~20k to invest in near future - Advise needed!

investme

Hello

This is my first post, just looking to get some advice. In the near future (within this year) i will be coming into some money, approximately 20k but maybe more.

A bit about me, i'm 19, currently an IT student and i finish my course this year around Easter time.

I've always found ways of making money and had a business / investment side to me and now i'm finally coming into some money i want to do something with it unlike most people my age who'd simply blow it!

I'm not really sure where to start and i want to get as much advice and information as i can before i actually get hold of the money as i know when i do it'll be burning a hole in my pocket. I was at first leaning towards forex trading as someone i know does this and is doing okay for themselves, they've also agreed to show me but i know this can be a very risky investment if you're not careful.

I'm basically after some tips, advice, experiences etc that you might be able to offer me.

The one bonus for me is that as i'm so young, not in full time work (yet) and have minimal outgoings, i can devote as much time and effort as necessary to make an investment work.

Hopefully i've given enough info for people out there to help me but if you need to know anymore, just ask - Any links to articles explaing types of investment, how they work etc are also appreciated.

P.S. - Before someone says "put it in a high interest savings account" That's not the sort of thing i'm after, i don't work yet and i'm happy to make investing this money my job.

bbl_2

Welcome and well done for heading down the path of savings

From what information you have given, you are at a prime oppertunity to start saving once this money comes through, with little commitments/outgoings you have some decent potential

You mentioned Investing. You know someone who does it and does ok and is willing to teach you, but with the full balance i think this would be a poor decison as like you said yourself, there is risk.

I think you need to weigh it up which best suits you. You dont have a job, you will have this money, little outgoing. I would be some aside for the purposes of it being there if you needed it.

Secondly, i would Fill any ISA allowances you have left, you did not mention one, so if you do not, put the maximum allowance in before the new financial year comes into place (6th April)

If you are really wanting to start with some of the Forex stuff i would suggest that you only used a small portion of what you are going to have available to you. This is because you are new and mistakes without knowing anything/little would cost you. Can you afford/want to lose any amount? Only Invest what you can tolerate to lose. Start small and work your way up

As for the remainder, i would put into something along the lines of a Fixed rate bond for fixed term investment providing that you do not need access to it for that period of time.

Im sure there will be more along to suggest more ideas which you may want to follow but at the end of the day, it is your money, do as youwish

All the best,

bbl

investme

Hey, thanks for the quick response

I do not have an ISA at all at the moment, so i'll look into that.

In regards to only investing what you can afford to lose, the way i see it if i was daft and didn't think carefully about it, there's a good chance i'd end up blowing it on useless junk like i mentioned and being my age that'd likely be things like a new car, bike, holidays, nights out etc.

So with that in mind, i'd definitely like to put a decent whack of it into something secure (like an ISA) and then use the remainder for something more risky but potentially more profitable, as opposed to just spending it.

Not wanting to throw money away of course, just merely justifying my reason for wanting to risk a portion for potential gains

bbl_2

Your stil on the right path then

The whole reason i proposed different appraches was for the fact that you obviously dont want to risk all at once and you have no previous experince. As i did mention in my previous post, "Start small and work your way up "

By all means do what you want but personally i would only use a couple of thoushand for Forex to start with, so you can get used to the concept and develop your knowledge, then whilst doing this, invest the rest into other things such as ISA's and FRB's or smilar, so then at least it is not sitting on an account earning pish.

Off course leave yourself a small chunk to get by on.

Wish i was getting 20k lol

bbl

amcluesent

> i'm happy to make investing this money my job<

Become a day-trader then (after having put £3600 into an ISA). You can get Alpesh Patel's books on trading at Amazon.

investme

Become a day-trader then (after having put £3600 into an ISA). You can get Alpesh Patel's books on trading at Amazon.

That was what i was considering, have you had any experiences? Where's the best place to start. I've got a thread on the trade2win forums as well.

Thrugelmir

investme wrote: »

That was what i was considering, have you had any experiences? Where's the best place to start. I've got a thread on the trade2win forums as well.

Only risk money you can afford to lose.

If you know nothing about particular industries, sectors , etc. Then you will merely be taking a punt by buying shares.

Better to use a mix of cash and share (fund) ISA's and let you money build over the longer term.

ses6jwg

Nobody can tell you what to do as its your money. But a LOT of people lose money in day trading, something like 90%.

I am 21 and have tried spreadbetting a couple of times and it really can put the frighteners up you. It is easy to lose all your money within a matter of minutes.

What I would suggest is max out your cash ISA allowance.

Then have a a few months wages in an instant access account as a back up.

Then use your stocks and shares allowance, and go for "low risk" ETFs, unit trusts and investments trusts, that you are happy to leave for a decade and watch grow and grow.

Then with the remainder, split it between an investment account to medium term trade individual shares (buy and hold for a few months), and the rest into a CFD or spreadbet account for short term trades.

This is not financial advice, but it sounds like it is the sort of ideas you are looking for.

Good luck.

And before you even consider going anywhere near a spreadbetting account READ READ READ READ READ AND READ SOME MORE.

I use IG INDEX, as you can bet 10p a point for the first week.

CLAPTON

set up a 'fantasy' portfolio and spend at least 6 months playing with that are see how you get on.
then consider whether to spend real money

investme

Elaborate? what do you mean exactly - point me in the right direction

ses6jwg

investme wrote: »

Elaborate? what do you mean exactly - point me in the right direction

its like fantasty football but with shares, you invest fake money and see how well you do.