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    Any tips on investment?

    Probably not the best site to ask but hopefully someone could advise me. I sold a property and started university but found out I can no longer get a mortgage or break onto the shared buy scheme whilst being a student which sucks. Does anyone know what or where I can invest my money? Currently have premium bonds and the Halifax saver just in case. Are there any other similar monthly draw based places or investment with a decent return?

    Any tips would be great

    31 Comments

    How much do you have? You could just buy a load of scratch cards and take pot luck?

    Shares in United airlines?

    Try the new Neil Woodford higher income fund. He is investing in high quality, high dividend shares. The fund is expecting to return 5% per annum.

    Neil is a safe pair of hands often winning awards.

    I'd do the nationwide, Santander etc high interest accounts up to those high interest limits.

    Make sure you don't have more than £85,000 in each institution so as to have the FSCS compensation scheme in place.

    Don't forget to make use of your ISA allowance etc.

    I would be tempted to invest in a buy to let property.

    sicklysweet

    I'd do the nationwide, Santander etc high interest accounts up to those … I'd do the nationwide, Santander etc high interest accounts up to those high interest limits. Make sure you don't have more than £85,000 in each institution so as to have the FSCS compensation scheme in place. Don't forget to make use of your ISA allowance etc. I would be tempted to invest in a buy to let property.



    Now only £75,000
    Edited by: "t1nt1n" 13th Apr

    FYI, the recent tax change on mortgage tax relief for buy to lets make it more expensive to secure the returns landlords used to get back. Purchases outright are not affected.

    Pops

    t1nt1n

    Now only £75,000




    I just remembered that and came back to amend the post!

    Oops.

    Also worth pointing out that for example for example NatWest and RBS count as one institution/banking group.

    popolou

    FYI, the recent tax change on mortgage tax relief for buy to lets make it … FYI, the recent tax change on mortgage tax relief for buy to lets make it more expensive to secure the returns landlords used to get back. Purchases outright are not affected.Pops


    Yes and before it allowed people who borrowed to benefit greatly with the interest tax relief and gearing

    You can stick £2880 into a personal pension if you do not need that money. Government will bump it up to £3600. Stick it into a SIPP. Lots of articles on the web about this. Pick funds that consistently perform well like Woodford as suggested earlier. Remember it is a long term investment and there is always a risk with these. Put £20k in an ISA. Same as pension so select a provider that does both. Spread the rest in high interest accounts etc.

    Banned

    marty-401

    Shares in United airlines?



    Sure you'd get a cash return or a beating? :P

    sicklysweet

    I just remembered that and came back to amend the post!Oops. Also worth … I just remembered that and came back to amend the post!Oops. Also worth pointing out that for example for example NatWest and RBS count as one institution/banking group.


    Back up to £85,000 again (as at the end of January).

    Think it's because the rate in Europe is 100,000 Euros and with the exchange rate having worsened since we voted for Brexit, that 100,000 is now worth £85,000 rather than £75,000.

    fred123544

    Try the new Neil Woodford higher income fund. He is investing in high … Try the new Neil Woodford higher income fund. He is investing in high quality, high dividend shares. The fund is expecting to return 5% per annum. Neil is a safe pair of hands often winning awards.



    Sounds interesting, how does it work?

    Depending in how long you're happy to invest your cash for, have you coinsidered peer to peer lending, such as Zopa? zopa.com/len…ing

    Aaronnnn

    Sounds interesting, how does it work?



    Ok you open an account with a provider example Hargreaves Lansdown or Fidelity different providers have different charges. Go to their website and see which you prefer. HL website is very simple to use imo. Then it you want to put your funds in an ISA then open an ISA. Once done you can start buying any funds by linking your account to your current account and paying from your current account or via a debit card.

    That's it.

    t1nt1n

    Now only £75,000





    sicklysweet

    I just remembered that and came back to amend the post!Oops. Also worth … I just remembered that and came back to amend the post!Oops. Also worth pointing out that for example for example NatWest and RBS count as one institution/banking group.



