What to do with ten thousand pounds?

red_devil
red_devil Posts: 10,793 Forumite
in Savings & investments
family member has this and has 5 of it in premium bonds in case of a big win and the other five in high interest account any ideas how to make more of 10 grand?
:footie:

Comments

  • dunstonh
    dunstonh Posts: 116,259 Forumite
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    Usual questions...

    Invest or save?
    what timescale?
    what tax rate?
    what risk profile?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • red_devil
    red_devil Posts: 10,793 Forumite
    sorry dont understand questions. no timescale just how to make it go further.
    :footie:
  • red_devil
    red_devil Posts: 10,793 Forumite
    bump. anyone know?
    :footie:
  • exel1966
    exel1966 Posts: 4,978 Forumite
    First Post First Anniversary Combo Breaker
    red_devil wrote: »
    sorry dont understand questions. no timescale just how to make it go further.

    In other words you're being far too vague. To get sensible advice you have to elaborate a little. There are hundreds of things you could do to make more of your £10K.

    Savings/ISA's/Stocks/Bonds ?
    Easy Access/restricted access/some risk/no risk ?
    Tax status - Non tax payer/lower rate/higher rate ? It makes a BIG difference.
  • youknowwho
    youknowwho Posts: 259 Forumite
    Could anyone advise on where would be the best place to put 200k. I am selling my home and moving into a free one (long story) and will have 200k from the sale of my house.

    I dont want to lose it, so dont want to take any risks.
    earning 33k PA
    probably have between 3-5 years to invest it.

    Am i right in thinking that the best would be to put in a 6% savings and get a return of 12K PA in interrest.

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  • dunstonh
    dunstonh Posts: 116,259 Forumite
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    3-5 years is a tad short to invest it and your risk profile suggests cash based savings.

    Am i right in thinking that the best would be to put in a 6% savings and get a return of 12K PA in interrest.

    Not quite. It will take you into higher rate tax if you stick it all on a savings account so you will lose 40% on a chunk of it.

    You should perhaps look to maximise your ISA allowances and possibly Nat Savings Certs to reduce your income tax liability.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • red_devil
    red_devil Posts: 10,793 Forumite
    exel1966 wrote: »
    In other words you're being far too vague. To get sensible advice you have to elaborate a little. There are hundreds of things you could do to make more of your £10K.

    Savings/ISA's/Stocks/Bonds ?
    Easy Access/restricted access/some risk/no risk ?
    Tax status - Non tax payer/lower rate/higher rate ? It makes a BIG difference.

    easy access low risk, non tax payer.
    :footie:
  • shadowspy24
    shadowspy24 Posts: 238 Forumite
    First Post First Anniversary Combo Breaker
    you could always buy a house and rent it out. House will probably increase in value also so you won't lose the original investment.
  • dunstonh
    dunstonh Posts: 116,259 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    shadowspy24 wrote: »
    you could always buy a house and rent it out. House will probably increase in value also so you won't lose the original investment.

    Daft statement of the day goes to shadowspy.

    buying a house for a three year timescale is daft but even more so at a time when property prices are on decline.

    ..wont lose the original investment..... oh dear. You must have been an endowment salesman in a past life.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Aegis
    Aegis Posts: 5,688 Forumite
    Name Dropper First Post First Anniversary
    Wouldn't you also require a substantial deposit for buy to let mortgages, making such a strategy impossible with only £10k?
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
This discussion has been closed.
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