What to do?

ricky.patel89

Hey,

I'm leaving University this year, with a graduate job already lined up, so I'll now have my own line of income.

I've have no debts at all, a lot of my savings are currently tied in fixed rate bonds not maturing anytime soon. I'm looking to put some money into an investment fund where my original capital is protected, mainly looking for growth, so I don't mind how long I'm tied up for as I won't be needing the money anytime soon. I've heard that the investment products offered my high street banks are absolute crap. I can put away around £250 to £300 a month has anyone got any recommendations.

CLAPTON

'protected' investment are normally rubbish

why won't you need the money anytime soon?
no possibility of wanting to buy a property?
or travel the world
or fall in love

ricky.patel89

I won't need the money anytime soon, as I don't have any plans to try and buy a house in the next five years, also most of income will be going into my savings as I live with my parents, so I don't really have my outgoings. In terms of "capital protected" investments, I can see why it they are normally rubbish, I would also be open to low/medium risk. Any suggestions?

opinions4u

Before you get in to long term investments in a big way, consider what your life plan is.

If you haven't got a life plan, consider what direction it's likely to take.

When will you travel?
When will you buy your next car?
When will you buy a house?
When will you get married?
When will you have kids?
When will you be out of work for any reason?
When will you pay to educate your kids?
When will you retire (much bigger leverage for early retirement with contributions started now)?

It could be that piling all your spare capital in to an investment plan that's best suited to 10 years plus means that while you're well set up to put your kids through education in 2035, you haven't actually got the money there to buy the house with and pay for the wedding.

It might be that you have no intention to travel, you already have funds to buy the house/get married and it really is the right time to dabble in something longer term.

Stocks and shares ISAs may be the right kind of thing to dabble in ... perhaps a medium risk tracker fund or managed fund. Some would argue that a regular saver account is a safer bet. Impossible to tell what's right without a lot more information.

It does sound like you are in a very strong position financially. Just make sure that you assess the various lifestages that are coming your way before piling in to the wrong type of savings plan! Keep an eye on the long term, but don't sacrifice short and medium term needs.

ricky.patel89

I've analysed the situation very carefully, the money I would be putting into this fund could be considered as "spare", I already have a Santander Regular Saver and their Esaver, but I would like to diversify where I save my money. As you have said I would consider myself in a very strong financial situation. With regards to the questions above, my parents have always said that they would like to pay for my Children's education and in terms of getting a house, my parents own a few properties and they have always said that in the end they would divide them between me and my brother, so we could just sell one to put down a deposit for a home. Sorry if this sounds arrogant, I'm not trying to.

Back to the original questions, I would like my investment be as diverse as possible. I don't mind investing in three different funds, where I can pay in £100 each pcm.

ricky.patel89

Any ideas? They would be much appreciated.

Thanks.

bendix

If you're just leaving university, I'm guessing you're in your early 20s. Why be so conservative on your attitude to risk? You already have savings tied up in fixed interest term deposits - surely you should be looking at some more adventurous investments at your time of life?

ricky.patel89

I would like to take on a bit more risk but I have this idea in my mind that I could loose all of my investment if I went for the highest risk. On average how much I expect to loose over the next ten years of my investment?