Got close to £10K. Never invested before, options please?

Lokolo

Aegis did you just write all of that out??

Aegis

Lokolo wrote: »

Aegis did you just write all of that out??

Yes, I've been at home sick since Friday and I'm really really bored now!

I even started doing a practice paper for a module of the Diploma of Financial Planning that I'm not even studying yet...

DiggerUK

@ Jackhulk,
You have been correctly advised that I am an IFA basher.

If you look at the history of these people you will find that they have a track record of being involved in miss selling of endowments for houses, and pensions in the past.
Changes of course have been made to "ensure that the lessons have been learned and will not happen again." How often do we hear that one!

These people are of course regulated by the F.S.A., the same people who are also regulators for the banks. Still not wary about them?

They give the impression that they have insight into the financial world. They don't, they are not trained or even required to do in depth analysis. Still not wary about them?

How about this then. They are not even required to have a GCSE in maths to qualify as an IFA.

My advise to you was based on what I would do in your place.

Good luck.

JoeCrystal

@Lokolo Who cares if it been plagiarised. It is rather good though! :T

I am rather poor worker who saves his money and put them into reliable areas that will give me the guaranteed returns that I can work out and take into account for. Good example would be that I am utterly sure that putting £360 into 5-year 45th Issue Index-linked Savings Certificates will give me £18.38 interest over five year, not taking into account of index-linking.

The areas that give me high potential returns that can also give me high potential losses are too risky for my mind even though I am considering very small amount of investing but some people say you need large sum of money to invest. So the small amount of money I am considering may not be good enough.

jackhulk

OMG! Typical ISA, 3.5%! £126 interest over a YEAR?!?! Or am I completely getting my figures wrong here??

That to me seems an insult. Now I know why I've never been a saver!!

Lokolo

Well I will show you why people say this:

Trading Cost: £12.50 per trade for shares
Have £100 to invest

So to buy you only buy £87.5 worth of shares

You then want to sell these, so it takes another £12.50. So your £100 you want to put in, has already gone down to £75 because of admin costs. So to get back upto £100 and into profit you would need a raise of 25%

£1,000 then turns into a 2.5% before profit
£10,000 turns into 0.25% before profit

---

Funds are different because the costs are usually a % of what you want in, rather than the £12.50 or whatever fixed fee. So a 1% buy charge on a fund, plus a 1.25% annual management charge, is pennies for your £100. So for small investments, lower risk, funds are great.

---

Also Aegis is a bit of a geek hence why I asked him if he wrote it, because it was a little fast!

Lokolo

jackhulk wrote: »

OMG! Typical ISA, 3.5%! £126 interest over a YEAR?!?! Or am I completely getting my figures wrong here??

That to me seems an insult. Now I know why I've never been a saver!!

Considering you're not doing anything but putting money into an account it seems an ok deal doesn't it...?

DiggerUK

@ jackhulk,
Yep, that's about the best at the moment. All about 3.5%, better than what your getting at the moment though.

Didn't ask if you had any debts, time to pay them off if you have.

jackhulk

Lokolo wrote: »

Considering you're not doing anything but putting money into an account it seems an ok deal doesn't it...?

Defo not! As a self employed person, I'd rather invest the money into a product and hope it sells. If it does, my gains would be a hell of a lot more than an cash ISA. If it doesn't sell and I only come out even/make a small loss etc, its a lesson learnt and experiance gained for future projects.

I guess this at least confirms that I'm happy to take risks and therefore I should start to look at investments with possible higher gains/risks.

Lokolo

jackhulk wrote: »

Defo not! As a self employed person, I'd rather invest the money into a product and hope it sells. If it does, my gains would be a hell of a lot more than an cash ISA. If it doesn't sell and I only come out even/make a small loss etc, its a lesson learnt and experiance gained for future projects.

I guess this at least confirms that I'm happy to take risks and therefore I should start to look at investments with possible higher gains/risks.

Yes it does. But I have highlighted in bold what others don't want. Some people don't want to hope something does well, or to make a challenge to get a better return. They want to play it safe so to speak.

Also saving has its benefits. For my investment I want to make in the future I need a minimum of £80,000 cash. Surprisingly no-one can get this amount without saving (or hoping their rich grandparents or whatever die, which is just mean!), which is why I am saving!