I kind of ballsed up and put some money into premium bonds when I split with the ex-wife and sold the house a few years ago. Still not won the million. 🙄

Now with a new family and stuff I need to invest it in something that will give a better return for their future really. I can’t splosh the whole lot into an ISA due to the annual limits, so what’s the best return at the moment? Don’t want to stick it on the mortgage as we’ll need it in 10 years or so.

Don’t want to stick it on the mortgage as we’ll need it in 10 years or so.

consider moving mortgage to an offset one?

depending on your mortgage rate, you may be hard pressed to do better on investment income after tax than the savings on your monthly interest bill. Then either use the savings to amortise your mortgage faster or sweep them into an ISA each month.

Mortgage is a tracker at 0.49% above base rate, so I’m only paying 1.49% at the moment, but I can pay chunks off at any time. A steal in anybody’s book. So would your idea still work?

nah – I had one of those but the ****s at barclays wouldnt allow me to port it so I had to let it go. The ombudsman didnt back me up either. So now, just to spite Barclays, all my “valuable” products are with someone else and I just abuse their free overdraft on my current accounts. ****s!

SO, no, my plan wont really work for you.
In which case
a) max out ISAs each year
b) incl your wife’s.
c) depending on the amount you have Id keep an eye on the govt deposit guarantee limits and on not having too much in the same registered bank.
d) Guardian Money and BBC Moneybox cover the best paying deposit accounts ATM, I think Cheshire BS had one at 3.35%

Keep an eye out for NSandI index linked bonds too. But they dont sell them for long.

IANAFA

10 year investment?

25% return on Greek bonds at the moment 😉

Offset would still work if you could get close to your current rate. Your savings offset so bringing the interest payments down.

ISA yes as benefits are tax free however rates are low.
Will your employer match your pension payment contributions? if that may be worth considering.
Funding Circle/Zopa but bear in mind they are un regulated, you have to pay charges and tax on the returns and there is a small risk of default but even so rates of 10% are quite easy to achieve on C grade loans.

25% CLAIMED return on Greek bonds at the moment

😀

Hmmm, not heard of Funding Circle or Zopa before. Thanks for that one.

Nigeria, Nigeria I hear is the place to go.

There are a lot of Ex Presidents with Squillions in offshore bank accounts that need some access to the funds, if they use you they offer M A H OOOOOSIVE interest returns.

If I was you (I’m not) I’d go there.

DISCLAIMER

Other Finacial Institutions are availabe and seeking professional advice is the prefered option rather than asking a buch of beardies on bikes “what do do with my money”

I am not an IFA, never profess to be and certainly wouldn’t advise you where to put your money, my advice is purely fictional and not representiative of my professional capacity.

I too have some money to invest and really really wish I understood any of the above advice.

bikebuoy – I’ve e-mailed my local friendly IFA advisor (he did our mortgage), but stuff like Zopa or Funding Circle is a little off the wall and I doubt he’d mention them, but they’re still well worth a look. Hence the thread for good ideas…

NS&I index linked bonds (tax free too). That’s if they release any this year.

Peer to Peer lending is unlikely to be recommended by your IFA as he doesnt make any money on it. Its actually quite interesting as there is an element of management and choice. In theory the returns could be significant.

If you don’t need the cash for 10 years it is worth putting a percentage of it into shares. Can be done through an ISA but I think the tax benefits for standard rate tax payers are fairly small.

Tracker funds are worth looking at. Low charges and aim to track a chosen stockmarket. There is an argument that in the long term they will beat the average managed fund because of low charges.

I’ve got a few thousand in a tracker and a few thousand in Fundsmith.

https://www.fundsmith.co.uk/TheFund.aspx

I like their philosophy – invest in a small number of good companies and hold for a long time. So low management and dealing charges. Early days yet as the fund has only been going since Nov 2010 but since then it’s up 21% and has beaten average equities in 2011 and 2012 so far.

Needless to say I’m not a financial adviser and if you are investing a serious amount of money proper advice is a good idea.

Thanks irc. The performance data makes interesting reading, but shows there’s nowt guaranteed!

Early days yet as the fund has only been going since Nov 2010 but since then it’s up 21% and has beaten average equities in 2011 and 2012 so far.

But there are annual charges to take out of that plus tax on gains as well as being spread over 2.? years and then there is the risk as with any managed fund. It is a good return against the current backdrop however plus it may make large gains once things start to improve so one to look at.

But there are annual charges to take out of that plus tax on gains

Annual charge is 1%, there ain’t no capital gains tax on ISAs and the tax free capital gains allowance is £10600

Facebook shares. Buy today, sell in a week.

*I am in no way qualified to dish out info on the stock market, take the above with a pinch of salt*

But there are annual charges to take out of that plus tax on gains
Annual charge is 1%, there ain’t no capital gains tax on ISAs and the tax free capital gains allowance is £10600

I thought half had to be cash?

I thought half had to be cash?

A maximum of £5640 as cash, but you can put as much of the £11280 into shares/investments as you want. Dividend income isn’t tax free any more, but income on investments that attracts a 20% tax credit is.

http://www.fool.co.uk/Investing/guides/How-When-And-Where-To-Invest.aspx

Cash is King say some:

http://www.forbes.com/sites/greatspeculations/2012/05/14/cash-is-king-when-investment-risks-start-to-rise/

http://www.fool.co.uk/10steps/step9.aspx

PROPERTY or GOLD, done.

PROPERTY or GOLD, done.

Well property is down in real terms over the last few years and gold is 20% lower now than recent highs

PROPERTY or GOLD, done.

Brilliant advice for a few years ago.

Not so much now.

PROPERTY – prices are as low as they can go, invest now.
GOLD – history of economics, when economies crash – soon the EURO crashes and drags all our economies with it, China’s exports will slow as the EU is one of its main importers and they will also suffer, and everyone will invest in GOLD. rose 16% in recent months from a ‘low’ which is still some sort of 20 year high!