What to do with £80,000

BashamandCo

Hi All,

I have £80,000 in a 3% standard savings account and am looking to get a better return somehow.

I am a single 29 years old, have no property, hold some premium bonds and have a few pennies in an ISA.

I am considering many options such as:

a) A deposit on one or two properties in the UK (although slightly apprehensive due to the stagnant market).

b) Investing in property abroad.

c) Investing in bonds (seems boring and not much of a return).

d) Stock Markets (although I am a complete novice)

I am going travelling for a year and will be coming back to London without qualifications or a career path so will need relatively easy access to the money (or at least some of it) to start a business or in some way give me a reasonable income.

I am looking for a reasonable return in the near-mid future but not sure if I will ever be able to save this kind of money again so also want an option for the long term.

With so many options I am beginning to confuse myself and any opinions will be greatly appreciated!!

Thanks in advance,

Bash.

atush

First of all, why pennies in an Isa and 80K in reg savings? If you pay tax, fill up your cash isa now so as to pay less tax.

Why 2 properties instead of one? Why invest abroad? If you want to avoid currency risk, and get in rent Iw ould think of one smallinvestment proprty in the UK. but perhaps best would be to buy your own home and stop putting money into your landlord's pocket. It would cetanily save you capital gans tax for a start not to mention Void periods.

Stock market investments. How much do you know about investing? How much time now and in the future do you have to devote to it (can take a lot of time if buying individually). You might be best off with starting by filling up your S&S ISa allowance into some funds in areas that you like or feel comfortable with.

I'd be inclined to tell you to put 15K into NSI ilscerts that pay inflation+.

BashamandCo

Great, I shall max out my ISA limit for starters, then look to buy a place and consider IL certs and premium bonds.

Will scrap the stock market idea as i don't know my bottom from my elbow and don't particularly like risk.

Thanks for your information, it's been a great help.

atush

Also, do you have a pension? If your employer does, have you been contributing? Do they match payments, and if so are you investing the max to get their max contribution?

Isas, NSI ilscs and pensions are 3 low risk savings ideas.


If you buy a property, make sure you keep back 6 months expendtiure (incl the new mtg and other putgoings like CTax) as a safety buffer.