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As above, assume
- c.£15K
- investment period of 1-4 years
- risky options considered
- good if it's relatively liquid but prob OK if to penalties if early withdraw
- the account holder is an adult so no child tax free options
I was suggesting classic cars or high end watches (I know v little about these things though!). Looks like saving plans are all around 1-2% and then presumably earnings are taxed. What else should he look at?
Thanks
Just put it into an shares with Vanguard and let them sort out the best portfolio based on your chosen level of risk.
Based on the 10% return I've had in the past year alone, I'd now be up 1.5k on 15k. You'd make a tidy profit over 4 years if you were lucky enough to get that return.
Of course, with whisperings of recession that may or may not work out quite so well over the next 1-4 years. That applies to most things with a high level of return though.
Looks like saving plans are all around 1-2% and then presumably earnings are taxed.
You get up to £1000 personal savings allowance, so don't have to pay tax on interest up to that. Or put it in an ISA, then it's tax free.
Though yes, doubt you'll get much more than 2% from a savings account.
Premium Bonds. Low risk and you may win big.
If you'll be 55 by the time you want it to mature then a pension is a tax-efficient way of shoving money away.
I have some magic beans I could let you have.
I have some magic beans I could let you have.
You really have your finger on the pulse regarding investments.
Lottery tickets.
I know a few people who have done alright with classic cars but it is a huge gamble with lots of potential to lose money. Simple answer is stocks and shares ISA or pension. A decent fund should yield around 8% and is unlikely to drop much. There are always exceptions do
You really have your finger on the pulse regarding investments.
As long as you don't string him along then do a runner with the money
As long as you don’t string him along then do a runner with the money
That would be a real kidney punch
I didn't get around to doing anything about it but there was a thread on here a while back about funding circle. Seemed to have good reviews and a reasonable return based on the risk categories you can choose.
I had a little test dabble with funding circle a couple of years ago. Decided that the returns weren't that good so wanted to take the money out. Not quite as easy as all that. It took 6 weeks and then only let me take 30% out. Tried to take out the rest and that took another 4 months. Even now I still have £50 in there that I can't seem to access. The claimed return was 7% but actual money in my pocket is closer to 4%. I'd also be concerned if I needed the money in a hurry or worse the company started having difficulty and lots of people start to withdraw and I can't get at it at all.
thanks all - he's a relative youngster so pension return less attractive at the moment. Funding circle sounds interesting - off to have a look
If he's under 40 and he hasn't got one already, a Lifetime ISA? You can only transfer £4k in per year (so find a good rate for what cannot go in LISA) and get £1k bonus plus intrest rate, withdraw it to buy first home or aged 60+ to not incur financial penalty.
Royal Mail shares sarted at £3.30 and went as high as ~£6 before in recent times a load of "shorting" dropped the price to ~£2. It's a big "if," but Corbyn wants to renationalise RM if he gets the keys to no. 10, so depending upon what price they offer it could be a nice short term investment.
It's another bif "if," but house prices are dropping in some areas, could be a good time to buy/do up/ sell if you can cover the mortgage payments.
Classic cars is a good shout. My father treated himself to one of the last XJS convertibles for a little less than that, uses it fairly often and isn't too fussed if it loses some value, it's fun. In the three years he's had it it's earned more than his pension (proportionally)...
interested too... premium bonds ticking away ok at the mo but always thinking of other options.
current 'classic' is a dog of a car, so won't ever earn me much, but have been thinking of getting something nicer - mk4 R32 a good investment?!
Classic cars aren't an 'investment' they're a gamble - perhaps with good odds if you're smart, but a gamble nonetheless. They don't pay dividends and they're not particularly liquid. Listen to the chap that said Vanguard.
and an R32 is not a classic car....
1 Year = premium bonds. Four years and more, an ISA.
That's a big time difference in investment terms
Sirius Minerals
What are the management fees like for using Vaguard?
Sirius Minerals
Interesting. That surely has to get off the ground.
