View Full Version : Advice on investing money required!
As I have a nice full time job now (Civil Service), I want to start saving some money instead of just using it all each month!
I am looking ot put away a figure of £500 a month, every month.
Where would be the best place to invest/put it.
I was thinking about putting it in a High interest bank account, but I have heard about all these other options like Isa's and stuff..
I don't really know much about them or how they work though, or even where to start!
I would like to make a bit of money on the investment(s) as I won't be accessing it for at least 2 years. Stocks and shares aren't really an option as I don't want to lose money!
Input/advice appreciated....
bunnyluva
20-10-2004, 11:22
http://www.fool.co.uk/
is a great webiste, stocks and shares are good for long term ie at least five years. An ISA can be thought of a wrapper you put on any style of savings acount which tells the taxman not to take any tax out the interest paid.
A cash ISA might be your best bet, the rules keep changing on how much you can invest per year but it will definatley be worth getting an ISA.
You may want to pick a Cash ISA and a Stocks ISA so you'renot putting all your eggs in one basket. I plan on setting up now im in new work and will be looking into to a european index tracker or global even (longterm ofcourse)
bunnykilla
Nice one Bunnykilla, although I still don't understand exactly what the Isa is? I understand you can invest upto 3k a year without paying tax on interest etc. But what do the bank do with your money exactly? Do they invest it in shares? Can you lose money by investing in an Isa?
Also what is a bond?
What does AER stand for? Is it the amount of interest they pay you?
Quality, just set up an account where you get paid 7.07% AER! The maximum your allowed to put in each month is £250 so i am still looking to invest another £250 each month. The above account can only run for upto 12 months because of the high interest! :040:
http://www.halifax.co.uk/savings/regular.shtml
Maybe wack the rest in an Isa... shares sounf temting though. But I don't know whrere to start!
get an isa, i have a friend that knows a lot about this and isa seems to be the best
Rage a isa is basically a scheme to encourage average joe to save money by not paying tax on anything in that ISA. Sadly however its used by the stinking rich to hide their wealth from the taxman (they will use their wifes isa allowance, sisters, cousins, sons, daughters...at £3k or £4k a time it adds up).
If you put your money in a cash isa you will not lose money, however the interest is hardly astounding.
Stocks are more risky but you may get a better return.
You say you work for the civil service? public sector pensions are crazy, i work in the public sector and for every pound i could put in they double it and add that on top. See what your public sector body offers, im sure its good. Apparently the tax payers are gonna have to pay for our pensions in the long run!! weeee!
in the end of the day its about what you want out of your money and how much risk your willing to take, more risks more rewards.
If you decide to invest in shares stay away from funds, banks will try to sell these to you as will independant financial advisors because the commission they get is huge. Once you take into account the fund managers fee (also called the ferrari factor) your not gonna see much of gain. Instead look at Index trackers.
Oh also from the top of my head there are 2 types of ISAs, Cash, Shares. You can mix these, so have some of your money in cash, some in shares. Then there are maxi/mini isas, which to be honest im not too sure about.
I am paying into the public sector pension already! Thanks for the information above, very helpful.
When you say see what my public body offers, do you mean in the way of pensions or would they have an investment plan i could pay into (and access in a few years)
I meant pension plan.
Personally i would stay away of company investment schemes. In the end of the day if you want to invest in something like the stock market then do it yourself via a index tracker or pick your own stocks (if you know what your doing!)
Remember more people involved, more of your money they take.
How adverse to risk are you?
Also if you have any debts like credit cards, store cards then dont start saving any spare cash until you pay these of as quick as possible.
Don't have any debts mate, just spare money floating around!
I am willing to take a risk (on some stocks & shares or similar) as that's the only way i'm gonna get a big return. Where can i get started? Take it i'll have to analyze the market really closely for ayear or something?!
I've been trrying my luck witht the lotto but it hasn't paid off!
bunnyluva
20-10-2004, 21:02
I put my money in a virgin index tracker isa, just after sep 11th when the stocks dropped.
Just after that, the enron baking scandal hit and they dropped a litle further, just waiting for it to pick back up, but the trouble in the middle east doesn't help atm
bunnykilla
Use your ISA to invest in a index tracker which follows the FTSE (FTSE 100 or 250). Lots of providers, its up to you to find one you like www.fool.co.uk is the best place to get started like someone said.
Like bunnykiller said shares have their ups and downs but are good in the long run.
You wont become a millionaire mind you. I think the average rise per year for the stock market over the long term is 8%? something like that. When you consider the property market has been going up 15% year on year in the last 4 years it doesnt seem worth it to invest in stocks.
Personally i would save up a whole chunk of money and start a buisiness. Risky but lots of rewards. But then i have a entrepanurial streak about me.
Whatever you do i strongly recommend you get a ISA and put a index tracker in it.
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