    It's back up to 85k with the pound doing so well against the euro.

    eslick

    It's back up to 85k with the pound doing so well against the euro.



    Cheers to Derbyshireterrier and yourself, it's difficult keeping up with it all!

    Edited by: "t1nt1n" 13th Apr

    Original Poster

    Thank you all for the advice I never knew I would get this much response I forgot to mention I need an investment that I can pull my money from in case I buy a property again. Moving to the midlands I find I keep getting out-priced stupidly by other investors paying well over what I believe properties are worth.

    Banned

    You can invest it in me OP will give you 50% return on top :P

    groppo

    Thank you all for the advice I never knew I would get this much response … Thank you all for the advice I never knew I would get this much response I forgot to mention I need an investment that I can pull my money from in case I buy a property again.



    You can withdraw your money from Zopa in a couple of ways - zopa.com/len…ney

    thearbiter65

    How much do you have? You could just buy a load of scratch cards and take … How much do you have? You could just buy a load of scratch cards and take pot luck?



    And that's the exact reason you don't ask people on a random message board investment advice.

    Gold Gold Gold

    Or Rose Petroleum which is set to double by end of year ;-)

    I agree with Morgie - P2P lending gives the highest returns - but they can be risky.
    Just remember to spread your investment out.

    cossy3

    And that's the exact reason you don't ask people on a random message … And that's the exact reason you don't ask people on a random message board investment advice.



    Ha!

    Most of the comments above are ignoring the fact that you may need the money back quickly to buy another house.
    Zopa is currently closed to new money, most other p2p investing is aimed at long term investors and penalise early withdrawl.
    Stock market investments, such as Woodford mentioned above, again are aimed at the long term because the value can and will fluctuate, so if you suddenly have to cash in your investment in a dip, you will lose money. Plus over the short term you need to allow for trading fees on the platform that you invest through.
    A SIPP is no good to you since you cannot access the money until you are 55.
    In your situation, where you may need quick access to your funds if you suddenly find a house that you want, you are limited to Easy Access accounts, the best of which is probably not even returning interest to cover the rate of inflation.

    buy a narrow boat, save the cost of renting and if you look after it, it won't depreciate too much if you get one that's second hand. there's a lovely two bedroom widebeam on eBay for £75000 at the moment

    Diversify :

    Max out your £20k annual allowance in an equity ISA. You can sell to get your money back at anytime however it is a medium/long term investment and not without risk. HL is a good place to start as others have mentioned - pick a fund which suits your attitude to risk
    £20k premium bonds. Again you can sell these at anytime.
    Rest in cash in an instant access account - safe but returns are paltry

    Original Poster

    tallpete33

    Diversify :Max out your £20k annual allowance in an equity ISA. You can … Diversify :Max out your £20k annual allowance in an equity ISA. You can sell to get your money back at anytime however it is a medium/long term investment and not without risk. HL is a good place to start as others have mentioned - pick a fund which suits your attitude to risk£20k premium bonds. Again you can sell these at anytime. Rest in cash in an instant access account - safe but returns are paltry



    When it comes to investments I am very bad at working out the maths so can anyone help if I was to put £20k in an equity ISA with HL for lets say a year what sort of return would I be looking at? Also it says their is a risk so how much could be lost? I appreciate all the advice from everyone at HUKD

    groppo

    When it comes to investments I am very bad at working out the maths so … When it comes to investments I am very bad at working out the maths so can anyone help if I was to put £20k in an equity ISA with HL for lets say a year what sort of return would I be looking at? Also it says their is a risk so how much could be lost? I appreciate all the advice from everyone at HUKD