Red. Definitely red. Or black. Maybe black.
ISA or managed low-risk tracker fund if you must. Roulette is the slowest way to lose money in a casino.
Vanguard funds, fees & performance - see their website; fund returns are a mixed bag.
Sirius Minerals - unless I've missed some hidden humour - to be avoided; may possibly come good but cannot see it.
Some interesting investments at Triodos Crowdfunding. https://www.triodoscrowdfunding.co.uk/investments
Most fairly long term, 5 or 10 years, probably can't be withdrawn early. Maybe some decent returns. Though a risk of losing all of your money if the business goes bust.
S15 Nissan Silvia Spec R.
Over the last 5 years I've watched loads of Japanese cars reach the magic 25 year mark for legal import to the USA at which point they rocket in price for some reason. Most recently the R32 Skyline GTR. You could get one for £10-12k 5 years ago. Double that now, if not more. S15 becomes US legal in 2022-ish, give or take a year. They're around £12k for a decent Type R at the moment. Buy an unmodified one, park it in your garage, sell it in 4 years for a 100% profit.
Stocks and shares isa plus premium bonds imo.
I have some magic beans I could let you have.
You can make a giant killing.
I've a friend in Nigeria that can give you a 300% return.
Bitcoin halving takes place next year, where they half the cost that miners get from mining the coins. Might be worth a punt if you don't mind risky. Seem to be on a bit of a low at the moment and quite volatile but thats the risk.
I have a bit of cash scattered around.
RateSetter gives me 2.9%.
Funding Circle gives me 5.4%
Best return by far are randomly picked funds with HL all achieved within your time frame, some +30%. Have lost courtesy of Mr Woodford, but others are doing okay. But a risk - the higher the potential return the bigger the risk.
Buy shares in Apple. No one else does what they do.
Bung it down the bookies. Christmas number one, you heard it here first!
Interesting you mentioned posh watches as I had a little dabble in that recently... Made £3k on a £9ish K purchase...
But...
You need to be able to GET the high demand watch in the first place..i'd put my name on a waiting list a year ago before i was called...
I might look into premium bonds TBH...
The other thing would be to consider offset mortgages...
DrP
and an R32 is not a classic car….
Not in the traditional sense, no. However, clean ones are going up in value steadily, and are tipped to continue to do so as they're fairly rare. As they're younger than a lot of the current crop of 'classic' hot hatches, as time goes on they'll hit the demographic which wanted them when they were going but couldn't afford them - as happened with mk1 gti etc.
Also, they make an incredible noise (even if not the best driving car ever) and that makes them worth a punt imo.
Some hilarious suggestions on here...
Cash ISA: saving not investing, you'll lose money in real terms
Premium bonds: ditto, plus the govt is laughing at you
Lottery: gambling, not investing
Classic cars: huge cost of ownership
Funding Circle: too much is unknowable, rumour mill not good
Royal Mail: political football, bad unions
Sirius Minerals: rrrrramp-tastic! You cannot be sirius
Crowdfunding = charity, fraud
Bitcoin = daffodils, fraud
Apple: a fashion co. not tech, it stopped innovating years ago
Watches: risk of theft/damage
Red/black, magic beans or Nigeria make as much sense as many of those.
Do this: depending upon your age, choose a SIPP or LISA as your tax-efficient wrapper, then choose whatever Vanguard equity trackers appeal. Only invest in what you understand. Offset mortgage is also a decent shout.
What are the management fees like for using Vanguard?
Grateful to be corrected if this is wrong, but if you buy them from Vanguard I think the fee is typically about 0.5% pa for passive ETFs
What's going to happen to the value of classic cars when you can only drive them on a track and be limited to a small amount of planet-killer fuel per annum!? 🙂
My preferred use of surplus cash - pay off existing debt
If no debt, and you have an appetite for some risk, buy some stocks and shares and have a bit of fun on the markets. You can manage your own diverse portfolio of funds in a shares trading account ( i have one with the halifax), collect dividends and buy and sell at will but you need to keep a close eye on things as prices go up AND down!
