MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
anyone have some advice into saving or investing a small sum of 5k?
its a amount i can put away until i have more to add, its just sitting in the bank and thought i can put it somewhere untill i have more to top it up
regards
nick
Id probably be looking at an ISA. Depending on your age Id make a choice between cash and shares. Howeever, I disinvested all my share ISAs this autumn as it was getting too volatile to call, and in doing so saved about 5% - finished the year nominally flat (but really -inflation).
If you can get hold of one, Id consider finding an index linked bond for capital protection. Wont make you a millionaire though 😉
Unfortunately NS and I are no long issuing index-linked certs. But some banks might be.
I'd avoid any origami company - I invested in one a while ago. It folded.
Gold could well be worth a look as well. Seriously. Something like a 20% rise over 2011 and still going up.
Gold could well be worth a look as well.
fancy buying some tulips CFH?
Wolf minerals on AIM.
Nah, I've got my eye on a little investment in the South Seas which is bubbling along nicely, Stoner! 🙂
Actually, have a look at buying Apple shares as well. They'll be releasing a 3D TV that doesn't need glasses, and that integrates all their other stuff, at some point in 2012. That'll send their shares skywards.
I put 5K in a short term bond (12 month) last Dec and just got a chq for £150 - only condition is you cant touch the money for the agreed term.
Im not sure you would get that out of an ISA at the mo, might be worth shopping around though.
Alternatively there are also 5 year stock market bonds available from most banks, basically when you put it in they take the whole value of the FTSE into account, and as long as the figure is higher in 5 years you would probably earn about £1,200 in interest on that 5K. Again, you must not touch the cash invested for the term - if you do they would probably charge you a fee for taking it out early. You have to be pretty sure you will not need the money for the term. Because the stock market is so low at the moment it might be worth a gamble. 5 years should be enough for the economy to sort itself out!!??
Have you got a mortgage? Might get most bang for your buck if you pay £5k of the capital off. Has the upsides of reducing monthly outgoings, so more to spend on bikes...
Before advising anymore I'd want to know:
- Is this your rainy day fund? (ie redundancy fund?) If it is, I'd not put it into shares, as any money here should be viewed as a long term investment. If its surplus to what you have as a rainy day fund, then consider shares (carefully).
- Are you a higher rate taxpayer? With pitiful returns for cash investments, knocking £5k off your mortgage is prudent (again providing you have a rainy day fund). Non-ISA returns for higher rate tax payers are obviously even more pitiful than for basic rate tax payers
I'd avoid long term inflation linked bonds - prognosis is that inflation (and therefore your return) will lessen over the next few years.
I'd also avoid premium bonds, fun, but can't be considered a real investment strategy, imho.
-Start playing short term on the markets*. I've made a ~17% return this year on £5k i had not earning any interest in a bank
*this is not always good for your health.
Before advising anymore I'd want to know:
- Is this your rainy day fund? (ie redundancy fund?) If it is, I'd not put it into shares, as any money here should be viewed as a long term investment. If its surplus to what you have as a rainy day fund, then consider shares (carefully).
[b]na, its just savings ive managed to get save over the last 6 months. so i can "afford" to lose it but would rather not ;)[/b]
- Are you a higher rate taxpayer? With pitiful returns for cash investments, knocking £5k off your mortgage is prudent (again providing you have a rainy day fund). Non-ISA returns for higher rate tax payers are obviously even more pitiful than for basic rate tax payers
[b]nope, im 26 and dont have a mortgage yet ;([/b]
I'd avoid long term inflation linked bonds - prognosis is that inflation (and therefore your return) will lessen over the next few years.
I'd also avoid premium bonds, fun, but can't be considered a real investment strategy, imho.
-Start playing short term on the markets*. I've made a ~17% return this year on £5k i had not earning any interest in a bank
*this is not always good for your health.