms, jargon etc but be very careful about investing based on peoples "hot tips".
DYOR (Do your own research!)
How much risk do you want to take?
Obviously everyone invests to increase the value of the investment, but from the sounds of things you don't want to be too risky about it.
You could consider the bond market if you want a guaranteed (well as good as if you buy things with high credit ratings) return on your money.
Obviously everyone invests to increase the value of the investment, but from the sounds of things you don't want to be too risky about it.
You could consider the bond market if you want a guaranteed (well as good as if you buy things with high credit ratings) return on your money.
If its gonna be about 1000 or so a month why not buy an apartment somewhere to rent out??
Rent normally covers the mortgage and is sure to go up in value -
So save up that money for some months then use it as a deposit
Or the true advice would be - spend it and enjoy yourself!!!! you only live once!
Rent normally covers the mortgage and is sure to go up in value -
So save up that money for some months then use it as a deposit
Or the true advice would be - spend it and enjoy yourself!!!! you only live once!
SherberT* said:
Using a rather liberal definition of 'couple of months', I'd stick it in a Mini Cash ISA. Low risk and tax free.
You could play the stock market with the remainder, although your investment could very well decrease in value.
If you have the money to back it up - property.
And like someone has already said - do your own research. If it was as easy as "Invest here - gain money over time" everyone would be doing. To make significant amounts of money you have to spend a lot of time researching and knowing your stuff.
And like someone has already said - do your own research. If it was as easy as "Invest here - gain money over time" everyone would be doing. To make significant amounts of money you have to spend a lot of time researching and knowing your stuff.
Soldato
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Cash Isa is no good (its limited to £3000)
I would stick it in a the best high interest account you can get (I have found 4.5% Net) - Which is just slightly less than most of the Tax Free ISAs. Theres also no risk, and nothing to do except deposit the money. A lot less hassle than worrying about investment changes (something that you have zero control over).
Assuming you were to save £1000 a month or £12000 in a year - 1 or 2% difference in rates will only make a couple of hundred pound difference after a year. Now if you had £10000 month, the extra percent would really start making a difference...
I would stick it in a the best high interest account you can get (I have found 4.5% Net) - Which is just slightly less than most of the Tax Free ISAs. Theres also no risk, and nothing to do except deposit the money. A lot less hassle than worrying about investment changes (something that you have zero control over).
Assuming you were to save £1000 a month or £12000 in a year - 1 or 2% difference in rates will only make a couple of hundred pound difference after a year. Now if you had £10000 month, the extra percent would really start making a difference...
Last edited:
Associate
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With that amount of money getting invested I'd go and see a financial adviser.
If it was less, and was invested for the long term then I'd say a FTSE250 tracker. Allows you to spread your investment over the whole market without the hassle of buying every company individually.
If it was less, and was invested for the long term then I'd say a FTSE250 tracker. Allows you to spread your investment over the whole market without the hassle of buying every company individually.
What degree of risk are you prepared to take?
What degree of liquidity do you require, and over what period?
I'd suggest (unless you already have) first maxing out any investments given government incentives in terms of tax-efficiency, such as ISAs, etc.,
After that, much depends on the level of risk you find acceptable, and the duration of investment you seek and the level of accessibility you need to the money. Individual shares can be a good bet, and are relatively liquid, but even blue-chip investments aren't always a good bet. Look at the trading history of BT.
Funds specialising in, for example, Russian telecomms have been phenomenally good bets in recent years ..... but are the options still as good.? And you run the risk of not just having the value drop, but losing the whole lot. If you go for any fund, high risk or not, don't forget to check out what you pay in up-front fees, and on-going management charges. A fund with a large up-front fee is, all other things being equal, obviously a better bet for a medium/long term investment than a short-term one.
Property has strong advantages, but it is not as easy as the TV would have you believe, and nor are returns necessarily either good, or guaranteed. Buy to let is fine, provided you can actually let at a rate that pays returns adequate to cover fees and taxes and still provide the return you need, can pick the right property in the right place at the right time and pay the right price for it, and have both the time and ability to either deal with day-to-day issues that arise, or afford management fees to do it for you.
There are no easy options. If there were, everyone would be at it. Anything you do will have returns on the one hand, with level of risk and both ease and speed of access on the other. If you're prepared to entertain high risk, or commit money for longer periods, returns will go up.
It all depends on your needs, and willingness to commit and take risk. and nobody can decide those for you.
As for gold, it's highly speculative. It is likely to always retain a degree of inherent value and is relatively easy to transport. It has its place, but as a pure investment? Be VERY careful, if you don't plan on tracking the market very closely indeed.
What degree of liquidity do you require, and over what period?
I'd suggest (unless you already have) first maxing out any investments given government incentives in terms of tax-efficiency, such as ISAs, etc.,
After that, much depends on the level of risk you find acceptable, and the duration of investment you seek and the level of accessibility you need to the money. Individual shares can be a good bet, and are relatively liquid, but even blue-chip investments aren't always a good bet. Look at the trading history of BT.
Funds specialising in, for example, Russian telecomms have been phenomenally good bets in recent years ..... but are the options still as good.? And you run the risk of not just having the value drop, but losing the whole lot. If you go for any fund, high risk or not, don't forget to check out what you pay in up-front fees, and on-going management charges. A fund with a large up-front fee is, all other things being equal, obviously a better bet for a medium/long term investment than a short-term one.
Property has strong advantages, but it is not as easy as the TV would have you believe, and nor are returns necessarily either good, or guaranteed. Buy to let is fine, provided you can actually let at a rate that pays returns adequate to cover fees and taxes and still provide the return you need, can pick the right property in the right place at the right time and pay the right price for it, and have both the time and ability to either deal with day-to-day issues that arise, or afford management fees to do it for you.
There are no easy options. If there were, everyone would be at it. Anything you do will have returns on the one hand, with level of risk and both ease and speed of access on the other. If you're prepared to entertain high risk, or commit money for longer periods, returns will go up.
It all depends on your needs, and willingness to commit and take risk. and nobody can decide those for you.
As for gold, it's highly speculative. It is likely to always retain a degree of inherent value and is relatively easy to transport. It has its place, but as a pure investment? Be VERY careful, if you don't plan on tracking the market very closely indeed.
Because you won't lose your money (other than erosion due to inflation), you stand a reasonable chance of winning small prizes (providing a sort of income), and might win a big one. It's a bit like putting money on the lottery, but keeping your stake money.KingAdora said:
On the other hand, you could put £1000 on premium bonds and spend 10 years getting nothing in return, other than your £1000 if you cash them in.
They're not really an investment. They're a relatively safe form of gambling.