Investment ideas

hermano

Hi,

I am 26 years old and I currently have some income I would like to save every month (around £4-£4.5k).

I don't really have any debts and I am not saving for anything in particular. Most of my savings, circa 75%, are going into cash with around 25% going into some higher risk funds (emerging market equities). I have a house which I rent out so I am not worried about saving for a deposit or paying off my mortgage earlier.

My ISA allowances will be maxed out and I am trying to go for higher interest savings accounts. But I don't know what else is out there.

I am happy to have a low proportion of my funds in risky assets but overall I am quite risk averse.

I would really appreciate suggestions and ideas. I was thinking of allocating around 25% to high yield bonds (low investment grade to junk grade type bonds).

Thanks

DavidHayton

I would suggest that you talk to an Independent Financial Adviser. These are significant amounts of money. There are some excellent contributers on this board, but people can post replies with no more qualifications than the folks in your local pub. If you don't know of any IFAs, you can find one here: http://www.unbiased.co.uk/

Best wishes, David

Loughton_Monkey

With substantial savings (potential) like that, I would see an IFA. You haven't mentioned Pension. You may well have one for all we know, but typically they would have a substantial place in any savings/investment strategy for a 26 year old.

The trouble with going through such a 'skeleton' background on a forum such as this is as follows:

1. Nobody knows much about you, your risk attitudes, your other commitments, your total incomings/outgoings..... and a lot more. Advice (in the true sense) cannot be given on these boards.

2. The 'answers' typically will contain a lot of 'noise'. You will be 'told' [for example] that you should invest it all in Gold (or Silver). Also to buy a whole string of BTL properties. Or get into Copper/Platinum as the next 'big thing'. Many of these are emotional rather than rational ideas.

3. Before starting on individual investment ideas, anyway, you should develop some sort of overall strategy that is right for you, your income, your lifestyle, your future lifestyle plans, your tax position, your likely future tax position..... I could go on...

Voyager2002

You mention emerging market equities: you don't say whether these are individual shares, managed funds or trackers and EFTs. Anyway, have you considered similar things for develped economies? Some people think that the USA is now coming out of recession, and there has certainly been some reasonable growth in equity values there over the last few months. Similar comments apply to parts of Europe, with Germany in particular looking like a hot-spot for growth. These markets have traditionally been regarded as lower-risk than the emerging markets, although after the events of 2008 I tend to think that all bets are off.