A minefield of investment options

Boshed_2

Hello,

Long time 'troll' first time poster.

I have been reading a lot within this forum regarding many aspects of savings and investments over the last month or so and I'm finding it hard to make a decision on what product will best suit me and I would appreciate your guidance.

I currently have about £3,500 in an ISA paying a pitiful 3.7% gross interest – one of the reasons I’ve decided to research other areas of savings/investment and currently saving £200 p/m (with a view to increase overtime).

I wish to become more ‘active’ with my financial affairs in regard to actually being the ‘Fund Manager’ of my own savings/investment portfolio, but having a hard time deciding on the best course of action.

I wish invest in the stockmarket, but feel overwhelmed but the options available. I hear mention of Squaregain and other agents to whom I can buy shares through, but without the technical know how it’s difficult to compare X against Y.

Taking part in something is always the best way to learn, but only a fool would jump in with both feet unprepared. I was wondering if anyone would be so kind as to recommend a particular book/website/etc that they found very enlightening in their early days that helped them become a “Mad Maveric MoneySaving Maniac”?

Sorry for the long-winded biography, but I thought it would be nice to introduce myself before ‘going off on one’.

Thank you for your time,

Boshed

YorkshireBoy

Boshed wrote:

I currently have about £3,500 in an ISA paying a pitiful 3.7% gross interest – one of the reasons I’ve decided to research other areas of savings/investment and currently saving £200 p/m (with a view to increase overtime).

I've never had a mini-cash ISA paying less than 4% - even when the BOE base rate was 3.5% a couple of years ago. I suspect you've "taken your eye off the ball" here, so it's good that you are now focussing again.

I can't help with the book, but the first thing I'd do if I was you is to transfer your ISA to the "Halifax ISA Direct" for 5% (an immediate 35% increase on your current level of interest). Check for any withdrawal penalties with your existing ISA provider, and factor these into your decision.

Finally, and please take this the right way, if you can't keep track of current best-buy's with mini-cash ISA's, are you ready for a plunge into the stock market?

Boshed_2

I appreciate your advice YorkshireBoy.

In regards to the interest rate of my ISA, it was very odd. It was above, or on, 4%, but then I made a credit into the account and I found that the rate had dropped to 3.7% - triggering me to do something about it. Whether the fact it was a matured Tessa has anything to do this the account, i don't know, but what I do know (as rightly mention) is that money needs transferring into a more profitable account.

I'll be having a savings review this weekend with my bank, where this 'issue' will be brought up.

Thanks again

cheerfulcat

Hi, Boshed,

The best investment oriented site I know is the Motley Fool -

http://www.fool.co.uk/help/sitemap.htm?NavLoc=LN&NavFrom=home&NavTo=sitemap

As for books, there are many good ones. The ones I found most helpful at the start were Peter Temple's First Steps in Shares and the Motley Fool UK Investment Guide. Alvin Hall's book, Winning with Shares, is also worth reading. There was a series of books by Bernice Cohen which I found very heavy going ( much easier now that I understand what she's saying! ) but well worth reading for the wealth of detail. The first in the series is called The Armchair Investor. I think that it may be out of print, though Amazon still shows it as available but I'm sure that your local library would be able to get it for you ( the moneysaver's best option :-) ).

HTH

Cheerfulcat

monkeydust_2

well become more active yourself is a good way forward IMHO as long as you a) have the time to do the research and have a disciplined mind!

Suggest you do some overall research - "Dr Alexanders - Welcome to my trading room" is a good and more to the point useful read. In terms of how you trade theres a wealth of options out there - from CASH to more leveraged approaches, which can carry tax incentives e.g. SpreadBetting.

Check out https://www.squaregains.co.uk for a one-pager overview.

good luck.

Conrad

Boshed wrote:

Hello,

Long time 'troll' first time poster.

I have been reading a lot within this forum regarding many aspects of savings and investments over the last month or so and I'm finding it hard to make a decision on what product will best suit me and I would appreciate your guidance.

I currently have about £3,500 in an ISA paying a pitiful 3.7% gross interest – one of the reasons I’ve decided to research other areas of savings/investment and currently saving £200 p/m (with a view to increase overtime).

I wish to become more ‘active’ with my financial affairs in regard to actually being the ‘Fund Manager’ of my own savings/investment portfolio, but having a hard time deciding on the best course of action.

I wish invest in the stockmarket, but feel overwhelmed but the options available. I hear mention of Squaregain and other agents to whom I can buy shares through, but without the technical know how it’s difficult to compare X against Y.

Taking part in something is always the best way to learn, but only a fool would jump in with both feet unprepared. I was wondering if anyone would be so kind as to recommend a particular book/website/etc that they found very enlightening in their early days that helped them become a “Mad Maveric MoneySaving Maniac”?

Sorry for the long-winded biography, but I thought it would be nice to introduce myself before ‘going off on one’.

Thank you for your time,

Boshed

I started out buying and selling own shares but soon realised I simply didnt have the time and resources to make it worthwhile. It dawned on me that anything your read in the media for research is old news, the City is way ahead of the news. I withdrew from shares,but still kept a few long - term holdings.

I therefore took the decision to let professional fund managers do my bidding.

I also invested monthly and spread it accross 2 or 3 funds within each Unit Trust house to maximise returns.
Id also recommend a straight tracker (FTSE 100 or 250 or even aim) as it has low fees and tends often to outperform fund managers.

Currently considering a monthly savings plan with a VCT (venture capital trust) or perhaps a Russian fund.

I always look for long - term growth coupled with low current values. Russia has vast resources and it is certain thier companies / property will be worth vastly more in 25 years time.

Ive recently taken a Unit Trust specialising in Eastern Europe. Places such as Estonia have highly educated technical workforces yet thier property and companies are for now still cheap.

Never use Insurers or Banks, they simply take fees and invaraibly farm - out your funds to separate fund managers; better to go straight to fund managers.

Obviously wrap - up in ISA s where possible.

I avoid Investment Trusts as they can 'gear - up' that is, take on borrowings to expand share purchasing, but this is not to my particular tastes. I prefer the clarity of Unit Trusts.

In the end no - one can tell you which funds to use, its all a guess. Ive known people chase the best recent performers only to then see the underperforming funds do well under pressure on the back of previous poor performance.

SPREAD IT ABOUT.



I aslo did B2L but now sold them and investing in cheap land in Germany as I beleive the German recession (like ours) cant last forever. Im paying 75% less for land than Germans paid in 1997. mmmmmmm.