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