Long-term investment, Emergency fund money and ISA advice please

Reiki_Sue

Hi Kind People

I've been putting off asking these questions for nearly a year now! I feel so overwhelmed by this current global financial mess that i've kinda got 'stuck' and don't know which way to turn! Last year i went to every bank and building society and had meetings with them all - most of them didn't really have my interests at heart and offered poor deals, then just as i had completed that round of enquiries the financial market seem to go into further turmoil and i decided to back off making any decisions until things had settled down abit! Have we got there yet? Anyone know?

Anyway further to my late Dad's passing and subsequent inheritance, i have done everything i need to do financially except with the last £23,600! I'm 43 and have paid off my mortgage (years ago) so its just investment for growth info i'm after please.

1) I want to know where can i invest £10k - medium risk (6/10 risk), 3-5+ year long term growth investment, accessible in absolute emergency although will try very hard not to touch it. I have in mind Barclays Annual Defined Returns but having phoned Barclays twice over the last few months they have had no integrity and never returned any calls! Then my dad's late financial adviser suggested the A1M fund (or something that sounds like that).

So what other choices are there? Are these two any good? - i really need someone completely independent to assist me as i feel so incapable at the moment at deciphering what to do.

2) I want to know where i can invest £10k - lower risk 4/10 - 1-5 years - emergency money fund - easy access - preferably a high street bank/building society - unless internet banking is easy - i have a fear of internet banking as i don't know how easy it is to access my money. Although i am with Natwest and can transfer money from one fund into another very quickly. Just not sure how easy it is to transfer money from one organisation into another.

3) I have a Nationwide cash isa with £10k in it and will top this up with another £3600 for this year once i've found a new home for it. Obviously Nationwide is offering a terrible rate of interest 0.50%. So i'm looking at transferring this Isa account elsewhere (assuming there are no penalities to moving it). I do like the idea of it, again, being an accessible premises that i can visit, rather than the internet - unless it is easy to transfer monies in and out of different organisations funds.

Sorry, feeling so helpless, but need to get all this money put in the right places by Xmas. It is currently in Natwest cash reserve earning £14 interest over a three month period - terrible!

I would be most grateful for any pointers as to which funds/organisations i should look into for these three investments. I'm kind of surprised that there isn't a big independent organisation that deals with these types of enquiries e.g. the equivalent of a John Charcol for investments would be nice or does one exist and is that a silly question? I have looked at various comparison websites but end up going cross-eyed - just as i think i know what i'm doing i'll then spot a clause or issue that scupers up my plan of action.... so hence i have got nowhere at all.

I live in Borehamwood, Herts and can travel to other local towns if thats any help - we have the normal run of the mill financial institutions down the main shopping street.

Kind Regards
Sue x

Baldur

Reiki_Sue wrote: »

I have a Nationwide cash isa with £10k in it and will top this up with another £3600 for this year once i've found a new home for it. Obviously Nationwide is offering a terrible rate of interest 0.50%. So i'm looking at transferring this Isa account elsewhere (assuming there are no penalities to moving it). I do like the idea of it, again, being an accessible premises that i can visit, rather than the internet - unless it is easy to transfer monies in and out of different organisations funds.

As ISA transfers are arranged by the institution to which you are transferring your ISA funds and essentially only require the completion of an ISA transfer form, why would you wish to restrict your options to accounts operated by providers with 'accessible premises'? High street providers tend to be among those who offer some of the poorest interest rates - as you have discovered from your Natwest/Nationwide rates.

Unless you select a fixed term Cash ISA, your ISA can be transferred at any time.

Suggest that you read through this post for current Cash ISA 'best buys' - scroll down for those which accept ISA transfers.

jem16

Reiki_Sue wrote: »

Last year i went to every bank and building society and had meetings with them all - most of them didn't really have my interests at heart and offered poor deals,

If it's really an investment you want you need to steer clear of high street banks. Their products are poor and usually high priced and they certainly do not have your interests at heart.

You need to see an IFA - use https://www.unbiased.co.uk for one in your area.

then just as i had completed that round of enquiries the financial market seem to go into further turmoil and i decided to back off making any decisions until things had settled down abit! Have we got there yet? Anyone know?

Timing the market can be pretty futile unless you have access to a crystal ball. The last six months have seen the markets go up quite a bit so you have missed out on that growth.


As to savings most of the good rates are internet based so if you want a good rate you will have to consider that.

dunstonh

I'm kind of surprised that there isn't a big independent organisation that deals with these types of enquiries

There are 30,000 IFAs that are out there. There isnt a shortage.

Linton

What I would do in your circumstances (assuming you pay tax at the standard rate) is something like...:

1) £10K medium risk 5+ years....

Split the £10K into 3 and buy two less risky Unit Trusts investing in different areas and one more adventurous one, and then forget about them for 5 years.

Less risky - eg equity income, bond income, both re-invested
More adventurous - eg Far east, smaller companies, emerging markets, natural resources.

You could put these in a stocks&shares ISA though you are not likely to be making sufficient gains in 5 years for Capital Gains Tax to be a worry.

Detailed info on unit trusts can be gained from www.trustnet.com, though this needs some experience to interpret.

You can get the money out any time with a few days delay but obviously you could lose out if the values are down when you need the money.

You can buy unit trusts yourself online (I use www.fidelity.co.uk) but an IFA should be able to help you choose and buy the appropriate investments. As others have said, dont put your faith in the big high street banks.

2) £10K Emergency money

Keep sufficient for most likely emergencies, say £3000, in a standard account and not worry too much about the interest and the rest in a 1 year (or longer) fixed rate deposit which you renew when it matures. If you are wary about the internet the best high street rates seem to be with the smaller local building societies. You can normally get this money out if you really need it but with loss of interest - check the T&Cs.

If you are just on standard rate tax from what I have seen ISA's are not that advantageous. Even paying tax you can get comparable returns outside a cash ISA.