Beginning a Fortune

Sackagold

Greetings people,

I'm interested in beginning some sort of saving scheme. I'm not sure what exactly as I'm new to this, but I would like to start something. I'm in a position now where for the next year or two I should be able to save around £7k a year, and rather than just having it burning a hole in my pocket it seems sensible to invest it - I guess. So, where would you advise a 'newbie' to begin looking? ISAs, Funds, and all that, are alien to me. I might also have around £1500 to start off with now.

Peace and ching ching to all.

Thanks. :cool:

Sackagold

Also, I should add, that I will be living and working outside of the UK. Will this disqualify me from any savings account if I were thinking of sending money home monthly?

Lokolo

You need to be a UK resident to open an ISA. So you won't be able to do this!

Sackagold

What if I opened an ISA before I left for overseas though?

lr1277

You can only save 5100 in a cash ISA per year. So given your initial lump sum and your ongoing payment, you will have to think of an alternative home for sums above 5100. If you know you don't need the money for a year or two, you could find some fixed rate bond, or an account that doesn't allow withdrawls for a year or two.

Sorry don't know about the overseas issue.

Reaper

If you are currently in the UK then you can open both normal and ISA savings accounts now. Legally there is no problem keeping them open when you go (though you can not add anything more to the ISA once you leave). However some banks can't be bothered with the hassle of overseas customers and will close them when they find out you have moved abroad.

Depending where you end up you might also find the country you are in wanting to tax you on interest from your UK accounts.

Sackagold

How can another country tax me on my UK accounts?

So, could I look at putting my initial 1500 away before I go and then after a year top that up to the 5100 mark and then maybe use a grand or two for shares. But, that would be assuming I return to the UK each year. That'd be a huge pain.

I would be happy to lock those finds away i.e. no access.