Bought some watches 4 years ago they've gone up by 30-50% but that was more by luck than judgement
Also have you got a workplace share scheme these are often good and make you 20% or more with a 5 year lock in period, some times with tax benefits
Land in Eastern Europe.
Im not kidding.
If I had that kind of money to invest, I'd invest it in in something that can be used now, or use it to have more time to do the things you enjoy now. You could invest it to help later on in life but that is a gamble. You may not have the health when the money is available.
I'd use it to pay a chunk off the mortgage now before interest rates increase. Or take time out of work.
What are peoples impressions of Vanguard and anyone using it care to share their investment plans or how its done over the years? Positive/negative?
Jolmes - you can review performance of each Vanguard fund over a 5 yr period on their website.
This should be viewed in context of risk profile/level for each fund.
What’s going to happen to the value of classic cars when you can only drive them on a track and be limited to a small amount of planet-killer fuel per annum!?
It's a short to medium term gamble. Like all forms of gambling, don't even entertain the idea unless you really know what you're doing and the odds are stacked in your favour so to speak! I know some people who have made a VERY good living out of buying classic cars and motorbikes at the right time, and selling them. Similarly I've watched people invest their savings in a lemon and lose the lot!
I recently bought a very good (not totally immaculate, but I didn't pay a silly price) 225 mk1 Audi TT in original condition. The breakers are currently having a field day with these, as typically they're worth more broken than they are running... THIS is the time to buy a potential future classic. Once all the tat has been broken for parts (also meaning it's cheap/easy to fix any potential issues on your own future classic) leaving only good low mileage cars left, this is when the demand and hence the prices start to rise...
I also own a Ducati 748SP. Bought it in 2002 for £5400, it's been in my Dad's garage unridden for 12 years I'll be honest so it needs £1k or so spending on it to recommission it, but having watched the value of these drop as low as £2k a few years ago, good low mileage ones are now fetching £7-8k and the prices are still rising! It looks like they might get to £10k in a year or two possibly! 916 prices went mental, even rough ones are fetching £10k! The guy that used to have the shop next door but one to mine has a 916SPS Foggy Rep, only 3k miles from new. He's turned down £35k for it already! Same guy owns a 1989 Porsche 911 Turbo, last of the 930 shape, 4spd box, the "widow maker" original... It's done 18k from new, never been restored etc. He's already turned down £160k for that, he reckons he'll get £200k!!!
You NEED to know what you're doing though. I hesitated years ago on E30 BMW M3, at the time I didn't feel confident. Shame as that would have REALLY netted me a fortune (was £6750 in 2001, now worth £50-60k) if looked after, but I know a lot more about the market now than I did then, so...
Even with that all said, if I had £15k spare right now, I wouldn't spend all of it on classic cars or bikes anyway. I'd take £5k of it and buy something I thought I could turn into £6-7k inside 12 months, the remaining £10k would go in savings in preparation for my current 2yr fixed mortgage running out in 15 months time...
mjs,do you really think interest rates are going to increase?I just can't see that happening in the near term.As for trackers and ETFs they are a bubble ready to burst.
@mboy I too remember seeing E30 M3s for around £6000, it was around the time I passed my test. If i'd have bought one at the time though it would be either rotten or been stolen by now as I've only just got semi-secure dry storage. I also passed up a 70's 911 Carrera RS replica around 10 years ago for around 10k but its similar story with secure dry storage.
Now i'm not the smartest when it comes to investing but on your example with your 748, the BOE inflation calculator says your £5400 in 2002 is equaivalent to £8,629.43 today. Does that mean technically you haven't made anything but haven't really lost anything either? You've had to store and maintain it but have had use of the bike/pleasure of ownership. I think that's why its important to buy something you want/enjoy rather than just an investment. If you'd have used it and had more of the experience of owning it how much less would it be worth?
