Another where to invest £30k thread

avantra

The necessary background:

" We sold our house last August and deposited the proceedings in a BM one year bond at 6.93 AER.
" My other half is on the high tax band of 40%, I am on basic.
" We think of buying a house again when the market will bottom out in about 2-3 years.
" BM bond is maturing next month
" No risk taking here
ISA's all maxed out between us

Where to move our 30k?
Had a look here and the best bond/fixed deposit is with ICIC 7.2% AER
Had a look at the calculator on the savings section and found that NS&I index linked certificates beating the above as long as inflation creeping north.
Can anyone else comment on any other safe saving available which I might have missed?

ps2659

avantra wrote: »

The necessary background:

" We sold our house last August and deposited the proceedings in a BM one year bond at 6.93 AER.
" My other half is on the high tax band of 40%, I am on basic.
" We think of buying a house again when the market will bottom out in about 2-3 years.
" BM bond is maturing next month
" No risk taking here
ISA's all maxed out between us

Where to move our 30k?
Had a look here and the best bond/fixed deposit is with ICIC 7.2% AER
Had a look at the calculator on the savings section and found that NS&I index linked certificates beating the above as long as inflation creeping north.
Can anyone else comment on any other safe saving available which I might have missed?

Kaupthing Edge currently have a 3-year bond paying 7.67% gross/7.15%AER.

EalingSaver

NS&I: will depend who's name the money is in? Your OH is higher rate taxpayer. For her NS&I 3 years could make very very good sense as its tax free. At the moment probalby the best place for a long term hold for her. Bear in mind though that return is RPI dependant, and good chance that will start dropping in say a years time (if not a bit sooner). However, as long as you hold these for at least a year, you can break out and still be getting a very good deal. the RPI plus 1% is varied over the 3 year period (see below). but in first year its still +.85%, so with RPI either at or heading to 5% the current rate (if RPI held at this) would be 5.85% at end of first year - TAX FREE and therefore equivalent to a taxed rate of 9.75% for a higher rate tax payer. Each issue is capped at max. of £15k, however you can take out both 3 and 5 year i.e. max. of £30k.

purchase price + Index-linking for year 1 + 0.85% of purchase price = 1st anniversary value
1st anniversary value + Index-linking for year 2 + 0.95% of 1st anniversary value = 2nd anniversary value
2nd anniversary value + Index-linking for year 3 + 1.21% of 2nd anniversary value

dunstonh

invest or save? you use both terms in your post. It looks like saving is the option you want but just want to make sure.

avantra

dunstonh wrote: »

invest or save? you use both terms in your post. It looks like saving is the option you want but just want to make sure.

Sorry, save save save, my S+S ISA is down 20% since 2000

dunstonh

my S+S ISA is down 20% since 2000

How did you manage that?

Dont ignore the S&S ISA you have. It sounds like it may need some tweaking seeing as you are in a loss position after all this time. Sitting tight and hoping for the best isnt a good idea. Especially if it doesnt match your risk profile.

avantra

dunstonh wrote: »

How did you manage that?

Dont ignore the S&S ISA you have. It sounds like it may need some tweaking seeing as you are in a loss position after all this time. Sitting tight and hoping for the best isnt a good idea. Especially if it doesnt match your risk profile.

40% in BT PLC
20% in the MAN Group
40% in UK Absolute Alpha

It was doing good till 2007-08 I was up 18% on original Investment around March 2007.

It's mostly my BT holdings that cause the damage.

I usually tweak it a bit every 6 month according to the recommendations in the Torygraph and other daily broadsheets. I think for now I will not use this year S+S allowance, might as well invest in B&LW (Booze and loose w):rotfl:

dunstonh

Ahh, rather a high risk spread there then. There are lower risk things you can place in a stocks and shares ISA as well. So, once you use the £3600 cash, it is still worth looking a the other £3600 for non stockmarket investments.

avantra

dunstonh wrote: »

Ahh, rather a high risk spread there then. There are lower risk things you can place in a stocks and shares ISA as well. So, once you use the £3600 cash, it is still worth looking a the other £3600 for non stockmarket investments.

Yep it probably a bit riskier than corp bonds etc' but just came across this:

http://www.thisismoney.co.uk/investing/article.html?in_article_id=451043&in_page_id=159&ito=1565

Well I am told that if I sell now I am crystallising my losses.:cool:

dunstonh

Yep it probably a bit riskier than corp bonds etc' but just came across this:

http://www.thisismoney.co.uk/investi...159&i to=1565

The article is being ripped to shreds on another thread. I will leave comment on that on there.

Well I am told that if I sell now I am crystallising my losses.:cool:

You are but you dont look back but look forward and tweaking and rebalancing is not the same as crystallising a loss.