    When you invest in equities it is essential that you realise that potentially you are risking ALL of your money. There is absolutely no certainty that you will make a profit, get your investment back or lose the lot. The stock market is essentially a sophisticated gamble.
    Knowing the above, you then tailor your investment to suit how much risk you are willing to take versus the potential money you might make.
    Websites like HL take some of the pain out of this by building portfolios for people who judge that they are willing to accept HIGH/MEDIUM/LOW risks to losing their money. The Lower the risk, the lower the return and vice versa. But remember, even in the low risk catagory, there is no certainty that you will not lose some of your money, let alone make a profit.
    This is why, in general, equity investment is for the long term, 8-10 years minimum.
    If you had stuck your money in just about any UK fund a year ago, you would today be able to take a profit. Had you done the same in 2007, over a year you would have probably taken a big loss. But, if you had invested in 2007 and left the money invested until today, you would have seen many peaks and troughs over the decade, you would have made a reasonable profit.
    To put that in real numbers, my investments over the last 10 years have made an average of 12% per year. This includes the successes and the ones where I have lost all my money.

    airbus330

    When you invest in equities it is essential that you realise that … When you invest in equities it is essential that you realise that potentially you are risking ALL of your money. There is absolutely no certainty that you will make a profit, get your investment back or lose the lot. The stock market is essentially a sophisticated gamble.Knowing the above, you then tailor your investment to suit how much risk you are willing to take versus the potential money you might make. Websites like HL take some of the pain out of this by building portfolios for people who judge that they are willing to accept HIGH/MEDIUM/LOW risks to losing their money. The Lower the risk, the lower the return and vice versa. But remember, even in the low risk catagory, there is no certainty that you will not lose some of your money, let alone make a profit.This is why, in general, equity investment is for the long term, 8-10 years minimum. If you had stuck your money in just about any UK fund a year ago, you would today be able to take a profit. Had you done the same in 2007, over a year you would have probably taken a big loss. But, if you had invested in 2007 and left the money invested until today, you would have seen many peaks and troughs over the decade, you would have made a reasonable profit.To put that in real numbers, my investments over the last 10 years have made an average of 12% per year. This includes the successes and the ones where I have lost all my money.


    Did you go for high, medium or low?

    termite

    Did you go for high, medium or low?


    I don't use the pre packaged portfolios offer by HL mainly because you pay a bit more for them and every extra 1/2% you pay in management charges is an extra 1/2% that your investment has to grow to make a profit. But, they are popular for the simple reason that someone else has done the research into the underlying funds that are within the ready made portfolio.
    If you are looking for something simple and cheap (in terms of management fees)Vanguard LifeStrategy do a range of funds that split your money 100% or 80/20 or 60/40 etc. between equity funds and bond funds. So the 100% equity fund carries the most risk for the biggest return and the 20/80 split with most of the money in bonds carries the least risk. The funds get 're-balanced' periodically to reflect changes in the market. I have some of my money in a range of these and over the last year the returns have been between 24% and 1.6%. Other than that I spread the money around in small amounts to get exposure to different parts of the world. My main pension investment is in a 60/40 UK/International tracker fund. I am not a sophisticated investor, anything I don't understand, I don't invest in. I don't follow fashions or names (like Woodford). I look for solid returns over a long period and low management fees. On occasion that I do invest in something more exotic, it is with money that I'm prepared to lose.

    groppo

    When it comes to investments I am very bad at working out the maths so … When it comes to investments I am very bad at working out the maths so can anyone help if I was to put £20k in an equity ISA with HL for lets say a year what sort of return would I be looking at? Also it says their is a risk so how much could be lost? I appreciate all the advice from everyone at HUKD



    Impossible to say but 10-20% is realistic and note it is tax free. It is a question of timing and picking the right fund (or funds). If you invest the day before a crash then you could lose "on paper" but most likely make it up long term. A good strategy to spread the timing risk is saving monthly by direct debit like I do which is easy enough to set up also.

    FYI though I did put a lump into the HL Select UK Shares fund in January and that is up 15.66% already which is a great performance (so far....)

    Edited by: "tallpete33" 17th Apr
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