what best to do with £30k?

Jazzycat

I see your point Chrismaths.

Is there a maximum amount that can be held in cash isas or can you keep topping up annual by the £3k allowance?

If we wanted to could you add a smaller share isa on to this.
If so is now a good time?

al_yrpal

Jazzycat wrote:

Hi,

We have a mortgage account that it could offset but feel it would be worth more investing. We have no isas or any financial products and really just wonder where start.

Wassat? If you pay down the mortgage a bit, that is saving you taxed income. :eek:

Show me any savings account (including cash ISA's) that can beat paying off a bit of the mortgage and I'll send you a cigar! Get the calculator out.

Consider changing your mortgage to someone who allows you to pay off some of the mortgage, and later borrow the money back at Mortgage rate when you want to (like Direct Line used to) :money:

Jazzycat

I have a mortgage account like this with the S&S. I always make overpayments and it shows as available cash as "drawdown".

I guess that seeing my money added as interest is maore tangible that it reducing my mortgage.

moneytroll

Conrad wrote:

People who take a hands - on approach tend to get a lot more over the longer term.

- provided they know what they are doing...most people wouldn't know where to start. Peace of mind and not wanting to be bothered with investment decisions costs money, obviously.

But still agree regarding "with/profits" though. didn't turn out too well for me so I decided to learn as much as i can to do it better next time...

dunstonh

Incidently I note the conversation concerning 'risk' above. Ive always been critical of the finincial advice industry over 'risk' as its far too simplistic approach.

I too think the old 5 or 10 scale is simplisitic. Whilst it is good for an indication on boards like this or a generalisation, the old "pick a number between 1 and 5" is obsolete. The problem at the moment is that there seems to be no consensus as to what is the best option. I use a 9 question, score based profiler and then build portfolios based on that score but the asset spread applicable to that score changes every few months depending on the markets and outlook. That is mostly done by software using data from watson wyatt.

Then you have tied advisors who are not allowed to recommend portfolios or funds (unless they only have one fund in that risk rating). The old 1-5/1-10 scale suits the tied model which is more sales based and not the IFA model which should be more advice based.

Most equity ISAs have a minimum of £1000. You would almost certainly want to place it with a provider that is nil initial commission and ideally in a fund with no initial charges (after rebate) if you do put a small amount in. Otherwise you are just investing to pay the initial charge.

Chrismaths

Bull Market - A random market movement causing an investor to mistake himself for a financial genius.
Bear Market - A 6 to 18 month period when the kids get no allowance, the wife gets no jewellery and the husband gets no sex.

2001-March 2003 was a hideous bear market. March 2003-date has been a raging bull market. What's next? Who knows. That's what keeps it interesting. For every buyer of a stock there has to be a seller - in other words someone who takes the opposite view to you. When everyone thinks something can only go up (think tech boom) that is the time that things are certain to fall (think tech crunch). And vice versa, when no one wants to know about equities (think Iraq war), then that's the time to buy. So there's no point in asking where is the market going. However I'm willing to bet that the market will be higher in 10 years than it is today.

Chrismaths

Al_yrpal - if your mortgage is a 10 year fix at 4% (like you got a while back) then there are loads of ISAs that do it. I only smoke Cubans.

al_yrpal

Chrismaths wrote:

Al_yrpal - if your mortgage is a 10 year fix at 4% (like you got a while back) then there are loads of ISAs that do it. I only smoke Cubans.

Sorry, rates have gone up. I thought you sounded like a basic rate tax payer.

kristian_2

If you want a risk free investment, Stick 30k in "Premium Bonds". Ive got money in these and have won far more money in prizes, than you would in any bank!
https://www.nsandi.com

Jazzycat

my purpose of investing is to get a return. Premium Bonds dont do this in my opinion. Some win some lose - my capital is secured but my returns are not.
Not for me but thanks anyway