My opinion with most things is that it's there to be used and enjoy. I still own my 1st car, really it was un-economical to repair but has a bit of sentimental value. It's not going to last forever so i'd rather it die with 200k on the clock than 110k. This is mainly again because it's been sat outside all its life.
https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator
Cars will drop in value like a stone once other asset classes start giving a decent return. They're already looking soft at the high end.
I'd be looking to drip-feed any investments into stocks-n-shares ISAs at the moment and spread around different bits of the globe, as well as being prepared to leave it in there for a long term (i.e. a decade at least) because I have a suspicion there will be lots of long-term deflation going on. Frankly I'd chuck it against the mortgage if you don't know what you're saving for, or a fixed term investment if you think you may need it for a rainy day.
As for trackers and ETFs they are a bubble ready to burst.
Trackers & ETFs are not the same thing. ETFs could be a disaster in a liquidity crunch, trackers less so
Define less so.
£15,000? How old is the investor? What is their earning potential? Would that be enogh money to support them in taking their career to the next level - or changing career?
Another £5k on salary per year through additional qualifications or whatever it is their workplace values would pay off in the medium term.
Other than that, MySpace. Social media is going to be huge one day.
How long is a piece of string?
Forums are not the answer.
Ask around get a good IFA or wealth advisor.
An independent will see your blind spots. Tease out your financial weak spots.
Also get you to do risk tolerance analysis.
Then decide.
Pension or mortgage reduction good
Gold, fine wine, Fundsmith - only joking.
See article re Fundsmith and similar; if you invested 3/4/5 years ago - great but now? Hmmm.
https://portfolio-adviser.com/lindsell-train-and-fundsmith-hammering-fails-to-spook-investors/
See article re Fundsmith and similar; if you invested 3/4/5 years ago – great but now? Hmmm.
But only a complete idiot invests in stocks and shares expecting a guaranteed short term gain. If you can't tolerate a 40-50% write down, you shouldn't be in the market.
As for that article, so what, over a 3 month period two big funds didn't do that well - who cares? No one invests in a managed fund looking at a 3 month timeline.
Cars/bikes are Not a buy it stick it in the garage watch it appreciate asset.
Colleague bought a mint low miles rc30 at a good price....and immediately wiped a chunk off its value such that he can't even get interested buyers at a break even.
He did that by buying it and just leaving it stored.
It's now at a point where it's not been started in 15 years and has zero history over thay period He sees the "true value" in the ones that are selling for strong money and can't even get a sniff as the folk with money would rather spend the big bucks and get one that has been looked after rather than just parked up. All he gets is chancers low balling him
To make money off cars you need to be lucky to find the right car to make a quick flip or have the money to store it correctly.
I also watched a large number of folks classic investments go up in smoke in a secure dry classic car storage facility locally..... And no one's insurance covered the "perceived" value.
Footflaps - my comment and the article were for the OP and his mate, not you.
There was a request for suggestions/comments - so I provided some.
I put £12k in Fundsmith a few years ago its made 40% so far.
Today's award for talking rubbish goes to Mike P. Well done.
andypaul
Member
Land in Eastern Europe.
Im not kidding
I've a pal who has a North Macedonian wife. They bought a plot on the edge of her home village in south west North Macedonia and built the house back in about 2001, it took a few years of faffing to get it completed as the final cost was a nearly £35k, double what they had first estimated.
Apparently house prices leapt just priory to the Greek/Central Macedonia descent into mayhem.
It's now worth over £130k, even with stagnant house prices.
Plus they have skiing to the road and amazing MTB...
Today’s award for talking rubbish goes to Mike P. Well done.
Says the chap who suggested buying Apple.
Scroll down to the "Our View" bit near the bottom: https://bluewhale.co.uk/faang
I'm with Mike P on this.
Anyway, too many variables to be giving out investment 'advice' - depends on the age, earning potential, amount of other assets, reason for the investment etc.
Personally I find making additional pension contributions to be the best use of spare cash at the moment - immediate c.40% boost essentially as a HTT. I doubt that HRT relief will be granted on pension contributions for much longer.