What is the best way to invest £30000 please?

jonj123

Hi

I would like to invest £30000 and wanted some advice on what is the best way I could invest the money please. I would be happy not to have access to the money for a couple of years.

Thanks

atush

First of all taxpayer? what rate? How many years would you be happy to lock away some/all of it? Risk profiel? What other assets do you have (ie do you already hold 6 months salary/spending in cash)? Do you have a pension (plus details)? Have you filled this years cash ISA?

Can't really say exactly what to do with it unless we know some or all of this stuff.

Put it into an Easy Access savings acct right now while youa re thinking, look for over 2.5% interest- 3 if you can find it.

jonj123

Thanks for your reply.

- I am currently a student therefore no salary.
- I would be happy to put the money away for 18 months
- I already have a natwest e-ISA account and have put filled this year's allowance.
- I have never invested in stocks and shares.

Linton

A couple of years is too short a time to safely invest in shares and similar investments.

I would suggest you consider a 1 or 2 year fixed rate deposit account (colloquially but incorrectly called a bond) or a high interest savings account.

Something else to think about is whether you want to split the £30K into say £20K to be accessed in 18 months time and £10K for long term savings (> 5 years). Then you could sensibly consider putting the £10K into shares.

jonj123

Thanks. So if I want to invest 10K in shares where is the best place to start? I have absolutely no experience.

atush

I would invest in funds, not individual shares, or investment trusts. I would do research before hand and decide what areas/sectors I expect to grow.

But I would keep some of it easy access in case the NSI release another tranch of Index linked certificates to the market. At 18 months, not enough time for equities really.

What wil you need the money for in 18 months? How much of it? When do you intend to be working/a taxpayer.

jonj123

I will be working/paying tax in 2 years time. The only reason I say I need the money is because I intend to buy a house when I start working so might need the money but I have another 40k in addition to the 30k I want to invest so may not necessarily need the money. I do not have any experience in funds, etc. Any advice on where to start please? Also are the funds a good investment or am I just better off sticking the money in a bond?

jonj123

Any advice for me please?

atush

If you have 70K overall, you might be able to invest some of the 30K in equties. But 2 years is a short time for that really.

I might suggest drip feeding a few hundred into the market per month via an investment trust savings plan or a S&S ISA. But really , most should be saved in cash in one year deposits so as to get the best rate but keep it safe.

But before you start, as no one responsable or knowledgible here will advise you which stocks/fund/trusts to pick, although as far as trusts go I would start with a good global general one or an income one.

try the Motley fool to start learning about investing.

innovate

atush wrote: »

try the Motley fool to start learning about investing.

...and or get yourself a couple of books, such as the FT Guide to Investing.